Cover Page
Cover Page | Nov. 08, 2023 |
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 08, 2023 |
Entity Registrant Name | EASTERN BANKSHARES, INC. |
Entity Incorporation, State or Country Code | MA |
Entity File Number | 001-39610 |
Entity Tax Identification Number | 84-4199750 |
Entity Address, Address Line One | 265 Franklin Street |
Entity Address, State or Province | MA |
Entity Address, City or Town | Boston |
Entity Address, Postal Zip Code | 02110 |
City Area Code | 800 |
Local Phone Number | 327-8376 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock |
Trading Symbol | EBC |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001810546 |
Amendment Flag | true |
Amendment Description | Eastern Bankshares, Inc. (the “Company”) is filing this Exhibit 99.1 to its Current Report on Form 8-K (including this Exhibit 99.1, the “Form 8-K”) solely to recast certain financial information and related disclosures included in the Company’s Current Report on Form 10-K for the fiscal year ended December 31, 2022, originally filed with the United States (“U.S.”) Securities and Exchange Commission (the “SEC”) on February 24, 2023 (the “2022 Form 10-K”).Discontinued OperationsOn September 19, 2023, the Company announced that it had entered into an agreement with Arthur J. Gallagher & Co. (“Gallagher”) to sell substantially all of the assets and transfer substantially all of the liabilities of its insurance agency business, which conducts business under the name Eastern Insurance Group, LLC (“Eastern Insurance Group”), in exchange for cash consideration. On October 31, 2023, the Company completed the sale of its insurance agency business to Gallagher. Substantially all of the historical results of our previously reported insurance agency business segment have been reflected as discontinued operations in our recast consolidated financial statements for all periods presented herein, including, as of December 31, 2022 and 2021, the assets and liabilities associated with the discontinued operations being classified as assets and liabilities of discontinued operations in our Consolidated Balance Sheets. Refer to Note 24, “Discontinued Operations” within the Notes to the Consolidated Financial Statements included in Item 8 in this Current Report on Form 8-K for additional information.DisclaimerThis Current Report on Form 8-K does not revise or update any section or subsection of the 2022 Form 10-K other than as expressly noted above. Moreover, in order to preserve the nature and character of the disclosures set forth in such items as originally filed in the 2022 Form 10-K, no attempt has been made in this Current Report on Form 8-K, and it should not be read, to modify or update disclosures as presented in the 2022 Form 10-K to reflect events or occurrences after the date of the filing of the 2022 Form 10-K, except for (i) matters relating specifically to the recasting of the presentation described above and (ii) the information presented in Note 27 Subsequent Events to the Company’s recast financial statements for the year ended December 31, 2022 included as Part II, Item 8 of this Current Report on Form 8-K. Without limiting the foregoing disclaimer, this Current Report on Form 8-K does not purport to update the 2022 Form 10-K for any information, uncertainties, transactions, risks, events or trends occurring, or known to management as of the filing of this Current Report on Form 8-K. Therefore, this Form 8-K (including Exhibit 99.1) should be read in conjunction with the 2022 Form 10-K and the Company’s filings made with the SEC subsequent to the filing of the 2022 Form 10-K, including, without limitation, the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 106,040,000 | $ 144,634,000 |
Short-term investments | 63,465,000 | 1,087,158,000 |
Cash and cash equivalents | 169,505,000 | 1,231,792,000 |
Available for sale (amortized cost $7,825,435 and $8,587,179, respectively) | 6,690,778,000 | 8,511,224,000 |
Held to maturity (fair value $423,226 and $0, respectively) | 476,647,000 | 0 |
Total securities | 7,167,425,000 | 8,511,224,000 |
Loans held for sale | 4,543,000 | 1,206,000 |
Loans: | ||
Total loans | 13,575,531,000 | 12,281,510,000 |
Allowance for loan losses | (142,211,000) | (97,787,000) |
Unamortized premiums, net of unearned discounts and deferred fees, net of costs | (13,003,000) | (26,442,000) |
Net loans | 13,420,317,000 | 12,157,281,000 |
Federal Home Loan Bank stock, at cost | 41,363,000 | 10,904,000 |
Premises and equipment | 62,493,000 | 80,555,000 |
Bank-owned life insurance | 160,790,000 | 157,091,000 |
Goodwill and other intangibles, net | 568,009,000 | 569,207,000 |
Deferred income taxes, net | 331,963,000 | 76,089,000 |
Prepaid expenses | 165,368,000 | 178,803,000 |
Other assets | 426,863,000 | 423,958,000 |
Assets of discontinued operations | 128,219,000 | 114,018,000 |
Total assets | 22,646,858,000 | 23,512,128,000 |
Deposits: | ||
Demand | 6,240,637,000 | 7,020,864,000 |
Interest checking accounts | 4,568,122,000 | 4,478,566,000 |
Savings accounts | 1,831,123,000 | 2,077,495,000 |
Money market investment | 4,710,095,000 | 5,525,005,000 |
Certificates of deposit | 1,624,382,000 | 526,381,000 |
Total deposits | 18,974,359,000 | 19,628,311,000 |
Borrowed funds: | ||
Short-term Federal Home Loan Bank advances | 691,297,000 | 17,000 |
Escrow deposits of borrowers | 22,314,000 | 20,258,000 |
Interest rate swap collateral funds | 14,430,000 | 0 |
Long-term Federal Home Loan Bank advances | 12,787,000 | 14,003,000 |
Total borrowed funds | 740,828,000 | 34,278,000 |
Other liabilities | 424,951,000 | 411,965,000 |
Liabilities of discontinued operations | 34,930,000 | 31,222,000 |
Total liabilities | 20,175,068,000 | 20,105,776,000 |
Commitments and contingencies (see Note 18) | 0 | 0 |
Common shares, $0.01 par value, 1,000,000,000 shares authorized; 176,172,073 and 186,305,332 shares issued and outstanding at December 31, 2022 and 2021, respectively | 1,762,000 | 1,863,000 |
Additional paid in capital | 1,649,141,000 | 1,835,241,000 |
Unallocated common shares held by the Employee Stock Ownership Plan | (137,696,000) | (142,709,000) |
Retained earnings | 1,881,775,000 | 1,768,653,000 |
Accumulated other comprehensive income, net of tax | (923,192,000) | (56,696,000) |
Total shareholders’ equity | 2,471,790,000 | 3,406,352,000 |
Total liabilities and shareholders’ equity | 22,646,858,000 | 23,512,128,000 |
Commercial and industrial | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 3,150,946,000 | 2,960,527,000 |
Allowance for loan losses | (26,859,000) | (18,018,000) |
Commercial real estate | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 5,155,323,000 | 4,522,513,000 |
Allowance for loan losses | (54,730,000) | (52,373,000) |
Commercial construction | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 336,276,000 | 222,328,000 |
Allowance for loan losses | (7,085,000) | (2,585,000) |
Business banking | Commercial Portfolio Segment | ||
Loans: | ||
Total loans | 1,090,492,000 | 1,334,694,000 |
Residential real estate | Residential Portfolio Segment | ||
Loans: | ||
Total loans | 2,460,849,000 | 1,926,810,000 |
Allowance for loan losses | (28,129,000) | (6,556,000) |
Consumer home equity | Consumer Portfolio Segment | ||
Loans: | ||
Total loans | 1,187,547,000 | 1,100,153,000 |
Allowance for loan losses | (6,454,000) | (3,722,000) |
Other consumer | Consumer Portfolio Segment | ||
Loans: | ||
Total loans | $ 194,098,000 | $ 214,485,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Available-for-sale debt securities, amortized cost | $ 7,825,435,000 | $ 8,587,179,000 |
Held-to-maturity debt securities, fair value | $ 423,226,000 | $ 0 |
Common stock, par value (in shares) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 176,172,073 | 186,305,332 |
Common stock outstanding (in shares) | 176,172,073 | 186,305,332 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 476,041 | $ 367,585 | $ 372,152 |
Taxable interest and dividends on available for sale securities | 118,690 | 58,312 | 31,825 |
Non-taxable interest and dividends on available for sale securities | 7,179 | 7,376 | 7,588 |
Interest on federal funds sold and other short-term investments | 3,271 | 1,886 | 1,757 |
Interest and dividends on trading securities | 0 | 0 | 6 |
Total interest and dividend income | 605,181 | 435,159 | 413,328 |
Interest expense: | |||
Interest on deposits | 28,621 | 5,167 | 11,315 |
Interest on borrowings | 8,506 | 165 | 762 |
Total interest expense | 37,127 | 5,332 | 12,077 |
Net interest income | 568,054 | 429,827 | 401,251 |
Provision for (release of) allowance for loan losses | 17,925 | (9,686) | 38,800 |
Net interest income after provision for (release of) loan losses | 550,129 | 439,513 | 362,451 |
Noninterest income: | |||
Service charges on deposit accounts | 30,392 | 24,271 | 21,560 |
Trust and investment advisory fees | 23,593 | 24,588 | 21,102 |
Debit card processing fees | 12,644 | 12,118 | 10,277 |
Interest rate swap income (losses) | 6,009 | 5,634 | (1,381) |
(Losses) income from investments held in rabbi trusts | (10,762) | 10,217 | 10,337 |
Losses on trading securities, net | 0 | 0 | (4) |
Gains on sales of mortgage loans held for sale, net | 248 | 3,605 | 7,066 |
(Losses) gains on sales of securities available for sale, net | (3,157) | 1,166 | 288 |
Other | 17,783 | 15,838 | 14,434 |
Total noninterest income | 76,750 | 97,437 | 83,679 |
Noninterest expense: | |||
Salaries and employee benefits | 233,097 | 227,624 | 201,234 |
Office occupancy and equipment | 37,445 | 37,261 | 30,620 |
Data processing | 52,938 | 46,415 | 41,210 |
Professional services | 15,805 | 21,283 | 15,675 |
Charitable contributions | 0 | 0 | 95,272 |
Marketing | 9,294 | 8,500 | 8,727 |
Loan expenses | 6,384 | 9,114 | 9,184 |
FDIC insurance | 6,250 | 4,226 | 3,734 |
Amortization of intangible assets | 1,198 | 219 | 596 |
Other | 26,238 | 6,313 | 23,239 |
Total noninterest expense | 388,649 | 360,955 | 429,491 |
Income from continuing operations before income tax expense | 238,230 | 175,995 | 16,639 |
Income tax expense | 51,719 | 30,464 | 7,778 |
Net income from continuing operations | 186,511 | 145,531 | 8,861 |
Net income from discontinued operations | 13,248 | 9,134 | 13,877 |
Net income | $ 199,759 | $ 154,665 | $ 22,738 |
Basic earnings per share | |||
Basic earnings per share from continuing operations (in dollars per share) | $ 1.13 | $ 0.85 | $ 0.05 |
Basic earnings per share from discontinued operations (in dollars per share) | 0.08 | 0.05 | 0.08 |
Basic earnings per share (in dollars per share) | 1.21 | 0.90 | 0.13 |
Diluted earnings per share | |||
Diluted earnings per share from continuing operations (in dollars per share) | 1.13 | 0.85 | 0.05 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0.08 | 0.05 | 0.08 |
Diluted earnings per share (in dollars per share) | $ 1.21 | $ 0.90 | $ 0.13 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 199,759 | $ 154,665 | $ 22,738 |
Other comprehensive (loss) income, net of tax: | |||
Net change in fair value of securities available for sale | (821,570) | (104,258) | 23,874 |
Net change in fair value of cash flow hedges | (57,520) | (22,454) | 14,191 |
Net change in other comprehensive income for defined benefit postretirement plans | 12,594 | 15,782 | 60,016 |
Total other comprehensive (loss) income | (866,496) | (110,930) | 98,081 |
Total comprehensive (loss) income | $ (666,737) | $ 43,735 | $ 120,819 |
Consolidated Statements of Chan
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 Income | Unallocated Common Stock Held by ESOP | ||
Beginning balance (in shares) at Dec. 31, 2019 | 0 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 1,600,153 | $ (1,131) | [1] | $ 0 | $ 0 | $ 1,644,000 | $ (1,131) | [1] | $ (43,847) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 22,738 | 22,738 | ||||||||
Other comprehensive income, net of tax | 98,081 | 98,081 | ||||||||
Proceeds of stock offering and issuance of common shares (net of costs of $28.9 million) (in shares) | 179,287,828 | |||||||||
Proceeds of stock offering and issuance of common shares (net of costs of $28.9 million) | 1,763,980 | $ 1,793 | 1,762,187 | |||||||
Issuance of common shares to the Eastern Bank Foundation (in shares) | 7,470,326 | |||||||||
Issuance of common shares donated to the Eastern Bank Foundation | 91,287 | $ 75 | 91,212 | |||||||
Purchase of common shares by the ESOP (14,940,652 shares) | (149,407) | (149,407) | ||||||||
ESOP shares committed to be released | 2,351 | 669 | 1,682 | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 186,758,154 | |||||||||
Ending balance at Dec. 31, 2020 | 3,428,052 | $ 1,868 | 1,854,068 | 1,665,607 | 54,234 | (147,725) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends to common shareholders | (51,619) | (51,619) | ||||||||
Repurchased common stock (in shares) | (1,135,878) | |||||||||
Repurchased common stock | (23,224) | $ (12) | (23,212) | |||||||
Issuance of restricted stock awards (in shares) | 683,056 | |||||||||
Issuance of restricted stock awards | 0 | $ 7 | (7) | |||||||
Net income | 154,665 | 154,665 | ||||||||
Other comprehensive income, net of tax | (110,930) | (110,930) | ||||||||
ESOP shares committed to be released | $ 9,408 | 4,392 | 5,016 | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 186,305,332 | 186,305,332 | ||||||||
Ending balance at Dec. 31, 2021 | $ 3,406,352 | $ (20,098) | [2] | $ 1,863 | 1,835,241 | 1,768,653 | $ (20,098) | [2] | (56,696) | (142,709) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | |||||||||
Dividends to common shareholders | $ (66,539) | (66,539) | ||||||||
Repurchased common stock (in shares) | (10,112,272) | |||||||||
Repurchased common stock | (201,618) | $ (101) | (201,517) | |||||||
Issuance of restricted stock awards (in shares) | 31,559 | |||||||||
Issuance of restricted stock awards | 0 | $ 1 | (1) | |||||||
Unvested restricted stock awards forfeited and subsequently cancelled (in shares) | (52,546) | |||||||||
Unvested restricted stock awards forfeited and subsequently cancelled | 0 | $ (1) | 1 | |||||||
Share-based compensation | 10,507 | 10,507 | ||||||||
Net income | 199,759 | 199,759 | ||||||||
Other comprehensive income, net of tax | (866,496) | (866,496) | ||||||||
ESOP shares committed to be released | $ 9,923 | 4,910 | 5,013 | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 176,172,073 | 176,172,073 | ||||||||
Ending balance at Dec. 31, 2022 | $ 2,471,790 | $ 1,762 | $ 1,649,141 | $ 1,881,775 | $ (923,192) | $ (137,696) | ||||
[1] Represents cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2016-02 Leases . The transition adjustment to the opening balance of retained earnings on January 1, 2020 amounted to $1.1 million, net of tax, related to an incremental accrued rent adjustment calculated as a result of electing the hindsight practical expedient. 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 Financial Instruments–Credit Losses on Financial Instruments and relevant amendments. Refer to Note 5, “Loans and Allowance for Credit Losses” within the Notes to the Consolidated Financial Statements included in this Item 8 in this Current Report on Form 8-K for additional discussion. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity - Parenthetical $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) shares | |
Issuance costs | $ 28,900 |
Purchase of common shares by the ESOP (14,940,652 shares) (in shares) | shares | 14,940,652 |
Shareholders’ equity | $ 3,428,052 |
Deferred income tax expense (benefit) | (20,800) |
Retained Earnings | |
Shareholders’ equity | 1,665,607 |
Additional Paid in Capital | |
Shareholders’ equity | $ 1,854,068 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating activities | ||||
Net income from continuing operations | $ 186,511 | $ 145,531 | $ 8,861 | |
Net income from discontinued operations | 13,248 | 9,134 | 13,877 | |
Net income | 199,759 | 154,665 | 22,738 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Provision for (release of) allowance for loan losses | 17,925 | (9,686) | 38,800 | |
Depreciation and amortization | 11,985 | 11,900 | 13,387 | |
Accretion of deferred loan fees and premiums, net | (1,441) | (27,991) | (14,574) | |
Deferred income tax expense (benefit) | 5,262 | (5,663) | (20,800) | |
Amortization of investment security premiums and discounts, net | 18,274 | 16,713 | 5,585 | |
Right-of-use asset amortization | 11,432 | 10,982 | 10,349 | |
Share-based compensation | 10,507 | 0 | 0 | |
Increase in cash surrender value of bank-owned life insurance | (3,699) | (2,348) | (2,188) | |
Loss (gain) on life insurance benefits | 663 | (1,813) | (174) | |
Loss (gain) on sales of securities available for sale, net | 3,157 | (1,166) | (288) | |
(Gain) loss on sales of bank premises and equipment, net | (1,412) | 4,715 | 73 | |
Loss on lease termination/modification, net | 593 | 2,582 | 0 | |
Amortization of gains from terminated interest rate swaps | (10,193) | (31,234) | (15,889) | |
ESOP expense | 9,923 | 9,408 | 2,351 | |
Issuance of common shares donated to the Eastern Bank Foundation | [1] | 0 | 0 | 91,287 |
Other | 17 | (106) | (587) | |
Change in: | ||||
Trading securities | 0 | 0 | 961 | |
Loans held for sale | (3,354) | (47) | (1,133) | |
Prepaid pension expense | 4,338 | 1,130 | (24,055) | |
Other assets | 5,431 | 62,380 | (85,365) | |
Other liabilities | (52,800) | (16,132) | 46,074 | |
Net cash provided by operating activities - continuing operations | 213,119 | 169,155 | 52,675 | |
Net cash provided by operating activities - discontinued operations | 16,823 | 5,335 | 17,176 | |
Net cash provided by operating activities | 229,942 | 174,490 | 69,851 | |
Investing activities | ||||
Proceeds from sales of securities available for sale | 431,193 | 23,798 | 9,097 | |
Proceeds from maturities and principal paydowns of securities available for sale | 1,049,522 | 939,575 | 452,392 | |
Purchases of securities available for sale | (740,770) | (3,323,893) | (2,111,773) | |
Proceeds from maturities and principal paydowns of securities held to maturity | 17,399 | 0 | 0 | |
Purchases of securities held to maturity | (493,678) | 0 | 0 | |
Proceeds from sale of Federal Home Loan Bank stock | 63,715 | 6,692 | 749 | |
Purchases of Federal Home Loan Bank stock | (94,174) | (2,101) | (527) | |
Contributions to low income housing tax credit investments | (19,487) | (11,379) | (12,372) | |
Contributions to other equity investments | (788) | (2,519) | (4,395) | |
Distributions from other equity investments | 1,170 | 337 | 201 | |
Proceeds from life insurance policies | 20,446 | 0 | 1,347 | |
Net (increase) decrease in outstanding loans, excluding loan purchases | (926,255) | 380,807 | (719,041) | |
Purchases of loans | (380,234) | 0 | 0 | |
Acquisitions, net of cash and cash equivalents acquired | 0 | (9,085) | 0 | |
Purchased banking premises and equipment, net | (8,627) | (5,728) | (4,806) | |
Proceeds from sale of bank premises and equipment | 17,313 | 21,981 | 0 | |
Proceeds from sale of other real estate owned | 0 | 125 | 646 | |
Net cash used in investing activities - continuing operations | (1,063,255) | (1,981,390) | (2,388,482) | |
Net cash used in investing activities - discontinued operations | (13,400) | (4,354) | (1,701) | |
Net cash provided by (used in) investing activities | (1,076,655) | (1,985,744) | (2,390,183) | |
Financing activities | ||||
Net (decrease) increase in demand, savings, interest checking, and money market investment deposit accounts | (1,751,953) | 1,155,868 | 2,674,672 | |
Net increase (decrease) in time deposits | 1,098,001 | (58,144) | (70,280) | |
Net increase (decrease) in borrowed funds | 706,550 | 2,580 | (207,346) | |
Repayments of acquired subordinated debentures | [2] | 0 | (36,277) | 0 |
Proceeds from issuance of common shares | 0 | 0 | 1,792,878 | |
Purchase of shares by the ESOP | 0 | 0 | (149,407) | |
Payment of deferred offering costs | 0 | 0 | (28,552) | |
Payments for repurchases of common stock | (201,618) | (23,224) | 0 | |
Dividends declared and paid to common shareholders | (65,886) | (51,564) | 0 | |
Net cash (used in) provided by financing activities - continuing operations | (214,906) | 989,239 | 4,011,965 | |
Net cash used in financing activities - discontinued operations | (668) | (263) | (165) | |
Net cash (used in) provided by financing activities | (215,574) | 988,976 | 4,011,800 | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,062,287) | (822,278) | 1,691,468 | |
Cash, cash equivalents, and restricted cash at beginning of period | 1,231,792 | 2,054,070 | 362,602 | |
Cash, cash equivalents, and restricted cash at end of period | 169,505 | 1,231,792 | 2,054,070 | |
Cash paid during the period for: | ||||
Interest paid | 35,241 | 5,354 | 13,684 | |
Income taxes | 41,751 | 43,299 | 35,128 | |
Non-cash activities | ||||
Net increase in capital commitments relating to low income housing tax credit projects | 55,233 | 28,291 | 25,816 | |
Net decrease in operating lease right-of-use assets and operating lease liabilities relating to lease remeasurements (see Note 8, “Leases” within the Notes to the Consolidated Financial Statements) | 14,836 | 0 | 0 | |
Maturity of acquired securities sold under agreements to repurchase | [3] | 0 | 274,982 | 0 |
Initial recognition of operating lease right-of-use assets upon adoption of ASU 2016-02 | 0 | 0 | 92,948 | |
Initial recognition of operating lease liabilities upon adoption of ASU 2016-02 | $ 0 | $ 0 | $ 96,426 | |
[1]Represents a non-cash common stock donation of 7,470,326 shares at a fair value of $91.3 million to the Eastern Bank Foundation. The donation is included in charitable contributions as a non-interest expense in the Consolidated Income Statement for the year ended December 31, 2020.[2]The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be a defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition and is reflected as such balance in the summary of net assets acquired included in Note 3 to the Consolidated Financial Statements. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt.[3]Includes non-cash item representing maturity of acquired securities sold under agreements to repurchase which were converted to deposits upon maturity. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Parenthetical $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) shares | |
Issuance of common shares donated to the Eastern Bank Foundation | $ 91,287 |
Common Stock | |
Issuance of common shares to the Eastern Bank Foundation (in shares) | shares | 7,470,326 |
Issuance of common shares donated to the Eastern Bank Foundation | $ 75 |
Corporate Structure and Nature
Corporate Structure and Nature of Operations; Plan of Reorganization and Conversion; Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Corporate Structure and Nature of Operations; Plan of Reorganization and Conversion; Basis of Presentation | Corporate Structure and Nature of Operations; Conversion and Reorganization; 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, and trust and investment services through its full-service bank branches and, as of December 31, 2022, insurance services through its full-service insurance offices, located primarily in eastern Massachusetts, southern and coastal New Hampshire and Rhode Island. Eastern Insurance Group is a wholly-owned subsidiary of the Bank. 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 24, “Discontinued Operations” for further discussion regarding discontinued operations. 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 (“CFPB”). The Company and the activities of the Bank and its subsidiaries are also subject to various Massachusetts, New Hampshire and Rhode Island business, banking and, through October 31, 2023, insurance regulations. Conversion and Reorganization Pursuant to a Plan of Conversion (the “Plan”), Eastern Bank Corporation, the predecessor of the Company, reorganized from a mutual holding company into a publicly traded stock form of organization on October 14, 2020. In connection with the reorganization, Eastern Bank Corporation transferred to the Company 100% of Eastern Bank’s common stock, and immediately thereafter merged into the Company. Pursuant to the Plan, the Company sold 179,287,828 shares of common stock in a public offering at $10.00 per share, including 14,940,652 shares of common stock purchased by the Bank’s employee stock ownership plan (the “ESOP”), for gross offering proceeds of approximately $1,792,878,000. The Company completed the offering on October 14, 2020. Effective as of October 15, 2020, the Company donated 7,470,326 shares of common stock to the Eastern Bank Charitable Foundation (now known as the Eastern Bank Foundation, or the “Foundation”). A total of 186,758,154 shares of common stock of the Company were issued and outstanding immediately after the donation to the Foundation. The purchase of common stock by the ESOP was financed by a loan from the Company. Pursuant to the Plan, eligible account holders have received an interest in a liquidation account maintained by the Company in an amount equal to (i) Eastern Bank Corporation’s ownership interest in the Bank’s total shareholders’ equity as of March 31, 2020, the date of the latest statement of financial position included in the latest prospectus filed with the U.S. Securities and Exchange Commission (“SEC”) for the Company's initial public offering (“IPO”), plus (ii) the value of the net assets of Eastern Bank Corporation as of March 31, 2020 (excluding its ownership of Eastern Bank). Also pursuant to the Plan, a parallel liquidation account maintained at the Bank was established to support the Company’s liquidation account in the event the Company does not have sufficient assets to fund its obligations under its liquidation account. The Company and the Bank hold the liquidation accounts for the benefit of eligible account holders who continue to maintain deposits in the Bank. The Company is not permitted to pay dividends on its capital stock if the shareholders’ equity of the Company would be reduced below the amount of the liquidation account. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. In the event of a complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. See “Regulation—Liquidation Account Effect on Dividends” included in Item 1 in this Current Report on Form 8-K. 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 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 year’s presentation which includes: • certain loan servicing-related costs have been reclassified from professional services to loan expense; and • operational losses have been reclassified to other non-interest expense. As a result of the decision to sell substantially all of the assets and transfer certain 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, including the associated income tax effects, previously reported in the insurance agency business were reclassified to net income from discontinued operations on the Consolidated Statements of Income; and |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 loan losses, valuation and fair value measurements, allowance for credit losses on investment securities, the liabilities for benefit obligations (particularly pensions), the provision for income taxes and impairment of goodwill and other intangibles. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and amounts due from banks, federal funds sold, and other short-term investments including restricted cash pledged, all of which have an original maturity of 90 days or less. Cash and cash equivalents includes $1.0 million and $21.3 million of restricted cash pledged as collateral at December 31, 2022 and 2021, respectively, which for purposes of the Company’s Consolidated Statements of Cash Flows, is included in cash, cash equivalents and restricted cash. Securities Debt securities are classified at the time of purchase as either “trading,” “available for sale” (“AFS”) or “held to maturity” (“HTM”). Equity securities are measured at fair value with changes in the fair value recognized through net income. Debt securities that are bought and held principally for the purpose of resale in the near term are classified as trading securities and recorded at fair value, with subsequent changes in fair value included in net income. Debt securities that the Company has the positive intent and the ability to hold to maturity are classified as HTM securities and recorded at amortized cost. Debt securities not classified as either trading or HTM are classified as AFS and recorded at fair value, with changes in fair value excluded from net income and reported in other comprehensive income, net of related tax. Amortization of premiums and accretion of discounts are computed using the effective interest rate method. ASU 2016-13 made targeted changes to ASC 320 to eliminate the concept of “other than temporary” from the impairment loss estimation model for AFS securities. A summary of the changes made by the Company to the existing impairment model (previously referred to as the “OTTI” model) as a result of adoption of ASU 2016-13 is as follows: • The use of an allowance approach, rather than a permanent write-down of a security’s cost basis upon determination of an impairment loss. • The amount of the allowance is limited to the amount at which the security’s fair value is less than its amortized cost basis. • The Company may not consider the length of time a security’s fair value has been less than amortized cost. • The Company may not consider recoveries in fair value after the balance sheet date when assessing whether a credit loss exists. The Company’s AFS securities are carried at fair value. For AFS securities in an unrealized loss position, management will first evaluate whether there is intent to sell a security, or if it is more likely than not that the Company will be required to sell a security prior to anticipated recovery of its amortized cost basis. If either of these criteria are met, the Company will record a write-down of the security’s amortized cost basis to fair value through income. For those AFS securities which do not meet the intent or requirement to sell criteria, management will evaluate whether the decline in fair value is a result of credit related matters or other factors. In performing this assessment, management considers the creditworthiness of the issuer including whether the security is guaranteed by the U.S. federal government or other government agency, the extent to which fair value is less than amortized cost, and changes in credit rating during the period, among other factors. If this assessment indicates the existence of credit losses, an allowance for credit losses will be established, as determined by a discounted cash flow analysis. To the extent the estimated cash flows do not support the amortized cost, the deficiency is considered to be due to credit loss and is recognized in earnings. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when the security is determined to be uncollectible, or when either of the aforementioned criteria surrounding intent or requirement to sell have been met. On January 1, 2022, the date on which the Company adopted ASU 2016-13, no allowance for credit losses was recorded for AFS securities. Gains and losses on sales of securities are recognized at the time of sale on the specific-identification basis. Prior to the adoption of ASU 2016-13, management evaluated impaired securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warranted such evaluation. Consideration was given to the length of time and the extent to which the fair value was less than cost, current market conditions, the financial condition and near-term prospects of the issuer, performance of collateral underlying the securities, the ratings of the individual securities, the interest rate environment, the Company’s intent to sell the security or whether it was more likely than not that the Company would be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. If a decline in fair value below the amortized cost basis of an investment was judged to be other than temporary, the investment was written down to fair value. The portion of the impairment related to credit losses was included in net income, and the portion of the impairment related to other factors was included in other comprehensive income. Refer to Note 4, “Securities” for additional information regarding the measurement of impairment losses on AFS securities. Allowance for Credit Losses - Held to Maturity Securities The Company measures expected credit losses on HTM securities on a collective basis by major security type which, as of December 31, 2022, included government-sponsored residential and commercial mortgage-backed securities. Securities in the Company’s HTM portfolio are guaranteed by either the U.S. federal government or other government sponsored agencies with a long history of no credit losses. As a result, management has determined that these securities have a zero loss expectation and therefore does not record an allowance for credit losses on these securities. The Company held no securities classified as HTM at December 31, 2021. Refer to Note 4, “Securities” for additional information regarding the measurement of credit losses on HTM securities. Loans Loans are reported at their principal amount outstanding, net of deferred loan fees and costs and any unearned discount or unamortized premium for acquired loans. Unearned discount and unamortized premium are accreted and amortized, respectively, to interest and dividend income on a basis that results in level rates of return over the terms of the loans. For originated loans, origination fees and related direct incremental origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the effective interest method, assuming a certain level of prepayments. When loans are sold or repaid, the unamortized fees and costs are recorded to interest and dividend income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is also accrued based upon the daily principal amount outstanding and is adjusted further by the accretion of any discount or amortization of any premium associated with the loan. Non-performing Loans (“NPLs”) Non-accrual Loans Interest accruals are generally discontinued when management has determined that the borrower may be unable to meet contractual obligations and/or when loans are 90 days or more past due. 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. When a loan is placed on non-accrual, all interest previously accrued but not collected is reversed against current period income and amortization of deferred loan fees and costs is discontinued. Interest received on non-accrual loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. 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. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered NPLs. Loans Individually Assessed for Impairment ASU 2016-13 indicates that a loan should be measured for impairment individually if that loan shares no similar risk characteristics with other loans. For the Company, loans which have been identified as those to be individually assessed for impairment under CECL include loans that do not share similar risk characteristics with other loans in the corresponding reserve segment. Characteristics of loans meeting this definition may include, but are not limited to: • Loans previously restructured and determined to be TDR loans; • Loans on non-accrual status; and • Loans with a risk rating of 12 under the Company’s risk rating scale, substandard (well-defined weakness) or worse. Collateral-Dependent Loans Management considers a loan to be collateral-dependent when foreclosure of the underlying collateral is probable. In addition, in accordance with ASU 2016-13, the Company elected to apply the collateral-dependent practical expedient whereby the Company measures expected credit losses using the fair value of the collateral, less any estimated costs to sell, when foreclosure is not probable but repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. Troubled Debt Restructured Loans In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. Modifications may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower’s obligations have been effectively discharged through Chapter 7 bankruptcy and the borrower has not reaffirmed the debt to the Company, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Prior to the Company’s adoption of ASU 2016-13, all TDR loans were subject to a specific review for impairment loss each period beginning in the period in which the modification was executed. Subsequent to the adoption of ASU 2016-13, management identifies loans as TDR loans when it has a reasonable expectation that it will execute a TDR modification with a borrower. In addition, subsequent to adoption of ASU 2016-13, management estimates expected credit losses on a collective basis if a group of TDR loans share similar risk characteristics. If a TDR loan’s risk characteristics are not similar to those of any of the Company’s other TDR loans, expected credit losses on the TDR loan are measured individually. The impairment analysis discounts 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 is collateral dependent. The amount of credit loss, if any, is 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 is 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 has been classified as a TDR and which subsequently defaults is 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 is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. The Company’s policy is to retain any restructured loan, which is on non-accrual status prior to being modified, on non-accrual status for approximately six months subsequent to being modified before the Company considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, the Company reviews it to determine if the modified loan should remain on accrual status. Purchased Credit-Deteriorated Loans The Company applied the prospective transition approach with respect to PCD assets upon adoption of ASU 2016-13. Under this approach, loans previously determined to be PCI loans are considered to be PCD loans as of January 1, 2022. PCD loans are acquired individual loans (or acquired groups of loans with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. A PCD loan is recorded at its purchase price plus the allowance for loan losses expected at the time of acquisition, or “gross up” of the amortized cost basis, if any. Changes in the current estimate of the allowance for loan losses subsequent to acquisition from the estimated allowance previously recorded are recognized in the income statement as provision for credit losses or reversal of provision for credit losses in subsequent periods as they arise. A purchased loan that does not qualify as a PCD asset is accounted for similar to the Company’s method of accounting for originated assets, whereby an allowance for loan losses is recognized with a corresponding increase to the income statement provision for loan losses. Evidence that purchased loans, measured at amortized cost, have more-than-insignificant deterioration in credit quality since origination and, therefore meet the PCD definition, may include past-due status, non-accrual status, risk rating and other standard indicators (i.e., TDRs, charge-offs, bankruptcy). Allowance for Credit Losses Through December 31, 2021, the allowance for loan losses represented management’s best estimate of incurred probable losses in the Company’s loan portfolios based upon management’s assessment of various factors, including the risk characteristics of its loan portfolio, current economic conditions, and trends in loan delinquencies and charge-offs. The Company’s methodology for determining the qualitative component through December 31, 2021 included an assessment of factors affecting the determination of incurred losses in the loan portfolio. Such factors included trends in economic conditions, loan growth, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons, among others. Upon adoption of ASU 2016-13, effective January 1, 2022, the Company changed its reserve methodology to estimate expected credit losses over the contractual life of loans and leases. The allowance for credit losses, or “ACL,” is established to provide for the Company’s current estimate of expected lifetime credit losses on loans measured at amortized cost and unfunded lending commitments at the balance sheet date and is established through a provision for credit losses charged to net income. Credit losses are charged directly to the ACL. Subsequent recoveries, if any, are credited to the ACL. 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 finance loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type. Charge-off triggers include: 120 days delinquent for automobile, home equity, and other consumer loans with the exception of cash reserve loans for which the trigger is 150 days delinquent; death of the borrower; or Chapter 7 bankruptcy. In addition to those events, the charge-off determination includes other loan quality indicators, such as collateral position and adequacy or the presence of other repayment sources. The ACL is evaluated on a regular basis by management. Management uses a methodology to systematically estimate the amount of expected lifetime losses in the portfolio. Expected lifetime losses are estimated on a collective basis for loans sharing similar risk characteristics and are determined using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output. For commercial and industrial, commercial real estate, commercial construction and business banking portfolios, the quantitative model uses a loan rating system which is comprised of management’s determination of a financial asset’s probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”), which are derived from both the Company’s and industry historical loss experience and other factors. For residential real estate, consumer home equity and other consumer portfolios, the Company’s quantitative model uses historical loss experience. The quantitative model estimates expected credit losses using loan level data over the estimated life of the exposure, considering the effect of prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period, beyond which is a reversion to the Company’s and/or industry historical loss average. Management has determined that a reasonable and supportable forecast period of eight quarters, and a straight-line reversion period of four quarters, are appropriate forecast periods for purposes of estimating expected credit losses. As described above, quantitative model results are adjusted for risk factors not considered within the model but which are relevant in estimating the expected credit losses within the loan portfolio. The qualitative risk factors impacting the expected risk of loss within the loan portfolio include the following: • Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices; • Nature and volume of the portfolio; • Volume and severity of past-due, non-accrual and classified loans; • The value of the underlying collateral for loans that are not collateral dependent; • Concentrations of credit risk; • Model and data limitations; and • Other external factors, such as changes in legal, regulatory or competitive environments. Loans that do not share similar risk characteristics with any pools of assets are subject to individual evaluation and are removed from the collectively assessed pools. For loans that are individually evaluated, the Company uses either a discounted cash flow (“DCF”) approach or, for loans deemed to be collateral dependent or when foreclosure is probable, a fair value of collateral approach. Accrued interest receivable amounts are excluded from balances of loans held at amortized cost and are included within other assets on the consolidated balance sheet. Management has elected not to measure an allowance for credit losses on these amounts as the Company employs a timely write-off policy. Consistent with the Company's policy for non-accrual loans, accrued interest receivable is typically written off when loans reach 90 days past due and are placed on non-accrual status. In the ordinary course of business, the Company enters into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the reserving method for loans receivable previously described. The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets. Additionally, various regulatory agencies, as an integral part of the Company’s examination process, periodically assess the appropriateness of the allowance for credit losses and may require the Company to increase its allowance for loan losses or recognize further loan charge-offs, in accordance with GAAP. Refer to Note 5, “Loans and Allowance for Credit Losses” for additional information regarding the Company’s measurement of credit losses on loans receivable and off-balance sheet commitments to lend as of December 31, 2022. For comparative allowance for loan loss information for which ASC 450, “Contingencies” and ASC 310, “Receivables” were applied (i.e., prior to the Company’s adoption of the CECL methodology previously described), refer to Note 6, “Loans and Allowance for Loan Losses.” Mortgage Banking Activities Mortgage loans held for sale to the secondary market are carried at the lower of cost or estimated market value on an individual loan basis. The Company enters into commitments to fund residential mortgage loans with an offsetting forward commitment to sell them in the secondary markets in order to mitigate interest rate risk. Gains or losses on sales of mortgage loans are recognized in the consolidated statements of income at the time of sale. Interest income is recognized on loans held for sale between the time the loan is funded and the loan is sold. Direct loan origination costs and fees are deferred upon origination and are recognized in the consolidated statements of income on the date of sale. Other Real Estate Owned OREO consists of properties and other assets acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. OREO is recorded in other assets in the Consolidated Balance Sheets, on an individual asset basis at the fair value less estimated costs to sell on the date control is obtained. Any write-downs to the cost of the related asset upon transfer to OREO to reflect the asset at fair value less estimated costs to sell is recorded through the allowance for loan losses. 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. As of December 31, 2022 and 2021, the Company’s OREO was immaterial. Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank (“FHLB”) of Boston (“FHLBB”), is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. Premises and Equipment Land is carried at cost. Buildings, leasehold improvements and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease terms or the estimated lives of the improvements. Expected lease terms include lease options to the extent that the exercise of such options is reasonably assured. Banking premises and equipment held for sale are carried at the lower of cost or estimated fair value, less estimated costs to sell. Goodwill and Other Intangible Assets Acquisitions of businesses are accounted for using the acquisition method of accounting. Accordingly, the net assets of the companies acquired are recorded at their fair values at the date of acquisition. Goodwill represents the excess of purchase price over the fair value of net assets acquired. Other intangible assets represent acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights, or because the asset is capable of being sold or exchanged either on its own, or in combination with a related contract, asset, or liability. The Company evaluates goodwill for impairment at least annually, during the third quarter, or more often if warranted, using a quantitative impairment approach. The quantitative impairment test compares the book value to the fair value of each reporting unit. If the book value exceeds the fair value, an impairment is charged to net income. As of December 31, 2022, management identified two reporting units for purposes of testing goodwill for impairment: the banking business and the insurance agency business. Other intangible assets, all of which are definite-lived, are stated at cost less accumulated amortization. The Company evaluates other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be fully recovered. The Company considers factors including, but not limited to, changes in legal factors and business climate that could affect the value of the intangible asset. Any impairment losses are charged to net income. The Company amortizes other intangible assets over their respective estimated useful lives. The estimated useful lives of core deposit identifiable intangible assets fall within a range of seven Retirement Plans The Company provides benefits to its employees and executive officers through various retirement plans, including a defined benefit plan, a defined benefit supplemental executive retirement plan, a defined contribution plan, a benefit equalization plan, and an outside directors’ retainer continuance plan. Effective November 1, 2020, the defined benefit plan (“Defined Benefit Plan”) and the benefit equalization plan (“BEP”) were amended to convert the plans from a traditional final average earnings plan design to a cash balance plan design. Benefits earned under the final average earnings plan design were frozen at October 31, 2020. Starting November 1, 2020, future benefits are earned under the cash balance plan design. The defined benefit plan benefits are provided through membership in the Savings Banks Employees’ Retirement Association (“SBERA”). The Defined Benefit Plan is a noncontributory, defined benefit plan. Under the final average earnings plan design, benefits became fully vested after three years of eligible service for individuals employed on or before October 31, 1989. For individuals employed subsequent to October 31, 1989 and who were already in the Defined Benefit Plan as of November 1, 2020, benefits became fully vested after five years of eligible service. Under the cash balance plan design and for employees who were not already in the Defined Benefit Plan as of November 1, 2020, benefits become fully vested after three years of eligible service. The 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 Company also has an unfunded Defined Benefit Supplemental Executive Retirement Plan (“DB SERP”) that provides certain retired officers 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. The Company’s BEP, which is an unfunded plan, provides retirement benefits to certain employees whose retirement benefits under the Defined Benefit 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 Outside Directors’ Retainer Continuance Plan 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. Plan assets are invested in various investment funds and held at fair value which generally represents observable market prices. Pension liability is determined based on the actuarial cost method factoring in assumptions such as salary increases, expected retirement date, mortality rate, and employee turnover. The actuarial cost method used to compute the pension liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of the projected benefit distributions at an assumed discount rate (which is the rate at which the projected benefit obligation could be effectively settled as of the measurement date). The discount rate which is utilized is determined using the spot rate approach whereby the individual spot rates on the Financial Times and Stock Exchange (“FTSE”) above-median yield curve are applied to each corresponding year’s projected cash flow used to measure the respective plan’s service cost and interest cost. Periodic pension expense (or income) includes service costs, interest costs based on the assumed discount rate, the expected return on plan assets, if applicable, based on the market value of assets and amortization of actuarial gains and losses. Net periodic benefit cost excluding service cost is included within other noninterest expense in the consolidated statements of income. Service cost for all plans except the ODRCP is included in salaries and employee benefits in the consolidated statements of income. Service cost for the ODRCP is included in professional services in the consolidated statements of income. Service costs related to the Defined Benefit Plan and BEP and which are related to employees of Eastern Insurance Group, are included in discontinued operations. The amortization of actuarial gains and losses for the DB SERP and ODRCP is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants for the ODRCP, and over the average remaining future life expectancy of plan participants for the DB SERP. The amortization of actuarial gains and losses for the Defined Benefit Plan and BEP is determined without using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants. The overfunded or underfunded status of the plans is recorded as an asset or liability on the Consolidated Balance Sheets, with changes in that status recognized through other comprehensive income, net of related taxes. Funded status represents the difference between the projected benefit obligation of the plan and the market value of the plan’s assets. Employee Tax Deferred Incentive Plan The Company has an employee tax deferred incentive plan (“401(k) plan”) under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company is included in salaries and employee benefits expense. Defined Contribution Supplemental Executive Retirement Plan The Company has a defined contribution supplemental executive retirement plan (“DC SERP”), which allows certain senior officers to earn benefits calculated as a percentage of their compensation. The participant benefits are adjusted based upon a deemed investment performance of measurement funds selected by the participant. These measurement funds are for tracking purposes and are used only to track the performance of a mutual fund, market index, savings instrument, or other designated investment or portfolio of investments. Effective December 31, 2021, the Company closed the DC SERP |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions The information presented within this Note excludes discontinued operations. Refer to Note 24, “Discontinued Operations” for further discussion regarding discontinued operations. On November 12, 2021, the Company completed its acquisition of Century Bancorp, Inc. (“Century”). Under the terms of the Merger Agreement, each holder of Century Class A and B common stock received a cash payment of $115.28 per share. The total consideration paid in the acquisition of Century was $641.9 million in cash. In connection with the acquisition, Century Bank and Trust Company, a wholly owned subsidiary of Century, was merged with and into the Bank. The acquisition added $7.1 billion to total assets, including goodwill and intangible assets, $2.9 billion to total loans, which included PCI loans totaling $67.3 million and $6.1 billion to total deposits, and added 29 full-service banking offices in Massachusetts, as of the date of closing. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations . Under this method of accounting, the respective assets acquired and liabilities assumed were recorded at their estimated fair values. The excess of consideration paid over the estimated fair value of the net assets acquired totaled $259.0 million and was recorded as goodwill. The results of Century’s operations were included in the Company’s Consolidated Financial Statements subsequent to the acquisition date. The calculation of goodwill was subject to change for up to one year after the closing date of the transaction as additional information relative to closing date estimates and uncertainties became available. As of December 31, 2022, the Company finalized its analysis of these assets and liabilities and no adjustments to the recorded carrying values were considered necessary. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition from Century: Net Assets Acquired at Fair Value (In thousands) Assets Cash and due from banks $ 56,831 Short-term investments 575,953 Investment securities 3,117,022 Loans 2,906,491 FHLB stock 6,690 Premises and equipment 64,521 Bank owned life insurance 95,478 Goodwill 259,024 Core deposit intangible 11,633 Other assets 18,915 Total assets acquired 7,112,558 Liabilities Deposits 6,099,821 Securities sold under agreements to repurchase 274,982 Escrow deposits of borrowers 3,649 Other liabilities 92,237 Total liabilities assumed 6,470,689 Purchase price $ 641,869 Fair Value Measurement of Assets Assumed and Liabilities Assumed The methods used to determine the fair value of the assets acquired and liabilities assumed in the Century acquisition were as follows: Investment Securities The estimated fair values of the available for sale debt securities and held-to-maturity debt securities, primarily comprised of U.S. Government agency mortgage-backed securities, U.S. government agencies, Small Business Administration (“SBA”) pooled securities, and municipal bonds carried on Century’s balance sheet, was confirmed using open market pricing provided by multiple independent securities brokers. Based upon management’s determination, a fair value adjustment of $(37.3) million, reflecting a net discount, was recorded on acquired securities and reflects the net unrealized loss position of such securities at the date of acquisition. Securities acquired that were classified on Century’s balance sheet as held-to-maturity were reclassified as available for sale upon acquisition, reflecting management’s intent with respect to such securities. Loans Loans acquired in the Century acquisition were recorded at fair value, and there was no carryover of the allowance for loan losses. The fair value of the loans acquired from Century was determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. Management retained a third-party valuation specialist to assist with the determination of future credit losses, prepayments and a market-based discount rate, the results of which were reviewed by management. A fair value adjustment of $(13.3) million, reflecting a net discount, was recorded on the loans acquired in this transaction and was due primarily to anticipated credit loss, as well as considerations for liquidity and market interest rates. A portion of the acquired loans exhibited evidence of more-than-insignificant deterioration in credit quality since origination and thus were reviewed to determine if any loans would be deemed PCI. The following is a summary of the PCI loans identified as a result of the review performed as of the date acquired: As of November 12, 2021 (In thousands) Contractually required principal and interest at acquisition (1) $ 82,900 Contractual cash flows not expected to be collected 6,746 Expected cash flows at acquisition 76,154 Interest component of expected cash flows 8,896 Basis in PCI loans at acquisition - estimated fair value $ 67,258 (1) Contractually required principal and interest at acquisition includes interest not expected to be collected due to estimated prepayments. Premises and Equipment The Company acquired 29 branches from Century as of the date of closing, 13 of which were owned premises. The fair value of properties acquired was derived by valuations prepared by an independent third party utilizing a combination of the cost approach and the sales comparison approach to value the property as improved. Included in the acquired premises and equipment of $64.5 million was real estate previously owned by Century and located at 400 Mystic Avenue, Medford, Massachusetts (the “400 Mystic Parcel”). On September 30, 2021, the Company executed a definitive Purchase and Sale Agreement that provided for Eastern Bank to sell the 400 Mystic Parcel, where Century maintained its executive offices. The purchase price for the 400 Mystic Parcel was $20.5 million in cash payable at the closing of the sale which occurred in the mid-fourth quarter of 2021 after the Company completed the acquisition. The fair value of the property was initially recorded at an amount equal to the agreed upon purchase price. Accordingly, no gain or loss was recognized as a result of the sale. Leases As part of the Century acquisition the Company added 20 lease obligations. The Company recorded a $13.9 million right-of-use asset and lease liability for these lease obligations. Core Deposit Intangible The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate commensurate with market participants. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available through FHLBB borrowing rates and national brokered CD offering rates. The projected cash flows were developed using projected deposit attrition rates. Management retained a third-party valuation specialist to assist with the determination of projected cash flows, the results of which were reviewed by management. The core deposit intangible totaled $11.6 million and is being amortized on a straight-line basis over its estimated useful life of approximately 10 years. Goodwill The calculation of goodwill was subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties became available. As the Company finalized its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values could have been required. No adjustments were considered necessary in connection with this review. The goodwill is evaluated annually for impairment. The goodwill is not deductible for tax purposes. Bank Owned Life Insurance (“BOLI”) Century’s BOLI cash surrender value was $95.5 million with no fair value adjustment. Time Deposits The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $1.8 million is being amortized into income on a level yield amortization method over the contractual life of the deposits. Securities Sold Under Agreements to Repurchase Acquired securities sold under agreements to repurchase were $275.0 million with no fair value adjustment as the fair value approximates carrying value. Such agreements reached their maturity prior to December 31, 2021. Accordingly, the Company had no obligations related to securities sold under agreements to repurchase as of December 31, 2021. Securities sold under agreements to repurchase were customer-related and were converted to deposits upon maturity. Escrow Deposits of Borrowers Century’s escrow deposits of borrowers was $3.6 million with no fair value adjustment. Merger-Related Expenses The Company recorded merger and acquisition expenses of $35.5 million during the year ended December 31, 2021 related to the Century acquisition. These merger and acquisition expenses were included in the following line items of the consolidated statements of income: For the Year Ended December 31, 2021 (In thousands) Salaries and employee benefits $ 15,947 Office occupancy and equipment 7,198 Data processing 1,286 Professional services 9,223 Other 1,802 $ 35,456 The following table presents certain unaudited pro forma information for the years ended December 31, 2021 and 2020. This unaudited estimated pro forma financial information was calculated as if Century had been acquired as of the beginning of the year prior to the date of acquisition. This unaudited pro forma information combines the historical results of Century with the Company’s consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. The unaudited pro forma information does not consider any changes to the provision for loan losses resulting from recording loan assets at fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented. Unaudited Pro Forma Financial Information for the Years Ended December 31, 2021 2021 2020 (In thousands) Net interest income $ 522,621 $ 502,853 Net income 174,603 61,858 Financial results of Century from the date of acquisition through December 31, 2021 are not presented as management considers the determination of such amounts to be impracticable. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities [Abstract] | |
Securities | Securities Available for Sale Securities The amortized cost, gross unrealized gains and losses, and fair value of available for sale securities as of the dates indicated were as follows: 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 As of December 31, 2021 Amortized Unrealized Unrealized Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 5,577,292 $ 17,918 $ (70,502) $ 5,524,708 Government-sponsored commercial mortgage-backed securities 1,420,748 760 (12,640) 1,408,868 U.S. Agency bonds 1,202,377 1,067 (28,430) 1,175,014 U.S. Treasury securities 89,434 5 (834) 88,605 State and municipal bonds and obligations 263,910 16,460 (41) 280,329 Small Business Administration pooled securities 31,821 282 — 32,103 Other debt securities 1,597 — — 1,597 $ 8,587,179 $ 36,492 $ (112,447) $ 8,511,224 The Company did not record a provision for credit losses on any AFS securities during the year ended December 31, 2022. Accrued interest receivable on AFS securities totaled $12.9 million and $14.3 million as of December 31, 2022 and December 31, 2021, respectively, and is included within other assets As of December 31, 2022 and 2021, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of consolidated shareholders’ equity. The following table summarizes gross realized gains and losses from sales of AFS securities for the periods indicated: For the Years Ended December 31, 2022 2021 2020 (In thousands) Gross realized gains from sales of AFS securities $ 1,775 $ 1,166 $ 288 Gross realized losses from sales of AFS securities (4,932) — — Net (losses) gains from sales of AFS securities $ (3,157) $ 1,166 $ 288 Prior to the Company’s adoption of ASU 2016-13, management prepared an estimate of the Company’s expected cash flows for AFS investment securities that potentially may be deemed to have been an OTTI. This estimate began with the contractual cash flows of the security which was then reduced by an estimate of probable credit losses associated with the security. When estimating the extent of probable losses on the securities, management considered the credit quality and the ability to pay of the underlying issuers. Indicators of diminished credit quality of the issuers included defaults, interest deferrals, or “payments in kind.” Management also considered those factors listed in the “Investments – Debt and Equity Securities” topic of the FASB ASC when estimating the ultimate realizability of the cash flows for each individual security. The resulting estimate of expected cash flows after considering credit was then subject to a present value computation using a discount rate equal to the current yield used to accrete the beneficial interest or the effective interest rate implicit in the security at the date of acquisition. If the present value of the estimated expected cash flows was less than the current amortized cost basis, an OTTI was considered to have occurred and the security was written down to the fair value indicated by the cash flow analysis. As part of the analysis, management considered whether it intended to sell the security or whether it was more than likely that it would be required to sell the security before the expected recovery of its amortized cost basis. There was no OTTI recorded during the years ended December 31, 2021 and 2020. Information pertaining to AFS securities with gross unrealized losses as of December 31, 2022, for which the Company did not recognize a provision for credit losses under CECL, and as of December 31, 2021, for which the Company did not deem to be OTTI under its prior methodology, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: 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 As of December 31, 2021 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 264 $ 70,502 $ 4,615,457 $ — $ — $ 70,502 $ 4,615,457 Government-sponsored commercial mortgage-backed securities 165 12,218 1,102,444 422 15,682 12,640 1,118,126 U.S. Agency bonds 27 2,169 191,222 26,261 794,353 28,430 985,575 U.S. Treasury securities 3 834 78,588 — — 834 78,588 State and municipal bonds and obligations 11 41 5,436 — — 41 5,436 470 $ 85,764 $ 5,993,147 $ 26,683 $ 810,035 $ 112,447 $ 6,803,182 As of December 31, 2022, 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 December 31, 2022. As it relates to AFS securities with gross unrealized losses as of December 31, 2021, the Company did not consider these investments to be OTTI under its prior methodology. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, and volatility of earnings. As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the tables above by category are as follows as of December 31, 2022 and 2021: • Government-sponsored residential mortgage-backed securities – 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. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies. • Government-sponsored commercial mortgage-backed securities – 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. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies. • U.S. Agency bonds – 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. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies. • U.S. Treasury securities – 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. 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 – This securities portfolio consists of two foreign debt securities which are performing in accordance with the terms of the respective contractual agreements. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Held to Maturity Securities The amortized cost, gross unrealized gains and losses, and fair value of HTM securities as of December 31, 2022 were as follows: 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 held no HTM securities as of December 31, 2021. The Company did not record a provision for estimated credit losses on any HTM securities during the year ended December 31, 2022. The accrued interest receivable on HTM securities totaled $1.0 million as of December 31, 2022 and is included within other assets Available for Sale and Held to Maturity Securities Contractual Maturity The amortized cost and estimated fair value of AFS and HTM securities by scheduled contractual maturities as of dates indicated were as follows: 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 0 0 0 0 0 0 276,493 246,343 276,493 246,343 Government-sponsored commercial mortgage-backed securities 0 0 0 0 200,154 176,883 0 0 200,154 176,883 Total held to maturity securities 0 0 0 0 200,154 176,883 276,493 246,343 476,647 423,226 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 As of December 31, 2021 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) Government-sponsored residential mortgage-backed securities $ — $ — $ 24,935 $ 25,962 $ 899,169 $ 892,029 $ 4,653,188 $ 4,606,717 $ 5,577,292 $ 5,524,708 Government-sponsored commercial mortgage-backed securities — — 139,095 137,755 387,177 378,414 894,476 892,699 1,420,748 1,408,868 U.S. Agency bonds 5,508 5,515 531,821 520,935 665,048 648,564 — — 1,202,377 1,175,014 U.S. Treasury securities 40,010 40,001 49,424 48,604 — — — — 89,434 88,605 State and municipal bonds and obligations 6,137 6,116 33,692 34,704 72,226 75,416 151,855 164,093 263,910 280,329 Small Business Administration pooled securities — — 4,062 4,092 — — 27,759 28,011 31,821 32,103 Other debt securities 300 300 1,297 1,297 — — — — 1,597 1,597 Total $ 51,955 $ 51,932 $ 784,326 $ 773,349 $ 2,023,620 $ 1,994,423 $ 5,727,278 $ 5,691,520 $ 8,587,179 $ 8,511,224 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
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: As of December 31, 2022 2021 (In thousands) Commercial and industrial $ 3,150,946 $ 2,960,527 Commercial real estate 5,155,323 4,522,513 Commercial construction 336,276 222,328 Business banking 1,090,492 1,334,694 Residential real estate 2,460,849 1,926,810 Consumer home equity 1,187,547 1,100,153 Other consumer (2) 194,098 214,485 Gross loans before unamortized premiums, unearned discounts and deferred fees and costs 13,575,531 12,281,510 Allowance for loan losses (1) (142,211) (97,787) Unamortized premiums, net of unearned discounts and deferred fees, net of costs (13,003) (26,442) Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs $ 13,420,317 $ 12,157,281 (1) The Company adopted ASU 2016-13 on January 1, 2022 with a modified retrospective approach. Accordingly, at December 31, 2022 the allowance for loan losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses” and ASC 310, “ Receivables,” as amended. At December 31, 2021 the allowance for loan losses was determined in accordance with ASC 450, “ Contingencies” and ASC 310, “Receivables.” (2) Automobile loans are included in the other consumer portfolio above and amounted to $18.1 million and $53.3 million at December 31, 2022 and December 31, 2021, 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 and certain purchased loans. The Company participates in the SNC Program in an effort to improve its industry and geographical diversification. The SNC Program portfolio is included in the Company’s commercial and industrial 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 FHLBB were $3.9 billion and $2.6 billion at December 31, 2022 and 2021, respectively. The balance of funds borrowed from the FHLBB were $704.1 million and $14.0 million at December 31, 2022 and 2021, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $1.1 billion and $784.0 million at December 31, 2022 and 2021, respectively. There were no funds borrowed from the FRB outstanding at December 31, 2022 and 2021. Serviced Loans At December 31, 2022 and 2021, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $84.0 million and $95.8 million, respectively. Purchased Loans The Company began purchasing mortgage loans during the year ended December 31, 2022. Loans purchased were subject to the same underwriting criteria as those loans originated directly by the Company. During the year ended December 31, 2022, the Company purchased $380.2 million of residential real estate loans. 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 and is established 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 table summarizes the change in the allowance for loan losses by loan category for the year ended December 31, 2022: For the Year Ended December 31, 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 (1) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) 27,086 Charge-offs (269) — — (2,292) — (1) (2,269) — (4,831) Recoveries 1,322 91 — 2,069 94 24 644 — 4,244 Provision (release) (3,745) 8,921 3,015 (731) 7,990 852 1,623 — 17,925 Ending balance (2) $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 0 $ 142,211 (1) 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. (2) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $45.2 million at December 31, 2022. The allowance for loan losses increased by $44.4 million to $142.2 million at December 31, 2022 from $97.8 million at December 31, 2021 and the allowance for loans losses as a percentage of total loans (“reserve rate”) increased by 25 basis points to 1.05% at December 31, 2022 from 0.80% at December 31, 2021. The increase was partially due to the $27.1 million transition adjustment recorded upon adoption of ASU 2016-13 which is further described above. The transition adjustment increased the allowance for loan losses to $124.9 million as of January 1, 2022 which resulted in an increase in the allowance for loans losses as a percentage of total loans (“reserve rate”) to 1.02% at that time based upon loan balances as of December 31, 2021. Subsequently, the allowance for loan losses increased by $17.3 million as of December 31, 2022 and the reserve rate increased three basis points to 1.05% at December 31, 2022. The increase in the reserve amount subsequent to the transition adjustment was primarily due to increased loan balances. The increase in the reserve rate subsequent to the transition adjustment was primarily due to changes in macroeconomic conditions. Management used the Oxford Economics Baseline forecast (“the forecast”) for each respective date in determining its estimate of current expected credit losses. The forecast at December 31, 2022 assumed a high likelihood of the U.S. economy entering a recession in the second quarter of 2023 while the forecast at December 31, 2021 assumed more stable economic conditions based upon facts and circumstances observed by management at that time. As a result of the more adverse forecasted economic conditions as of December 31, 2022, management determined that an increase to the reserve rate was appropriate. Reserve for Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. 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 December 31, 2022, the Company’s reserve for unfunded lending commitments was $13.2 million which is recorded within other liabilities. 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, both in the business banking and commercial banking divisions. 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. 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 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. Paycheck Protection Program (“PPP”) loans are included within the unrated category of the commercial and industrial and business banking portfolios in the table above. Commercial and industrial PPP and business banking PPP loans amounted to $3.6 million and $6.2 million, respectively, at December 31, 2022. The Company does not have an allowance for loan losses for PPP loans as they are 100% guaranteed by the SBA. 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 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 $ 42,715 $ 6,360 $ 18,892 $ 67,967 $ 13,494,561 $ 13,562,528 As of December 31, 2021 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 45 $ 31 $ 1,672 $ 1,748 $ 2,958,779 $ 2,960,527 Commercial real estate 25,931 — 1,196 27,127 4,495,386 4,522,513 Commercial construction — — — — 222,328 222,328 Business banking 5,043 1,793 4,640 11,476 1,323,218 1,334,694 Residential real estate 17,523 3,511 5,543 26,577 1,900,233 1,926,810 Consumer home equity 3,774 1,510 4,571 9,855 1,090,298 1,100,153 Other consumer 1,194 548 889 2,631 211,854 214,485 Total $ 53,510 $ 7,393 $ 18,511 $ 79,414 $ 12,202,096 $ 12,281,510 The following table presents information regarding non-accrual loans as of the dates indicated: As of December 31, 2022 As of December 31, 2021 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (3) Total Non-Accrual Loans Amortized Cost of Loans >90 DPD and Still Accruing (2) Total Non-Accrual Loans (1) Recorded Investment >90 DPD and Still Accruing (In thousands) Commercial and industrial $ 3,270 $ 10,707 $ 13,977 $ — $ 12,400 $ — Commercial real estate — — — — — 1,196 Commercial construction — — — — — — Business banking 5,844 1,653 7,497 — 8,230 — Residential real estate 9,750 — 9,750 — 6,681 769 Consumer home equity 7,054 — 7,054 — 4,732 25 Other consumer 326 — 326 — 950 — Total non-accrual loans $ 26,244 $ 12,360 $ 38,604 $ — $ 32,993 $ 1,990 (1) The amounts presented represent the recorded investment balance of loans as of December 31, 2021. (2) “DPD” indicated in the table above refers to “days past due.” (3) The loans on non-accrual status and without an ACL as of 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. The amount of interest income recognized on non-accrual loans during the year ended December 31, 2022 was not significant. It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status and, generally, to record any payments received from a borrower related to a loan on non-accrual status as a reduction of the amortized cost basis of the loan. Accrued interest reversed against interest income for the year ended December 31, 2022 was insignificant. For collateral values for residential mortgage and home equity loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, or estimated auction or liquidation values less estimated costs to sell. As of both December 31, 2022 and December 31, 2021, the Company had collateral-dependent residential mortgage and home equity loans totaling $0.6 million. For collateral-dependent commercial loans, the amount of the allowance for loan losses is individually assessed based upon the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. As of December 31, 2022 and December 31, 2021, the Company had collateral-dependent commercial loans totaling $16.2 million and $13.1 million, respectively. Appraisals for all loan types are obtained at the time of loan origination as part of the loan approval process and are updated at the time of a loan modification and/or refinance and as considered necessary by management for impairment review purposes. In addition, appraisals are updated as required by regulatory pronouncements. As of both December 31, 2022 and December 31, 2021, the Company had no residential real estate held in other real estate owned (“OREO”). As of both December 31, 2022 and December 31, 2021, there were no mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in-process. Troubled Debt Restructurings (“TDR”) As described previously in Note 2, “Summary of Significant Accounting Policies,” in cases where a borrower experiences financial difficulty and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. The process through which management identifies loans as TDR loans, the methodology employed to record any loan losses, and the calculation of any shortfall on collateral dependent loans, is also described within Note 2, “Summary of Significant Accounting Policies.” In response to the novel coronavirus (“COVID-19”) pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the COVID-19 pandemic. Modifications granted to customers allowed for full payment deferrals (principal and interest) or deferral of only principal payments. These modifications with active deferrals met the criteria of either Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) or the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) at the time of such modification, and therefore are not deemed TDRs. Additionally, loans that are performing in accordance with the contractual terms of the modification are not reflected as being past due and therefore are not impacting non-accrual or delinquency totals as of December 31, 2022 and December 31, 2021. The Company continued to accrue interest on these COVID-19 modified loans and evaluated the deferred interest for collectability as of December 31, 2022 and December 31, 2021. The Consolidated Appropriations Act, which was enacted on December 27, 2020, extended certain provisions related to the COVID-19 pandemic in the United States (which were due to expire) and provided additional emergency relief to individuals and businesses. Included within the provisions of the Consolidated App |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan 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: As of December 31, 2022 2021 (In thousands) Commercial and industrial $ 3,150,946 $ 2,960,527 Commercial real estate 5,155,323 4,522,513 Commercial construction 336,276 222,328 Business banking 1,090,492 1,334,694 Residential real estate 2,460,849 1,926,810 Consumer home equity 1,187,547 1,100,153 Other consumer (2) 194,098 214,485 Gross loans before unamortized premiums, unearned discounts and deferred fees and costs 13,575,531 12,281,510 Allowance for loan losses (1) (142,211) (97,787) Unamortized premiums, net of unearned discounts and deferred fees, net of costs (13,003) (26,442) Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs $ 13,420,317 $ 12,157,281 (1) The Company adopted ASU 2016-13 on January 1, 2022 with a modified retrospective approach. Accordingly, at December 31, 2022 the allowance for loan losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses” and ASC 310, “ Receivables,” as amended. At December 31, 2021 the allowance for loan losses was determined in accordance with ASC 450, “ Contingencies” and ASC 310, “Receivables.” (2) Automobile loans are included in the other consumer portfolio above and amounted to $18.1 million and $53.3 million at December 31, 2022 and December 31, 2021, 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 and certain purchased loans. The Company participates in the SNC Program in an effort to improve its industry and geographical diversification. The SNC Program portfolio is included in the Company’s commercial and industrial 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 FHLBB were $3.9 billion and $2.6 billion at December 31, 2022 and 2021, respectively. The balance of funds borrowed from the FHLBB were $704.1 million and $14.0 million at December 31, 2022 and 2021, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $1.1 billion and $784.0 million at December 31, 2022 and 2021, respectively. There were no funds borrowed from the FRB outstanding at December 31, 2022 and 2021. Serviced Loans At December 31, 2022 and 2021, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $84.0 million and $95.8 million, respectively. Purchased Loans The Company began purchasing mortgage loans during the year ended December 31, 2022. Loans purchased were subject to the same underwriting criteria as those loans originated directly by the Company. During the year ended December 31, 2022, the Company purchased $380.2 million of residential real estate loans. 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 and is established 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 table summarizes the change in the allowance for loan losses by loan category for the year ended December 31, 2022: For the Year Ended December 31, 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 (1) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) 27,086 Charge-offs (269) — — (2,292) — (1) (2,269) — (4,831) Recoveries 1,322 91 — 2,069 94 24 644 — 4,244 Provision (release) (3,745) 8,921 3,015 (731) 7,990 852 1,623 — 17,925 Ending balance (2) $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 0 $ 142,211 (1) 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. (2) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $45.2 million at December 31, 2022. The allowance for loan losses increased by $44.4 million to $142.2 million at December 31, 2022 from $97.8 million at December 31, 2021 and the allowance for loans losses as a percentage of total loans (“reserve rate”) increased by 25 basis points to 1.05% at December 31, 2022 from 0.80% at December 31, 2021. The increase was partially due to the $27.1 million transition adjustment recorded upon adoption of ASU 2016-13 which is further described above. The transition adjustment increased the allowance for loan losses to $124.9 million as of January 1, 2022 which resulted in an increase in the allowance for loans losses as a percentage of total loans (“reserve rate”) to 1.02% at that time based upon loan balances as of December 31, 2021. Subsequently, the allowance for loan losses increased by $17.3 million as of December 31, 2022 and the reserve rate increased three basis points to 1.05% at December 31, 2022. The increase in the reserve amount subsequent to the transition adjustment was primarily due to increased loan balances. The increase in the reserve rate subsequent to the transition adjustment was primarily due to changes in macroeconomic conditions. Management used the Oxford Economics Baseline forecast (“the forecast”) for each respective date in determining its estimate of current expected credit losses. The forecast at December 31, 2022 assumed a high likelihood of the U.S. economy entering a recession in the second quarter of 2023 while the forecast at December 31, 2021 assumed more stable economic conditions based upon facts and circumstances observed by management at that time. As a result of the more adverse forecasted economic conditions as of December 31, 2022, management determined that an increase to the reserve rate was appropriate. Reserve for Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. 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 December 31, 2022, the Company’s reserve for unfunded lending commitments was $13.2 million which is recorded within other liabilities. 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, both in the business banking and commercial banking divisions. 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. 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 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. Paycheck Protection Program (“PPP”) loans are included within the unrated category of the commercial and industrial and business banking portfolios in the table above. Commercial and industrial PPP and business banking PPP loans amounted to $3.6 million and $6.2 million, respectively, at December 31, 2022. The Company does not have an allowance for loan losses for PPP loans as they are 100% guaranteed by the SBA. 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 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 $ 42,715 $ 6,360 $ 18,892 $ 67,967 $ 13,494,561 $ 13,562,528 As of December 31, 2021 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 45 $ 31 $ 1,672 $ 1,748 $ 2,958,779 $ 2,960,527 Commercial real estate 25,931 — 1,196 27,127 4,495,386 4,522,513 Commercial construction — — — — 222,328 222,328 Business banking 5,043 1,793 4,640 11,476 1,323,218 1,334,694 Residential real estate 17,523 3,511 5,543 26,577 1,900,233 1,926,810 Consumer home equity 3,774 1,510 4,571 9,855 1,090,298 1,100,153 Other consumer 1,194 548 889 2,631 211,854 214,485 Total $ 53,510 $ 7,393 $ 18,511 $ 79,414 $ 12,202,096 $ 12,281,510 The following table presents information regarding non-accrual loans as of the dates indicated: As of December 31, 2022 As of December 31, 2021 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (3) Total Non-Accrual Loans Amortized Cost of Loans >90 DPD and Still Accruing (2) Total Non-Accrual Loans (1) Recorded Investment >90 DPD and Still Accruing (In thousands) Commercial and industrial $ 3,270 $ 10,707 $ 13,977 $ — $ 12,400 $ — Commercial real estate — — — — — 1,196 Commercial construction — — — — — — Business banking 5,844 1,653 7,497 — 8,230 — Residential real estate 9,750 — 9,750 — 6,681 769 Consumer home equity 7,054 — 7,054 — 4,732 25 Other consumer 326 — 326 — 950 — Total non-accrual loans $ 26,244 $ 12,360 $ 38,604 $ — $ 32,993 $ 1,990 (1) The amounts presented represent the recorded investment balance of loans as of December 31, 2021. (2) “DPD” indicated in the table above refers to “days past due.” (3) The loans on non-accrual status and without an ACL as of 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. The amount of interest income recognized on non-accrual loans during the year ended December 31, 2022 was not significant. It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status and, generally, to record any payments received from a borrower related to a loan on non-accrual status as a reduction of the amortized cost basis of the loan. Accrued interest reversed against interest income for the year ended December 31, 2022 was insignificant. For collateral values for residential mortgage and home equity loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, or estimated auction or liquidation values less estimated costs to sell. As of both December 31, 2022 and December 31, 2021, the Company had collateral-dependent residential mortgage and home equity loans totaling $0.6 million. For collateral-dependent commercial loans, the amount of the allowance for loan losses is individually assessed based upon the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, the Company relies primarily upon third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. As of December 31, 2022 and December 31, 2021, the Company had collateral-dependent commercial loans totaling $16.2 million and $13.1 million, respectively. Appraisals for all loan types are obtained at the time of loan origination as part of the loan approval process and are updated at the time of a loan modification and/or refinance and as considered necessary by management for impairment review purposes. In addition, appraisals are updated as required by regulatory pronouncements. As of both December 31, 2022 and December 31, 2021, the Company had no residential real estate held in other real estate owned (“OREO”). As of both December 31, 2022 and December 31, 2021, there were no mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in-process. Troubled Debt Restructurings (“TDR”) As described previously in Note 2, “Summary of Significant Accounting Policies,” in cases where a borrower experiences financial difficulty and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. The process through which management identifies loans as TDR loans, the methodology employed to record any loan losses, and the calculation of any shortfall on collateral dependent loans, is also described within Note 2, “Summary of Significant Accounting Policies.” In response to the novel coronavirus (“COVID-19”) pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the COVID-19 pandemic. Modifications granted to customers allowed for full payment deferrals (principal and interest) or deferral of only principal payments. These modifications with active deferrals met the criteria of either Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) or the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) at the time of such modification, and therefore are not deemed TDRs. Additionally, loans that are performing in accordance with the contractual terms of the modification are not reflected as being past due and therefore are not impacting non-accrual or delinquency totals as of December 31, 2022 and December 31, 2021. The Company continued to accrue interest on these COVID-19 modified loans and evaluated the deferred interest for collectability as of December 31, 2022 and December 31, 2021. The Consolidated Appropriations Act, which was enacted on December 27, 2020, extended certain provisions related to the COVID-19 pandemic in the United States (which were due to expire) and provided additional emergency relief to individuals and businesses. Included within the provisions of the Consolidated App |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The information presented within this Note excludes discontinued operations. Refer to Note 24, “Discontinued Operations” for further discussion regarding discontinued operations. The following table summarizes the Company’s premises and equipment as of the dates indicated: As of December 31, Estimated 2022 2021 Useful Life (In thousands) (In years) Premises and equipment used in operations: Land $ 12,585 $ 12,814 N/A Buildings 70,771 71,415 5-30 Equipment 35,085 46,324 3-5 Leasehold improvements 36,424 42,156 5-25 Total cost 154,865 172,709 Accumulated depreciation (92,372) (107,282) Premises and equipment used in operations, net 62,493 65,427 Premises and equipment held for sale — 15,128 Net premises and equipment (1) $ 62,493 $ 80,555 (1) In connection with the Company’s acquisition of Century, the Company acquired $64.5 million in premises and equipment. The Company recorded depreciation expense related to premises and equipment of $10.7 million, $11.6 million, and $12.7 million during the years ended December 31, 2022, 2021, and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
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 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 24, “Discontinued Operations” for further discussion regarding discontinued operations. As of the dates indicated, the Company had the following related to operating leases: As of December 31, 2022 As of December 31, 2021 (In thousands) Right-of-use assets $ 48,817 $ 74,092 Lease liabilities 52,105 78,977 Finance leases are not material. Finance lease liabilities are recorded within other liabilities The following table is a summary of the Company’s components of net lease cost for the periods indicated: For the Year Ended December 31, 2022 2021 2020 (In thousands) Operating lease cost $ 12,716 $ 12,559 $ 12,360 Finance lease cost 309 160 60 Variable lease cost 2,547 2,012 1,889 Total lease cost $ 15,572 $ 14,731 $ 14,309 During the years ended December 31, 2022, 2021, and 2020 the Company made $15.2 million, $13.6 million, and $12.2 million in cash payments for operating and finance leases, respectively. Supplemental balance sheet information related to operating leases as of the dates indicated is as follows: As of December 31, 2022 As of December 31, 2021 Weighted-average remaining lease term (in years) 7.25 7.89 Weighted-average discount rate 2.62 % 2.52 % The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of December 31, 2022 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 December 31, 2022 Year (In thousands) 2023 $ 12,472 2024 9,774 2025 7,804 2026 6,763 2027 5,602 Thereafter 15,075 Total minimum lease payments 57,490 Less: amount representing interest 5,385 Present value of future minimum lease payments $ 52,105 Lease Modifications and Terminations: During the year ended December 31, 2022, management determined not to exercise a future lease term extension option related to three leases, which had previously been included in its determination of future lease payments, to exercise a future lease term extension option related to two leases, which had not previously been included in its determination of future lease payments, and to terminate four leases. Accordingly, the Company remeasured the present value of the future lease payments related to such leases which resulted in a net reduction of the lease liabilities and a corresponding net reduction of the lease ROU assets of $14.8 million. In connection with the lease terminations, the Company recorded an impairment charge of $0.6 million. During the year ended December 31, 2021, management made the decision to terminate four leases, one of which was acquired in connection with the Company’s acquisition of Century. Accordingly, the Company remeasured the ROU assets and lease liabilities which resulted in acceleration of the ROU asset amortization. The additional amortization recorded as a result of the acceleration was $1.7 million during the year ended December 31, 2021. These leases were terminated during the year ended December 31, 2022. Lease Abandonments: As of December 31, 2021, management made the decision to close three leased locations. Management performed an analysis pursuant to ASC 360, “Property, Plant, and Equipment,” ( “ASC 360” ) and determined that such closures represented lease abandonments. As a result of that analysis, the Company recognized an impairment charge on these leases of $0.3 million. During the year ended December 31, 2022, there were no lease abandonments. Sub-leases: As of December 31, 2021, management made the decision to and was pursuing the sublet of five leases, two of which were acquired in connection with the Company’s acquisition of Century. In connection with this decision, management performed a recoverability analysis pursuant to ASC 360. As a result of that analysis, the Company recorded an impairment charge of $0.5 million. During the year ended December 31, 2022, there were no additional lease sublets. |
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 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 24, “Discontinued Operations” for further discussion regarding discontinued operations. As of the dates indicated, the Company had the following related to operating leases: As of December 31, 2022 As of December 31, 2021 (In thousands) Right-of-use assets $ 48,817 $ 74,092 Lease liabilities 52,105 78,977 Finance leases are not material. Finance lease liabilities are recorded within other liabilities The following table is a summary of the Company’s components of net lease cost for the periods indicated: For the Year Ended December 31, 2022 2021 2020 (In thousands) Operating lease cost $ 12,716 $ 12,559 $ 12,360 Finance lease cost 309 160 60 Variable lease cost 2,547 2,012 1,889 Total lease cost $ 15,572 $ 14,731 $ 14,309 During the years ended December 31, 2022, 2021, and 2020 the Company made $15.2 million, $13.6 million, and $12.2 million in cash payments for operating and finance leases, respectively. Supplemental balance sheet information related to operating leases as of the dates indicated is as follows: As of December 31, 2022 As of December 31, 2021 Weighted-average remaining lease term (in years) 7.25 7.89 Weighted-average discount rate 2.62 % 2.52 % The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of December 31, 2022 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 December 31, 2022 Year (In thousands) 2023 $ 12,472 2024 9,774 2025 7,804 2026 6,763 2027 5,602 Thereafter 15,075 Total minimum lease payments 57,490 Less: amount representing interest 5,385 Present value of future minimum lease payments $ 52,105 Lease Modifications and Terminations: During the year ended December 31, 2022, management determined not to exercise a future lease term extension option related to three leases, which had previously been included in its determination of future lease payments, to exercise a future lease term extension option related to two leases, which had not previously been included in its determination of future lease payments, and to terminate four leases. Accordingly, the Company remeasured the present value of the future lease payments related to such leases which resulted in a net reduction of the lease liabilities and a corresponding net reduction of the lease ROU assets of $14.8 million. In connection with the lease terminations, the Company recorded an impairment charge of $0.6 million. During the year ended December 31, 2021, management made the decision to terminate four leases, one of which was acquired in connection with the Company’s acquisition of Century. Accordingly, the Company remeasured the ROU assets and lease liabilities which resulted in acceleration of the ROU asset amortization. The additional amortization recorded as a result of the acceleration was $1.7 million during the year ended December 31, 2021. These leases were terminated during the year ended December 31, 2022. Lease Abandonments: As of December 31, 2021, management made the decision to close three leased locations. Management performed an analysis pursuant to ASC 360, “Property, Plant, and Equipment,” ( “ASC 360” ) and determined that such closures represented lease abandonments. As a result of that analysis, the Company recognized an impairment charge on these leases of $0.3 million. During the year ended December 31, 2022, there were no lease abandonments. Sub-leases: As of December 31, 2021, management made the decision to and was pursuing the sublet of five leases, two of which were acquired in connection with the Company’s acquisition of Century. In connection with this decision, management performed a recoverability analysis pursuant to ASC 360. As a result of that analysis, the Company recorded an impairment charge of $0.5 million. During the year ended December 31, 2022, there were no additional lease sublets. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
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 24, “Discontinued Operations” for further discussion regarding discontinued operations. As of December 31, 2022 As of December 31, 2021 (In thousands) Balances not subject to amortization Goodwill $ 557,635 $ 557,635 Balances subject to amortization Core deposits 10,374 11,572 Total goodwill and other intangible assets $ 568,009 $ 569,207 The changes in the carrying value of goodwill for the banking business for the periods indicated were as follows: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 (In thousands) Balance at beginning of year $ 557,635 $ 298,611 Goodwill recorded during the year (1) — 259,024 Goodwill disposed of during the year — — Balance at end of year $ 557,635 $ 557,635 (1) The goodwill recorded during the year ended December 31, 2021 relates to the acquisition of Century. For additional information refer to Note 3, Mergers and Acquisitions . The following table sets forth the carrying amount of the Company’s core deposit intangible asset, net of accumulated amortization, for the banking business as of the dates indicated below: As of December 31, 2022 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Core deposit intangible $ 15,969 $ (5,595) $ 10,374 $ 18,212 $ (6,640) $ 11,572 Total $ 15,969 $ (5,595) $ 10,374 $ 18,212 $ (6,640) $ 11,572 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. As of December 31, 2022, the Company 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 and, accordingly, are presented as assets and liabilities of discontinued operations on the Consolidated Balance Sheets. As of December 31, 2022, the quantitative assessment for the banking business was most recently performed as of September 30, 2022. The assessment for the banking business included a market capitalization analysis, as well as a comparison of the banking business’s book value to the implied fair value using a pricing multiple of the Company’s tangible book value. The Company considered the economic conditions for the period including the potential impact of the COVID-19 pandemic as it pertains to the goodwill above and determined that there was no indication of impairment related to goodwill during the year ended December 31, 2022. Additionally, the Company did not record any impairment charges during the years ended December 31, 2021 and 2020. The amortization expense of the Company’s core deposit intangible asset was $1.2 million, $0.2 million, and $0.6 million during the years ended December 31, 2022, 2021, and 2020, respectively. The original amortization period and remaining useful life of the Company’s core deposit intangible asset is 10.0 years and 8.9 years, respectively. The estimated amortization expense related to the Company’s core deposit intangible asset for each of the five succeeding years and thereafter is as follows: Year (In thousands) 2023 $ 1,163 2024 1,163 2025 1,163 2026 1,163 2027 1,163 Thereafter 4,559 Total amortization expense $ 10,374 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. The Company considered the economic conditions for the period, including the potential impact of the COVID-19 pandemic, as it pertains to these intangible assets and determined that there |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Deposits | Deposits The Company has established overnight programs which sweep certain demand and interest checking accounts into money market investment accounts. Reported deposit balances do not reflect the impact of the overnight sweep programs. At December 31, 2022 and 2021, the Company swept $9.5 billion, and $10.5 billion, respectively, from demand deposit and interest checking balances into money market investments. At December 31, 2022 and 2021, the Company had a balance of $2.3 million and $1.6 million, respectively, in overdrafts. Overdrafts are included in loans in the Consolidated Balance Sheets. The following table summarizes certificate of deposits by maturity at December 31, 2022: Balance Percentage of Total Year (Dollars in thousands) 2023 $ 1,575,617 97.0 % 2024 30,617 1.9 % 2025 9,297 0.6 % 2026 5,092 0.3 % 2027 3,726 0.2 % Thereafter 33 0.0 % Total certificates of deposit $ 1,624,382 100.0 % At December 31, 2022 and 2021, securities with a carrying value of $437.9 million and $2.2 billion, respectively, were pledged to secure public deposits and for other purposes required by law. At December 31, 2022 and 2021, securities pledged as collateral for deposits included Eastern Wealth Management cash accounts and municipal accounts. During the first quarter of 2022, the Company eliminated certain pledging arrangements acquired from Century which resulted in the decrease in securities pledged at December 31, 2022 compared to December 31, 2021. The FDIC offers insurance coverage on deposits up to the federally insured limit of $250,000. The amount of time deposits equal to or greater than $250,000, as of December 31, 2022 and 2021, was $239.1 million and $224.0 million, respectively. Included in the certificates of deposit balances above were $928.6 million of brokered certificates of deposit at December 31, 2022. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds were comprised of the following: As of December 31, 2022 2021 (In thousands) Short-term FHLB advances $ 691,297 $ 17 Escrow deposits of borrowers 22,314 20,258 Interest rate swap collateral funds 14,430 — Long-term FHLB advances 12,787 14,003 Total borrowed funds $ 740,828 $ 34,278 At December 31, 2022 and 2021, the Company had available and unused borrowing capacity of approximately $538.9 million and $455.3 million, respectively, at the Federal Reserve Discount Window. Interest expense on borrowed funds was as follows: For the Year Ended December 31, 2022 2021 2020 (In thousands) Federal funds purchased $ 24 $ — $ 570 Federal Home Loan Bank advances 8,263 163 190 Escrow deposits of borrowers 3 2 2 Interest rate swap collateral funds 216 — — Total interest expense on borrowed funds $ 8,506 $ 165 $ 762 A summary of FHLBB advances by maturities were as follows: As of December 31, 2022 2021 Amount Weighted Average Amount Weighted Average (Dollars in thousands) Within one year $ 691,297 4.36 % $ 17 0.14 % Over one year to three years 2,835 0.86 % 1,488 0.32 % Over three years to five years 2,534 1.89 % 2,854 1.10 % Over five years 7,418 0.94 % 9,661 1.24 % Total Federal Home Loan Bank advances (1) $ 704,084 4.30 % $ 14,020 1.11 % (1) The weighted average interest rate of long-term FHLB advances as of both December 31, 2022 and December 31, 2021 was 1.11%. At December 31, 2022 and 2021, advances from the FHLBB were secured by stock in the FHLBB, residential real estate loans and commercial real estate loans. The collateral value of residential real estate and commercial real estate loans securing these advances was $1.5 billion and $1.2 billion, respectively, at December 31, 2022, and $1.0 billion and $888.3 million, respectively, at December 31, 2021. At December 31, 2022 and 2021, the Bank had available and unused borrowing capacity with the FHLBB of approximately $2.0 billion and $1.8 billion, respectively. As a member of the FHLBB, the Company is required to hold FHLBB stock. At December 31, 2022 and 2021, the Company had investments in the FHLBB of $41.4 million and $10.9 million, respectively. At its discretion, the FHLBB may declare dividends on the stock. Included in other noninterest income in the Consolidated Statements of Income are dividends received of $0.3 million, $0.2 million, and $0.4 million during the years ended December 31, 2022, 2021, and 2020, respectively. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | Earnings Per Share ( “ EPS ” ) Basic EPS represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the year. 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 attributable to common shareholders by the weighted-average number of common shares outstanding for the year, plus the effect of potential dilutive common share equivalents computed using the treasury stock method. There were no securities that had a dilutive effect during the year ended December 31, 2020. Shares held by the ESOP that have not been allocated or committed to be 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 Year Ended December 31, 2022 2021 2020 (Dollars in thousands, except per share data) Net income applicable to common shares: Net income from continuing operations $ 186,511 $ 145,531 $ 8,861 Net income from discontinued operations 13,248 9,134 13,877 Total net income $ 199,759 $ 154,665 $ 22,738 Average number of common shares outstanding 179,529,613 186,713,020 186,663,593 Less: Average unallocated ESOP shares (14,019,256) (14,520,684) (14,851,058) Average number of common shares outstanding used to calculate basic earnings per common share 165,510,357 172,192,336 171,812,535 Common stock equivalents - restricted stock awards and units 138,214 59,721 — Average number of common shares outstanding used to calculate diluted earnings per common share 165,648,571 172,252,057 171,812,535 Basic earnings per share Basic earnings per share from continuing operations $ 1.13 $ 0.85 $ 0.05 Basic earnings per share from discontinued operations 0.08 0.05 0.08 Basic earnings per share $ 1.21 $ 0.90 $ 0.13 Diluted earnings per share Diluted earnings per share from continuing operations $ 1.13 $ 0.85 $ 0.05 Diluted earnings per share from discontinued operations 0.08 0.05 0.08 Diluted earnings per share $ 1.21 $ 0.90 $ 0.13 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated (income from continuing and discontinued operations before income tax expense was included for purposes of determining the Company’s effective tax rate for the periods shown): For the Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Combined federal and state income tax expense - continuing operations $ 51,719 $ 30,464 $ 7,778 Combined federal and state income tax expense - discontinued operations 5,210 3,583 5,385 Total combined federal and state income tax expense $ 56,929 $ 34,047 $ 13,163 Income from continuing operations before income tax expense $ 238,230 $ 175,995 $ 16,639 Income from discontinued operations before income tax expense 18,458 12,717 19,262 Total income before income tax expense $ 256,688 $ 188,712 $ 35,901 Effective income tax rates 22.18 % 18.04 % 36.67 % The Company’s provision for income taxes was $56.9 million, $34.0 million and $13.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. The Company’s effective tax rate was 22.2% and was higher than the effective tax rate of 18.0% for the prior year ending December 31, 2021. The increase in income tax expense during the year ended December 31, 2022 compared to the year ended December 31, 2021, was primarily due to higher income before income tax expense and an increase in the effective tax rate. The increase in the effective tax rate resulted primarily from a partial release of $11.3 million during the year ended December 31, 2021 related to a valuation allowance established as of December 31, 2020 against the Company’s charitable contribution carryover deferred tax asset in connection with the Company’s 2020 charitable contribution to the Eastern Bank Foundation compared to a release of $0.7 million during the year ended December 31, 2022. Also contributing to the increase in the effective tax rate, was a decrease of the impact on the effective rate related to favorable permanent differences, including investment tax credits and tax-exempt income, resulting from higher income before income tax expense. The increase was partially offset by an increase in tax-exempt income resulting from the Company’s acquisition of Century and the release of uncertain tax positions of $2.1 million in the fourth quarter of 2022. The provision for income taxes is comprised of the following components: For the Year Ended December 31, 2022 2021 2020 (In thousands) Current tax expense: Federal $ 39,453 $ 26,114 $ 23,002 State 11,453 13,246 10,520 Total current tax expense 50,906 39,360 33,522 Deferred tax expense (benefit): Federal 3,244 (7,747) (13,736) State 2,779 2,434 (6,623) Total deferred tax expense (benefit) 6,023 (5,313) (20,359) Total income tax expense $ 56,929 $ 34,047 $ 13,163 A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is detailed below: For the Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Income tax expense at statutory rate $ 53,904 21.00 % $ 39,630 21.00 % $ 7,539 21.00 % Increase (decrease) resulting from: State income tax, net of federal tax benefit 11,244 4.38 % 12,387 6.56 % 43 0.12 % Valuation allowance (700) (0.27) % (11,300) (5.99) % 12,000 33.43 % Amortization of qualified low-income housing investments 7,503 2.92 % 5,753 3.05 % 4,977 13.86 % Tax credits (7,300) (2.84) % (6,539) (3.46) % (7,085) (19.73) % Tax-exempt income (10,298) (4.01) % (5,665) (3.00) % (4,091) (11.40) % Other, net 2,576 1.00 % (219) (0.12) % (220) (0.61) % Actual income tax expense $ 56,929 22.18 % $ 34,047 18.04 % $ 13,163 36.67 % Significant components of the Company’s deferred tax assets and deferred tax liabilities, which includes deferred tax assets and deferred tax liabilities included in discontinued operations, are presented below: As of December 31, 2022 2021 (In thousands) Deferred tax assets: Unrealized loss on available for sale securities $ 254,502 $ 17,370 Allowance for loan losses 43,686 30,335 Cash flow hedges 18,192 — Leases 17,447 25,389 Charitable contribution limitation carryover 12,273 18,278 Investment losses 7,918 10,680 Accrued expenses 6,294 6,888 Fixed assets 4,287 3,799 Loan basis difference fair value adjustments 4,009 3,949 Employee benefits 354 13,996 PPP loans fee income 58 2,967 Other 2,083 1,783 Total deferred tax assets before valuation allowance 371,103 135,434 Valuation allowance — (700) Total deferred tax assets 371,103 134,734 Deferred tax liabilities: Amortization of intangibles 17,565 17,339 Lease obligation 16,383 23,849 Partnerships 2,340 3,324 Trading securities 938 6,482 Cash flow hedges — 2,878 Other 2,229 4,327 Total deferred tax liabilities 39,455 58,199 Net deferred income tax assets $ 331,648 $ 76,535 Significant components of the Company’s deferred tax assets and deferred tax liabilities, which are included in discontinued operations and which are included in the amounts presented in the table above, are presented below: As of December 31, 2022 2021 (In thousands) Deferred tax assets: Leases $ 2,589 $ 2,928 Accrued expenses 868 897 Total deferred tax assets 3,457 3,825 Deferred tax liabilities: Amortization of intangibles 1,126 550 Leases 2,450 2,762 Other 196 67 Total deferred tax liabilities 3,772 3,379 Net deferred income tax (liabilities) assets $ (315) $ 446 The Company assesses the realizability of deferred tax assets and whether it is more likely than not that all or a portion of the deferred tax assets will be realized. The Company considers projections of future taxable income during the periods in which deferred tax assets and liabilities are scheduled to reverse. Additionally, in determining the availability of operating loss carrybacks and other tax attributes, both projected future taxable income and tax planning strategies are considered in making this assessment. As of December 31, 2020, the Company had established a valuation allowance of $12.0 million related to the $91.3 million stock donation and the $3.7 million cash contribution to the Eastern Bank Foundation. Based upon the level of available historical taxable income and projections for future taxable income over the periods for which the deferred tax assets are realizable, a release of $11.3 million was recorded during the year ended December 31, 2021. As of December 31, 2022, management made a similar determination and, accordingly, recorded a release of $0.7 million during the year then ended. As of December 31, 2022, management believes it is more likely than not that the Company will realize the entirety of its net deferred tax assets. Management performed an evaluation of the Company’s uncertain tax positions as of December 31, 2022 and 2021 and determined that liabilities for unrecognized tax benefits of $6.0 million and $8.2 million, respectively, was needed related to state tax positions. The decrease was primarily due to a reversal of $2.3 million recognized during the year ended December 31, 2022. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits: For the Years Ended December 31, 2022 2021 (In thousands) Beginning $ 7,923 $ — Additions based on tax positions related to the current year — — Additions for tax positions of prior years — 7,923 Reductions related to settlements with taxing authorities — — Reductions as a result of a lapse of the applicable statute of limitations (2,141) — Ending $ 5,782 $ 7,923 The amount that would reduce the effective tax rate, if recognized, is $6.0 million. The reduction in the effective tax rate is inclusive of the federal benefit for unrecognized state tax benefits, and accrued interest and penalties. The entire balance of unrecognized tax benefits, if recognized, would favorably affect the Company’s effective income tax rate. The Company recognizes penalties and accrued interest related to unrecognized tax benefits in tax expense. Accrued penalties and interest amounted to $1.5 million and $2.0 million at December 31, 2022 and 2021, respectively. The change in accrued penalties and interest for the current year impacted the Consolidated Statements of Income as a component of income tax expense by $0.5 million. During the year ended December 31, 2022, $2.1 million of unrecognized state tax benefits and $0.6 million of interest and penalties reversed upon expiration of the statute of limitations for the tax year to which the reserve was related. Management anticipates that approximately $2.3 million of unrecognized state tax benefits and $0.7 million of interest and penalties will reverse in 2023 upon expiration of the statute of limitations for the tax year to which the reserve is related. The Company had no net operating loss carryforwards for federal or state income tax purposes at December 31, 2022 and 2021, respectively. At December 31, 2022, the Bank’s federal pre-1988 reserve, for which no federal income tax provision has been made, was approximately $20.8 million. Under current federal law, these reserves are subject to recapture into taxable income, should the Company make non-dividend distributions, make distributions in excess of earnings and profits retained, as defined, or cease to maintain a banking type charter. A deferred tax liability is not recognized for the base year amount unless it becomes apparent that those temporary differences will reverse into taxable income in the foreseeable future. No deferred tax liability has been established as these two events are not expected to occur in the foreseeable future. The Company’s primary banking activities are in the states of Massachusetts, New Hampshire and Rhode Island; however, the Company also files additional state corporate income and/or franchise tax returns in states in which the Company has a filing requirement. The methods of filing, and the methods for calculating taxable and apportionable income, vary depending upon the laws of the taxing jurisdiction. The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The Company is no longer subject to federal and state income tax examinations by tax authorities for years before 2019. |
Low Income Housing Tax Credits
Low Income Housing Tax Credits and Other Tax Credit Investments | 12 Months Ended |
Dec. 31, 2022 | |
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 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 December 31, 2022 and 2021, the Company had $131.3 million and $83.8 million, respectively, in tax credit investments that were included in other assets in the 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 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 LIHTC projects using the proportional amortization method as of the dates indicated: As of December 31, 2022 2021 (In thousands) Current recorded investment included in other assets $ 128,765 $ 81,035 Commitments to fund qualified affordable housing projects included in recorded investment noted above 84,145 48,399 The following table presents additional information related to the Company’s investments in LIHTC projects for the periods indicated: For the Year Ended December 31, 2022 2021 2020 (In thousands) Tax credits and other tax benefits recognized $ 9,146 $ 6,484 $ 5,033 Amortization expense included in income tax expense 7,503 5,753 4,977 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 on the Consolidated Balance Sheets and totaled $2.6 million and $2.8 million at December 31, 2022 and 2021, respectively. There were no outstanding commitments related to these investments as of both December 31, 2022 and December 31, 2021. During the year ended December 31, 2020, in reviewing its tax credit equity investments for impairment, the Company identified an immaterial correction to the investment balances related to prior periods. During the year ended December 31, 2020, the Company wrote off $7.6 million of the tax credit equity investment balances as a component of noninterest expense and other assets to reflect the remaining benefits from these investments. Management evaluated the correction in relation to the year ended December 31, 2020, which is when the correction was recorded, as well as the preceding periods in which it originated. Management believes this correction is immaterial to both the previous consolidated quarterly and annual financial statements. During the years ended December 31, 2022 and 2021, the Company performed a similar review and, accordingly, recorded a net recovery of an impairment of $0.2 million during the year ended December 31, 2021. Management evaluated the correction in relation to such periods during which the correction was recorded, as well as the preceding periods in which it originated. Management believes the correction is immaterial to the previous consolidated quarterly and annual financial statements. The Company did not record any net recovery or a write-down related to impairment of tax credit equity investment balances during the year ended December 31, 2022. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
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, which authorizes 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, is limited to $200.0 million through August 31, 2023. Repurchases are made at management’s discretion from time to time at prices management considers to be attractive and in the best interests of both the Company and its shareholders, subject to the availability of shares, general market conditions, the trading price of the shares, alternative uses for capital, and the Company’s financial performance. Repurchases may be suspended, terminated or modified by the Company at any time for any reason. Information regarding the shares repurchased under the plans is presented in the following table: Period Total Number of Shares Repurchased Average Price Paid per Share Total Number of Shares Repurchased as Part of the Share Repurchase Programs Maximum Number of Shares That May Yet Be Purchased Under the Share Repurchase Programs December 1, 2021 - December 31, 2021 1,135,878 $ 20.42 1,135,878 8,202,022 January 1, 2022 – January 31, 2022 987,526 21.02 2,123,404 7,214,496 February 1, 2022 – February 28, 2022 1,109,697 21.08 3,233,101 6,104,799 March 1, 2022 – March 31, 2022 769,398 21.31 4,002,499 5,335,401 April 1, 2022 - April 30, 2022 1,194,185 20.19 5,196,684 4,141,216 May 1, 2022 - May 31, 2022 1,880,381 18.93 7,077,065 2,260,835 June 1, 2022 - June 30, 2022 1,141,903 18.78 8,218,968 1,118,932 July 1, 2022 - July 31, 2022 909,785 19.02 9,128,753 209,147 August 1, 2022 - August 31, 2022 0 — 9,128,753 209,147 September 1, 2022 - September 30, 2022 571,463 20.33 9,700,216 8,537,684 October 1, 2022 - October 31, 2022 1,094,049 20.32 10,794,265 7,443,635 November 1, 2022 - November 30, 2022 453,885 18.91 11,248,150 6,989,750 December 1, 2022 – December 31, 2022 0 — 11,248,150 6,989,750 Dividends Information regarding dividends declared and paid is presented in the following table: Dividends Declared per Share Dividends Declared Dividends Paid (In millions, except per share data) 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 Three Months Ended December 31, 2022 $ 0.10 $ 16.3 $ 16.1 Three Months Ended March 31, 2021 $ 0.06 $ 10.3 $ 10.3 Three Months Ended June 30, 2021 $ 0.08 $ 13.8 $ 13.8 Three Months Ended September 30, 2021 $ 0.08 $ 13.8 $ 13.8 Three Months Ended December 31, 2021 $ 0.08 $ 13.7 $ 13.7 |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Minimum Regulatory Capital Requirements | Minimum Regulatory Capital Requirements The Company is subject to various regulatory capital requirements administered by federal banking agencies, including U.S. Basel III. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. Quantitative measures established by the regulators to ensure capital adequacy require the Company to maintain minimum capital amounts and ratios. All banking companies are required to have total regulatory capital of at least 8% of risk-weighted assets, common equity Tier 1 capital of at least 4.5% of risk-weighted assets, core capital (“Tier 1”) of at least 6% of risk-weighted assets, and a minimum Tier 1 leverage ratio of 4% of adjusted average assets. As of December 31, 2022 and 2021, the Company was categorized as “well-capitalized” based on the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Company must maintain (1) a minimum total regulatory capital ratio of 10%; (2) a minimum common equity Tier 1 capital ratio of 6.5%; (3) a minimum Tier 1 capital ratio of 8% and (4) a minimum Tier 1 leverage ratio of 5%. Management believes that the Company met all capital adequacy requirements to which it is subject as of December 31, 2022 and 2021. There have been no conditions or events that management believes would cause a change in the Company’s categorization. The Company’s actual capital amounts and ratios are presented in the following table: Actual For Capital Adequacy To Be Well- Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2022 Total regulatory capital (to risk-weighted assets) $ 2,906,742 17.89 % $ 1,299,657 ≥8 % $ 1,624,571 ≥10 % Common equity Tier 1 capital (to risk-weighted assets) 2,751,694 16.94 731,057 ≥4.5 1,055,971 ≥6.5 Tier 1 capital (to risk-weighted assets) 2,751,694 16.94 974,743 ≥6 1,299,657 ≥8 Tier 1 capital (to average assets) leverage 2,751,694 12.03 915,233 ≥4 1,144,041 ≥5 As of December 31, 2021 Total regulatory capital (to risk-weighted assets) $ 2,939,016 19.77 % $ 1,189,466 >8 % $ 1,486,832 >10 % Common equity Tier 1 capital (to risk-weighted assets) 2,831,102 19.04 669,075 4.5 966,441 6.5 Tier 1 capital (to risk-weighted assets) 2,831,102 19.04 892,099 6 1,189,466 8 Tier 1 capital (to average assets) leverage 2,831,102 13.96 811,000 4 1,013,750 5 The Company is subject to various capital requirements in connection with seller/servicer agreements that have been entered into with secondary market investors. Failure to maintain minimum capital requirements could result in an inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on the Company’s financial statements. Management believes that the Company met all capital requirements in connection with seller/servicer agreements as of December 31, 2022 and 2021. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Conversion of Defined Benefit Pension Plan and Benefit Equalization Plan to Cash Balance Plan Design Effective November 1, 2020, each of the Qualified Defined Benefit Pension Plan (“Defined Benefit Plan”) and the Non-Qualified Benefit Equalization Plan, referred to as the BEP, sponsored by the Company were amended to convert the plans from a traditional final average earnings plan design to a cash balance plan design. Benefits earned under the final average earnings plan design were frozen at October 31, 2020. Starting November 1, 2020, future benefits are earned under the cash balance plan design. Under the cash balance plan design, hypothetical account balances are established for each participant and pension benefits are generally stated as the lump sum amount in that hypothetical account. Contribution credits equal to a percentage of a participant’s annual compensation (if the participant works at least 1,000 hours during the year) and interest credits equal to the greater of the 30-Year Treasury rate for September preceding the current plan year or 3.5% are added to a participant’s account each year. For employees hired prior to November 1, 2020, annual contribution credits generally increase as the participant remains employed with the Company. Employees hired on and after November 1, 2020 receive annual contribution credits equal to 5% of annual compensation, with no future increases. Notwithstanding the preceding sentence, since a cash balance plan is a defined benefit plan, the annual retirement benefit payable at normal retirement (age 65) is an annuity, which is the actuarial equivalent of the participant’s account balance under the cash balance plan design, plus their frozen benefit under the final average earnings plan design. However, under the Defined Benefit Plan, participants may elect, with the consent of their spouses if they are married, to have the benefits distributed as a lump sum rather than an annuity. The lump sum is equal to the sum of the actuarial equivalent of their frozen benefit under the final average earnings plan design, plus their cash balance account. Under the BEP, benefits are generally only payable as a lump sum, which is equal to the sum of the actuarial equivalent of their frozen benefit under the final average earnings plan design, plus their cash balance account. Pension Plans The Company provides pension benefits for its employees using a noncontributory, qualified defined benefit plan, through membership in the Savings Banks Employees Retirement Association (“SBERA”). The Company’s employees become eligible after attaining age 21 and completing one year of service. Under the final average earnings plan design, benefits became fully vested after three years of eligible service for individuals employed on or before October 31, 1989. For individuals employed subsequent to October 31, 1989 and who were already in the Defined Benefit Plan as of November 1, 2020, benefits became fully vested after five years of eligible service. Under the new cash balance plan design and for employees who were not already in the Defined Benefit Plan as of November 1, 2020, benefits become fully vested after three years of eligible service. The Company’s annual contribution to the 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. SBERA offers a common and collective trust as the underlying investment structure for pension plans participating in the association. The target allocation mix for the common and collective trust portfolio calls for an equity-based investment deployment range of 49% to 63% of total common and collective trust portfolio assets. The remainder of the common and collective trust’s portfolio is allocated to fixed income securities with a target range of 28% to 42% and other investments, including global asset allocation and hedge funds, from 3% to 15%. The Trustees of SBERA, through the Association’s Investment Committee, select investment managers for the common and collective trust portfolio. A professional investment advisory firm is retained by the Investment Committee to provide allocation analysis, performance measurement and to assist with manager searches. The overall investment objective is to diversify investments across a spectrum of investment types to limit risks from large market swings. The Defined Benefit Plan has a plan year end of October 31. In connection with the Company’s acquisition of Century during the year ended December 31, 2021, the Company acquired Century’s Qualified Defined Benefit Pension Plan. At the time of the acquisition, the plan was frozen to new participants, which had occurred in 2006, and all participants in the plan were fully vested. Additionally, all Century employees retained following the acquisition were eligible to join the Company’s Defined Benefit Plan to the extent that eligibility requirements were satisfied based upon such employees’ prior service with Century. The Company has an unfunded Defined Benefit Supplemental Executive Retirement Plan (“DB SERP”) that provides certain retired officers 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 connection with the Company’s acquisition of Century, the Company acquired Century’s Supplemental Executive Insurance/Retirement Plan (the “Supplemental Plan”). Upon completion of the acquisition, the Supplemental Plan was merged for accounting purposes only into the Company’s DB SERP, but it continues to be administered according to its terms. Further, the plan document of the Century Supplemental Plan contained change in control provisions which became effective upon the Company’s acquisition of Century. Accordingly, all participants of the Century Supplemental Plan were deemed to be fully vested upon the closing of the acquisition. The Company has an unfunded Benefit Equalization Plan (“BEP”) to provide retirement benefits to certain employees whose retirement benefits under the Defined Benefit Plan are limited per the Internal Revenue Code. The BEP has a plan year end of October 31. In connection with the Company’s acquisition of Century, any Century employee retained following the acquisition and whose retirement benefits under the Defined Benefit Plan are limited per the Internal Revenue Code were added to the BEP. Additionally, such Century employees were credited for prior service with Century for purposes of determining vesting and eligibility pursuant to the BEP. 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. Obligations and Funded Status The funded status and amounts recognized in the Company’s Consolidated Financial Statements for the Defined Benefit Plan, the DB SERP, the BEP and the ODRCP are set forth in the following table: As of and for the Year Ended December 31, 2022 2021 2020 (In thousands) Change in benefit obligation: Benefit obligation at beginning of the year $ 501,507 $ 361,147 $ 396,769 Service cost (1) 31,382 31,660 25,970 Interest cost 10,582 5,694 9,657 Amendments — (1,106) (133,439) Actuarial (gain) loss (133,282) (1,697) 78,095 Acquisitions — 125,854 — Benefits paid (47,659) (20,045) (15,905) Benefit obligation at end of the year $ 362,530 $ 501,507 $ 361,147 Change in plan assets: Fair value of plan assets at beginning of year $ 546,056 $ 449,643 $ 378,879 Actual return on plan assets (91,474) 50,879 48,895 Acquisitions — 63,468 — Employer contribution 12,443 2,111 37,773 Benefits paid (47,659) (20,045) (15,904) Fair value of plan assets at end of year 419,366 546,056 449,643 Overfunded status $ 56,836 $ 44,549 $ 88,496 Reconciliation of funding status: Past service credit $ 108,909 $ 120,792 $ 131,482 Unrecognized net loss (99,002) (128,402) (161,045) Prepaid benefit cost 46,929 52,159 118,059 Overfunded status $ 56,836 $ 44,549 $ 88,496 Accumulated benefit obligation $ 362,530 $ 501,507 $ 361,147 Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: Unrecognized past service credit $ 78,295 $ 86,837 $ 94,522 Unrecognized net loss (71,172) (92,308) (115,775) Net amount $ 7,123 $ (5,471) $ (21,253) (1) Includes service costs related to employees of our insurance agency business. Refer to the later discussion within the “Components of Net Periodic Benefit Cost” section within this Note for further discussion. In accordance with the Pension Protection Act, the Company was not required to make any contributions to the Defined Benefit Plan for the plan year beginning November 1, 2021. However, the Company made a discretionary contribution to the Defined Benefit Plan of $7.2 million during the year ended December 31, 2022. Similarly, in accordance with the Pension Protection Act, the Company was not required to make any contributions to the Defined Benefit Plan for the plan year beginning November 1, 2020. Accordingly, during the year ended December 31, 2021, there were no contributions to the Defined Benefit Plan. The Company expects to make no contribution during the plan year beginning November 1, 2022. The net actuarial gain of $133.3 million during the year ended December 31, 2022 was primarily attributable to an increase in the discount rate assumptions used for determining the benefit obligation which was partially offset by lower returns on plan assets than initially expected. The net actuarial gain of $1.7 million during the year ended December 31, 2021 was primarily attributable to higher returns on plan assets than initially expected and an increase in the discount rate assumptions which were partially offset by changes in demographic assumptions and in the participant mortality rate assumption. The net actuarial loss of $78.1 million during the year ended December 31, 2020 was primarily attributable to a decrease in the discount rate assumptions used for determining the benefit obligation in that year from the corresponding prior year. Actuarial Assumptions The assumptions used in determining the benefit obligations at December 31, 2022 and 2021 were as follows: DB Plan BEP DB SERP ODRCP As of December 31, As of December 31, As of December 31, As of December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Discount rate 5.18 % 2.65 % 5.07 % 2.32 % 5.18 % 2.68 % 5.13 % 2.32 % Rate of increase in compensation levels 4.50 % 4.50 % 4.50 % 4.50 % — % — % — % — % Interest rate credit for determining projected cash balance 3.55 % 3.50 % 3.55 % 3.50 % — % — % — % — % The assumptions used in determining the net periodic benefit cost for the years ended December 31, 2022, 2021, and 2020 were as follows: DB Plan For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.65 % 2.26 % 3.16 % Rate of compensation increase 4.50 % 5.25 % 5.25 % Expected rate of return on plan assets 7.00 % 7.50 % 7.50 % Interest rate credit for determining projected cash balance 3.50 % 3.50 % 3.50 % BEP For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.32 % 1.77 % 3.15 % Rate of compensation increase 4.50 % 5.25 % 5.25 % Interest rate credit for determining projected cash balance 3.50 % 3.50 % 3.50 % DB SERP For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.68 % 1.63 % 2.72 % ODRCP For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.32 % 1.81 % 2.86 % Rate of compensation increase — % — % 3.00 % In general, the Company has selected its assumptions with respect to the expected long-term rate of return based on prevailing yields on high quality fixed income investments increased by a premium for equity return expectations. To determine the discount rate used in calculating the benefit obligation and the benefit cost for all of its defined benefit plans, the Company uses the spot rate approach whereby the individual spot rates on the FTSE above-median yield curve are applied to each corresponding year’s projected cash flow used to measure the respective plan’s service cost and interest cost. Plan Assets The Company owns a percentage of the SBERA defined benefit common collective trust. Based upon this ownership percentage, plan assets managed by SBERA on behalf of the Company amounted to $419.4 million and $546.1 million at December 31, 2022 and 2021, respectively. Investments held by the common collective trust include Level 1, 2 and 3 assets such as: collective funds, equity securities, mutual funds, hedge funds and short-term investments. The Fair Value Measurements and Disclosures Topic of the FASB ASC stipulates that an asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As such, the Company classifies its interest in the common collective trust as a Level 3 asset. The table below presents a reconciliation of the Company’s interest in the SBERA common collective trust during the years indicated: For the Year Ended December 31, 2022 2021 (In thousands) Balance at beginning of year $ 546,056 $ 449,643 Net realized and unrealized gains and (losses) (91,474) 50,878 Contributions 7,222 — Benefits paid (42,438) (17,934) Acquisition — 63,469 Balance at end of year $ 419,366 $ 546,056 Components of Net Periodic Benefit Cost The components of net pension expense for the plans for the periods indicated are as follows: For the Year Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit cost: Service cost (1) $ 31,382 $ 31,660 $ 25,970 Interest cost 10,582 5,694 9,657 Expected return on plan assets (35,486) (33,333) (29,610) Past service credit (11,882) (11,796) (1,931) Recognized net actuarial loss 11,032 13,400 10,787 Settlements 12,045 — — Net periodic benefit cost $ 17,673 $ 5,625 $ 14,873 (1) Includes service costs related to employees of our insurance agency business. Such service costs were included in net 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 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 income from discontinued operations and included in the above table were $7.5 million, $7.7 million, and $6.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. Except as noted above, service costs for the Defined Benefit Plan, the BEP, and the DB SERP are recognized within salaries and employee benefits in the consolidated statement of income. Service costs for the ODRCP are recognized within professional services in the consolidated statement of income. The remaining components of net periodic benefit cost are recognized in other noninterest expense Pension Settlement As a practical expedient, ASC 715, “Compensation–Retirement Benefits,” permits employers to not apply pension plan settlement accounting and to treat settlement transactions as normal benefit payments if the cost of all settlements in the year is less than or equal to the sum of the service cost and interest cost components of net periodic benefit cost. The Company has elected this practical expedient. During the year ended December 31, 2022, lump sum payments from the Defined Benefit Plan exceeded the sum of the service cost and interest cost components (the “threshold”) of the Defined Benefit Plan’s net periodic pension cost. ASC 715-20, “Compensation-Retirement Benefits - Defined Benefit Plans,” requires that upon determining it is probable that such threshold will be met, an entity shall immediately recognize in earnings a pro rata portion of the aggregate unamortized gain or loss (e.g., “non-cash settlement charge”). In accordance with the applicable accounting guidance, the Company elected to apply a practical expedient to remeasure the plan assets and obligations as of the nearest month-end date upon the triggering of the previously mentioned threshold. Accordingly, the Company performed a remeasurement as of October 31, 2022 and, subsequently, as of December 31, 2022. The Company determined, with assistance from its actuaries, the amount of the resulting non-cash settlement charge to be a loss of $12.0 million which was recorded in other noninterest expense in the consolidated statement of income . Benefits expected to be paid The following table summarizes estimated benefits to be paid from the Defined Benefit Plan and BEP for the plan years beginning on November 1, and the DB SERP and ODRCP for the plan years beginning January 1: Year (In thousands) 2023 $ 45,367 2024 34,286 2025 37,454 2026 38,296 2027 37,915 In aggregate for 2028-2032 202,187 Employee Tax Deferred Incentive Plan The Company has an employee tax deferred incentive plan, otherwise known as a 401(k) plan, under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company is included in salaries and employee benefits expense. The amounts contributed to the plan for the years ended December 31, 2022, 2021, and 2020, were $5.0 million, $4.6 million and $4.4 million, respectively. Employee Stock Ownership Plan As part of the IPO completed on October 14, 2020, the Company established a tax-qualified Employee Stock Ownership Plan to provide eligible employees the opportunity to own Company shares. The ESOP borrowed $149.4 million from the Company to purchase 14,940,652 common shares during the IPO and in the open market. The loan is payable in annual installments over 30 years at an interest rate equal to the Prime rate as published in the The Wall Street Journal . As the loan is repaid to the Company, shares are released and allocated proportionally to eligible participants on the basis of each participant’s proportional share of compensation relative to the compensation of all participants. The unallocated ESOP shares are pledged as collateral on the loan. The Company accounts for its ESOP in accordance with FASB ASC 718-40, " Compensation – Stock Compensation" . Under this guidance, unreleased shares are deducted from shareholders’ equity as unearned ESOP shares in the accompanying Consolidated Balance Sheets. The Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the difference will be credited or debited to equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s Consolidated Balance Sheets. Dividends on unallocated shares are used to pay the ESOP debt. Total compensation expense recognized in connection with the ESOP was $9.9 million for the year ended December 31, 2022, compared to $9.4 million and $2.4 million recognized during the years ended December 31, 2021 and 2020, respectively. The ESOP made a loan payment during the year ended December 31, 2022 of $7.9 million, of which $3.2 million was allocated to the principal portion of the payment and $4.7 million was allocated to the interest portion of the payment. The ESOP made a loan payment during the year ended December 31, 2021 of $7.9 million, of which $3.0 million was allocated to the principal portion of the payment and $4.9 million was allocated to the interest portion of the payment. The ESOP made an upfront principal payment of $1.0 million on the loan during year ended year ended December 31, 2020 which resulted in the release and allocation of 63,690 shares and compensation expense of $0.9 million. The Company recorded additional compensation expense of $1.5 million related to the accrual of the loan payment during the year ended December 31, 2020. The number of shares committed to be released per year is 501,426 through 2049 and 231,124 in the year 2050. The following table presents share information held by the ESOP: As of December 31, 2022 2021 (Dollars in thousands) Allocated shares 1,046,850 565,134 Shares committed to be released 104,464 104,464 Unallocated shares (suspense shares) 13,769,628 14,271,054 Total shares 14,920,942 14,940,652 Fair value of unallocated shares $ 237,526 $ 287,847 Defined Contribution Supplemental Executive Retirement Plan The Company’s DC SERP, a defined contribution supplemental executive retirement plan, allows certain senior officers to earn benefits calculated as a percentage of their compensation. The participant benefits are adjusted based upon a deemed investment performance of measurement funds selected by the participant. These measurement funds are for tracking purposes and are used only to track the performance of a mutual fund, market index, savings instrument, or other designated investment or portfolio of investments. The Company recorded expense related to the DC SERP of $0.4 million, $0.9 million and $0.9 million in the years ended December 31, 2022, 2021, and 2020, respectively. The total amount due to participants under this plan was included in other liabilities on the Company’s balance sheets and amounted to $17.3 million and $33.4 million at December 31, 2022 and 2021, respectively. Effective December 31, 2021, the Company closed the DC SERP to new participants and froze benefit accruals for active participants. Deferred Compensation Plans The Company sponsors three plans which allow for elective compensation deferrals by directors, former trustees, and certain senior-level employees. Each plan allows its participants to designate deemed investments for deferred amounts from certain options which include diversified choices, such as exchange traded funds and mutual funds. Portfolios with various risk profiles are available to participants with the approval of the Compensation Committee of the Board of Directors. The Company purchases and sells investments which track the deemed investment choices, so that it has available funds to meet its payment liabilities. Deferred amounts, adjusted for deemed investment performance, are paid at the time of a participant designated date or event, such as separation from service, death, or disability. The total amounts due to participants under the three plans were included in other liabilities on the Company’s Consolidated Balance Sheets and amounted to $25.4 million and $31.5 million at December 31, 2022 and 2021, respectively. Rabbi Trust Variable Interest Entity 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 a VIEs 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. Assets held in rabbi trust accounts by plan type, at fair value, were as follows: As of December 31, 2022 2021 (In thousands) DB SERP $ 17,209 $ 20,810 BEP 11,734 13,202 ODRCP 3,670 4,316 DC SERP 17,764 34,002 Deferred compensation plans 25,909 32,042 Total rabbi trust assets $ 76,286 $ 104,372 The following tables present the book value, net unrealized gain or loss, and market value of assets held in rabbi trust accounts by asset type: As of December 31, 2022 As of December 31, 2021 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 5,575 $ — $ 5,575 $ 4,494 $ — $ 4,494 Equities (1) 60,056 3,626 63,682 67,401 24,295 91,696 Fixed income 7,799 (770) 7,029 8,126 56 8,182 Total assets $ 73,430 $ 2,856 $ 76,286 $ 80,021 $ 24,351 $ 104,372 (1) Equities include mutual funds and other exchange-traded funds. The Company had equity securities held in rabbi trust accounts of $63.7 million and $91.7 million as of December 31, 2022 and 2021, respectively. Included in the equity securities presented in the tables above are exchange-traded mutual funds which had a net asset value of $38.9 million and $58.1 million as of December 31, 2022 and 2021, respectively. 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. On March 1, 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 The following table summarizes the Company’s restricted stock award activity for the periods indicated: For the Years Ended December 31, 2022 2021 Restricted Stock Awards Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock at beginning of year 683,056 $ 20.13 — $ — Granted 31,559 19.17 683,056 20.13 Vested (136,609) 20.13 — — Forfeited (52,546) 20.08 — — Non-vested restricted stock at end of year 525,460 $ 20.08 683,056 $ 20.13 The following table summarizes the Company’s restricted stock unit activity for the periods indicated: For the Years Ended December 31, 2022 2021 Restricted Stock Units Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock at beginning of year — $ — — $ — Granted 978,364 21.08 — — Forfeited (6,039) 21.08 — — Non-vested restricted stock at end of year 972,325 $ 21.08 — $ — The following table summarizes the Company’s performance stock unit activity for the periods indicated: For the Years Ended December 31, 2022 2021 Performance Stock Units Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock at beginning of year — $ — — $ — Granted 533,676 21.12 — — Non-vested restricted stock at end of year 533,676 $ 21.12 — $ — As of December 31, 2022, no RSU or PSU awards had vested. As of December 31, 2021, no awards had vested. For the year ended December 31, 2022, share-based compensation expense under the 2021 Plan and the related tax benefit totaled $10.5 million and less than $3.0 million, respectively. For the year ended December 31, 2021, share-based compensation expense under the 2021 Plan and the related tax benefit totaled $0.2 million and less than $0.1 million, respectively. As of December 31, 2022 and 2021, there was $34.6 million and $13.5 million, respectively, of total unrecognized compensation expense related to non-vested restricted stock granted and issued under the 2021 Plan. As of December 31, 2022, this cost is expected to be recognized over a weighted average remaining period of approximately 3.3 years. As of December 31, 2021, this cost was expected to be recognized over a weighted average remaining period of approximately 4.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 2021 (In Thousands) Commitments to extend credit $ 5,680,438 $ 5,175,521 Standby letters of credit 65,154 65,602 Forward commitments to sell loans 10,008 24,440 Other Contingencies The Company has been named a defendant in various legal proceedings arising in the normal course of business. Set out below are descriptions of significant legal matters involving the Company and its subsidiaries. In the opinion of management, and taking into account the advice of legal counsel, the ultimate resolution of these proceedings will not have a material effect on the Company’s Consolidated Financial Statements. In the second quarter of 2021, the Company entered into a preliminary settlement of two purported class action matters concerning overdraft and nonsufficient funds fees. The matters were filed in the Massachusetts Superior Court in November 2019 and April 2021, respectively, and were consolidated into one matter for final settlement purposes. The matters were settled during the first quarter of 2022 and the total settlement expense, including related costs, was $3.3 million. The Company incurred no costs in 2022 related to these matters as the total settlement expense had been accrued in 2021 when management determined the loss contingency to be both probable and estimable. The Company’s regulators conducted inquiries and reviewed data related to one of these class action matters and, in February 2022, made an additional request for data and notified management that they may require additional restitution for certain matters associated with the nonsufficient funds fees matter. Based on this discussion, management believed that a loss contingency for this restitution was probable but was not able to determine a reasonable estimate for the loss. However, later during the first quarter of 2022, the Company was informed by its regulators that no additional remediation on this issue would be required. As a result, as of December 31, 2022, management no longer believes that a loss contingency for restitution associated with this issue is probable. As a member of the Federal Reserve System, the Bank is required to maintain certain reserves of vault cash and/or deposits with the Federal Reserve Bank of Boston. However, in response to the COVID-19 pandemic, the Federal Reserve temporarily eliminated reserve requirements and therefore there was no minimum reserve requirement as of December 31, 2022 and 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Financial Instruments | Derivative Financial InstrumentsThe 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 LIBOR, 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 table reflects the Company’s derivative positions as of December 31, 2022 for interest rate swaps which qualify as cash flow hedges for accounting purposes: 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. As of December 31, 2021, the Company did not have any active interest rate swaps which qualified as cash flow hedges for accounting purposes. 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 five years. The Company expects approximately $42.0 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 December 31, 2022. The reclassification is due to anticipated net payments on the swaps based upon the forward curve as of December 31, 2022. Due to the phase-out, and eventual discontinuation, of the LIBOR, central clearinghouses have begun to transition to alternative rates for valuation purposes. As of October 16, 2020, the Company changed its valuation methodology to reflect changes made by the Chicago Mercantile Exchange (“CME”), through which the Company clears derivative financial instruments that are eligible for clearing. The changes from the CME changed the discounting methodology and interest calculation of cash margin from Overnight Index Swap to SOFR for U.S. dollar cleared interest rate swaps. The Company believes that its improvements to its valuation methodology will result in valuations for cleared interest rate swaps that better reflect prices obtainable in the markets in which the Company transacts. The changes in valuation methodology are applied prospectively as a change in accounting estimate and are immaterial to the Company’s Consolidated Financial Statements. The Company discontinues cash flow hedge accounting if it is probable that 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: Year Ended December 31, 2022 2021 2020 (In thousands) Unrealized gains on terminated hedges included in AOCI — January 1 $ 10,239 $ 41,473 $ — Unrealized gains on terminated hedges arising during the period — — 57,362 Reclassification adjustments for amortization of unrealized (gains) into net interest income (10,193) (31,234) (15,889) Unrealized gains on terminated hedges included in AOCI — December 31 $ 46 $ 10,239 $ 41,473 The balance of terminated cash flow hedges in AOCI will be amortized into earnings through January 2023. The Company expects less than $0.1 million to be reclassified into interest income from other comprehensive income related to the Company’s terminated cash flow hedges in the next 12 months as of December 31, 2022. 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: As of 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 As of December 31, 2021 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 494 $ 3,009,150 Risk participation agreements 64 238,772 Foreign exchange contracts: Matched commercial customer book 72 7,922 Foreign currency loan 6 10,830 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 Sheet Fair Value at December 31, Fair Value at December 31, Balance Sheet Fair Value at December 31, Fair Value at December 31, (In thousands) Derivatives designated as hedging instruments Interest rate swaps Other assets $ 16 $ — Other liabilities $ 2,417 $ — Derivatives not designated as hedging instruments Customer-related positions: Interest rate swaps Other assets $ 23,567 $ 64,338 Other liabilities $ 78,577 $ 17,880 Risk participation agreements Other assets 78 315 Other liabilities 130 580 Foreign currency exchange contracts — matched customer book Other assets 198 61 Other liabilities 205 46 Foreign currency exchange contracts — foreign currency loan Other assets 2 — Other liabilities 93 87 $ 23,845 $ 64,714 $ 79,005 $ 18,593 Total $ 23,861 $ 64,714 $ 81,422 $ 18,593 There were no derivatives designated as hedging instruments at December 31, 2021. The table below presents the net effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows: For the Year Ended December 31, 2022 2021 2020 (In thousands) Derivatives designated as hedges: Gain in OCI on derivatives $ (69,010) $ — $ 46,871 Gain reclassified from OCI into interest income (effective portion) $ 9,580 $ 31,234 $ 27,131 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 (loss) recognized in interest rate swap income $ 4,324 $ 4,962 $ (3,812) Gain (loss) recognized in interest rate swap income for risk participation agreements 213 243 (384) Gain (loss) recognized in other income for foreign currency exchange contracts: Matched commercial customer book (22) 1 (28) Foreign currency loan (4) (27) 143 Total gain (loss) for derivatives not designated as hedges $ 4,511 $ 5,179 $ (4,081) 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 derivative consists of exposure on cleared derivative transactions and exposure on non-cleared derivative transactions. Cleared derivative transactions are with CME and exposure is settled to market daily, with additional credit exposure related to initial-margin collateral pledged to CME at trade execution. 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. At December 31, 2021, 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 $0.4 million. In addition, at December 31, 2022 and 2021, the Company had posted initial-margin collateral in the form of U.S. Treasury notes amounting to $84.1 million and $48.9 million, respectively, to CME for these derivatives. The U.S. Treasury notes were considered restricted assets and were included in available for sale securities on the Company’s Consolidated Balance Sheets. At December 31, 2022, there were no interest rate swap derivatives with credit-risk contingent features in a net liability position. At December 31, 2021, the fair value of interest rate swap derivatives with credit-risk related contingent features that were in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk, totaled $13.7 million. 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 December 31, 2022 and 2021, the Company had posted collateral in the form of cash amounting to $1.0 million and $21.3 million, respectively, 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 December 31, 2022 or 2021, 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 |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021, 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 financial position, as of the dates indicated: As of December 31, 2022 Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In thousands) Derivative Assets Interest rate swaps designated as cash flow hedges $ 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 designated as cash flow hedges $ 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 As of December 31, 2021 Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In thousands) Derivative Assets Customer-related positions: Interest rate swaps $ 64,338 $ — $ 64,338 $ 1,440 $ — $ 62,898 Risk participation agreements 315 — 315 — — 315 Foreign currency exchange contracts – matched customer book 61 — 61 — — 61 Foreign currency exchange contracts – foreign currency loan — — — — — — $ 64,714 $ — $ 64,714 $ 1,440 $ — $ 63,274 Derivative Liabilities Customer-related positions: Interest rate swaps $ 17,880 $ — $ 17,880 $ 1,440 $ 16,440 $ — Risk participation agreements 580 — 580 — — 580 Foreign currency exchange contracts – matched customer book 46 — 46 — — 46 Foreign currency exchange contracts – foreign currency loan 87 — 87 — — 87 $ 18,593 $ — $ 18,593 $ 1,440 $ 16,440 $ 713 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company uses fair value measurements to record adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 (including SBA pooled securities), 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, including Small Business Administration pooled securities, 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 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. The estimated fair value of the Company’s securities available for sale, by type, is disclosed in Note 4, “Securities.” Loans Held for Sale 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. The fair value of PPP loans, which are fully guaranteed by the SBA, approximates the carrying amount. 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” 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 were 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 $38.9 million and $58.1 million at December 31, 2022 and 2021, respectively. 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 and 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 December 31, 2022 and 2021, 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 its 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 was 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 December 31, 2022 and 2021: Fair Value Measurements at Reporting Date Using Balance as of December 31, 2022 Quoted Prices in Significant Significant Description (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 $ — Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2021 Quoted Prices in Significant Significant (In thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 5,524,708 $ — $ 5,524,708 $ — Government-sponsored commercial mortgage-backed securities 1,408,868 — 1,408,868 — U.S. Agency bonds 1,175,014 — 1,175,014 — U.S. Treasury securities 88,605 88,605 — — State and municipal bonds and obligations 280,329 — 280,329 — Small Business Administration pooled securities 32,103 — 32,103 — Other debt securities 1,597 — 1,597 Rabbi trust investments 104,372 96,190 8,182 — Loans held for sale 1,206 — 1,206 — Interest rate swap contracts Customer-related positions 64,338 — 64,338 — Risk participation agreements 315 — 315 — Foreign currency forward contracts Matched customer book 61 — 61 — Foreign currency loan — — — — Mortgage derivatives 256 — 256 — Total $ 8,681,772 $ 184,795 $ 8,496,977 $ — Liabilities Interest rate swap contracts Customer-related positions $ 17,880 $ — $ 17,880 $ — Risk participation agreements 580 — 580 — Foreign currency forward contracts Matched customer book 46 — 46 — Foreign currency loan 87 — 87 — Mortgage derivatives 16 — 16 — Total $ 18,609 $ — $ 18,609 $ — There were no transfers to or from Level 1, 2 and 3 during the years ended December 31, 2022 and 2021. The Company held no assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2022 or December 31, 2021. 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 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 December 31, 2022 and 2021. Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2022 Quoted Prices Significant Significant (In thousands) Assets Individually assessed collateral-dependent loans whose fair value is based upon appraisals $ 16,432 $ — $ — $ 16,432 Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2021 Quoted Prices Significant Significant (In thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 12,068 $ — $ — $ 12,068 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. Refer to Note 2, “Summary of Significant Accounting Policies” and Note 5, “Loans and Allowance for Credit Losses” for further discussion regarding the Company’s adoption of ASU 2016-13 and the effect of that adoption on the management’s process for estimating the allowance for loan losses. Loans for which a reserve was established based upon expected cash flows discounted at the loan’s effective interest rate are not deemed to be measured at fair value. 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 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 — Fair Value Measurements at Reporting Date Using Carrying Value as of December 31, 2021 Fair Value as of December 31, 2021 Quoted Prices Significant Significant (In thousands) Assets Loans, net of allowance for loan losses $ 12,157,281 $ 12,282,323 $ — $ — $ 12,282,323 FHLB stock 10,904 10,904 — 10,904 — Bank-owned life insurance 157,091 157,091 — 157,091 — Liabilities Deposits $ 19,628,311 $ 19,626,376 $ — $ 19,626,376 $ — FHLB advances 14,020 13,558 — 13,558 — Escrow deposits of borrowers 20,258 20,258 — 20,258 — 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 | 12 Months Ended |
Dec. 31, 2022 | |
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 24, “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 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. For the Year Ended December 31, 2022 2021 2020 (In thousands) Service charges on deposit accounts $ 30,392 $ 24,271 $ 21,560 Trust and investment advisory fees 23,593 24,588 21,102 Debit card processing fees 12,644 12,118 10,277 Other non-interest income 10,670 8,446 7,228 Total noninterest income in-scope of ASC 606 77,299 69,423 60,167 Total noninterest (loss) income out-of-scope of ASC 606 (549) 28,014 23,512 Total noninterest income $ 76,750 $ 97,437 $ 83,679 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 $2.1 million and $1.8 million as of December 31, 2022 and 2021 respectively, 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 December 31, 2022 and 2021 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 | 12 Months Ended |
Dec. 31, 2022 | |
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 income (loss) for the dates indicated including the amount of income tax benefit (expense) allocated to each component of other comprehensive (loss) income: For the Year Ended December 31, 2022 Pre Tax Tax Benefit (Expense) After Tax (In thousands) Unrealized losses on securities available for sale: Change in fair value of securities available for sale $ (1,061,859) $ 238,005 $ (823,854) Less: reclassification adjustment for losses included in net income (3,157) 873 (2,284) Net change in fair value of securities available for sale (1,058,702) 237,132 (821,570) Unrealized losses on cash flow hedges: Change in fair value of cash flow hedges (1) (69,010) 18,377 (50,633) Less: net cash flow hedge gains reclassified into interest income (1) 9,580 (2,693) 6,887 Net change in fair value of cash flow hedges (78,590) 21,070 (57,520) Defined benefit pension plans: Change in actuarial net loss 6,323 (1,777) 4,546 Less: amortization of actuarial net loss (11,032) 3,101 (7,931) Less: Defined Benefit Plan settlement loss (12,045) 3,386 (8,659) Less: net accretion of prior service credit 11,882 (3,340) 8,542 Net change in other comprehensive income for defined benefit pension plans 17,518 (4,924) 12,594 Total other comprehensive loss $ (1,119,774) $ 253,278 $ (866,496) For the Year Ended December 31, 2021 Pre Tax Tax Benefit (Expense) After Tax (In thousands) Unrealized (losses) gains on securities available for sale: Change in fair value of securities available for sale $ (133,466) $ 30,117 $ (103,349) Less: reclassification adjustment for gains included in net income 1,166 (257) 909 Net change in fair value of securities available for sale (134,632) 30,374 (104,258) Unrealized gains on cash flow hedges: Change in fair value of cash flow hedges (1) — — — Less: net cash flow hedge gains reclassified into interest income (1) 31,234 (8,780) 22,454 Net change in fair value of cash flow hedges (31,234) 8,780 (22,454) Defined benefit pension plans: Change in actuarial net gain 19,243 (5,409) 13,834 Less: amortization of actuarial net loss (13,400) 3,767 (9,633) Plan amendment - Century acquisition lump sum distribution option 1,106 (311) 795 Less: net accretion of prior service credit 11,796 (3,316) 8,480 Net change in other comprehensive income for defined benefit pension plans 21,953 (6,171) 15,782 Total other comprehensive loss $ (143,913) $ 32,983 $ (110,930) For the Year Ended December 31, 2020 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains on securities available for sale: Change in fair value of securities available for sale $ 30,926 $ (6,828) $ 24,098 Less: reclassification adjustment for gains included in net income 288 (64) 224 Net change in fair value of securities available for sale 30,638 (6,764) 23,874 Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges (1) 46,871 (13,175) 33,696 Less: net cash flow hedge gains reclassified into interest income (1) 27,131 (7,626) 19,505 Net change in fair value of cash flow hedges 19,740 (5,549) 14,191 Defined benefit pension plans: Change in actuarial net gain (58,811) 16,532 (42,279) Less: amortization of actuarial net loss (10,787) 3,033 (7,754) Plan amendment - prior service credit 133,439 (37,510) 95,929 Less: net accretion of prior service credit 1,931 (543) 1,388 Net change in other comprehensive income for defined benefit pension plans 83,484 (23,468) 60,016 Total other comprehensive income $ 133,862 $ (35,781) $ 98,081 (1) Includes amortization of $7.3 million, $22.5 million, and $11.4 million for the years ended December 31, 2022, 2021, and 2020, respectively, of the remaining balance of realized but unrecognized gains, net of tax, from the termination of interest rate swaps. The total realized gain of $41.2 million, net of tax, will be recognized in earnings through January 2023. The balance of this gain had amortized to less than $0.1 million, $7.4 million, and $29.8 million, net of tax, at December 31, 2022, December 31, 2021, and December 31, 2020, respectively. The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax: Unrealized Unrealized Defined Benefit Total (In thousands) Beginning balance: January 1, 2020 $ 21,798 $ 15,624 $ (81,269) $ (43,847) Other comprehensive income before reclassifications 24,098 33,696 53,650 111,444 Less: Amounts reclassified from accumulated other comprehensive income 224 19,505 (6,366) 13,363 Net current-period other comprehensive income 23,874 14,191 60,016 98,081 Ending balance: December 31, 2020 $ 45,672 $ 29,815 $ (21,253) $ 54,234 Other comprehensive (loss) income before reclassifications (103,349) — 14,629 (88,720) Less: Amounts reclassified from accumulated other comprehensive income 909 22,454 (1,153) 22,210 Net current-period other comprehensive (loss) income (104,258) (22,454) 15,782 (110,930) Ending balance: December 31, 2021 $ (58,586) $ 7,361 $ (5,471) $ (56,696) Other comprehensive (loss) income before reclassifications (823,854) (50,633) 4,546 (869,941) Less: Amounts reclassified from accumulated other comprehensive income (2,284) 6,887 (8,048) (3,445) Net current-period other comprehensive (loss) income (821,570) (57,520) 12,594 (866,496) Ending balance: December 31, 2022 $ (880,156) $ (50,159) $ 7,123 $ (923,192) The following table illustrates the significant amounts reclassified out of each component of accumulated other comprehensive (loss)/income, net of tax: Year Ended December 31, Details about Accumulated Other Comprehensive (Loss)/Income Components 2022 2021 2020 Affected Line Item in the Statement Where Net Income is Presented (In thousands) Unrealized (losses) and gains on available-for-sale securities $ (3,157) $ 1,166 $ 288 (Losses) gains on sales of securities available for sale, net (3,157) 1,166 288 Total before tax 873 (257) (64) Tax benefit or (expense) $ (2,284) $ 909 $ 224 Net of tax Unrealized gains on cash flow hedges $ 9,580 $ 31,234 $ 27,131 Interest income 9,580 31,234 27,131 Total before tax (2,693) (8,780) (7,626) Tax expense $ 6,887 $ 22,454 $ 19,505 Net of tax Amortization of defined benefit pension items $ (23,077) $ (13,400) $ (10,787) Net periodic pension cost - see Note 17 Accretion of prior service credit 11,882 11,796 1,931 Net periodic pension cost - see Note 17 (11,195) (1,604) (8,856) Total before tax 3,147 451 2,490 Tax benefit $ (8,048) $ (1,153) $ (6,366) Net of tax Total reclassifications for the period $ (3,445) $ 22,210 $ 13,363 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
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 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. Refer to Note 27, “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. The following is a summary of the assets and liabilities of the discontinued insurance agency business as of December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 (In thousands) Assets Premises and equipment $ 163 $ 429 Goodwill and intangibles, net 93,117 80,496 Deferred income taxes, net (315) 446 Prepaid expenses 532 527 Other assets 34,722 32,120 Total assets $ 128,219 $ 114,018 Liabilities Other liabilities $ 34,930 $ 31,222 Total liabilities $ 34,930 $ 31,222 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 December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (In thousands) Assets Cash $ 66,507 $ 69,161 Premises and equipment (1) 1,792 1,884 Bank-owned life insurance 2,066 2,012 Deferred income taxes 3,662 315 Other assets (2) 12,944 17,377 Total assets $ 86,971 $ 90,749 Liabilities Other liabilities (3) $ 14,013 $ 18,497 Total liabilities $ 14,013 $ 18,497 (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 periods indicated: For the Years Ended December 31, 2022 2021 2020 (In thousands) Noninterest income: Insurance commissions $ 99,887 $ 95,164 $ 95,195 Other noninterest income 179 1,014 199 Total noninterest income 100,066 96,178 95,394 Noninterest expense: Salaries and employee benefits 65,089 68,292 60,593 Office occupancy and equipment 3,319 3,204 3,176 Data processing 4,335 4,424 4,049 Professional services 1,009 596 770 Marketing expenses 246 241 152 Amortization of intangible assets 2,666 2,293 2,261 Other 4,944 4,411 5,131 Total noninterest expense 81,608 83,461 76,132 Income from discontinued operations before income tax expense 18,458 12,717 19,262 Income tax expense 5,210 3,583 5,385 Income from discontinued operations, net of taxes $ 13,248 $ 9,134 $ 13,877 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 periods indicated: Years Ended December 31, 2022 2021 2020 (In thousands) Noninterest income: (Losses) income from investments held in rabbi trusts $ (1,305) $ 937 $ 1,293 Other noninterest income (1) 54 52 52 Total noninterest income (1,251) 989 1,345 Noninterest expense: Salaries and employee benefits (2) (1,292) 967 1,098 Office occupancy and equipment (3) 499 501 511 Other (4) 2,396 (2,151) 64 Total noninterest expense 1,603 (683) 1,673 (Loss) income before income tax expense (2,854) 1,672 (328) Income tax (benefit) expense (802) 470 (92) Net (loss) income (2,052) 1,202 (236) (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. (2) Includes expenses, which were a net credit for the year ended December 31, 2022, 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. (4) Includes intercompany expenses and other credits associated with the Defined Benefit Plan and BEP. Components of net periodic benefit cost associated with the Defined Benefit Plan and BEP and included in other noninterest expense above were a net credit for the periods presented. 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 The amounts of 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 were $8.7 million and $9.2 million, respectively, at December 31, 2022 and $9.8 million and $10.4 million, respectively, at December 31, 2021. The Company retained one lease for which Eastern Insurance Group was lessee at the time of closing. 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 $1.9 million and $2.2 million, respectively, at December 31, 2022 and $2.3 million and $2.5 million, respectively, at December 31, 2021. 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 $15.1 million and $15.6 million as of December 31, 2022 and December 31, 2021, respectively, and were included in assets of discontinued operations on the Consolidated Balance Sheets. The Company also earns profit-sharing revenues, also referred to as contingency revenue, from the insurers with whom the Company places business. These profit-sharing revenues are performance bonuses from the insurers based upon certain performance metrics such as floors on written premiums, loss rates, and growth rates. These amounts are in excess of the commission revenues discussed above, and not all business placed with underwriting enterprises is eligible for contingent revenues. Contingent revenues are variable and generally based upon the Company’s expectation of the ultimate profit-sharing revenue amounts to be earned and can vary from period to period. The Company’s contracts are generally calendar year contracts whereby revenues from underwriting enterprises are received in the calendar year following placement, generally the first and second quarters, after verification of the performance indicators outlined in the contracts. Accordingly, during each reporting period, management must make its best estimate of the amounts that have been earned using historical averages and other factors to project revenues. The Company bases its estimates each period on a contract-by-contract basis. As estimates may change significantly from period to period, the Company does not recognize this revenue until it has concluded that, based on all the facts and information available, it is probable that a significant revenue reversal will not occur in future periods. Insurance Agency Acquisitions During the year ended December 31, 2022, the Company completed acquisitions of two insurance agencies for cash consideration of $5.2 million and $8.2 million, respectively, for aggregate total cash consideration of $13.4 million. Both acquisitions were categorized as business combinations and were accounted for using the acquisition method. The following table summarizes the aggregate estimated fair value of the assets acquired and liabilities assumed for these acquisitions: Acquisition Date Balance (In thousands) Assets acquired: Customer list intangible $ 6,120 Non-compete intangible 440 Other 40 Total assets acquired 6,600 Consideration: Total cash paid (13,400) Contingent consideration (1,926) Other liabilities assumed — Total fair value of consideration (15,326) Goodwill $ 8,726 In connection with these acquisitions, the Company recorded contingent consideration liabilities related to attainment of revenue targets over a period of time after the respective acquisition dates. The amounts of contingent consideration liabilities recorded were based upon management’s best estimate of possible outcomes as of the date of the respective acquisitions. The Company recorded contingent consideration liabilities of $0.7 million and $1.2 million and per the purchase agreements, the payouts ranged from $0 to $0.8 million and $0 to $1.4 million, respectively. During the year ended December 31, 2022, the Company did not have any material charges to expense or payments to adjust the acquisition-related contingent consideration liabilities recorded. For tax purposes, the acquisitions were considered asset acquisitions and as such, the amortization of goodwill and intangible assets is deductible for tax purposes. Acquisition-related legal and professional fee costs of $0.3 million were charged to expense during the year ended December 31, 2022, and were included in the professional services line item of the consolidated statements of income. These acquisitions were not considered significant to the Company’s Consolidated Financial Statements and, therefore, pro forma data and certain other disclosures have been excluded. During the year ended December 31, 2021, the Company completed acquisitions of two insurance agencies for cash consideration of $0.5 million and $3.9 million, respectively, for aggregate total cash consideration of $4.4 million. Both acquisitions were categorized as business combinations and were accounted for using the acquisition method. The following table summarizes the aggregate estimated fair value of the assets acquired and liabilities assumed for these acquisitions: Acquisition Date Balance (In thousands) Assets acquired: Customer list intangible $ 1,860 Non-compete intangible 170 Other 133 Total assets acquired 2,163 Consideration: Total cash paid (4,354) Contingent consideration (449) Other liabilities assumed (355) Total fair value of consideration (5,158) Goodwill $ 2,995 In connection with one of these acquisitions, the Company recorded a contingent consideration liability related to attainment of revenue targets over a period of time after the acquisition date. The amount of contingent consideration liability recorded was based upon management’s best estimate of possible outcomes as of the date of acquisition. The Company recorded a contingent consideration liability of $0.4 million, and per the purchase agreement, the payout ranged from $0 to $0.5 million. During the year ended December 31, 2021, the Company did not have any material charges to expense or payments to adjust the acquisition-related contingent consideration liability recorded. |
Parents Company Financial State
Parents Company Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements Condensed financial information relative to Eastern Bankshares Inc.'s (“the parent company”) balance sheets at December 31, 2022 and 2021 and the related statements of income and cash flows for the years ended December 31, 2022, 2021 and 2020 are presented below. The statement of shareholders’ equity is not presented below as the parent company’s shareholders’ equity is that of the consolidated Company. BALANCE SHEETS As of December 31, 2022 2021 (In thousands) Assets Cash and cash equivalents (1) $ 126,441 $ 134,671 Goodwill and other intangibles, net 744 744 Deferred income taxes, net 13,182 17,974 Investment in subsidiaries 2,327,521 3,250,133 Other assets 4,557 3,080 Total assets $ 2,472,445 $ 3,406,602 Liabilities and shareholders’ equity Other liabilities $ 655 $ 250 Total liabilities 655 250 Shareholders’ equity 2,471,790 3,406,352 Total liabilities and shareholders’ equity $ 2,472,445 $ 3,406,602 (1) Includes $125.0 million and $133.5 that is eliminated in consolidation as of December 31, 2022 and 2021, respectively. STATEMENTS OF INCOME For the Year Ended December 31, 2022 2021 2020 (In thousands) Income Interest income $ 15 $ — $ — Total income 15 — — Expenses Professional services 899 7,393 1,485 Charitable contributions — — 91,287 Other 3,070 222 151 Total expenses 3,969 7,615 92,923 Loss before income taxes and equity in undistributed income of subsidiaries (3,954) (7,615) (92,923) Income tax expense (benefit) 269 (11,344) (13,933) (Loss) income before equity in undistributed income of subsidiaries (4,223) 3,729 (78,990) Equity in undistributed income of subsidiaries 203,982 150,936 101,728 Net income $ 199,759 $ 154,665 $ 22,738 STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2022 2021 2020 (In thousands) Cash flows provided by operating activities Net income $ 199,759 $ 154,665 $ 22,738 Adjustments to reconcile net income to cash provided by operating activities Equity in undistributed income of subsidiaries (203,982) (150,936) (101,728) Issuance of common shares donated to the Eastern Bank Foundation — — 91,287 Share-based compensation 10,507 — — ESOP expense 9,923 9,408 2,351 Change in: Deferred income taxes, net 4,792 (7,157) (10,817) Other, net (937) (388) (350) Net cash provided by operating activities 20,062 5,592 3,481 Cash flows provided by (used in) investing activities Investment in Eastern Bank — — (882,096) Cash paid for acquisition, net of cash acquired — (640,890) — Return of investments in subsidiary 240,000 140,000 — Contributions to other equity investments (788) — — Net cash provided by (used in) investing activities 239,212 (500,890) (882,096) Cash flows (used in) provided by financing activities Proceeds from issuance of common shares — — 1,792,878 Purchase of shares by ESOP — — (149,407) Payments for deferred offering costs — — (28,552) Payment of subordinated debentures assumed in business combination (1) — (36,277) — Payments for shares repurchased under share repurchase plans (201,618) (23,224) — Dividends declared and paid to common shareholders (65,886) (51,564) — Net cash (used in) provided by financing activities (267,504) (111,065) 1,614,919 Net (decrease) increase in cash and cash equivalents (8,230) (606,363) 736,304 Cash and cash equivalents at beginning of year 134,671 741,034 4,730 Cash and cash equivalents at end of year $ 126,441 $ 134,671 $ 741,034 (1) The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition and is reflected as such balance in the summary of net assets acquired included in Note 3 to the Consolidated Financial Statements. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Related PartiesThe Company has, and expects to have in the future, related party transactions in the ordinary course of business. The transactions include, but are not limited to, lending activities and deposit services with directors and executive officers of the Company and their affiliates. Based on the Company’s assessment, such transactions are consistent with prudent banking practices and are within applicable banking regulations. During the years ended December 31, 2022, 2021 and 2020, no such transactions involved amounts in excess of 5% of the Company’s total shareholders’ equity. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Balance Sheet Repositioning–Securities Sales In March 2023, the Company completed a balance sheet repositioning by selling lower yielding AFS securities for aggregate proceeds of $1.9 billion. The securities were sold at a loss of $333.2 million. The proceeds from the sale of such securities have been used to increase cash levels and may be used to reduce wholesale funds over time. The Company established a $17.4 million valuation allowance 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. 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. Liquidation of Market Street Securities Corporation (“MSSC”) During the first quarter of 2023, the Company liquidated 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. Cambridge Merger On September 19, 2023, the Company announced it had entered into a definitive merger agreement with Cambridge Bancorp and Cambridge Trust Company (“Cambridge”) pursuant to which the Company will acquire Cambridge through a merger, with the Company as the surviving entity, and Cambridge will merge with and into Eastern Bankshares, Inc. (the “Merger Agreement”). Under the Merger Agreement, each share of stock of Cambridge will be exchanged for 4.956 shares of the Company’s common stock. The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and provide Cambridge shareholders with a tax-free exchange for the Company’s common stock consideration they will receive in the merger. The Company anticipates issuing approximately 39.4 million shares of the Company’s common stock in the merger. Based upon the closing price of $13.41 per share of the Company’s common stock on September 18, 2023, the transaction is valued at approximately $528.1 million. The closing of the Cambridge acquisition, which is expected to occur in the first quarter of 2024, remains subject to required Eastern Bankshares, Inc. shareholder approval, Cambridge shareholder approval, regulatory approvals and satisfaction of other customary closing conditions set forth in the Merger Agreement. Sale of Insurance Operations On September 19, 2023, the Company announced it had entered into a definitive asset purchase agreement with Arthur J. Gallagher & Co. (“Gallagher”) under which Gallagher agreed to purchase for cash the Company’s insurance agency business. 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 24, “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 Current Report on Form 8-K, 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. In connection with its sale of its insurance agency business, 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 which was recorded in the third quarter of 2023. The Company recorded an impairment charge of $2.0 million in the third quarter of 2023 related to leases which will be early terminated following the closing of the sale. The impairment charge was included in net (loss) income from discontinued operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 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 year’s presentation which includes: • certain loan servicing-related costs have been reclassified from professional services to loan expense; and • operational losses have been reclassified to other non-interest expense. As a result of the decision to sell substantially all of the assets and transfer certain 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, including the associated income tax effects, previously reported in the insurance agency business were reclassified to net income from discontinued operations on the Consolidated Statements of Income; and |
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 loan losses, valuation and fair value measurements, allowance for credit losses on investment securities, the liabilities for benefit obligations (particularly pensions), the provision for income taxes and impairment of goodwill and other intangibles. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash on hand and amounts due from banks, federal funds sold, and other short-term investments including restricted cash pledged, all of which have an original maturity of 90 days or less. |
Securities | Securities Debt securities are classified at the time of purchase as either “trading,” “available for sale” (“AFS”) or “held to maturity” (“HTM”). Equity securities are measured at fair value with changes in the fair value recognized through net income. Debt securities that are bought and held principally for the purpose of resale in the near term are classified as trading securities and recorded at fair value, with subsequent changes in fair value included in net income. Debt securities that the Company has the positive intent and the ability to hold to maturity are classified as HTM securities and recorded at amortized cost. Debt securities not classified as either trading or HTM are classified as AFS and recorded at fair value, with changes in fair value excluded from net income and reported in other comprehensive income, net of related tax. Amortization of premiums and accretion of discounts are computed using the effective interest rate method. ASU 2016-13 made targeted changes to ASC 320 to eliminate the concept of “other than temporary” from the impairment loss estimation model for AFS securities. A summary of the changes made by the Company to the existing impairment model (previously referred to as the “OTTI” model) as a result of adoption of ASU 2016-13 is as follows: • The use of an allowance approach, rather than a permanent write-down of a security’s cost basis upon determination of an impairment loss. • The amount of the allowance is limited to the amount at which the security’s fair value is less than its amortized cost basis. • The Company may not consider the length of time a security’s fair value has been less than amortized cost. • The Company may not consider recoveries in fair value after the balance sheet date when assessing whether a credit loss exists. The Company’s AFS securities are carried at fair value. For AFS securities in an unrealized loss position, management will first evaluate whether there is intent to sell a security, or if it is more likely than not that the Company will be required to sell a security prior to anticipated recovery of its amortized cost basis. If either of these criteria are met, the Company will record a write-down of the security’s amortized cost basis to fair value through income. For those AFS securities which do not meet the intent or requirement to sell criteria, management will evaluate whether the decline in fair value is a result of credit related matters or other factors. In performing this assessment, management considers the creditworthiness of the issuer including whether the security is guaranteed by the U.S. federal government or other government agency, the extent to which fair value is less than amortized cost, and changes in credit rating during the period, among other factors. If this assessment indicates the existence of credit losses, an allowance for credit losses will be established, as determined by a discounted cash flow analysis. To the extent the estimated cash flows do not support the amortized cost, the deficiency is considered to be due to credit loss and is recognized in earnings. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when the security is determined to be uncollectible, or when either of the aforementioned criteria surrounding intent or requirement to sell have been met. On January 1, 2022, the date on which the Company adopted ASU 2016-13, no allowance for credit losses was recorded for AFS securities. Gains and losses on sales of securities are recognized at the time of sale on the specific-identification basis. Prior to the adoption of ASU 2016-13, management evaluated impaired securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warranted such evaluation. Consideration was given to the length of time and the extent to which the fair value was less than cost, current market conditions, the financial condition and near-term prospects of the issuer, performance of collateral underlying the securities, the ratings of the individual securities, the interest rate environment, the Company’s intent to sell the security or whether it was more likely than not that the Company would be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. |
Allowance for Credit Losses | Allowance for Credit Losses - Held to Maturity Securities The Company measures expected credit losses on HTM securities on a collective basis by major security type which, as of December 31, 2022, included government-sponsored residential and commercial mortgage-backed securities. Securities in the Company’s HTM portfolio are guaranteed by either the U.S. federal government or other government sponsored agencies with a long history of no credit losses. As a result, management has determined that these securities have a zero loss expectation and therefore does not record an allowance for credit losses on these securities. The Company held no securities classified as HTM at December 31, 2021. Refer to Note 4, “Securities” for additional information regarding the measurement of credit losses on HTM securities. Loans Individually Assessed for Impairment ASU 2016-13 indicates that a loan should be measured for impairment individually if that loan shares no similar risk characteristics with other loans. For the Company, loans which have been identified as those to be individually assessed for impairment under CECL include loans that do not share similar risk characteristics with other loans in the corresponding reserve segment. Characteristics of loans meeting this definition may include, but are not limited to: • Loans previously restructured and determined to be TDR loans; • Loans on non-accrual status; and • Loans with a risk rating of 12 under the Company’s risk rating scale, substandard (well-defined weakness) or worse. Collateral-Dependent Loans Management considers a loan to be collateral-dependent when foreclosure of the underlying collateral is probable. In addition, in accordance with ASU 2016-13, the Company elected to apply the collateral-dependent practical expedient whereby the Company measures expected credit losses using the fair value of the collateral, less any estimated costs to sell, when foreclosure is not probable but repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. Troubled Debt Restructured Loans In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. Modifications may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower’s obligations have been effectively discharged through Chapter 7 bankruptcy and the borrower has not reaffirmed the debt to the Company, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Prior to the Company’s adoption of ASU 2016-13, all TDR loans were subject to a specific review for impairment loss each period beginning in the period in which the modification was executed. Subsequent to the adoption of ASU 2016-13, management identifies loans as TDR loans when it has a reasonable expectation that it will execute a TDR modification with a borrower. In addition, subsequent to adoption of ASU 2016-13, management estimates expected credit losses on a collective basis if a group of TDR loans share similar risk characteristics. If a TDR loan’s risk characteristics are not similar to those of any of the Company’s other TDR loans, expected credit losses on the TDR loan are measured individually. The impairment analysis discounts 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 is collateral dependent. The amount of credit loss, if any, is 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 is 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 has been classified as a TDR and which subsequently defaults is 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 is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. The Company’s policy is to retain any restructured loan, which is on non-accrual status prior to being modified, on non-accrual status for approximately six months subsequent to being modified before the Company considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, the Company reviews it to determine if the modified loan should remain on accrual status. Purchased Credit-Deteriorated Loans The Company applied the prospective transition approach with respect to PCD assets upon adoption of ASU 2016-13. Under this approach, loans previously determined to be PCI loans are considered to be PCD loans as of January 1, 2022. PCD loans are acquired individual loans (or acquired groups of loans with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. A PCD loan is recorded at its purchase price plus the allowance for loan losses expected at the time of acquisition, or “gross up” of the amortized cost basis, if any. Changes in the current estimate of the allowance for loan losses subsequent to acquisition from the estimated allowance previously recorded are recognized in the income statement as provision for credit losses or reversal of provision for credit losses in subsequent periods as they arise. A purchased loan that does not qualify as a PCD asset is accounted for similar to the Company’s method of accounting for originated assets, whereby an allowance for loan losses is recognized with a corresponding increase to the income statement provision for loan losses. Evidence that purchased loans, measured at amortized cost, have more-than-insignificant deterioration in credit quality since origination and, therefore meet the PCD definition, may include past-due status, non-accrual status, risk rating and other standard indicators (i.e., TDRs, charge-offs, bankruptcy). Allowance for Credit Losses Through December 31, 2021, the allowance for loan losses represented management’s best estimate of incurred probable losses in the Company’s loan portfolios based upon management’s assessment of various factors, including the risk characteristics of its loan portfolio, current economic conditions, and trends in loan delinquencies and charge-offs. The Company’s methodology for determining the qualitative component through December 31, 2021 included an assessment of factors affecting the determination of incurred losses in the loan portfolio. Such factors included trends in economic conditions, loan growth, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons, among others. Upon adoption of ASU 2016-13, effective January 1, 2022, the Company changed its reserve methodology to estimate expected credit losses over the contractual life of loans and leases. The allowance for credit losses, or “ACL,” is established to provide for the Company’s current estimate of expected lifetime credit losses on loans measured at amortized cost and unfunded lending commitments at the balance sheet date and is established through a provision for credit losses charged to net income. Credit losses are charged directly to the ACL. Subsequent recoveries, if any, are credited to the ACL. 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 finance loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type. Charge-off triggers include: 120 days delinquent for automobile, home equity, and other consumer loans with the exception of cash reserve loans for which the trigger is 150 days delinquent; death of the borrower; or Chapter 7 bankruptcy. In addition to those events, the charge-off determination includes other loan quality indicators, such as collateral position and adequacy or the presence of other repayment sources. The ACL is evaluated on a regular basis by management. Management uses a methodology to systematically estimate the amount of expected lifetime losses in the portfolio. Expected lifetime losses are estimated on a collective basis for loans sharing similar risk characteristics and are determined using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output. For commercial and industrial, commercial real estate, commercial construction and business banking portfolios, the quantitative model uses a loan rating system which is comprised of management’s determination of a financial asset’s probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”), which are derived from both the Company’s and industry historical loss experience and other factors. For residential real estate, consumer home equity and other consumer portfolios, the Company’s quantitative model uses historical loss experience. The quantitative model estimates expected credit losses using loan level data over the estimated life of the exposure, considering the effect of prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period, beyond which is a reversion to the Company’s and/or industry historical loss average. Management has determined that a reasonable and supportable forecast period of eight quarters, and a straight-line reversion period of four quarters, are appropriate forecast periods for purposes of estimating expected credit losses. As described above, quantitative model results are adjusted for risk factors not considered within the model but which are relevant in estimating the expected credit losses within the loan portfolio. The qualitative risk factors impacting the expected risk of loss within the loan portfolio include the following: • Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices; • Nature and volume of the portfolio; • Volume and severity of past-due, non-accrual and classified loans; • The value of the underlying collateral for loans that are not collateral dependent; • Concentrations of credit risk; • Model and data limitations; and • Other external factors, such as changes in legal, regulatory or competitive environments. Loans that do not share similar risk characteristics with any pools of assets are subject to individual evaluation and are removed from the collectively assessed pools. For loans that are individually evaluated, the Company uses either a discounted cash flow (“DCF”) approach or, for loans deemed to be collateral dependent or when foreclosure is probable, a fair value of collateral approach. Accrued interest receivable amounts are excluded from balances of loans held at amortized cost and are included within other assets on the consolidated balance sheet. Management has elected not to measure an allowance for credit losses on these amounts as the Company employs a timely write-off policy. Consistent with the Company's policy for non-accrual loans, accrued interest receivable is typically written off when loans reach 90 days past due and are placed on non-accrual status. In the ordinary course of business, the Company enters into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the reserving method for loans receivable previously described. The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets. Additionally, various regulatory agencies, as an integral part of the Company’s examination process, periodically assess the appropriateness of the allowance for credit losses and may require the Company to increase its allowance for loan losses or recognize further loan charge-offs, in accordance with GAAP. Refer to Note 5, “Loans and Allowance for Credit Losses” for additional information regarding the Company’s measurement of credit losses on loans receivable and off-balance sheet commitments to lend as of December 31, 2022. For comparative allowance for loan loss information for which ASC 450, “Contingencies” and ASC 310, “Receivables” were applied (i.e., prior to the Company’s adoption of the CECL methodology previously described), refer to Note 6, “Loans and Allowance for Loan Losses.” |
Loans | LoansLoans are reported at their principal amount outstanding, net of deferred loan fees and costs and any unearned discount or unamortized premium for acquired loans. Unearned discount and unamortized premium are accreted and amortized, respectively, to interest and dividend income on a basis that results in level rates of return over the terms of the loans. For originated loans, origination fees and related direct incremental origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the effective interest method, assuming a certain level of prepayments. When loans are sold or repaid, the unamortized fees and costs are recorded to interest and dividend income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is also accrued based upon the daily principal amount outstanding and is adjusted further by the accretion of any discount or amortization of any premium associated with the loan. |
Nonaccrual Loans | Non-accrual LoansInterest accruals are generally discontinued when management has determined that the borrower may be unable to meet contractual obligations and/or when loans are 90 days or more past due. 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. When a loan is placed on non-accrual, all interest previously accrued but not collected is reversed against current period income and amortization of deferred loan fees and costs is discontinued. Interest received on non-accrual loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. 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. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered NPLs. |
Mortgage Banking Activities | Mortgage Banking ActivitiesMortgage loans held for sale to the secondary market are carried at the lower of cost or estimated market value on an individual loan basis. The Company enters into commitments to fund residential mortgage loans with an offsetting forward commitment to sell them in the secondary markets in order to mitigate interest rate risk. Gains or losses on sales of mortgage loans are recognized in the consolidated statements of income at the time of sale. Interest income is recognized on loans held for sale between the time the loan is funded and the loan is sold. Direct loan origination costs and fees are deferred upon origination and are recognized in the consolidated statements of income on the date of sale. |
Other Real Estate Owned | Other Real Estate Owned OREO consists of properties and other assets acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. OREO is recorded in other assets in the Consolidated Balance Sheets, on an individual asset basis at the fair value less estimated costs to sell on the date control is obtained. Any write-downs to the cost of the related asset upon transfer to OREO to reflect the asset at fair value less estimated costs to sell is recorded through the allowance for loan losses. 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. |
Federal Home Loan Bank Stock | Federal Home Loan Bank StockThe Company, as a member of the Federal Home Loan Bank (“FHLB”) of Boston (“FHLBB”), is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, leasehold improvements and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Acquisitions of businesses are accounted for using the acquisition method of accounting. Accordingly, the net assets of the companies acquired are recorded at their fair values at the date of acquisition. Goodwill represents the excess of purchase price over the fair value of net assets acquired. Other intangible assets represent acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights, or because the asset is capable of being sold or exchanged either on its own, or in combination with a related contract, asset, or liability. The Company evaluates goodwill for impairment at least annually, during the third quarter, or more often if warranted, using a quantitative impairment approach. The quantitative impairment test compares the book value to the fair value of each reporting unit. If the book value exceeds the fair value, an impairment is charged to net income. As of December 31, 2022, management identified two reporting units for purposes of testing goodwill for impairment: the banking business and the insurance agency business. seven |
Retirement Plans, Employee Tax Deferred Incentive Plan, Defined Contribution Supplemental Executive Retirement Plan, and Deferred Compensation | Retirement Plans The Company provides benefits to its employees and executive officers through various retirement plans, including a defined benefit plan, a defined benefit supplemental executive retirement plan, a defined contribution plan, a benefit equalization plan, and an outside directors’ retainer continuance plan. Effective November 1, 2020, the defined benefit plan (“Defined Benefit Plan”) and the benefit equalization plan (“BEP”) were amended to convert the plans from a traditional final average earnings plan design to a cash balance plan design. Benefits earned under the final average earnings plan design were frozen at October 31, 2020. Starting November 1, 2020, future benefits are earned under the cash balance plan design. The defined benefit plan benefits are provided through membership in the Savings Banks Employees’ Retirement Association (“SBERA”). The Defined Benefit Plan is a noncontributory, defined benefit plan. Under the final average earnings plan design, benefits became fully vested after three years of eligible service for individuals employed on or before October 31, 1989. For individuals employed subsequent to October 31, 1989 and who were already in the Defined Benefit Plan as of November 1, 2020, benefits became fully vested after five years of eligible service. Under the cash balance plan design and for employees who were not already in the Defined Benefit Plan as of November 1, 2020, benefits become fully vested after three years of eligible service. The 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 Company also has an unfunded Defined Benefit Supplemental Executive Retirement Plan (“DB SERP”) that provides certain retired officers 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. The Company’s BEP, which is an unfunded plan, provides retirement benefits to certain employees whose retirement benefits under the Defined Benefit 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 Outside Directors’ Retainer Continuance Plan 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. Plan assets are invested in various investment funds and held at fair value which generally represents observable market prices. Pension liability is determined based on the actuarial cost method factoring in assumptions such as salary increases, expected retirement date, mortality rate, and employee turnover. The actuarial cost method used to compute the pension liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of the projected benefit distributions at an assumed discount rate (which is the rate at which the projected benefit obligation could be effectively settled as of the measurement date). The discount rate which is utilized is determined using the spot rate approach whereby the individual spot rates on the Financial Times and Stock Exchange (“FTSE”) above-median yield curve are applied to each corresponding year’s projected cash flow used to measure the respective plan’s service cost and interest cost. Periodic pension expense (or income) includes service costs, interest costs based on the assumed discount rate, the expected return on plan assets, if applicable, based on the market value of assets and amortization of actuarial gains and losses. Net periodic benefit cost excluding service cost is included within other noninterest expense in the consolidated statements of income. Service cost for all plans except the ODRCP is included in salaries and employee benefits in the consolidated statements of income. Service cost for the ODRCP is included in professional services in the consolidated statements of income. Service costs related to the Defined Benefit Plan and BEP and which are related to employees of Eastern Insurance Group, are included in discontinued operations. The amortization of actuarial gains and losses for the DB SERP and ODRCP is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants for the ODRCP, and over the average remaining future life expectancy of plan participants for the DB SERP. The amortization of actuarial gains and losses for the Defined Benefit Plan and BEP is determined without using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants. The overfunded or underfunded status of the plans is recorded as an asset or liability on the Consolidated Balance Sheets, with changes in that status recognized through other comprehensive income, net of related taxes. Funded status represents the difference between the projected benefit obligation of the plan and the market value of the plan’s assets. Employee Tax Deferred Incentive Plan The Company has an employee tax deferred incentive plan (“401(k) plan”) under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company is included in salaries and employee benefits expense. Defined Contribution Supplemental Executive Retirement Plan The Company has a defined contribution supplemental executive retirement plan (“DC SERP”), which allows certain senior officers to earn benefits calculated as a percentage of their compensation. The participant benefits are adjusted based upon a deemed investment performance of measurement funds selected by the participant. These measurement funds are for tracking purposes and are used only to track the performance of a mutual fund, market index, savings instrument, or other designated investment or portfolio of investments. Effective December 31, 2021, the Company closed the DC SERP to new participants and froze benefit accruals for active participants. Deferred Compensation |
Employee Stock Ownership Plan ("ESOP") | Employee Stock Ownership Plan (“ESOP”) ESOP shares are shown as a reduction of equity and are presented in the consolidated statements of shareholders’ equity as unallocated common stock held by ESOP. Compensation expense for the Company’s ESOP is recorded at an amount equal to the shares committed to be allocated by the ESOP multiplied by the average fair market value of the shares during the year. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares committed to be allocated by the ESOP. When the shares are committed to be released, unallocated common stock held by ESOP is reduced by the cost of the ESOP shares released and the difference between the average fair market value and the cost of the shares committed to be allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The Company’s ESOP is classified as an internally leveraged plan as defined by ASC 718, “Compensation-Stock Compensation.” Accordingly, the loan receivable from the ESOP is not reported as an asset nor is the Company’s guarantee to fund the ESOP reported as a liability on the Company’s consolidated balance sheet. |
Share-Based Compensation | Share-Based Compensation The Company measures share-based compensation on the grant date fair value on a straight-line basis over the vesting period during which an employee is required to provide services in exchange for the award; the requisite service period. The Company uses various pricing models to estimate the fair value of stock awards granted. The Company measures the fair value of the restricted stock using the closing market price of the Company’s common stock on the date of grant. The Company records compensation expense equal to the grant date fair value of the Company’s restricted stock with a corresponding increase in equity. Reductions in compensation expense associated with forfeited awards are accounted for as incurred. Upon vesting, the tax effect of the difference between the fair value of the award and the recorded expense is recognized as a component of income tax expense. Refer to Note 17, “Employee Benefits” for additional information regarding the Company’s shares-based compensation plan. |
Variable Interest Entities ("VIE") and Voting Interest Entities ("VOE"), Rabbi Trust and Tax Credit Investment | Variable Interest Entities (“VIE”) and Voting Interest Entities (“VOE”) The Company is involved in the normal course of business with various types of special purpose entities, some of which meet the definition for VIEs and VOEs. VIEs are entities that possess any of the following characteristics: 1) the total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support from other parties; 2) as a group, the holders of the equity investment at risk lack any of the characteristics of a controlling financial interest; or 3) the equity investors’ voting rights are not proportional to the economics, and substantially all of the activities of the entity either involve or are conducted on behalf of an investor that has disproportionately few voting rights. The Company consolidates entities deemed to be VIEs when it, or a wholly-owned subsidiary, is determined to be the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and economics. An enterprise has a controlling financial interest in a VIE if it has both 1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and 2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE. VOEs are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company generally consolidates VOEs when it, or a wholly-owned subsidiary, holds the majority of the voting interest in the VOE. Rabbi Trusts 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 VIEs as the equity investment at risk is insufficient to permit the trust to finance its 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 trust’s 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 trust’s 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 the Company’s Consolidated Balance Sheets. Changes in fair value are recorded in noninterest income in the Consolidated Statements of Income. These rabbi trust assets are included within other assets in the Company’s Consolidated Balance Sheets. Tax Credit Investment Through a wholly-owned subsidiary, the Company was the sole member of a tax credit investment company through which it consolidated a community development entity (“CDE”) that was considered a VIE. The CDE was considered a VIE because as a group, the holders of the equity investment at risk lacked any of the characteristics of a controlling financial interest. The tax credit investment company was considered the primary beneficiary of the CDE as it had the power to direct the activities of a VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses of and the right to receive benefits from the VIE that potentially could be significant to the VIE. As of December 31, 2022, the Company no longer had a legal interest in this tax credit investment company. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company holds bank-owned life insurance on the lives of certain participating executives, primarily as a result of mergers and acquisitions. The amount reported as an asset on the Consolidated Balance Sheets is the sum of the cash |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Interest and penalties paid on the underpayment of income taxes are classified as income tax expense. |
Low Income Housing Tax Credits and Other Tax Credit Investments | Low Income Housing Tax Credits and Other Tax Credit Investments As part of its community reinvestment initiatives, the Company primarily invests in qualified affordable housing projects in addition to other tax credit investment projects. The Company receives low-income housing tax credits, investment tax credits, rehabilitation tax credits, solar tax credits and other tax credits as a result of its investments in these limited partnership investments. The Company accounts for its investments in qualified affordable housing projects using the proportional amortization method and amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated to the Company. The amortization of the excess of the carrying amount of the investment over its estimated residual value is included as a component of income tax expense. At investment inception, the Company records a liability for the committed amount of the investment; this liability is reduced as contributions are made. |
Advertising Cost | Advertising Costs All advertising costs are expensed in the period in which they are incurred. Advertising costs were not significant for any periods presented. |
Insurance Commissions | Insurance Commissions As of and for the year ended December 31, 2022, the Company acted as an agent in offering property, casualty, and life and health insurance to both consumer and commercial customers through Eastern Insurance Group LLC. Insurance commissions consisted of the several types of insurance revenue related to insurance policy sales. The Company earned a fixed commission on the sale of these insurance products and services and occasionally earned a bonus commission if certain volume thresholds were met. The Company recognized insurance commission revenues as performance obligations of underlying agreements were satisfied, which was typically the effective date of the insurance policy. Additionally, for certain types of insurance products, the Company earned and recognized revenue related to the annual residual commissions commensurate with annual premiums being paid. The Company’s contracts typically contained a single, material distinct performance obligation, therefore the Company did not estimate standalone selling prices as the entire transaction price was allocated to the single performance obligation. The Company also earned profit sharing revenue from insurers whom they place into business. Such revenues were considered performance bonuses based upon certain performance metrics. This amount could vary from period to period and was difficult to predict. Therefore, the Company did not recognize revenue until it had concluded that a significant revenue reversal would not occur in future periods. |
Trust Operations | Trust Operations The Bank is a full-service trust company that provides a wide range of trust services to customers that includes managing customer investments, safekeeping customer assets, supplying disbursement services, and providing other fiduciary services. Trust assets held in a fiduciary or agency capacity for customers are not included in the accompanying Consolidated Balance Sheets as they are not assets of the Company. The fees charged are variable based on various factors such as the Company’s responsibility, the type of account, and account size. 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. Revenue from administrative and management activities associated with these assets is recognized as performance obligations of underlying agreements are satisfied. |
Derivative Financial Instruments | Derivative Financial 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 determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. At the inception of a hedge, the Company documents certain items, including, but not limited to, the following: the relationship between hedging instruments and hedged items, the Company’s risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives that are designated as hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions. The Company’s derivative instruments that are designated and qualify for hedge accounting are classified as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows associated with a recognized asset or liability, or a forecasted transaction). As such, changes in the fair value of the designated hedging instrument that is included in the assessment of hedge effectiveness are recorded in other comprehensive income and reclassified into net income in the same period or periods during which the hedged forecasted transaction affects net income. Such reclassifications shall be presented in the same income statement line item as the net income effect of the hedged item. If the hedging instrument is not highly effective at achieving offsetting cash flows attributable to the revised contractually specified interest rate(s), hedge accounting will be discontinued. At that time, accumulated other comprehensive income would be frozen and amortized, as long as the forecasted transactions are still probable of occurring. If a cash flow hedge is terminated, hedge accounting treatment would be retained, and accumulated other comprehensive income would be frozen and amortized, as long as the forecasted transactions are still probable of occurring. The Company’s derivative instruments not designated as hedging instruments are recorded at fair value and changes in fair value are recognized in other noninterest income. Derivative instruments not designated as hedging instruments include interest rate swaps, foreign exchange contracts offered to commercial customers to assist them in meeting their financing and investing objectives for their risk management purposes, and risk participation agreements entered into as financial guarantees of performance on customer-related interest rate swap derivatives. The interest rate and foreign exchange risks associated with customer interest rate swaps and foreign exchange contracts are mitigated by entering into similar derivatives having offsetting terms with correspondent bank counterparties. |
Fair Value Measurements | Fair Value Measurements 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. |
Leases | Leases The Company leases certain office space and equipment under various non-cancelable operating leases, some of which have renewal options to extend lease terms. At lease inception, the Company evaluates the lease terms to determine if the lease should be classified as an operating lease or a finance lease and recognizes a right of use (“ROU”) asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by considering various factors. The Company will recognize an adjustment to its ROU asset and lease liability when lease agreements are amended and executed. The discount rate used in determining the present value of lease payments is based on the Company’s incremental borrowing rate for borrowings with terms similar to each lease at commencement date. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The Company has elected the short-term lease recognition exemption for all leases that qualify. |
Common Share Repurchases | Common Share Repurchases Shares repurchased by the Company under the Company's share repurchase program have been classified as authorized but unissued shares. The cost of shares repurchased by the Company has been accounted for as a reduction to common stock and additional paid in capital balances. Massachusetts state law calls for repurchased shares to be classified as authorized but unissued shares. U.S. GAAP states that the accounting for share repurchases shall conform to state law where applicable. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock awards and are determined using the treasury stock method. |
Segment Reporting | Segment ReportingAn operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding how to allocate resources and evaluate performance. The Company has determined that its CODM is its President and Chief Executive Officer. As of December 31, 2022, the Company had two reportable segments: its banking business, which consists of a full range of banking lending, savings, and small business offerings, and its wealth management and trust operations; and its insurance agency business, which consists of insurance-related activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Until December 31, 2021, the Company had qualified as an emerging growth company under the Jumpstart Our Business Act of 2012 (“JOBS Act”) and had elected to defer the adoption of new or revised accounting standards until the earlier of the nonpublic company effective dates and the date on which the Company ceased to qualify as an emerging growth company. Relevant standards that were recently issued but not yet adopted as of December 31, 2022: 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 are 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 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. The 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 are 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 using the modified retrospective method with respect to the updated guidance on TDR recognition and measurement and the prospective approach with regard to the TDR and vintage disclosures. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. 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 year ended December 31, 2022: In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses on Financial Instruments and relevant amendments (Topic 326) (“ASU 2016-13”). This update was created to replace the then-current GAAP method of calculating credit losses. Specifically, the standard replaced the previous incurred loss impairment guidance by requiring immediate recognition of expected credit losses. For financial assets carried at amortized cost that are held at the reporting date (including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets), credit losses are measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends previous impairment guidance for available for sale securities, in which credit losses are recorded as an allowance versus a write-down of the amortized cost basis of the security. It also allows for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of the initial application to be recognized in retained earnings at the date of initial application. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2018-19”). The amendments in ASU 2018-19 were intended to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases . In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses . This update requires entities to include expected recoveries of the amortized cost basis previously written off or expected to be written off in the valuation account for purchased financial assets with credit deterioration. In addition, the amendments in this update clarify and improve various aspects of the guidance for ASU 2016-13. On January 1, 2022, the Company adopted ASUs 2016-13, 2018-19 and 2019-11 (codified in ASC 326, “Financial Instruments-Credit Losses” ), which replaced the incurred loss methodology (codified in ASC 450, “Contingencies,” ASC 310, “Receivables” and ASC 320, “Debt Securities” ) with an expected loss methodology that is referred to as current expected credit losses methodology (“CECL methodology”). The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures by means of a cumulative-effect adjustment to the opening retained earnings balance on the Company’s consolidated balance sheet as of the Company’s date of adoption of January 1, 2022. Accordingly, results for reporting periods beginning after December 31, 2021 are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $20.1 million, net of deferred taxes of $7.9 million, as of January 1, 2022, for the cumulative effect of adopting ASU 2016-13. The Company adopted ASU 2016-13 using the prospective transition approach for purchased credit-deteriorated (“PCD”) financial assets that were previously classified as purchased credit-impaired (“PCI”) financial assets and accounted for under ASC 310-30. In accordance with ASU 2016-13, the Company did not reassess whether its assets previously classified as PCI assets met the criteria of PCD assets as of the date of adoption. Rather, loans previously determined to be PCI loans are considered to be PCD loans as of January 1, 2022. On January 1, 2022, the amortized cost basis of the PCD assets was adjusted to reflect the addition of the allowance for loan losses on PCD loans. The remaining noncredit discount will be accreted into the Company’s interest income at the then-effective interest rate as of January 1, 2022. The amount of the adjustment for PCD assets was not material to the Company. In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This update addresses optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships that exist as of December 31, 2022, for which an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. For public and nonpublic entities, the guidance is effective as of March 12, 2020 through December 31, 2022 and does not apply to contract modifications made after December 31, 2022. The Company performed a review its contracts and existing processes to assess the risks and potential impact of the transition away from LIBOR and noted no material impact to the Company’s Consolidated Financial Statements as of December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”). This update defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief of Topic 848. The adoption of this standard as of December 31, 2022 did not have a material impact on the Company's Consolidated Financial Statements. |
Fair Value Measurement of Assets Assumed and Liabilities Assumed | Fair Value Measurement of Assets Assumed and Liabilities Assumed The methods used to determine the fair value of the assets acquired and liabilities assumed in the Century acquisition were as follows: Investment Securities The estimated fair values of the available for sale debt securities and held-to-maturity debt securities, primarily comprised of U.S. Government agency mortgage-backed securities, U.S. government agencies, Small Business Administration (“SBA”) pooled securities, and municipal bonds carried on Century’s balance sheet, was confirmed using open market pricing provided by multiple independent securities brokers. Based upon management’s determination, a fair value adjustment of $(37.3) million, reflecting a net discount, was recorded on acquired securities and reflects the net unrealized loss position of such securities at the date of acquisition. Securities acquired that were classified on Century’s balance sheet as held-to-maturity were reclassified as available for sale upon acquisition, reflecting management’s intent with respect to such securities. Loans |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition from Century: Net Assets Acquired at Fair Value (In thousands) Assets Cash and due from banks $ 56,831 Short-term investments 575,953 Investment securities 3,117,022 Loans 2,906,491 FHLB stock 6,690 Premises and equipment 64,521 Bank owned life insurance 95,478 Goodwill 259,024 Core deposit intangible 11,633 Other assets 18,915 Total assets acquired 7,112,558 Liabilities Deposits 6,099,821 Securities sold under agreements to repurchase 274,982 Escrow deposits of borrowers 3,649 Other liabilities 92,237 Total liabilities assumed 6,470,689 Purchase price $ 641,869 For the Year Ended December 31, 2021 (In thousands) Salaries and employee benefits $ 15,947 Office occupancy and equipment 7,198 Data processing 1,286 Professional services 9,223 Other 1,802 $ 35,456 Acquisition Date Balance (In thousands) Assets acquired: Customer list intangible $ 6,120 Non-compete intangible 440 Other 40 Total assets acquired 6,600 Consideration: Total cash paid (13,400) Contingent consideration (1,926) Other liabilities assumed — Total fair value of consideration (15,326) Goodwill $ 8,726 Acquisition Date Balance (In thousands) Assets acquired: Customer list intangible $ 1,860 Non-compete intangible 170 Other 133 Total assets acquired 2,163 Consideration: Total cash paid (4,354) Contingent consideration (449) Other liabilities assumed (355) Total fair value of consideration (5,158) Goodwill $ 2,995 |
Schedule of PCI Loans | The following is a summary of the PCI loans identified as a result of the review performed as of the date acquired: As of November 12, 2021 (In thousands) Contractually required principal and interest at acquisition (1) $ 82,900 Contractual cash flows not expected to be collected 6,746 Expected cash flows at acquisition 76,154 Interest component of expected cash flows 8,896 Basis in PCI loans at acquisition - estimated fair value $ 67,258 (1) Contractually required principal and interest at acquisition includes interest not expected to be collected due to estimated prepayments. |
Business Acquisition, Pro Forma Information | As a result, actual amounts would have differed from the unaudited pro forma information presented. Unaudited Pro Forma Financial Information for the Years Ended December 31, 2021 2021 2020 (In thousands) Net interest income $ 522,621 $ 502,853 Net income 174,603 61,858 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities [Abstract] | |
Debt Securities, Available-for-Sale | The amortized cost, gross unrealized gains and losses, and fair value of available for sale securities as of the dates indicated were as follows: 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 As of December 31, 2021 Amortized Unrealized Unrealized Fair (In thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 5,577,292 $ 17,918 $ (70,502) $ 5,524,708 Government-sponsored commercial mortgage-backed securities 1,420,748 760 (12,640) 1,408,868 U.S. Agency bonds 1,202,377 1,067 (28,430) 1,175,014 U.S. Treasury securities 89,434 5 (834) 88,605 State and municipal bonds and obligations 263,910 16,460 (41) 280,329 Small Business Administration pooled securities 31,821 282 — 32,103 Other debt securities 1,597 — — 1,597 $ 8,587,179 $ 36,492 $ (112,447) $ 8,511,224 |
Schedule of Realized Gain (Loss) | The following table summarizes gross realized gains and losses from sales of AFS securities for the periods indicated: For the Years Ended December 31, 2022 2021 2020 (In thousands) Gross realized gains from sales of AFS securities $ 1,775 $ 1,166 $ 288 Gross realized losses from sales of AFS securities (4,932) — — Net (losses) gains from sales of AFS securities $ (3,157) $ 1,166 $ 288 |
Summary Of Government-Sponsored Residential Mortgage-Backed Securities With Gross Unrealized Losses | Information pertaining to AFS securities with gross unrealized losses as of December 31, 2022, for which the Company did not recognize a provision for credit losses under CECL, and as of December 31, 2021, for which the Company did not deem to be OTTI under its prior methodology, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: 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 As of December 31, 2021 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 264 $ 70,502 $ 4,615,457 $ — $ — $ 70,502 $ 4,615,457 Government-sponsored commercial mortgage-backed securities 165 12,218 1,102,444 422 15,682 12,640 1,118,126 U.S. Agency bonds 27 2,169 191,222 26,261 794,353 28,430 985,575 U.S. Treasury securities 3 834 78,588 — — 834 78,588 State and municipal bonds and obligations 11 41 5,436 — — 41 5,436 470 $ 85,764 $ 5,993,147 $ 26,683 $ 810,035 $ 112,447 $ 6,803,182 |
Debt Securities, Held-to-Maturity | The amortized cost, gross unrealized gains and losses, and fair value of HTM securities as of December 31, 2022 were as follows: 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 amortized cost and estimated fair value of AFS and HTM securities by scheduled contractual maturities as of dates indicated were as follows: 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 0 0 0 0 0 0 276,493 246,343 276,493 246,343 Government-sponsored commercial mortgage-backed securities 0 0 0 0 200,154 176,883 0 0 200,154 176,883 Total held to maturity securities 0 0 0 0 200,154 176,883 276,493 246,343 476,647 423,226 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 As of December 31, 2021 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) Government-sponsored residential mortgage-backed securities $ — $ — $ 24,935 $ 25,962 $ 899,169 $ 892,029 $ 4,653,188 $ 4,606,717 $ 5,577,292 $ 5,524,708 Government-sponsored commercial mortgage-backed securities — — 139,095 137,755 387,177 378,414 894,476 892,699 1,420,748 1,408,868 U.S. Agency bonds 5,508 5,515 531,821 520,935 665,048 648,564 — — 1,202,377 1,175,014 U.S. Treasury securities 40,010 40,001 49,424 48,604 — — — — 89,434 88,605 State and municipal bonds and obligations 6,137 6,116 33,692 34,704 72,226 75,416 151,855 164,093 263,910 280,329 Small Business Administration pooled securities — — 4,062 4,092 — — 27,759 28,011 31,821 32,103 Other debt securities 300 300 1,297 1,297 — — — — 1,597 1,597 Total $ 51,955 $ 51,932 $ 784,326 $ 773,349 $ 2,023,620 $ 1,994,423 $ 5,727,278 $ 5,691,520 $ 8,587,179 $ 8,511,224 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: As of December 31, 2022 2021 (In thousands) Commercial and industrial $ 3,150,946 $ 2,960,527 Commercial real estate 5,155,323 4,522,513 Commercial construction 336,276 222,328 Business banking 1,090,492 1,334,694 Residential real estate 2,460,849 1,926,810 Consumer home equity 1,187,547 1,100,153 Other consumer (2) 194,098 214,485 Gross loans before unamortized premiums, unearned discounts and deferred fees and costs 13,575,531 12,281,510 Allowance for loan losses (1) (142,211) (97,787) Unamortized premiums, net of unearned discounts and deferred fees, net of costs (13,003) (26,442) Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs $ 13,420,317 $ 12,157,281 (1) The Company adopted ASU 2016-13 on January 1, 2022 with a modified retrospective approach. Accordingly, at December 31, 2022 the allowance for loan losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses” and ASC 310, “ Receivables,” as amended. At December 31, 2021 the allowance for loan losses was determined in accordance with ASC 450, “ Contingencies” and ASC 310, “Receivables.” (2) Automobile loans are included in the other consumer portfolio above and amounted to $18.1 million and $53.3 million at December 31, 2022 and December 31, 2021, respectively. |
Financing Receivable, Allowance for Credit Loss | The following table summarizes the change in the allowance for loan losses by loan category for the year ended December 31, 2022: For the Year Ended December 31, 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 (1) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) 27,086 Charge-offs (269) — — (2,292) — (1) (2,269) — (4,831) Recoveries 1,322 91 — 2,069 94 24 644 — 4,244 Provision (release) (3,745) 8,921 3,015 (731) 7,990 852 1,623 — 17,925 Ending balance (2) $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 0 $ 142,211 (1) 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. (2) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $45.2 million at December 31, 2022. The following table summarizes the change in allowance for loan losses by loan category for the year ended December 31, 2021: For the Year Ended December 31, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,617 $ 54,569 $ 4,553 $ 13,152 $ 6,435 $ 3,744 $ 3,467 $ 494 $ 113,031 Charge-offs (1,558) (247) — (5,091) (35) (24) (2,047) — (9,002) Recoveries 935 4 — 1,524 122 185 674 — 3,444 (Release of) Provision (7,976) (1,953) (1,968) 1,398 34 (183) 1,214 (252) (9,686) Ending balance $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 The following table bifurcates the amount of loans and the allowance for loan losses allocated to each loan category based on the type of impairment analysis as of December 31, 2021: As of December 31, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses ending balance: Individually evaluated for impairment $ 1,540 $ — $ — $ 450 $ 1,549 $ 270 $ 161 $ — $ 3,970 Acquired with deteriorated credit quality 5 298 — — 243 — — — 546 Collectively evaluated for impairment 16,473 52,075 2,585 10,533 4,764 3,452 3,147 242 93,271 Total allowance for loan losses by group $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 Loans ending balance: Individually evaluated for impairment $ 16,145 $ 3,520 $ — $ 12,060 $ 22,378 $ 3,922 $ 179 $ — $ 58,204 Acquired with deteriorated credit quality 19,028 47,553 — — 3,058 — — — 69,639 Collectively evaluated for impairment 2,925,354 4,471,440 222,328 1,322,634 1,901,374 1,096,231 214,306 — 12,153,667 Total loans by group $ 2,960,527 $ 4,522,513 $ 222,328 $ 1,334,694 $ 1,926,810 $ 1,100,153 $ 214,485 $ — $ 12,281,510 |
Financing Receivable Credit Quality Indicators | 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. The following table details the internal risk-rating categories for the Company’s commercial and industrial, commercial real estate, commercial construction and business banking portfolios: As of December 31, 2021 Category Commercial and Commercial Commercial Business Total (In thousands) Unrated $ 171,537 $ 4,378 $ — $ 696,629 $ 872,544 Pass 2,656,873 4,199,803 213,744 569,956 7,640,376 Special mention 70,141 104,517 1,889 50,085 226,632 Substandard 50,339 213,815 6,695 17,814 288,663 Doubtful 11,637 — — 210 11,847 Loss — — — — — Total $ 2,960,527 $ 4,522,513 $ 222,328 $ 1,334,694 $ 9,040,062 |
Financing Receivable, Past Due | The following tables show the age analysis of past due loans as of the dates indicated: 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 $ 42,715 $ 6,360 $ 18,892 $ 67,967 $ 13,494,561 $ 13,562,528 As of December 31, 2021 30-59 60-89 90 or More Total Past Current Total (In thousands) Commercial and industrial $ 45 $ 31 $ 1,672 $ 1,748 $ 2,958,779 $ 2,960,527 Commercial real estate 25,931 — 1,196 27,127 4,495,386 4,522,513 Commercial construction — — — — 222,328 222,328 Business banking 5,043 1,793 4,640 11,476 1,323,218 1,334,694 Residential real estate 17,523 3,511 5,543 26,577 1,900,233 1,926,810 Consumer home equity 3,774 1,510 4,571 9,855 1,090,298 1,100,153 Other consumer 1,194 548 889 2,631 211,854 214,485 Total $ 53,510 $ 7,393 $ 18,511 $ 79,414 $ 12,202,096 $ 12,281,510 |
Financing Receivable, Nonaccrual | The following table presents information regarding non-accrual loans as of the dates indicated: As of December 31, 2022 As of December 31, 2021 Non-Accrual Loans With ACL Non-Accrual Loans Without ACL (3) Total Non-Accrual Loans Amortized Cost of Loans >90 DPD and Still Accruing (2) Total Non-Accrual Loans (1) Recorded Investment >90 DPD and Still Accruing (In thousands) Commercial and industrial $ 3,270 $ 10,707 $ 13,977 $ — $ 12,400 $ — Commercial real estate — — — — — 1,196 Commercial construction — — — — — — Business banking 5,844 1,653 7,497 — 8,230 — Residential real estate 9,750 — 9,750 — 6,681 769 Consumer home equity 7,054 — 7,054 — 4,732 25 Other consumer 326 — 326 — 950 — Total non-accrual loans $ 26,244 $ 12,360 $ 38,604 $ — $ 32,993 $ 1,990 (1) The amounts presented represent the recorded investment balance of loans as of December 31, 2021. (2) “DPD” indicated in the table above refers to “days past due.” (3) The loans on non-accrual status and without an ACL as of 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. |
Financing Receivable, Troubled Debt Restructuring | The following table shows the TDR loans on accrual and non-accrual status as of the dates indicated: As of December 31, 2022 TDRs on Accrual Status TDRs on Non-accrual Status Total TDRs Number of Loans Balance of Number of Balance of Number of 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 As of December 31, 2021 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 1 $ 3,745 6 $ 9,983 7 $ 13,728 Commercial real estate 1 3,520 — — 1 3,520 Business banking 5 3,830 3 383 8 4,213 Residential real estate 121 19,119 27 3,015 148 22,134 Consumer home equity 67 3,104 16 818 83 3,922 Other consumer 2 18 — — 2 18 Total (1) 197 $ 33,336 52 $ 14,199 249 $ 47,535 (1) The amounts presented in the table above represent the recorded investment balance of loans as of December 31, 2021. The following tables show the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring: For the Year Ended December 31, 2022 2021 2020 Number Pre- Post- Number Pre- Post- Number Pre- Post- (Dollars in thousands) Commercial and industrial 4 $ 5,415 $ 5,415 — $ — $ — 1 $ 140 $ 140 Commercial real estate — — — — — — 1 506 506 Business banking 30 2,779 2,798 — — — 6 1,642 1,642 Residential real estate 10 2,842 2,842 2 498 498 6 920 920 Consumer home equity 7 1,535 1,535 3 300 300 22 969 973 Other consumer — — — — — — 4 58 58 Total 51 $ 12,571 $ 12,590 5 $ 798 $ 798 40 $ 4,235 $ 4,239 (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 Year Ended December 31, 2022 2021 2020 (In thousands) Principal and interest deferred $ 3,353 $ — $ 422 Extended maturity and interest only/principal deferred 2,997 — 427 Covenant modification 2,418 — — Interest only/principal deferred 1,499 — 1,305 Adjusted interest rate and extended maturity 1,088 — — Extended maturity 1,011 200 35 Court-ordered concession — 396 1,995 Other 224 202 55 Total $ 12,590 $ 798 $ 4,239 The following table shows the number of loans and the recorded investment amount of those loans, as of the respective date, that have been modified during the prior 12 months which have subsequently defaulted during the periods indicated. The Company considers a loan to have defaulted when it reaches 90 days past due or is transferred to non-accrual: For the Year Ended December 31, 2022 2021 2020 Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Troubled debt restructurings that subsequently defaulted (1): Consumer home equity 1 $ 988 — $ — 1 $ 40 Total 1 $ 988 — $ — 1 $ 40 (1) This table does not reflect any TDRs which were fully charged off, paid off, or otherwise settled during the period. |
Schedule of Participating Mortgage Loans | The following table summarizes the Company’s loan participations: As of and for the Year Ended December 31, 2022 2021 Balance Non-performing Gross Balance Non-performing Gross (Dollars in thousands) Commercial and industrial $ 1,024,131 0.83 % $ — $ 732,425 1.36 % $ — Commercial real estate 422,042 0.00 % — 362,898 0.00 % — Commercial construction 96,134 0.00 % — 37,081 0.00 % — Business banking 51 0.00 % 3 98 0.00 % — Total loan participations $ 1,542,358 0.55 % $ 3 $ 1,132,502 0.88 % $ — |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Financing Receivable, Allowance for Credit Loss | The following table summarizes the change in the allowance for loan losses by loan category for the year ended December 31, 2022: For the Year Ended December 31, 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 (1) 11,533 (6,655) 1,485 6,160 13,489 1,857 (541) (242) 27,086 Charge-offs (269) — — (2,292) — (1) (2,269) — (4,831) Recoveries 1,322 91 — 2,069 94 24 644 — 4,244 Provision (release) (3,745) 8,921 3,015 (731) 7,990 852 1,623 — 17,925 Ending balance (2) $ 26,859 $ 54,730 $ 7,085 $ 16,189 $ 28,129 $ 6,454 $ 2,765 $ 0 $ 142,211 (1) 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. (2) The balance of accrued interest receivable excluded from amortized cost and the calculation of the allowance for loan losses amounted to $45.2 million at December 31, 2022. The following table summarizes the change in allowance for loan losses by loan category for the year ended December 31, 2021: For the Year Ended December 31, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 26,617 $ 54,569 $ 4,553 $ 13,152 $ 6,435 $ 3,744 $ 3,467 $ 494 $ 113,031 Charge-offs (1,558) (247) — (5,091) (35) (24) (2,047) — (9,002) Recoveries 935 4 — 1,524 122 185 674 — 3,444 (Release of) Provision (7,976) (1,953) (1,968) 1,398 34 (183) 1,214 (252) (9,686) Ending balance $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 The following table bifurcates the amount of loans and the allowance for loan losses allocated to each loan category based on the type of impairment analysis as of December 31, 2021: As of December 31, 2021 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses ending balance: Individually evaluated for impairment $ 1,540 $ — $ — $ 450 $ 1,549 $ 270 $ 161 $ — $ 3,970 Acquired with deteriorated credit quality 5 298 — — 243 — — — 546 Collectively evaluated for impairment 16,473 52,075 2,585 10,533 4,764 3,452 3,147 242 93,271 Total allowance for loan losses by group $ 18,018 $ 52,373 $ 2,585 $ 10,983 $ 6,556 $ 3,722 $ 3,308 $ 242 $ 97,787 Loans ending balance: Individually evaluated for impairment $ 16,145 $ 3,520 $ — $ 12,060 $ 22,378 $ 3,922 $ 179 $ — $ 58,204 Acquired with deteriorated credit quality 19,028 47,553 — — 3,058 — — — 69,639 Collectively evaluated for impairment 2,925,354 4,471,440 222,328 1,322,634 1,901,374 1,096,231 214,306 — 12,153,667 Total loans by group $ 2,960,527 $ 4,522,513 $ 222,328 $ 1,334,694 $ 1,926,810 $ 1,100,153 $ 214,485 $ — $ 12,281,510 |
Financing Receivable Credit Quality Indicators | 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. The following table details the internal risk-rating categories for the Company’s commercial and industrial, commercial real estate, commercial construction and business banking portfolios: As of December 31, 2021 Category Commercial and Commercial Commercial Business Total (In thousands) Unrated $ 171,537 $ 4,378 $ — $ 696,629 $ 872,544 Pass 2,656,873 4,199,803 213,744 569,956 7,640,376 Special mention 70,141 104,517 1,889 50,085 226,632 Substandard 50,339 213,815 6,695 17,814 288,663 Doubtful 11,637 — — 210 11,847 Loss — — — — — Total $ 2,960,527 $ 4,522,513 $ 222,328 $ 1,334,694 $ 9,040,062 |
Impaired Financing Receivables | The following table summarizes the Company’s impaired loans by loan portfolio as of December 31, 2021: As of December 31, 2021 Recorded Unpaid Related (In thousands) With no related allowance recorded: Commercial and industrial $ 12,309 $ 13,212 $ — Commercial real estate 3,520 3,520 — Business banking 4,199 5,069 — Residential real estate 11,217 12,587 — Consumer home equity 1,924 1,924 — Other consumer 18 18 — Sub-total 33,187 36,330 — With an allowance recorded: Commercial and industrial 3,836 4,226 1,540 Commercial real estate — — — Business banking 7,861 11,240 450 Residential real estate 11,161 11,161 1,549 Consumer home equity 1,998 1,998 270 Other consumer 161 161 161 Sub-total 25,017 28,786 3,970 Total $ 58,204 $ 65,116 $ 3,970 The following table displays information regarding interest income recognized on impaired loans, by portfolio, for the years ended December 31, 2021 and 2020: For the Years Ended December 31, 2021 2020 Average Total Average Total (In thousands) With no allowance recorded: Commercial and industrial $ 11,813 $ 161 $ 12,941 $ 206 Commercial real estate 3,916 178 5,124 179 Business banking 4,352 99 3,008 92 Residential real estate 12,506 456 14,654 589 Consumer home equity 2,027 62 3,299 87 Other consumer 23 — 36 1 Sub-total 34,637 956 39,062 1,154 With an allowance recorded: Commercial and industrial 7,229 — 7,947 — Commercial real estate 926 — 644 — Business banking 13,027 57 13,663 62 Residential real estate 12,322 474 12,194 521 Consumer home equity 2,106 65 2,334 77 Other consumer 63 — — — Sub-total 35,673 596 36,782 660 Total $ 70,310 $ 1,552 $ 75,844 $ 1,814 |
Schedule of Financing Receivable Purchased with Credit Deterioration | The following table displays the outstanding and carrying amounts of PCI loans as of December 31, 2021 : As of December 31, 2021 (In thousands) Outstanding balance $ 78,074 Carrying amount 69,639 |
Summary of activity in the accretable yield for the PCI loan portfolio | The following table summarizes activity in the accretable yield for the PCI loan portfolio: For the Years Ended December 31, 2021 2020 (In thousands) Balance at beginning of period $ 2,495 $ 3,923 Acquisition 8,896 — Accretion (1,194) (1,374) Other change in expected cash flows (1,475) (185) Reclassification from non-accretable difference for loans with improved cash flows 1,649 131 Balance at end of period $ 10,371 $ 2,495 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table summarizes the Company’s premises and equipment as of the dates indicated: As of December 31, Estimated 2022 2021 Useful Life (In thousands) (In years) Premises and equipment used in operations: Land $ 12,585 $ 12,814 N/A Buildings 70,771 71,415 5-30 Equipment 35,085 46,324 3-5 Leasehold improvements 36,424 42,156 5-25 Total cost 154,865 172,709 Accumulated depreciation (92,372) (107,282) Premises and equipment used in operations, net 62,493 65,427 Premises and equipment held for sale — 15,128 Net premises and equipment (1) $ 62,493 $ 80,555 (1) In connection with the Company’s acquisition of Century, the Company acquired $64.5 million in premises and equipment. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Balance Sheet Information | As of the dates indicated, the Company had the following related to operating leases: As of December 31, 2022 As of December 31, 2021 (In thousands) Right-of-use assets $ 48,817 $ 74,092 Lease liabilities 52,105 78,977 |
Summary of Lease Cost | The following table is a summary of the Company’s components of net lease cost for the periods indicated: For the Year Ended December 31, 2022 2021 2020 (In thousands) Operating lease cost $ 12,716 $ 12,559 $ 12,360 Finance lease cost 309 160 60 Variable lease cost 2,547 2,012 1,889 Total lease cost $ 15,572 $ 14,731 $ 14,309 Supplemental balance sheet information related to operating leases as of the dates indicated is as follows: As of December 31, 2022 As of December 31, 2021 Weighted-average remaining lease term (in years) 7.25 7.89 Weighted-average discount rate 2.62 % 2.52 % |
Schedule of Future Minimum Lease Payments | The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of December 31, 2022 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 December 31, 2022 Year (In thousands) 2023 $ 12,472 2024 9,774 2025 7,804 2026 6,763 2027 5,602 Thereafter 15,075 Total minimum lease payments 57,490 Less: amount representing interest 5,385 Present value of future minimum lease payments $ 52,105 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | As of December 31, 2022 As of December 31, 2021 (In thousands) Balances not subject to amortization Goodwill $ 557,635 $ 557,635 Balances subject to amortization Core deposits 10,374 11,572 Total goodwill and other intangible assets $ 568,009 $ 569,207 |
Schedule of Goodwill Carrying Value | The changes in the carrying value of goodwill for the banking business for the periods indicated were as follows: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 (In thousands) Balance at beginning of year $ 557,635 $ 298,611 Goodwill recorded during the year (1) — 259,024 Goodwill disposed of during the year — — Balance at end of year $ 557,635 $ 557,635 (1) The goodwill recorded during the year ended December 31, 2021 relates to the acquisition of Century. For additional information refer to Note 3, Mergers and Acquisitions . |
Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets | The following table sets forth the carrying amount of the Company’s core deposit intangible asset, net of accumulated amortization, for the banking business as of the dates indicated below: As of December 31, 2022 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Core deposit intangible $ 15,969 $ (5,595) $ 10,374 $ 18,212 $ (6,640) $ 11,572 Total $ 15,969 $ (5,595) $ 10,374 $ 18,212 $ (6,640) $ 11,572 |
Schedule of Amortization Expense | The estimated amortization expense related to the Company’s core deposit intangible asset for each of the five succeeding years and thereafter is as follows: Year (In thousands) 2023 $ 1,163 2024 1,163 2025 1,163 2026 1,163 2027 1,163 Thereafter 4,559 Total amortization expense $ 10,374 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Certificate of Deposits Maturities | The following table summarizes certificate of deposits by maturity at December 31, 2022: Balance Percentage of Total Year (Dollars in thousands) 2023 $ 1,575,617 97.0 % 2024 30,617 1.9 % 2025 9,297 0.6 % 2026 5,092 0.3 % 2027 3,726 0.2 % Thereafter 33 0.0 % Total certificates of deposit $ 1,624,382 100.0 % |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank, Advances | Borrowed funds were comprised of the following: As of December 31, 2022 2021 (In thousands) Short-term FHLB advances $ 691,297 $ 17 Escrow deposits of borrowers 22,314 20,258 Interest rate swap collateral funds 14,430 — Long-term FHLB advances 12,787 14,003 Total borrowed funds $ 740,828 $ 34,278 Interest expense on borrowed funds was as follows: For the Year Ended December 31, 2022 2021 2020 (In thousands) Federal funds purchased $ 24 $ — $ 570 Federal Home Loan Bank advances 8,263 163 190 Escrow deposits of borrowers 3 2 2 Interest rate swap collateral funds 216 — — Total interest expense on borrowed funds $ 8,506 $ 165 $ 762 A summary of FHLBB advances by maturities were as follows: As of December 31, 2022 2021 Amount Weighted Average Amount Weighted Average (Dollars in thousands) Within one year $ 691,297 4.36 % $ 17 0.14 % Over one year to three years 2,835 0.86 % 1,488 0.32 % Over three years to five years 2,534 1.89 % 2,854 1.10 % Over five years 7,418 0.94 % 9,661 1.24 % Total Federal Home Loan Bank advances (1) $ 704,084 4.30 % $ 14,020 1.11 % (1) The weighted average interest rate of long-term FHLB advances as of both December 31, 2022 and December 31, 2021 was 1.11%. |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | For the Year Ended December 31, 2022 2021 2020 (Dollars in thousands, except per share data) Net income applicable to common shares: Net income from continuing operations $ 186,511 $ 145,531 $ 8,861 Net income from discontinued operations 13,248 9,134 13,877 Total net income $ 199,759 $ 154,665 $ 22,738 Average number of common shares outstanding 179,529,613 186,713,020 186,663,593 Less: Average unallocated ESOP shares (14,019,256) (14,520,684) (14,851,058) Average number of common shares outstanding used to calculate basic earnings per common share 165,510,357 172,192,336 171,812,535 Common stock equivalents - restricted stock awards and units 138,214 59,721 — Average number of common shares outstanding used to calculate diluted earnings per common share 165,648,571 172,252,057 171,812,535 Basic earnings per share Basic earnings per share from continuing operations $ 1.13 $ 0.85 $ 0.05 Basic earnings per share from discontinued operations 0.08 0.05 0.08 Basic earnings per share $ 1.21 $ 0.90 $ 0.13 Diluted earnings per share Diluted earnings per share from continuing operations $ 1.13 $ 0.85 $ 0.05 Diluted earnings per share from discontinued operations 0.08 0.05 0.08 Diluted earnings per share $ 1.21 $ 0.90 $ 0.13 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 (income from continuing and discontinued operations before income tax expense was included for purposes of determining the Company’s effective tax rate for the periods shown): For the Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Combined federal and state income tax expense - continuing operations $ 51,719 $ 30,464 $ 7,778 Combined federal and state income tax expense - discontinued operations 5,210 3,583 5,385 Total combined federal and state income tax expense $ 56,929 $ 34,047 $ 13,163 Income from continuing operations before income tax expense $ 238,230 $ 175,995 $ 16,639 Income from discontinued operations before income tax expense 18,458 12,717 19,262 Total income before income tax expense $ 256,688 $ 188,712 $ 35,901 Effective income tax rates 22.18 % 18.04 % 36.67 % The provision for income taxes is comprised of the following components: For the Year Ended December 31, 2022 2021 2020 (In thousands) Current tax expense: Federal $ 39,453 $ 26,114 $ 23,002 State 11,453 13,246 10,520 Total current tax expense 50,906 39,360 33,522 Deferred tax expense (benefit): Federal 3,244 (7,747) (13,736) State 2,779 2,434 (6,623) Total deferred tax expense (benefit) 6,023 (5,313) (20,359) Total income tax expense $ 56,929 $ 34,047 $ 13,163 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is detailed below: For the Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Income tax expense at statutory rate $ 53,904 21.00 % $ 39,630 21.00 % $ 7,539 21.00 % Increase (decrease) resulting from: State income tax, net of federal tax benefit 11,244 4.38 % 12,387 6.56 % 43 0.12 % Valuation allowance (700) (0.27) % (11,300) (5.99) % 12,000 33.43 % Amortization of qualified low-income housing investments 7,503 2.92 % 5,753 3.05 % 4,977 13.86 % Tax credits (7,300) (2.84) % (6,539) (3.46) % (7,085) (19.73) % Tax-exempt income (10,298) (4.01) % (5,665) (3.00) % (4,091) (11.40) % Other, net 2,576 1.00 % (219) (0.12) % (220) (0.61) % Actual income tax expense $ 56,929 22.18 % $ 34,047 18.04 % $ 13,163 36.67 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities, which includes deferred tax assets and deferred tax liabilities included in discontinued operations, are presented below: As of December 31, 2022 2021 (In thousands) Deferred tax assets: Unrealized loss on available for sale securities $ 254,502 $ 17,370 Allowance for loan losses 43,686 30,335 Cash flow hedges 18,192 — Leases 17,447 25,389 Charitable contribution limitation carryover 12,273 18,278 Investment losses 7,918 10,680 Accrued expenses 6,294 6,888 Fixed assets 4,287 3,799 Loan basis difference fair value adjustments 4,009 3,949 Employee benefits 354 13,996 PPP loans fee income 58 2,967 Other 2,083 1,783 Total deferred tax assets before valuation allowance 371,103 135,434 Valuation allowance — (700) Total deferred tax assets 371,103 134,734 Deferred tax liabilities: Amortization of intangibles 17,565 17,339 Lease obligation 16,383 23,849 Partnerships 2,340 3,324 Trading securities 938 6,482 Cash flow hedges — 2,878 Other 2,229 4,327 Total deferred tax liabilities 39,455 58,199 Net deferred income tax assets $ 331,648 $ 76,535 Significant components of the Company’s deferred tax assets and deferred tax liabilities, which are included in discontinued operations and which are included in the amounts presented in the table above, are presented below: As of December 31, 2022 2021 (In thousands) Deferred tax assets: Leases $ 2,589 $ 2,928 Accrued expenses 868 897 Total deferred tax assets 3,457 3,825 Deferred tax liabilities: Amortization of intangibles 1,126 550 Leases 2,450 2,762 Other 196 67 Total deferred tax liabilities 3,772 3,379 Net deferred income tax (liabilities) assets $ (315) $ 446 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits: For the Years Ended December 31, 2022 2021 (In thousands) Beginning $ 7,923 $ — Additions based on tax positions related to the current year — — Additions for tax positions of prior years — 7,923 Reductions related to settlements with taxing authorities — — Reductions as a result of a lapse of the applicable statute of limitations (2,141) — Ending $ 5,782 $ 7,923 |
Low Income Housing Tax Credit_2
Low Income Housing Tax Credits and Other Tax Credit Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 LIHTC projects using the proportional amortization method as of the dates indicated: As of December 31, 2022 2021 (In thousands) Current recorded investment included in other assets $ 128,765 $ 81,035 Commitments to fund qualified affordable housing projects included in recorded investment noted above 84,145 48,399 The following table presents additional information related to the Company’s investments in LIHTC projects for the periods indicated: For the Year Ended December 31, 2022 2021 2020 (In thousands) Tax credits and other tax benefits recognized $ 9,146 $ 6,484 $ 5,033 Amortization expense included in income tax expense 7,503 5,753 4,977 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | Information regarding the shares repurchased under the plans is presented in the following table: Period Total Number of Shares Repurchased Average Price Paid per Share Total Number of Shares Repurchased as Part of the Share Repurchase Programs Maximum Number of Shares That May Yet Be Purchased Under the Share Repurchase Programs December 1, 2021 - December 31, 2021 1,135,878 $ 20.42 1,135,878 8,202,022 January 1, 2022 – January 31, 2022 987,526 21.02 2,123,404 7,214,496 February 1, 2022 – February 28, 2022 1,109,697 21.08 3,233,101 6,104,799 March 1, 2022 – March 31, 2022 769,398 21.31 4,002,499 5,335,401 April 1, 2022 - April 30, 2022 1,194,185 20.19 5,196,684 4,141,216 May 1, 2022 - May 31, 2022 1,880,381 18.93 7,077,065 2,260,835 June 1, 2022 - June 30, 2022 1,141,903 18.78 8,218,968 1,118,932 July 1, 2022 - July 31, 2022 909,785 19.02 9,128,753 209,147 August 1, 2022 - August 31, 2022 0 — 9,128,753 209,147 September 1, 2022 - September 30, 2022 571,463 20.33 9,700,216 8,537,684 October 1, 2022 - October 31, 2022 1,094,049 20.32 10,794,265 7,443,635 November 1, 2022 - November 30, 2022 453,885 18.91 11,248,150 6,989,750 December 1, 2022 – December 31, 2022 0 — 11,248,150 6,989,750 |
Dividends Declared | Information regarding dividends declared and paid is presented in the following table: Dividends Declared per Share Dividends Declared Dividends Paid (In millions, except per share data) 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 Three Months Ended December 31, 2022 $ 0.10 $ 16.3 $ 16.1 Three Months Ended March 31, 2021 $ 0.06 $ 10.3 $ 10.3 Three Months Ended June 30, 2021 $ 0.08 $ 13.8 $ 13.8 Three Months Ended September 30, 2021 $ 0.08 $ 13.8 $ 13.8 Three Months Ended December 31, 2021 $ 0.08 $ 13.7 $ 13.7 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s actual capital amounts and ratios are presented in the following table: Actual For Capital Adequacy To Be Well- Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2022 Total regulatory capital (to risk-weighted assets) $ 2,906,742 17.89 % $ 1,299,657 ≥8 % $ 1,624,571 ≥10 % Common equity Tier 1 capital (to risk-weighted assets) 2,751,694 16.94 731,057 ≥4.5 1,055,971 ≥6.5 Tier 1 capital (to risk-weighted assets) 2,751,694 16.94 974,743 ≥6 1,299,657 ≥8 Tier 1 capital (to average assets) leverage 2,751,694 12.03 915,233 ≥4 1,144,041 ≥5 As of December 31, 2021 Total regulatory capital (to risk-weighted assets) $ 2,939,016 19.77 % $ 1,189,466 >8 % $ 1,486,832 >10 % Common equity Tier 1 capital (to risk-weighted assets) 2,831,102 19.04 669,075 4.5 966,441 6.5 Tier 1 capital (to risk-weighted assets) 2,831,102 19.04 892,099 6 1,189,466 8 Tier 1 capital (to average assets) leverage 2,831,102 13.96 811,000 4 1,013,750 5 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets | The funded status and amounts recognized in the Company’s Consolidated Financial Statements for the Defined Benefit Plan, the DB SERP, the BEP and the ODRCP are set forth in the following table: As of and for the Year Ended December 31, 2022 2021 2020 (In thousands) Change in benefit obligation: Benefit obligation at beginning of the year $ 501,507 $ 361,147 $ 396,769 Service cost (1) 31,382 31,660 25,970 Interest cost 10,582 5,694 9,657 Amendments — (1,106) (133,439) Actuarial (gain) loss (133,282) (1,697) 78,095 Acquisitions — 125,854 — Benefits paid (47,659) (20,045) (15,905) Benefit obligation at end of the year $ 362,530 $ 501,507 $ 361,147 Change in plan assets: Fair value of plan assets at beginning of year $ 546,056 $ 449,643 $ 378,879 Actual return on plan assets (91,474) 50,879 48,895 Acquisitions — 63,468 — Employer contribution 12,443 2,111 37,773 Benefits paid (47,659) (20,045) (15,904) Fair value of plan assets at end of year 419,366 546,056 449,643 Overfunded status $ 56,836 $ 44,549 $ 88,496 Reconciliation of funding status: Past service credit $ 108,909 $ 120,792 $ 131,482 Unrecognized net loss (99,002) (128,402) (161,045) Prepaid benefit cost 46,929 52,159 118,059 Overfunded status $ 56,836 $ 44,549 $ 88,496 Accumulated benefit obligation $ 362,530 $ 501,507 $ 361,147 Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: Unrecognized past service credit $ 78,295 $ 86,837 $ 94,522 Unrecognized net loss (71,172) (92,308) (115,775) Net amount $ 7,123 $ (5,471) $ (21,253) (1) Includes service costs related to employees of our insurance agency business. Refer to the later discussion within the “Components of Net Periodic Benefit Cost” section within this Note for further discussion. |
Defined Benefit Plan, Assumptions | The assumptions used in determining the benefit obligations at December 31, 2022 and 2021 were as follows: DB Plan BEP DB SERP ODRCP As of December 31, As of December 31, As of December 31, As of December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Discount rate 5.18 % 2.65 % 5.07 % 2.32 % 5.18 % 2.68 % 5.13 % 2.32 % Rate of increase in compensation levels 4.50 % 4.50 % 4.50 % 4.50 % — % — % — % — % Interest rate credit for determining projected cash balance 3.55 % 3.50 % 3.55 % 3.50 % — % — % — % — % |
Schedule of Net Benefit Costs | The assumptions used in determining the net periodic benefit cost for the years ended December 31, 2022, 2021, and 2020 were as follows: DB Plan For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.65 % 2.26 % 3.16 % Rate of compensation increase 4.50 % 5.25 % 5.25 % Expected rate of return on plan assets 7.00 % 7.50 % 7.50 % Interest rate credit for determining projected cash balance 3.50 % 3.50 % 3.50 % BEP For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.32 % 1.77 % 3.15 % Rate of compensation increase 4.50 % 5.25 % 5.25 % Interest rate credit for determining projected cash balance 3.50 % 3.50 % 3.50 % DB SERP For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.68 % 1.63 % 2.72 % ODRCP For the Year Ended December 31, 2022 2021 2020 Discount rate - benefit cost 2.32 % 1.81 % 2.86 % Rate of compensation increase — % — % 3.00 % |
Reconciliation of Interest in SBERA Common Collective | The table below presents a reconciliation of the Company’s interest in the SBERA common collective trust during the years indicated: For the Year Ended December 31, 2022 2021 (In thousands) Balance at beginning of year $ 546,056 $ 449,643 Net realized and unrealized gains and (losses) (91,474) 50,878 Contributions 7,222 — Benefits paid (42,438) (17,934) Acquisition — 63,469 Balance at end of year $ 419,366 $ 546,056 |
Summary of Components of Net Pension Expense | The components of net pension expense for the plans for the periods indicated are as follows: For the Year Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit cost: Service cost (1) $ 31,382 $ 31,660 $ 25,970 Interest cost 10,582 5,694 9,657 Expected return on plan assets (35,486) (33,333) (29,610) Past service credit (11,882) (11,796) (1,931) Recognized net actuarial loss 11,032 13,400 10,787 Settlements 12,045 — — Net periodic benefit cost $ 17,673 $ 5,625 $ 14,873 (1) Includes service costs related to employees of our insurance agency business. Such service costs were included in net 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 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 income from discontinued operations and included in the above table were $7.5 million, $7.7 million, and $6.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Schedule of Expected Benefit Payments | The following table summarizes estimated benefits to be paid from the Defined Benefit Plan and BEP for the plan years beginning on November 1, and the DB SERP and ODRCP for the plan years beginning January 1: Year (In thousands) 2023 $ 45,367 2024 34,286 2025 37,454 2026 38,296 2027 37,915 In aggregate for 2028-2032 202,187 |
Employee Stock Ownership Plan (ESOP) Disclosures | The following table presents share information held by the ESOP: As of December 31, 2022 2021 (Dollars in thousands) Allocated shares 1,046,850 565,134 Shares committed to be released 104,464 104,464 Unallocated shares (suspense shares) 13,769,628 14,271,054 Total shares 14,920,942 14,940,652 Fair value of unallocated shares $ 237,526 $ 287,847 |
Schedule of Assets Held in Rabbi Trust | Assets held in rabbi trust accounts by plan type, at fair value, were as follows: As of December 31, 2022 2021 (In thousands) DB SERP $ 17,209 $ 20,810 BEP 11,734 13,202 ODRCP 3,670 4,316 DC SERP 17,764 34,002 Deferred compensation plans 25,909 32,042 Total rabbi trust assets $ 76,286 $ 104,372 The following tables present the book value, net unrealized gain or loss, and market value of assets held in rabbi trust accounts by asset type: As of December 31, 2022 As of December 31, 2021 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 5,575 $ — $ 5,575 $ 4,494 $ — $ 4,494 Equities (1) 60,056 3,626 63,682 67,401 24,295 91,696 Fixed income 7,799 (770) 7,029 8,126 56 8,182 Total assets $ 73,430 $ 2,856 $ 76,286 $ 80,021 $ 24,351 $ 104,372 (1) Equities include mutual funds and other exchange-traded funds. |
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 Years Ended December 31, 2022 2021 Restricted Stock Awards Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock at beginning of year 683,056 $ 20.13 — $ — Granted 31,559 19.17 683,056 20.13 Vested (136,609) 20.13 — — Forfeited (52,546) 20.08 — — Non-vested restricted stock at end of year 525,460 $ 20.08 683,056 $ 20.13 The following table summarizes the Company’s restricted stock unit activity for the periods indicated: For the Years Ended December 31, 2022 2021 Restricted Stock Units Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock at beginning of year — $ — — $ — Granted 978,364 21.08 — — Forfeited (6,039) 21.08 — — Non-vested restricted stock at end of year 972,325 $ 21.08 — $ — |
Share-Based Payment Arrangement, Performance Shares, Activity | The following table summarizes the Company’s performance stock unit activity for the periods indicated: For the Years Ended December 31, 2022 2021 Performance Stock Units Number of Shares Weighted-Average Grant Price Per Share Number of Shares Weighted-Average Grant Price Per Share Non-vested restricted stock at beginning of year — $ — — $ — Granted 533,676 21.12 — — Non-vested restricted stock at end of year 533,676 $ 21.12 — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 2021 (In Thousands) Commitments to extend credit $ 5,680,438 $ 5,175,521 Standby letters of credit 65,154 65,602 Forward commitments to sell loans 10,008 24,440 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Interest Rate Derivatives | The following table reflects the Company’s derivative positions as of December 31, 2022 for interest rate swaps which qualify as cash flow hedges for accounting purposes: 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. |
Summary of Pre-tax Impact of Terminated Cash Flow Hedged on AOCI | The following table presents the pre-tax impact of terminated cash flow hedges on AOCI for the periods indicated: Year Ended December 31, 2022 2021 2020 (In thousands) Unrealized gains on terminated hedges included in AOCI — January 1 $ 10,239 $ 41,473 $ — Unrealized gains on terminated hedges arising during the period — — 57,362 Reclassification adjustments for amortization of unrealized (gains) into net interest income (10,193) (31,234) (15,889) Unrealized gains on terminated hedges included in AOCI — December 31 $ 46 $ 10,239 $ 41,473 |
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: As of 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 As of December 31, 2021 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 494 $ 3,009,150 Risk participation agreements 64 238,772 Foreign exchange contracts: Matched commercial customer book 72 7,922 Foreign currency loan 6 10,830 |
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 Sheet Fair Value at December 31, Fair Value at December 31, Balance Sheet Fair Value at December 31, Fair Value at December 31, (In thousands) Derivatives designated as hedging instruments Interest rate swaps Other assets $ 16 $ — Other liabilities $ 2,417 $ — Derivatives not designated as hedging instruments Customer-related positions: Interest rate swaps Other assets $ 23,567 $ 64,338 Other liabilities $ 78,577 $ 17,880 Risk participation agreements Other assets 78 315 Other liabilities 130 580 Foreign currency exchange contracts — matched customer book Other assets 198 61 Other liabilities 205 46 Foreign currency exchange contracts — foreign currency loan Other assets 2 — Other liabilities 93 87 $ 23,845 $ 64,714 $ 79,005 $ 18,593 Total $ 23,861 $ 64,714 $ 81,422 $ 18,593 |
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 Statements of Income as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows: For the Year Ended December 31, 2022 2021 2020 (In thousands) Derivatives designated as hedges: Gain in OCI on derivatives $ (69,010) $ — $ 46,871 Gain reclassified from OCI into interest income (effective portion) $ 9,580 $ 31,234 $ 27,131 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 (loss) recognized in interest rate swap income $ 4,324 $ 4,962 $ (3,812) Gain (loss) recognized in interest rate swap income for risk participation agreements 213 243 (384) Gain (loss) recognized in other income for foreign currency exchange contracts: Matched commercial customer book (22) 1 (28) Foreign currency loan (4) (27) 143 Total gain (loss) for derivatives not designated as hedges $ 4,511 $ 5,179 $ (4,081) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 financial position, as of the dates indicated: As of December 31, 2022 Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In thousands) Derivative Assets Interest rate swaps designated as cash flow hedges $ 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 designated as cash flow hedges $ 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 As of December 31, 2021 Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In thousands) Derivative Assets Customer-related positions: Interest rate swaps $ 64,338 $ — $ 64,338 $ 1,440 $ — $ 62,898 Risk participation agreements 315 — 315 — — 315 Foreign currency exchange contracts – matched customer book 61 — 61 — — 61 Foreign currency exchange contracts – foreign currency loan — — — — — — $ 64,714 $ — $ 64,714 $ 1,440 $ — $ 63,274 Derivative Liabilities Customer-related positions: Interest rate swaps $ 17,880 $ — $ 17,880 $ 1,440 $ 16,440 $ — Risk participation agreements 580 — 580 — — 580 Foreign currency exchange contracts – matched customer book 46 — 46 — — 46 Foreign currency exchange contracts – foreign currency loan 87 — 87 — — 87 $ 18,593 $ — $ 18,593 $ 1,440 $ 16,440 $ 713 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021: Fair Value Measurements at Reporting Date Using Balance as of December 31, 2022 Quoted Prices in Significant Significant Description (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 $ — Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2021 Quoted Prices in Significant Significant (In thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 5,524,708 $ — $ 5,524,708 $ — Government-sponsored commercial mortgage-backed securities 1,408,868 — 1,408,868 — U.S. Agency bonds 1,175,014 — 1,175,014 — U.S. Treasury securities 88,605 88,605 — — State and municipal bonds and obligations 280,329 — 280,329 — Small Business Administration pooled securities 32,103 — 32,103 — Other debt securities 1,597 — 1,597 Rabbi trust investments 104,372 96,190 8,182 — Loans held for sale 1,206 — 1,206 — Interest rate swap contracts Customer-related positions 64,338 — 64,338 — Risk participation agreements 315 — 315 — Foreign currency forward contracts Matched customer book 61 — 61 — Foreign currency loan — — — — Mortgage derivatives 256 — 256 — Total $ 8,681,772 $ 184,795 $ 8,496,977 $ — Liabilities Interest rate swap contracts Customer-related positions $ 17,880 $ — $ 17,880 $ — Risk participation agreements 580 — 580 — Foreign currency forward contracts Matched customer book 46 — 46 — Foreign currency loan 87 — 87 — Mortgage derivatives 16 — 16 — Total $ 18,609 $ — $ 18,609 $ — |
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 December 31, 2022 and 2021. Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2022 Quoted Prices Significant Significant (In thousands) Assets Individually assessed collateral-dependent loans whose fair value is based upon appraisals $ 16,432 $ — $ — $ 16,432 Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2021 Quoted Prices Significant Significant (In thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 12,068 $ — $ — $ 12,068 |
Schedule of 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 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 — Fair Value Measurements at Reporting Date Using Carrying Value as of December 31, 2021 Fair Value as of December 31, 2021 Quoted Prices Significant Significant (In thousands) Assets Loans, net of allowance for loan losses $ 12,157,281 $ 12,282,323 $ — $ — $ 12,282,323 FHLB stock 10,904 10,904 — 10,904 — Bank-owned life insurance 157,091 157,091 — 157,091 — Liabilities Deposits $ 19,628,311 $ 19,626,376 $ — $ 19,626,376 $ — FHLB advances 14,020 13,558 — 13,558 — Escrow deposits of borrowers 20,258 20,258 — 20,258 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | A portion of the Company's noninterest income 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. For the Year Ended December 31, 2022 2021 2020 (In thousands) Service charges on deposit accounts $ 30,392 $ 24,271 $ 21,560 Trust and investment advisory fees 23,593 24,588 21,102 Debit card processing fees 12,644 12,118 10,277 Other non-interest income 10,670 8,446 7,228 Total noninterest income in-scope of ASC 606 77,299 69,423 60,167 Total noninterest (loss) income out-of-scope of ASC 606 (549) 28,014 23,512 Total noninterest income $ 76,750 $ 97,437 $ 83,679 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated including the amount of income tax benefit (expense) allocated to each component of other comprehensive (loss) income: For the Year Ended December 31, 2022 Pre Tax Tax Benefit (Expense) After Tax (In thousands) Unrealized losses on securities available for sale: Change in fair value of securities available for sale $ (1,061,859) $ 238,005 $ (823,854) Less: reclassification adjustment for losses included in net income (3,157) 873 (2,284) Net change in fair value of securities available for sale (1,058,702) 237,132 (821,570) Unrealized losses on cash flow hedges: Change in fair value of cash flow hedges (1) (69,010) 18,377 (50,633) Less: net cash flow hedge gains reclassified into interest income (1) 9,580 (2,693) 6,887 Net change in fair value of cash flow hedges (78,590) 21,070 (57,520) Defined benefit pension plans: Change in actuarial net loss 6,323 (1,777) 4,546 Less: amortization of actuarial net loss (11,032) 3,101 (7,931) Less: Defined Benefit Plan settlement loss (12,045) 3,386 (8,659) Less: net accretion of prior service credit 11,882 (3,340) 8,542 Net change in other comprehensive income for defined benefit pension plans 17,518 (4,924) 12,594 Total other comprehensive loss $ (1,119,774) $ 253,278 $ (866,496) For the Year Ended December 31, 2021 Pre Tax Tax Benefit (Expense) After Tax (In thousands) Unrealized (losses) gains on securities available for sale: Change in fair value of securities available for sale $ (133,466) $ 30,117 $ (103,349) Less: reclassification adjustment for gains included in net income 1,166 (257) 909 Net change in fair value of securities available for sale (134,632) 30,374 (104,258) Unrealized gains on cash flow hedges: Change in fair value of cash flow hedges (1) — — — Less: net cash flow hedge gains reclassified into interest income (1) 31,234 (8,780) 22,454 Net change in fair value of cash flow hedges (31,234) 8,780 (22,454) Defined benefit pension plans: Change in actuarial net gain 19,243 (5,409) 13,834 Less: amortization of actuarial net loss (13,400) 3,767 (9,633) Plan amendment - Century acquisition lump sum distribution option 1,106 (311) 795 Less: net accretion of prior service credit 11,796 (3,316) 8,480 Net change in other comprehensive income for defined benefit pension plans 21,953 (6,171) 15,782 Total other comprehensive loss $ (143,913) $ 32,983 $ (110,930) For the Year Ended December 31, 2020 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains on securities available for sale: Change in fair value of securities available for sale $ 30,926 $ (6,828) $ 24,098 Less: reclassification adjustment for gains included in net income 288 (64) 224 Net change in fair value of securities available for sale 30,638 (6,764) 23,874 Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges (1) 46,871 (13,175) 33,696 Less: net cash flow hedge gains reclassified into interest income (1) 27,131 (7,626) 19,505 Net change in fair value of cash flow hedges 19,740 (5,549) 14,191 Defined benefit pension plans: Change in actuarial net gain (58,811) 16,532 (42,279) Less: amortization of actuarial net loss (10,787) 3,033 (7,754) Plan amendment - prior service credit 133,439 (37,510) 95,929 Less: net accretion of prior service credit 1,931 (543) 1,388 Net change in other comprehensive income for defined benefit pension plans 83,484 (23,468) 60,016 Total other comprehensive income $ 133,862 $ (35,781) $ 98,081 (1) Includes amortization of $7.3 million, $22.5 million, and $11.4 million for the years ended December 31, 2022, 2021, and 2020, respectively, of the remaining balance of realized but unrecognized gains, net of tax, from the termination of interest rate swaps. The total realized gain of $41.2 million, net of tax, will be recognized in earnings through January 2023. The balance of this gain had amortized to less than $0.1 million, $7.4 million, and $29.8 million, net of tax, at December 31, 2022, December 31, 2021, and December 31, 2020, respectively. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax: Unrealized Unrealized Defined Benefit Total (In thousands) Beginning balance: January 1, 2020 $ 21,798 $ 15,624 $ (81,269) $ (43,847) Other comprehensive income before reclassifications 24,098 33,696 53,650 111,444 Less: Amounts reclassified from accumulated other comprehensive income 224 19,505 (6,366) 13,363 Net current-period other comprehensive income 23,874 14,191 60,016 98,081 Ending balance: December 31, 2020 $ 45,672 $ 29,815 $ (21,253) $ 54,234 Other comprehensive (loss) income before reclassifications (103,349) — 14,629 (88,720) Less: Amounts reclassified from accumulated other comprehensive income 909 22,454 (1,153) 22,210 Net current-period other comprehensive (loss) income (104,258) (22,454) 15,782 (110,930) Ending balance: December 31, 2021 $ (58,586) $ 7,361 $ (5,471) $ (56,696) Other comprehensive (loss) income before reclassifications (823,854) (50,633) 4,546 (869,941) Less: Amounts reclassified from accumulated other comprehensive income (2,284) 6,887 (8,048) (3,445) Net current-period other comprehensive (loss) income (821,570) (57,520) 12,594 (866,496) Ending balance: December 31, 2022 $ (880,156) $ (50,159) $ 7,123 $ (923,192) The following table illustrates the significant amounts reclassified out of each component of accumulated other comprehensive (loss)/income, net of tax: Year Ended December 31, Details about Accumulated Other Comprehensive (Loss)/Income Components 2022 2021 2020 Affected Line Item in the Statement Where Net Income is Presented (In thousands) Unrealized (losses) and gains on available-for-sale securities $ (3,157) $ 1,166 $ 288 (Losses) gains on sales of securities available for sale, net (3,157) 1,166 288 Total before tax 873 (257) (64) Tax benefit or (expense) $ (2,284) $ 909 $ 224 Net of tax Unrealized gains on cash flow hedges $ 9,580 $ 31,234 $ 27,131 Interest income 9,580 31,234 27,131 Total before tax (2,693) (8,780) (7,626) Tax expense $ 6,887 $ 22,454 $ 19,505 Net of tax Amortization of defined benefit pension items $ (23,077) $ (13,400) $ (10,787) Net periodic pension cost - see Note 17 Accretion of prior service credit 11,882 11,796 1,931 Net periodic pension cost - see Note 17 (11,195) (1,604) (8,856) Total before tax 3,147 451 2,490 Tax benefit $ (8,048) $ (1,153) $ (6,366) Net of tax Total reclassifications for the period $ (3,445) $ 22,210 $ 13,363 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 (In thousands) Assets Premises and equipment $ 163 $ 429 Goodwill and intangibles, net 93,117 80,496 Deferred income taxes, net (315) 446 Prepaid expenses 532 527 Other assets 34,722 32,120 Total assets $ 128,219 $ 114,018 Liabilities Other liabilities $ 34,930 $ 31,222 Total liabilities $ 34,930 $ 31,222 December 31, 2022 December 31, 2021 (In thousands) Assets Cash $ 66,507 $ 69,161 Premises and equipment (1) 1,792 1,884 Bank-owned life insurance 2,066 2,012 Deferred income taxes 3,662 315 Other assets (2) 12,944 17,377 Total assets $ 86,971 $ 90,749 Liabilities Other liabilities (3) $ 14,013 $ 18,497 Total liabilities $ 14,013 $ 18,497 (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 periods indicated: For the Years Ended December 31, 2022 2021 2020 (In thousands) Noninterest income: Insurance commissions $ 99,887 $ 95,164 $ 95,195 Other noninterest income 179 1,014 199 Total noninterest income 100,066 96,178 95,394 Noninterest expense: Salaries and employee benefits 65,089 68,292 60,593 Office occupancy and equipment 3,319 3,204 3,176 Data processing 4,335 4,424 4,049 Professional services 1,009 596 770 Marketing expenses 246 241 152 Amortization of intangible assets 2,666 2,293 2,261 Other 4,944 4,411 5,131 Total noninterest expense 81,608 83,461 76,132 Income from discontinued operations before income tax expense 18,458 12,717 19,262 Income tax expense 5,210 3,583 5,385 Income from discontinued operations, net of taxes $ 13,248 $ 9,134 $ 13,877 Years Ended December 31, 2022 2021 2020 (In thousands) Noninterest income: (Losses) income from investments held in rabbi trusts $ (1,305) $ 937 $ 1,293 Other noninterest income (1) 54 52 52 Total noninterest income (1,251) 989 1,345 Noninterest expense: Salaries and employee benefits (2) (1,292) 967 1,098 Office occupancy and equipment (3) 499 501 511 Other (4) 2,396 (2,151) 64 Total noninterest expense 1,603 (683) 1,673 (Loss) income before income tax expense (2,854) 1,672 (328) Income tax (benefit) expense (802) 470 (92) Net (loss) income (2,052) 1,202 (236) (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. (2) Includes expenses, which were a net credit for the year ended December 31, 2022, 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. (4) Includes intercompany expenses and other credits associated with the Defined Benefit Plan and BEP. Components of net periodic benefit cost associated with the Defined Benefit Plan and BEP and included in other noninterest expense above were a net credit for the periods presented. |
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 December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 (In thousands) Assets Premises and equipment $ 163 $ 429 Goodwill and intangibles, net 93,117 80,496 Deferred income taxes, net (315) 446 Prepaid expenses 532 527 Other assets 34,722 32,120 Total assets $ 128,219 $ 114,018 Liabilities Other liabilities $ 34,930 $ 31,222 Total liabilities $ 34,930 $ 31,222 December 31, 2022 December 31, 2021 (In thousands) Assets Cash $ 66,507 $ 69,161 Premises and equipment (1) 1,792 1,884 Bank-owned life insurance 2,066 2,012 Deferred income taxes 3,662 315 Other assets (2) 12,944 17,377 Total assets $ 86,971 $ 90,749 Liabilities Other liabilities (3) $ 14,013 $ 18,497 Total liabilities $ 14,013 $ 18,497 (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 periods indicated: For the Years Ended December 31, 2022 2021 2020 (In thousands) Noninterest income: Insurance commissions $ 99,887 $ 95,164 $ 95,195 Other noninterest income 179 1,014 199 Total noninterest income 100,066 96,178 95,394 Noninterest expense: Salaries and employee benefits 65,089 68,292 60,593 Office occupancy and equipment 3,319 3,204 3,176 Data processing 4,335 4,424 4,049 Professional services 1,009 596 770 Marketing expenses 246 241 152 Amortization of intangible assets 2,666 2,293 2,261 Other 4,944 4,411 5,131 Total noninterest expense 81,608 83,461 76,132 Income from discontinued operations before income tax expense 18,458 12,717 19,262 Income tax expense 5,210 3,583 5,385 Income from discontinued operations, net of taxes $ 13,248 $ 9,134 $ 13,877 Years Ended December 31, 2022 2021 2020 (In thousands) Noninterest income: (Losses) income from investments held in rabbi trusts $ (1,305) $ 937 $ 1,293 Other noninterest income (1) 54 52 52 Total noninterest income (1,251) 989 1,345 Noninterest expense: Salaries and employee benefits (2) (1,292) 967 1,098 Office occupancy and equipment (3) 499 501 511 Other (4) 2,396 (2,151) 64 Total noninterest expense 1,603 (683) 1,673 (Loss) income before income tax expense (2,854) 1,672 (328) Income tax (benefit) expense (802) 470 (92) Net (loss) income (2,052) 1,202 (236) (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. (2) Includes expenses, which were a net credit for the year ended December 31, 2022, 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. (4) Includes intercompany expenses and other credits associated with the Defined Benefit Plan and BEP. Components of net periodic benefit cost associated with the Defined Benefit Plan and BEP and included in other noninterest expense above were a net credit for the periods presented. |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition from Century: Net Assets Acquired at Fair Value (In thousands) Assets Cash and due from banks $ 56,831 Short-term investments 575,953 Investment securities 3,117,022 Loans 2,906,491 FHLB stock 6,690 Premises and equipment 64,521 Bank owned life insurance 95,478 Goodwill 259,024 Core deposit intangible 11,633 Other assets 18,915 Total assets acquired 7,112,558 Liabilities Deposits 6,099,821 Securities sold under agreements to repurchase 274,982 Escrow deposits of borrowers 3,649 Other liabilities 92,237 Total liabilities assumed 6,470,689 Purchase price $ 641,869 For the Year Ended December 31, 2021 (In thousands) Salaries and employee benefits $ 15,947 Office occupancy and equipment 7,198 Data processing 1,286 Professional services 9,223 Other 1,802 $ 35,456 Acquisition Date Balance (In thousands) Assets acquired: Customer list intangible $ 6,120 Non-compete intangible 440 Other 40 Total assets acquired 6,600 Consideration: Total cash paid (13,400) Contingent consideration (1,926) Other liabilities assumed — Total fair value of consideration (15,326) Goodwill $ 8,726 Acquisition Date Balance (In thousands) Assets acquired: Customer list intangible $ 1,860 Non-compete intangible 170 Other 133 Total assets acquired 2,163 Consideration: Total cash paid (4,354) Contingent consideration (449) Other liabilities assumed (355) Total fair value of consideration (5,158) Goodwill $ 2,995 |
Parent Company Financial Statem
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | BALANCE SHEETS As of December 31, 2022 2021 (In thousands) Assets Cash and cash equivalents (1) $ 126,441 $ 134,671 Goodwill and other intangibles, net 744 744 Deferred income taxes, net 13,182 17,974 Investment in subsidiaries 2,327,521 3,250,133 Other assets 4,557 3,080 Total assets $ 2,472,445 $ 3,406,602 Liabilities and shareholders’ equity Other liabilities $ 655 $ 250 Total liabilities 655 250 Shareholders’ equity 2,471,790 3,406,352 Total liabilities and shareholders’ equity $ 2,472,445 $ 3,406,602 (1) Includes $125.0 million and $133.5 that is eliminated in consolidation as of December 31, 2022 and 2021, respectively. |
Condensed Income Statement | STATEMENTS OF INCOME For the Year Ended December 31, 2022 2021 2020 (In thousands) Income Interest income $ 15 $ — $ — Total income 15 — — Expenses Professional services 899 7,393 1,485 Charitable contributions — — 91,287 Other 3,070 222 151 Total expenses 3,969 7,615 92,923 Loss before income taxes and equity in undistributed income of subsidiaries (3,954) (7,615) (92,923) Income tax expense (benefit) 269 (11,344) (13,933) (Loss) income before equity in undistributed income of subsidiaries (4,223) 3,729 (78,990) Equity in undistributed income of subsidiaries 203,982 150,936 101,728 Net income $ 199,759 $ 154,665 $ 22,738 |
Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2022 2021 2020 (In thousands) Cash flows provided by operating activities Net income $ 199,759 $ 154,665 $ 22,738 Adjustments to reconcile net income to cash provided by operating activities Equity in undistributed income of subsidiaries (203,982) (150,936) (101,728) Issuance of common shares donated to the Eastern Bank Foundation — — 91,287 Share-based compensation 10,507 — — ESOP expense 9,923 9,408 2,351 Change in: Deferred income taxes, net 4,792 (7,157) (10,817) Other, net (937) (388) (350) Net cash provided by operating activities 20,062 5,592 3,481 Cash flows provided by (used in) investing activities Investment in Eastern Bank — — (882,096) Cash paid for acquisition, net of cash acquired — (640,890) — Return of investments in subsidiary 240,000 140,000 — Contributions to other equity investments (788) — — Net cash provided by (used in) investing activities 239,212 (500,890) (882,096) Cash flows (used in) provided by financing activities Proceeds from issuance of common shares — — 1,792,878 Purchase of shares by ESOP — — (149,407) Payments for deferred offering costs — — (28,552) Payment of subordinated debentures assumed in business combination (1) — (36,277) — Payments for shares repurchased under share repurchase plans (201,618) (23,224) — Dividends declared and paid to common shareholders (65,886) (51,564) — Net cash (used in) provided by financing activities (267,504) (111,065) 1,614,919 Net (decrease) increase in cash and cash equivalents (8,230) (606,363) 736,304 Cash and cash equivalents at beginning of year 134,671 741,034 4,730 Cash and cash equivalents at end of year $ 126,441 $ 134,671 $ 741,034 (1) The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition and is reflected as such balance in the summary of net assets acquired included in Note 3 to the Consolidated Financial Statements. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt. |
Corporate Structure and Natur_2
Corporate Structure and Nature of Operations; Plan of Reorganization and Conversion; Basis of Presentation (Details) - USD ($) | Oct. 15, 2020 | Oct. 14, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 16, 2020 |
Subsequent Event [Line Items] | |||||
Ownership percentage | 100% | ||||
Common stock issued (in shares) | 176,172,073 | 186,305,332 | 186,758,154 | ||
Common stock outstanding (in shares) | 176,172,073 | 186,305,332 | 186,758,154 | ||
Public Offering | |||||
Subsequent Event [Line Items] | |||||
Shares sold (in shares) | 179,287,828 | ||||
Stock price (in dollars per share) | $ 10 | ||||
Proceeds from gross offering | $ 1,792,878,000 | ||||
Employee Stock | |||||
Subsequent Event [Line Items] | |||||
Shares sold (in shares) | 14,940,652 | ||||
Charitable Contribution | |||||
Subsequent Event [Line Items] | |||||
Shares sold (in shares) | 7,470,326 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Jan. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) reporting_unit plan segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |||
Finite-Lived Intangible Assets [Line Items] | |||||||
Restricted cash | $ 1,000,000 | $ 21,300,000 | |||||
Debt securities, available-for-sale, allowance for credit loss, excluding accrued interest | $ 0 | 0 | |||||
Debt securities, held-to-maturity, excluding accrued interest, after allowance for credit loss | $ 476,647,000 | 0 | |||||
Number of reporting units | reporting_unit | 2 | ||||||
Defined benefit plan, service requirement for full vesting for individuals employed on or before October 21, 1989 | 3 years | ||||||
Defined benefit plan, service requirement for full vesting for individuals employed subsequent to October 31, 1989 | 5 years | ||||||
Defined benefit plan, service requirement for full vesting for individuals who were not already in the defined benefit plan as of November 1, 2020 | 3 years | ||||||
Number of deferred compensation plans | plan | 3 | ||||||
Number of reportable segments | segment | 2 | ||||||
Stockholders' equity attributable to parent | $ (2,471,790,000) | (3,406,352,000) | $ (3,428,052,000) | $ (1,600,153,000) | |||
Deferred income tax expense (benefit) | 5,262,000 | (5,663,000) | (20,800,000) | ||||
Retained Earnings | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Stockholders' equity attributable to parent | $ (1,881,775,000) | (1,768,653,000) | $ (1,665,607,000) | (1,644,000,000) | |||
Cumulative effect accounting adjustment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Stockholders' equity attributable to parent | 20,098,000 | [1] | 1,131,000 | [2] | |||
Deferred income tax expense (benefit) | 7,900,000 | ||||||
Cumulative effect accounting adjustment | Retained Earnings | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Stockholders' equity attributable to parent | $ 20,098,000 | [1] | $ 1,131,000 | [2] | |||
Cumulative effect accounting adjustment | Accounting Standards Update 2016-13 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Deferred income tax expense (benefit) | 7,900,000 | ||||||
Cumulative effect accounting adjustment | Accounting Standards Update 2016-13 | Retained Earnings | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Stockholders' equity attributable to parent | $ 20,100,000 | ||||||
Core deposits | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted average useful life | 10 years | ||||||
Core deposits | Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted average useful life | 7 years | ||||||
Core deposits | Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted average useful life | 10 years | ||||||
[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 Financial Instruments–Credit Losses on Financial Instruments and relevant amendments. Refer to Note 5, “Loans and Allowance for Credit Losses” within the Notes to the Consolidated Financial Statements included in this Item 8 in this Current Report on Form 8-K for additional discussion. Represents cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2016-02 Leases . The transition adjustment to the opening balance of retained earnings on January 1, 2020 amounted to $1.1 million, net of tax, related to an incremental accrued rent adjustment calculated as a result of electing the hindsight practical expedient. |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narrative (Details) | 12 Months Ended | |||
Nov. 12, 2021 USD ($) branch lease_obligation office $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||
Assets | $ 22,646,858,000 | $ 23,512,128,000 | ||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 13,420,317,000 | 12,157,281,000 | ||
Deposits | 18,974,359,000 | 19,628,311,000 | ||
Gain (loss) on disposition of property plant equipment | $ 1,412,000 | (4,715,000) | $ (73,000) | |
Right-of-use asset acquired | $ 13,900,000 | |||
Lease liability acquired | 13,900,000 | |||
Acquisition-related and professional fee costs | 35,456,000 | |||
Century Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition, consideration transferred | 20,500,000 | |||
Century Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Assets | 7,100,000,000 | |||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 2,900,000,000 | |||
Deposits | $ 6,100,000,000 | |||
Number of full service banking offices | office | 29 | |||
Financial Asset Acquired with Credit Deterioration | Century Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | $ 67,300,000 | |||
Century Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Share price (in dollars per share) | $ / shares | $ 115.28 | |||
Business combination, consideration transferred | $ 641,900,000 | |||
Goodwill | 259,024,000 | |||
Investment securities premium (discount) acquired | (37,300,000) | |||
Debt discount (premium) acquired | $ (13,300,000) | |||
Number of branches acquired | branch | 29 | |||
Premises and equipment | $ 64,521,000 | |||
Gain (loss) on disposition of property plant equipment | $ 0 | |||
Number of lease obligations | lease_obligation | 20 | |||
Core deposit intangible | $ 11,633,000 | |||
Business acquisition, goodwill, expected tax deductible amount | 0 | |||
Bank owned life insurance | 95,478,000 | |||
Time deposits | 1,800,000 | |||
Securities sold under agreements to repurchase | 274,982,000 | |||
Escrow deposit | 3,600,000 | |||
Acquisition-related and professional fee costs | $ 35,500,000 | |||
Century Bancorp, Inc. | Core deposits | ||||
Business Acquisition [Line Items] | ||||
Core deposit intangible | $ 11,600,000 | |||
Weighted average useful life acquired | 10 years |
Mergers and Acquisitions - Summ
Mergers and Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - Century Bancorp, Inc. $ in Thousands | Nov. 12, 2021 USD ($) |
Assets | |
Cash and due from banks | $ 56,831 |
Short-term investments | 575,953 |
Investment securities | 3,117,022 |
Loans | 2,906,491 |
FHLB stock | 6,690 |
Premises and equipment | 64,521 |
Bank owned life insurance | 95,478 |
Goodwill | 259,024 |
Core deposit intangible | 11,633 |
Other assets | 18,915 |
Total assets acquired | 7,112,558 |
Liabilities | |
Deposits | 6,099,821 |
Securities sold under agreements to repurchase | 274,982 |
Escrow deposits of borrowers | 3,649 |
Other liabilities | 92,237 |
Total liabilities assumed | 6,470,689 |
Purchase price | $ 641,869 |
Mergers and Acquisitions - Sche
Mergers and Acquisitions - Schedule of PCI Loans (Details) $ in Thousands | Nov. 12, 2021 USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Contractually required principal and interest at acquisition | $ 82,900 |
Contractual cash flows not expected to be collected | 6,746 |
Expected cash flows at acquisition | 76,154 |
Interest component of expected cash flows | 8,896 |
Basis in PCI loans at acquisition - estimated fair value | $ 67,258 |
Mergers and Acquisitions - Sc_2
Mergers and Acquisitions - Schedule of Merger-Related Expenses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Acquisition-related and professional fee costs | $ 35,456 |
Salaries and employee benefits | |
Business Acquisition [Line Items] | |
Acquisition-related and professional fee costs | 15,947 |
Office occupancy and equipment | |
Business Acquisition [Line Items] | |
Acquisition-related and professional fee costs | 7,198 |
Data processing | |
Business Acquisition [Line Items] | |
Acquisition-related and professional fee costs | 1,286 |
Professional services | |
Business Acquisition [Line Items] | |
Acquisition-related and professional fee costs | 9,223 |
Other | |
Business Acquisition [Line Items] | |
Acquisition-related and professional fee costs | $ 1,802 |
Mergers and Acquisitions - Pro
Mergers and Acquisitions - Pro Forma (Details) - Century Bancorp, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net interest income | $ 522,621 | $ 502,853 |
Net income | $ 174,603 | $ 61,858 |
Securities - Summary Of Debt Se
Securities - Summary Of Debt Securities (Detail) - USD ($) | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 7,825,435,000 | $ 8,587,179,000 | |
Unrealized Gains | 9,000 | 36,492,000 | |
Unrealized Losses | (1,134,666,000) | (112,447,000) | |
Allowance for Credit Losses | 0 | $ 0 | |
Fair Value | 6,690,778,000 | 8,511,224,000 | |
Government-sponsored residential mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 4,855,763,000 | 5,577,292,000 | |
Unrealized Gains | 0 | 17,918,000 | |
Unrealized Losses | (743,855,000) | (70,502,000) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 4,111,908,000 | 5,524,708,000 | |
Government-sponsored commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,570,119,000 | 1,420,748,000 | |
Unrealized Gains | 0 | 760,000 | |
Unrealized Losses | (221,165,000) | (12,640,000) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 1,348,954,000 | 1,408,868,000 | |
U.S. Agency bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,100,891,000 | 1,202,377,000 | |
Unrealized Gains | 0 | 1,067,000 | |
Unrealized Losses | (148,409,000) | (28,430,000) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 952,482,000 | 1,175,014,000 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 99,324,000 | 89,434,000 | |
Unrealized Gains | 0 | 5,000 | |
Unrealized Losses | (6,267,000) | (834,000) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 93,057,000 | 88,605,000 | |
State and municipal bonds and obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 198,039,000 | 263,910,000 | |
Unrealized Gains | 9,000 | 16,460,000 | |
Unrealized Losses | (14,956,000) | (41,000) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 183,092,000 | 280,329,000 | |
Small Business Administration pooled securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 31,821,000 | ||
Unrealized Gains | 282,000 | ||
Unrealized Losses | 0 | ||
Fair Value | 32,103,000 | ||
Other debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,299,000 | 1,597,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (14,000) | 0 | |
Allowance for Credit Losses | 0 | ||
Fair Value | $ 1,285,000 | $ 1,597,000 |
Securities - Narrative (Detail)
Securities - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, allowance for credit loss, excluding accrued interest | $ 0 | $ 0 | ||
Debt securities, available-for-sale, accrued interest, after allowance for credit loss | $ 12,900,000 | $ 14,300,000 | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Debt securities, available-for-sale, accrued interest writeoff | $ 0 | |||
Other-than-temporary impairment loss, available for sale securities | $ 0 | $ 0 | ||
Held-to-maturity debt securities, fair value | 423,226,000 | 0 | ||
Debt securities, held-to-maturity, allowance for credit loss, excluding accrued interest | 0 | |||
Debt securities, held-to-maturity, accrued interest, after allowance for credit loss | $ 1,000,000 | |||
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | |||
Debt securities, held-to-maturity, accrued interest, writeoff | $ 0 | |||
Debt securities, available-for-sale and held-to-maturity, fair value | 7,114,004,000 | |||
Callable Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale and held-to-maturity, fair value | $ 900,000,000 | $ 1,100,000,000 |
Securities - Schedule of Realiz
Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains from sales of AFS securities | $ 1,775 | $ 1,166 | $ 288 | |
Gross realized losses from sales of AFS securities | (4,932) | 0 | 0 | |
Net (losses) gains from sales of AFS securities | $ (333,200) | $ (3,157) | $ 1,166 | $ 288 |
Securities - Summary Of Governm
Securities - Summary Of Government-Sponsored Residential Mortgage-Backed Securities With Gross Unrealized Losses (Detail) $ in Thousands | Dec. 31, 2022 USD ($) holding | Dec. 31, 2021 USD ($) |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 802 | 470 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 98,038 | $ 85,764 |
12 Months or Longer | 1,036,628 | 26,683 |
Total | 1,134,666 | 112,447 |
Fair Value | ||
Less than 12 Months | 968,376 | 5,993,147 |
12 Months or Longer | 5,719,149 | 810,035 |
Total | $ 6,687,525 | $ 6,803,182 |
Government-sponsored residential mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 322 | 264 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 42,196 | $ 70,502 |
12 Months or Longer | 701,659 | 0 |
Total | 743,855 | 70,502 |
Fair Value | ||
Less than 12 Months | 435,690 | 4,615,457 |
12 Months or Longer | 3,676,218 | 0 |
Total | $ 4,111,908 | $ 4,615,457 |
Government-sponsored commercial mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 199 | 165 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 38,944 | $ 12,218 |
12 Months or Longer | 182,221 | 422 |
Total | 221,165 | 12,640 |
Fair Value | ||
Less than 12 Months | 300,476 | 1,102,444 |
12 Months or Longer | 1,048,478 | 15,682 |
Total | $ 1,348,954 | $ 1,118,126 |
U.S. Agency bonds | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 37 | 27 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 645 | $ 2,169 |
12 Months or Longer | 147,764 | 26,261 |
Total | 148,409 | 28,430 |
Fair Value | ||
Less than 12 Months | 4,145 | 191,222 |
12 Months or Longer | 948,337 | 794,353 |
Total | $ 952,482 | $ 985,575 |
U.S. Treasury securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 5 | 3 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 1,311 | $ 834 |
12 Months or Longer | 4,956 | 0 |
Total | 6,267 | 834 |
Fair Value | ||
Less than 12 Months | 48,451 | 78,588 |
12 Months or Longer | 44,606 | 0 |
Total | $ 93,057 | $ 78,588 |
State and municipal bonds and obligations | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 237 | 11 |
Gross Unrealized Losses | ||
Less than 12 Months | $ 14,942 | $ 41 |
12 Months or Longer | 14 | 0 |
Total | 14,956 | 41 |
Fair Value | ||
Less than 12 Months | 179,614 | 5,436 |
12 Months or Longer | 225 | 0 |
Total | $ 179,839 | $ 5,436 |
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 ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | $ 476,647,000 | $ 0 |
Unrealized Gains | 0 | |
Unrealized Losses | (53,421,000) | |
Allowance for Credit Losses | 0 | |
Fair Value | 423,226,000 | $ 0 |
Government-sponsored residential mortgage-backed securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 276,493,000 | |
Unrealized Gains | 0 | |
Unrealized Losses | (30,150,000) | |
Allowance for Credit Losses | 0 | |
Fair Value | 246,343,000 | |
Government-sponsored commercial mortgage-backed securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 200,154,000 | |
Unrealized Gains | 0 | |
Unrealized Losses | (23,271,000) | |
Allowance for Credit Losses | 0 | |
Fair Value | $ 176,883,000 |
Securities - Summary Of Fair Va
Securities - Summary Of Fair Value Of Securities By Contractual Maturities (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
AFS securities | ||
Due in one year or less, Amortized Cost | $ 1,512,000 | $ 51,955,000 |
Due in one year or less, Fair value | 1,494,000 | 51,932,000 |
Due after one year to five years, Amortized Cost | 1,211,778,000 | 784,326,000 |
Due after one year to five years, Fair value | 1,074,080,000 | 773,349,000 |
Due after five to ten years, Amortized Cost | 1,643,641,000 | 2,023,620,000 |
Due after five to ten years, Fair value | 1,430,761,000 | 1,994,423,000 |
Due after ten years, Amortized Cost | 4,968,504,000 | 5,727,278,000 |
Due after ten years, Fair value | 4,184,443,000 | 5,691,520,000 |
Amortized Cost | 7,825,435,000 | 8,587,179,000 |
Fair Value | 6,690,778,000 | 8,511,224,000 |
HTM securities | ||
Due in one year or less, Amortized Cost | 0 | |
Due in one year or less, Fair value | 0 | |
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 | 200,154,000 | |
Due after five to ten years, Fair value | 176,883,000 | |
Due after ten years, Amortized Cost | 276,493,000 | |
Due after ten years, Fair value | 246,343,000 | |
Amortized Cost | 476,647,000 | |
Fair Value | 423,226,000 | 0 |
Total | ||
Due in one year or less, Amortized Cost | 1,512,000 | |
Due in one year or less, Fair value | 1,494,000 | |
Due after one year to five years, Amortized Cost | 1,211,778,000 | |
Due after one year to five years, Fair value | 1,074,080,000 | |
Due after five to ten years, Amortized Cost | 1,843,795,000 | |
Due after five to ten years, Fair value | 1,607,644,000 | |
Due after ten years, Amortized Cost | 5,244,997,000 | |
Due after ten years, Fair value | 4,430,786,000 | |
Amortized Cost | 8,302,082,000 | |
Fair Value | 7,114,004,000 | |
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 | 21,221,000 | 24,935,000 |
Due after one year to five years, Fair value | 20,284,000 | 25,962,000 |
Due after five to ten years, Amortized Cost | 727,908,000 | 899,169,000 |
Due after five to ten years, Fair value | 648,132,000 | 892,029,000 |
Due after ten years, Amortized Cost | 4,106,634,000 | 4,653,188,000 |
Due after ten years, Fair value | 3,443,492,000 | 4,606,717,000 |
Amortized Cost | 4,855,763,000 | 5,577,292,000 |
Fair Value | 4,111,908,000 | 5,524,708,000 |
HTM securities | ||
Due in one year or less, Amortized Cost | 0 | |
Due in one year or less, Fair value | 0 | |
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 | 276,493,000 | |
Due after ten years, Fair value | 246,343,000 | |
Amortized Cost | 276,493,000 | |
Fair Value | 246,343,000 | |
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 | 191,762,000 | 139,095,000 |
Due after one year to five years, Fair value | 171,992,000 | 137,755,000 |
Due after five to ten years, Amortized Cost | 649,659,000 | 387,177,000 |
Due after five to ten years, Fair value | 556,641,000 | 378,414,000 |
Due after ten years, Amortized Cost | 728,698,000 | 894,476,000 |
Due after ten years, Fair value | 620,321,000 | 892,699,000 |
Amortized Cost | 1,570,119,000 | 1,420,748,000 |
Fair Value | 1,348,954,000 | 1,408,868,000 |
HTM securities | ||
Due in one year or less, Amortized Cost | 0 | |
Due in one year or less, Fair value | 0 | |
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 | 200,154,000 | |
Due after five to ten years, Fair value | 176,883,000 | |
Due after ten years, Amortized Cost | 0 | |
Due after ten years, Fair value | 0 | |
Amortized Cost | 200,154,000 | |
Fair Value | 176,883,000 | |
U.S. Agency bonds | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | 5,508,000 |
Due in one year or less, Fair value | 0 | 5,515,000 |
Due after one year to five years, Amortized Cost | 877,371,000 | 531,821,000 |
Due after one year to five years, Fair value | 767,464,000 | 520,935,000 |
Due after five to ten years, Amortized Cost | 223,520,000 | 665,048,000 |
Due after five to ten years, Fair value | 185,018,000 | 648,564,000 |
Due after ten years, Amortized Cost | 0 | 0 |
Due after ten years, Fair value | 0 | 0 |
Amortized Cost | 1,100,891,000 | 1,202,377,000 |
Fair Value | 952,482,000 | 1,175,014,000 |
U.S. Treasury securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | 40,010,000 |
Due in one year or less, Fair value | 0 | 40,001,000 |
Due after one year to five years, Amortized Cost | 99,324,000 | 49,424,000 |
Due after one year to five years, Fair value | 93,057,000 | 48,604,000 |
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 | 99,324,000 | 89,434,000 |
Fair Value | 93,057,000 | 88,605,000 |
State and municipal bonds and obligations | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 213,000 | 6,137,000 |
Due in one year or less, Fair value | 209,000 | 6,116,000 |
Due after one year to five years, Amortized Cost | 22,100,000 | 33,692,000 |
Due after one year to five years, Fair value | 21,283,000 | 34,704,000 |
Due after five to ten years, Amortized Cost | 42,554,000 | 72,226,000 |
Due after five to ten years, Fair value | 40,970,000 | 75,416,000 |
Due after ten years, Amortized Cost | 133,172,000 | 151,855,000 |
Due after ten years, Fair value | 120,630,000 | 164,093,000 |
Amortized Cost | 198,039,000 | 263,910,000 |
Fair Value | 183,092,000 | 280,329,000 |
Small Business Administration pooled securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 0 | |
Due in one year or less, Fair value | 0 | |
Due after one year to five years, Amortized Cost | 4,062,000 | |
Due after one year to five years, Fair value | 4,092,000 | |
Due after five to ten years, Amortized Cost | 0 | |
Due after five to ten years, Fair value | 0 | |
Due after ten years, Amortized Cost | 27,759,000 | |
Due after ten years, Fair value | 28,011,000 | |
Amortized Cost | 31,821,000 | |
Fair Value | 32,103,000 | |
Other debt securities | ||
AFS securities | ||
Due in one year or less, Amortized Cost | 1,299,000 | 300,000 |
Due in one year or less, Fair value | 1,285,000 | 300,000 |
Due after one year to five years, Amortized Cost | 0 | 1,297,000 |
Due after one year to five years, Fair value | 0 | 1,297,000 |
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 | 1,299,000 | 1,597,000 |
Fair Value | $ 1,285,000 | $ 1,597,000 |
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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | $ 13,575,531 | $ 12,281,510 | |
Allowance for loan losses | (142,211) | (97,787) | $ (113,031) |
Unamortized premiums, net of unearned discounts and deferred fees, net of costs | (13,003) | (26,442) | |
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 13,420,317 | 12,157,281 | |
Commercial Portfolio Segment | Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 3,150,946 | 2,960,527 | |
Allowance for loan losses | (26,859) | (18,018) | (26,617) |
Commercial Portfolio Segment | Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 5,155,323 | 4,522,513 | |
Allowance for loan losses | (54,730) | (52,373) | (54,569) |
Commercial Portfolio Segment | Commercial construction | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 336,276 | 222,328 | |
Allowance for loan losses | (7,085) | (2,585) | (4,553) |
Commercial Portfolio Segment | Business banking | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 1,090,492 | 1,334,694 | |
Allowance for loan losses | (16,189) | (10,983) | (13,152) |
Residential Portfolio Segment | Residential real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 2,460,849 | 1,926,810 | |
Allowance for loan losses | (28,129) | (6,556) | (6,435) |
Consumer Portfolio Segment | Consumer home equity | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 1,187,547 | 1,100,153 | |
Allowance for loan losses | (6,454) | (3,722) | (3,744) |
Consumer Portfolio Segment | Other consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 194,098 | 214,485 | |
Allowance for loan losses | (2,765) | (3,308) | $ (3,467) |
Consumer Portfolio Segment | Automobile loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | $ 18,100 | $ 53,300 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loan syndications, amount | $ 100,000,000 | $ 100,000,000 | |||
Financing receivable, excluding accrued interest, after allowance for credit loss | 13,420,317,000 | 13,420,317,000 | $ 12,157,281,000 | ||
Debt, long-term and short-term, combined amount | 740,828,000 | 740,828,000 | 34,278,000 | ||
Mortgage loans partially or wholly-owned by others and serviced by the Company | 84,000,000 | 84,000,000 | 95,800,000 | ||
Loan purchases | 380,200,000 | ||||
Financing receivable, allowance for credit loss, excluding accrued interest | 142,211,000 | 142,211,000 | $ 97,787,000 | $ 113,031,000 | |
Financing receivable, excluding accrued interest, allowance for credit loss, period increase (decrease) | $ 44,400,000 | $ 17,300,000 | |||
Financing receivable, allowance for credit loss to outstanding, percent | 1.05% | 1.05% | 0.80% | ||
Financing receivable, allowance for credit loss to outstanding, percent, period increase (decrease) | 25 | 3 | |||
Total loans | $ 13,575,531,000 | $ 13,575,531,000 | $ 12,281,510,000 | ||
Maximum number of days required for special mention | 90 days | ||||
Amount of specific reserve associated with the TDR | $ 1,800,000 | 1,800,000 | 3,400,000 | ||
Amount of additional commitments to lend to borrowers who have been a party to a TDR | 0 | 0 | 0 | ||
Outstanding recorded investment of loans that were new to troubled debt restructuring | 11,000,000 | 11,000,000 | 800,000 | ||
Amounts charged-off on TDRs | 0 | 0 | 200,000 | ||
Nonperforming Loans | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 9,040,062,000 | ||||
Residential Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, collateral dependent loans | 600,000 | 600,000 | 600,000 | ||
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, collateral dependent loans | 16,200,000 | 16,200,000 | 13,100,000 | ||
Unrated | Nonperforming Loans | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 872,544,000 | ||||
Commercial and industrial | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 26,859,000 | 26,859,000 | 18,018,000 | 26,617,000 | |
Total loans | 3,150,946,000 | 3,150,946,000 | 2,960,527,000 | ||
Commercial and industrial | Commercial Portfolio Segment | Nonperforming Loans | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 2,960,527,000 | ||||
Commercial and industrial | Unrated | Commercial Portfolio Segment | Nonperforming Loans | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 171,537,000 | ||||
Commercial and industrial | Unrated | Commercial Portfolio Segment | Nonperforming Loans | Paycheck Protection Program | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 3,600,000 | 3,600,000 | 112,800,000 | ||
Commercial and industrial | Line of Credit | Unrated | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Lines of credit, exposure | 1,500,000 | 1,500,000 | |||
Business banking | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 16,189,000 | 16,189,000 | 10,983,000 | $ 13,152,000 | |
Total loans | 1,090,492,000 | 1,090,492,000 | 1,334,694,000 | ||
Business banking | Commercial Portfolio Segment | Nonperforming Loans | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 1,334,694,000 | ||||
Business banking | Unrated | Commercial Portfolio Segment | Nonperforming Loans | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 696,629,000 | ||||
Business banking | Unrated | Commercial Portfolio Segment | Nonperforming Loans | Paycheck Protection Program | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total loans | 6,200,000 | 6,200,000 | 218,600,000 | ||
Business banking | Line of Credit | Unrated | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Lines of credit, exposure | 100,000 | 100,000 | |||
Unfunded Loan Commitment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 13,200,000 | 13,200,000 | $ 11,100,000 | ||
Cumulative effect accounting adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 27,086,000 | ||||
Cumulative effect accounting adjustment | Commercial and industrial | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 11,533,000 | ||||
Cumulative effect accounting adjustment | Business banking | Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 6,160,000 | ||||
Cumulative effect accounting adjustment | Unfunded Loan Commitment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 1,000,000 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | $ 124,900,000 | ||||
Financing receivable, allowance for credit loss to outstanding, percent | 1.02% | ||||
Short-term FHLB advances | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
FHLB advances | 704,100,000 | 704,100,000 | 14,000,000 | ||
Federal Reserve Bank Advances | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Debt, long-term and short-term, combined amount | 0 | 0 | 0 | ||
Asset Pledged as Collateral | Short-term FHLB advances | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, excluding accrued interest, after allowance for credit loss | 3,900,000,000 | 3,900,000,000 | 2,600,000,000 | ||
Asset Pledged as Collateral | Federal Reserve Bank Advances | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, excluding accrued interest, after allowance for credit loss | $ 1,100,000,000 | $ 1,100,000,000 | $ 784,000,000 |
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 | 12 Months Ended | |||
Jan. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 97,787 | $ 97,787 | $ 113,031 | |
Charge-offs | (4,831) | (9,002) | ||
Recoveries | 4,244 | 3,444 | ||
Provision (release) | 17,925 | (9,686) | $ 38,800 | |
Ending balance | 142,211 | 97,787 | 113,031 | |
Total allowance for loan losses by group | 142,211 | 97,787 | 113,031 | |
Collectively evaluated for impairment | 93,271 | |||
Financing receivable, accrued interest, before allowance for credit loss | 45,200 | |||
Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 27,086 | 27,086 | ||
Ending balance | 27,086 | |||
Total allowance for loan losses by group | 27,086 | |||
Collectively evaluated for impairment | 100 | |||
Other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 242 | 242 | 494 | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision (release) | 0 | (252) | ||
Ending balance | 0 | 242 | 494 | |
Total allowance for loan losses by group | 0 | 242 | 494 | |
Collectively evaluated for impairment | 242 | |||
Other | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (242) | (242) | ||
Ending balance | (242) | |||
Total allowance for loan losses by group | (242) | |||
Commercial Portfolio Segment | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 18,018 | 18,018 | 26,617 | |
Charge-offs | (269) | (1,558) | ||
Recoveries | 1,322 | 935 | ||
Provision (release) | (3,745) | (7,976) | ||
Ending balance | 26,859 | 18,018 | 26,617 | |
Total allowance for loan losses by group | 26,859 | 18,018 | 26,617 | |
Collectively evaluated for impairment | 16,473 | |||
Commercial Portfolio Segment | Commercial and industrial | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 11,533 | 11,533 | ||
Ending balance | 11,533 | |||
Total allowance for loan losses by group | 11,533 | |||
Commercial Portfolio Segment | Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 52,373 | 52,373 | 54,569 | |
Charge-offs | 0 | (247) | ||
Recoveries | 91 | 4 | ||
Provision (release) | 8,921 | (1,953) | ||
Ending balance | 54,730 | 52,373 | 54,569 | |
Total allowance for loan losses by group | 54,730 | 52,373 | 54,569 | |
Collectively evaluated for impairment | 52,075 | |||
Commercial Portfolio Segment | Commercial real estate | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (6,655) | (6,655) | ||
Ending balance | (6,655) | |||
Total allowance for loan losses by group | (6,655) | |||
Commercial Portfolio Segment | Commercial construction | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,585 | 2,585 | 4,553 | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision (release) | 3,015 | (1,968) | ||
Ending balance | 7,085 | 2,585 | 4,553 | |
Total allowance for loan losses by group | 7,085 | 2,585 | 4,553 | |
Collectively evaluated for impairment | 2,585 | |||
Commercial Portfolio Segment | Commercial construction | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,485 | 1,485 | ||
Ending balance | 1,485 | |||
Total allowance for loan losses by group | 1,485 | |||
Commercial Portfolio Segment | Business banking | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 10,983 | 10,983 | 13,152 | |
Charge-offs | (2,292) | (5,091) | ||
Recoveries | 2,069 | 1,524 | ||
Provision (release) | (731) | 1,398 | ||
Ending balance | 16,189 | 10,983 | 13,152 | |
Total allowance for loan losses by group | 16,189 | 10,983 | 13,152 | |
Collectively evaluated for impairment | 10,533 | |||
Commercial Portfolio Segment | Business banking | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,160 | 6,160 | ||
Ending balance | 6,160 | |||
Total allowance for loan losses by group | 6,160 | |||
Residential Portfolio Segment | Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,556 | 6,556 | 6,435 | |
Charge-offs | 0 | (35) | ||
Recoveries | 94 | 122 | ||
Provision (release) | 7,990 | 34 | ||
Ending balance | 28,129 | 6,556 | 6,435 | |
Total allowance for loan losses by group | 28,129 | 6,556 | 6,435 | |
Collectively evaluated for impairment | 4,764 | |||
Residential Portfolio Segment | Residential real estate | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 13,489 | 13,489 | ||
Ending balance | 13,489 | |||
Total allowance for loan losses by group | 13,489 | |||
Consumer Portfolio Segment | Consumer home equity | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 3,722 | 3,722 | 3,744 | |
Charge-offs | (1) | (24) | ||
Recoveries | 24 | 185 | ||
Provision (release) | 852 | (183) | ||
Ending balance | 6,454 | 3,722 | 3,744 | |
Total allowance for loan losses by group | 6,454 | 3,722 | 3,744 | |
Collectively evaluated for impairment | 3,452 | |||
Consumer Portfolio Segment | Consumer home equity | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,857 | 1,857 | ||
Ending balance | 1,857 | |||
Total allowance for loan losses by group | 1,857 | |||
Consumer Portfolio Segment | Other consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 3,308 | 3,308 | 3,467 | |
Charge-offs | (2,269) | (2,047) | ||
Recoveries | 644 | 674 | ||
Provision (release) | 1,623 | 1,214 | ||
Ending balance | 2,765 | 3,308 | 3,467 | |
Total allowance for loan losses by group | 2,765 | 3,308 | $ 3,467 | |
Collectively evaluated for impairment | 3,147 | |||
Consumer Portfolio Segment | Other consumer | Cumulative effect accounting adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ (541) | $ (541) | ||
Ending balance | (541) | |||
Total allowance for loan losses by group | $ (541) |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | $ 3,481,250 | |
2021 | 2,447,552 | |
2020 | 1,630,538 | |
2019 | 1,094,274 | |
2018 | 779,687 | |
Prior | 2,496,108 | |
Revolving Loans | 1,614,995 | |
Revolving Loans Converted to Term Loans | 18,124 | |
Total | 13,562,528 | $ 12,281,510 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 780,736 | |
2021 | 490,827 | |
2020 | 425,901 | |
2019 | 204,752 | |
2018 | 103,461 | |
Prior | 647,702 | |
Revolving Loans | 478,083 | |
Revolving Loans Converted to Term Loans | 1,066 | |
Total | 3,132,528 | 2,960,527 |
Commercial Portfolio Segment | Commercial and industrial | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 778,144 | |
2021 | 479,317 | |
2020 | 415,990 | |
2019 | 199,865 | |
2018 | 100,716 | |
Prior | 639,825 | |
Revolving Loans | 473,148 | |
Revolving Loans Converted to Term Loans | 50 | |
Total | 3,087,055 | |
Commercial Portfolio Segment | Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 2,298 | |
2021 | 1,307 | |
2020 | 7,267 | |
2019 | 4,841 | |
2018 | 147 | |
Prior | 0 | |
Revolving Loans | 1,196 | |
Revolving Loans Converted to Term Loans | 670 | |
Total | 17,726 | |
Commercial Portfolio Segment | Commercial and industrial | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 294 | |
2021 | 4,954 | |
2020 | 2,644 | |
2019 | 46 | |
2018 | 2,598 | |
Prior | 7,854 | |
Revolving Loans | 485 | |
Revolving Loans Converted to Term Loans | 346 | |
Total | 19,221 | |
Commercial Portfolio Segment | Commercial and industrial | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 5,249 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 23 | |
Revolving Loans | 3,254 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 8,526 | |
Commercial Portfolio Segment | Commercial and industrial | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 1,510,675 | |
2021 | 825,620 | |
2020 | 589,959 | |
2019 | 605,840 | |
2018 | 501,194 | |
Prior | 1,053,298 | |
Revolving Loans | 60,590 | |
Revolving Loans Converted to Term Loans | 4,187 | |
Total | 5,151,363 | 4,522,513 |
Commercial Portfolio Segment | Commercial real estate | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 1,510,675 | |
2021 | 825,620 | |
2020 | 586,567 | |
2019 | 581,840 | |
2018 | 461,296 | |
Prior | 1,006,160 | |
Revolving Loans | 52,590 | |
Revolving Loans Converted to Term Loans | 4,187 | |
Total | 5,028,935 | |
Commercial Portfolio Segment | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 771 | |
2019 | 4,204 | |
2018 | 15,366 | |
Prior | 12,255 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 32,596 | |
Commercial Portfolio Segment | Commercial real estate | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 2,621 | |
2019 | 19,796 | |
2018 | 24,532 | |
Prior | 34,883 | |
Revolving Loans | 8,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 89,832 | |
Commercial Portfolio Segment | Commercial real estate | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial real estate | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 91,397 | |
2021 | 178,648 | |
2020 | 31,317 | |
2019 | 20,767 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 12,130 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 334,259 | 222,328 |
Commercial Portfolio Segment | Commercial construction | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 91,397 | |
2021 | 178,648 | |
2020 | 28,956 | |
2019 | 20,767 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 12,130 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 331,898 | |
Commercial Portfolio Segment | Commercial construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 2,361 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 2,361 | |
Commercial Portfolio Segment | Commercial construction | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial construction | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial construction | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Business banking | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 178,806 | |
2021 | 206,703 | |
2020 | 176,147 | |
2019 | 135,731 | |
2018 | 63,762 | |
Prior | 248,643 | |
Revolving Loans | 80,455 | |
Revolving Loans Converted to Term Loans | 4,991 | |
Total | 1,095,238 | 1,334,694 |
Commercial Portfolio Segment | Business banking | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 178,806 | |
2021 | 202,230 | |
2020 | 170,088 | |
2019 | 128,282 | |
2018 | 59,452 | |
Prior | 233,484 | |
Revolving Loans | 78,080 | |
Revolving Loans Converted to Term Loans | 4,770 | |
Total | 1,055,192 | |
Commercial Portfolio Segment | Business banking | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 991 | |
2020 | 4,635 | |
2019 | 4,605 | |
2018 | 3,740 | |
Prior | 7,584 | |
Revolving Loans | 145 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 21,700 | |
Commercial Portfolio Segment | Business banking | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 3,482 | |
2020 | 1,424 | |
2019 | 2,663 | |
2018 | 570 | |
Prior | 7,505 | |
Revolving Loans | 2,230 | |
Revolving Loans Converted to Term Loans | 221 | |
Total | 18,095 | |
Commercial Portfolio Segment | Business banking | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 181 | |
2018 | 0 | |
Prior | 70 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 251 | |
Commercial Portfolio Segment | Business banking | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Residential Portfolio Segment | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 766,094 | |
2021 | 702,429 | |
2020 | 383,651 | |
2019 | 103,747 | |
2018 | 70,668 | |
Prior | 453,466 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 2,480,055 | 1,926,810 |
Residential Portfolio Segment | Residential real estate | Financial Asset, Not Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 761,442 | |
2021 | 696,959 | |
2020 | 382,262 | |
2019 | 99,494 | |
2018 | 66,702 | |
Prior | 434,720 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 2,441,579 | |
Residential Portfolio Segment | Residential real estate | Financial Asset, 30 to 89 Days Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 4,652 | |
2021 | 5,470 | |
2020 | 1,245 | |
2019 | 2,762 | |
2018 | 2,951 | |
Prior | 11,646 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 28,726 | |
Residential Portfolio Segment | Residential real estate | Financial Asset, Equal to or Greater than 90 Days Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Residential Portfolio Segment | Residential real estate | Non-Accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 144 | |
2019 | 1,491 | |
2018 | 1,015 | |
Prior | 7,100 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 9,750 | |
Consumer Portfolio Segment | Consumer home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 97,954 | |
2021 | 10,774 | |
2020 | 5,840 | |
2019 | 5,076 | |
2018 | 21,438 | |
Prior | 76,174 | |
Revolving Loans | 966,188 | |
Revolving Loans Converted to Term Loans | 7,863 | |
Total | 1,191,307 | 1,100,153 |
Consumer Portfolio Segment | Consumer home equity | Financial Asset, Not Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 97,395 | |
2021 | 10,774 | |
2020 | 5,840 | |
2019 | 5,015 | |
2018 | 21,092 | |
Prior | 73,927 | |
Revolving Loans | 953,829 | |
Revolving Loans Converted to Term Loans | 7,320 | |
Total | 1,175,192 | |
Consumer Portfolio Segment | Consumer home equity | Financial Asset, 30 to 89 Days Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 559 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 72 | |
Prior | 944 | |
Revolving Loans | 7,239 | |
Revolving Loans Converted to Term Loans | 247 | |
Total | 9,061 | |
Consumer Portfolio Segment | Consumer home equity | Financial Asset, Equal to or Greater than 90 Days Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Consumer Portfolio Segment | Consumer home equity | Non-Accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 61 | |
2018 | 274 | |
Prior | 1,303 | |
Revolving Loans | 5,120 | |
Revolving Loans Converted to Term Loans | 296 | |
Total | 7,054 | |
Consumer Portfolio Segment | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 55,588 | |
2021 | 32,551 | |
2020 | 17,723 | |
2019 | 18,361 | |
2018 | 19,164 | |
Prior | 16,825 | |
Revolving Loans | 17,549 | |
Revolving Loans Converted to Term Loans | 17 | |
Total | 177,778 | $ 214,485 |
Consumer Portfolio Segment | Other consumer | Financial Asset, Not Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 55,414 | |
2021 | 32,390 | |
2020 | 17,641 | |
2019 | 18,298 | |
2018 | 18,832 | |
Prior | 16,603 | |
Revolving Loans | 17,476 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 176,654 | |
Consumer Portfolio Segment | Other consumer | Financial Asset, 30 to 89 Days Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 143 | |
2021 | 68 | |
2020 | 43 | |
2019 | 61 | |
2018 | 240 | |
Prior | 178 | |
Revolving Loans | 58 | |
Revolving Loans Converted to Term Loans | 7 | |
Total | 798 | |
Consumer Portfolio Segment | Other consumer | Financial Asset, Equal to or Greater than 90 Days Past Due, Accruing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | |
Consumer Portfolio Segment | Other consumer | Non-Accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 31 | |
2021 | 93 | |
2020 | 39 | |
2019 | 2 | |
2018 | 92 | |
Prior | 44 | |
Revolving Loans | 15 | |
Revolving Loans Converted to Term Loans | 10 | |
Total | $ 326 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Financing Receivable, Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 13,562,528 | $ 12,281,510 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 42,715 | 53,510 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,360 | 7,393 |
90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 18,892 | 18,511 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 67,967 | 79,414 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 13,494,561 | 12,202,096 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,132,528 | 2,960,527 |
Commercial Portfolio Segment | Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,300 | 45 |
Commercial Portfolio Segment | Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 385 | 31 |
Commercial Portfolio Segment | Commercial and industrial | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,074 | 1,672 |
Commercial Portfolio Segment | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,759 | 1,748 |
Commercial Portfolio Segment | Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,128,769 | 2,958,779 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,151,363 | 4,522,513 |
Commercial Portfolio Segment | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 25,931 |
Commercial Portfolio Segment | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 1,196 |
Commercial Portfolio Segment | Commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 27,127 |
Commercial Portfolio Segment | Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,151,363 | 4,495,386 |
Commercial Portfolio Segment | Commercial construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 334,259 | 222,328 |
Commercial Portfolio Segment | Commercial construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial construction | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 334,259 | 222,328 |
Commercial Portfolio Segment | Business banking | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,095,238 | 1,334,694 |
Commercial Portfolio Segment | Business banking | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,642 | 5,043 |
Commercial Portfolio Segment | Business banking | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 845 | 1,793 |
Commercial Portfolio Segment | Business banking | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,517 | 4,640 |
Commercial Portfolio Segment | Business banking | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 11,004 | 11,476 |
Commercial Portfolio Segment | Business banking | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,084,234 | 1,323,218 |
Residential Portfolio Segment | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,480,055 | 1,926,810 |
Residential Portfolio Segment | Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,877 | 17,523 |
Residential Portfolio Segment | Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,852 | 3,511 |
Residential Portfolio Segment | Residential real estate | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,456 | 5,543 |
Residential Portfolio Segment | Residential real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 36,185 | 26,577 |
Residential Portfolio Segment | Residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,443,870 | 1,900,233 |
Consumer Portfolio Segment | Consumer home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,191,307 | 1,100,153 |
Consumer Portfolio Segment | Consumer home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8,262 | 3,774 |
Consumer Portfolio Segment | Consumer home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,108 | 1,510 |
Consumer Portfolio Segment | Consumer home equity | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,525 | 4,571 |
Consumer Portfolio Segment | Consumer home equity | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 15,895 | 9,855 |
Consumer Portfolio Segment | Consumer home equity | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,175,412 | 1,090,298 |
Consumer Portfolio Segment | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 177,778 | 214,485 |
Consumer Portfolio Segment | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 634 | 1,194 |
Consumer Portfolio Segment | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 170 | 548 |
Consumer Portfolio Segment | Other consumer | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 320 | 889 |
Consumer Portfolio Segment | Other consumer | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,124 | 2,631 |
Consumer Portfolio Segment | Other consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 176,654 | $ 211,854 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Financing Receivable, Nonaccrual (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | $ 26,244 | |
Non-Accrual Loans Without ACL | 12,360 | |
Total Non-Accrual Loans | 38,604 | $ 32,993 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 1,990 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 3,270 | |
Non-Accrual Loans Without ACL | 10,707 | |
Total Non-Accrual Loans | 13,977 | 12,400 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 0 | |
Non-Accrual Loans Without ACL | 0 | |
Total Non-Accrual Loans | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 1,196 |
Commercial Portfolio Segment | Commercial construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 0 | |
Non-Accrual Loans Without ACL | 0 | |
Total Non-Accrual Loans | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial Portfolio Segment | Business banking | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 5,844 | |
Non-Accrual Loans Without ACL | 1,653 | |
Total Non-Accrual Loans | 7,497 | 8,230 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Residential Portfolio Segment | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 9,750 | |
Non-Accrual Loans Without ACL | 0 | |
Total Non-Accrual Loans | 9,750 | 6,681 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 769 |
Consumer Portfolio Segment | Consumer home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 7,054 | |
Non-Accrual Loans Without ACL | 0 | |
Total Non-Accrual Loans | 7,054 | 4,732 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 25 |
Consumer Portfolio Segment | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans With ACL | 326 | |
Non-Accrual Loans Without ACL | 0 | |
Total Non-Accrual Loans | 326 | 950 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Summary of TDR Loans on Accrual and Nonaccrual (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) loan | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 257 | 51 | 249 | 5 | 40 |
Balance of Loans | $ 48,185 | $ 48,185 | $ 47,535 | $ 47,535 | |
Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 179 | 197 | |||
Balance of Loans | $ 28,834 | $ 28,834 | $ 33,336 | 33,336 | |
Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 78 | 52 | |||
Balance of Loans | $ 19,351 | $ 19,351 | $ 14,199 | $ 14,199 | |
Commercial Portfolio Segment | Commercial and industrial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 11 | 4 | 7 | 0 | 1 |
Balance of Loans | $ 15,766 | $ 15,766 | $ 13,728 | $ 13,728 | |
Commercial Portfolio Segment | Commercial and industrial | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 2 | 1 | |||
Balance of Loans | $ 4,449 | 4,449 | $ 3,745 | 3,745 | |
Commercial Portfolio Segment | Commercial and industrial | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 9 | 6 | |||
Balance of Loans | $ 11,317 | $ 11,317 | $ 9,983 | $ 9,983 | |
Commercial Portfolio Segment | Commercial real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 0 | 1 | 0 | 1 | |
Balance of Loans | $ 3,520 | $ 3,520 | |||
Commercial Portfolio Segment | Commercial real estate | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 1 | ||||
Balance of Loans | $ 3,520 | 3,520 | |||
Commercial Portfolio Segment | Commercial real estate | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 0 | ||||
Balance of Loans | $ 0 | $ 0 | |||
Commercial Portfolio Segment | Business banking | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 33 | 30 | 8 | 0 | 6 |
Balance of Loans | $ 6,225 | $ 6,225 | $ 4,213 | $ 4,213 | |
Commercial Portfolio Segment | Business banking | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 11 | 5 | |||
Balance of Loans | $ 4,124 | 4,124 | $ 3,830 | 3,830 | |
Commercial Portfolio Segment | Business banking | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 22 | 3 | |||
Balance of Loans | $ 2,101 | $ 2,101 | $ 383 | $ 383 | |
Residential Portfolio Segment | Residential real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 142 | 10 | 148 | 2 | 6 |
Balance of Loans | $ 21,634 | $ 21,634 | $ 22,134 | $ 22,134 | |
Residential Portfolio Segment | Residential real estate | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 114 | 121 | |||
Balance of Loans | $ 17,618 | 17,618 | $ 19,119 | 19,119 | |
Residential Portfolio Segment | Residential real estate | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 28 | 27 | |||
Balance of Loans | $ 4,016 | $ 4,016 | $ 3,015 | $ 3,015 | |
Consumer Portfolio Segment | Consumer home equity | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 70 | 7 | 83 | 3 | 22 |
Balance of Loans | $ 4,549 | $ 4,549 | $ 3,922 | $ 3,922 | |
Consumer Portfolio Segment | Consumer home equity | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 51 | 67 | |||
Balance of Loans | $ 2,632 | 2,632 | $ 3,104 | 3,104 | |
Consumer Portfolio Segment | Consumer home equity | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 19 | 16 | |||
Balance of Loans | $ 1,917 | $ 1,917 | $ 818 | $ 818 | |
Consumer Portfolio Segment | Other consumer | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | 1 | 0 | 2 | 0 | 4 |
Balance of Loans | $ 11 | $ 11 | $ 18 | $ 18 | |
Consumer Portfolio Segment | Other consumer | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 1 | 2 | |||
Balance of Loans | $ 11 | 11 | $ 18 | 18 | |
Consumer Portfolio Segment | Other consumer | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 0 | 0 | |||
Balance of Loans | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Cred_10
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 | 12 Months Ended | ||||||
Dec. 31, 2022 loan | Dec. 31, 2022 contract | Dec. 31, 2022 USD ($) | Dec. 31, 2021 loan | Dec. 31, 2021 contract | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 257 | 51 | 249 | 5 | 40 | ||
Pre- Modification Outstanding Recorded Investment | $ 12,571 | $ 798 | $ 4,235 | ||||
Post-Modification Outstanding Recorded Investment | 12,590 | 798 | $ 4,239 | ||||
Commercial Portfolio Segment | Commercial and industrial | |||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 11 | 4 | 7 | 0 | 1 | ||
Pre- Modification Outstanding Recorded Investment | 5,415 | 0 | $ 140 | ||||
Post-Modification Outstanding Recorded Investment | 5,415 | 0 | $ 140 | ||||
Commercial Portfolio Segment | Commercial real estate | |||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 0 | 1 | 0 | 1 | |||
Pre- Modification Outstanding Recorded Investment | 0 | 0 | $ 506 | ||||
Post-Modification Outstanding Recorded Investment | 0 | 0 | $ 506 | ||||
Commercial Portfolio Segment | Business banking | |||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 33 | 30 | 8 | 0 | 6 | ||
Pre- Modification Outstanding Recorded Investment | 2,779 | 0 | $ 1,642 | ||||
Post-Modification Outstanding Recorded Investment | 2,798 | 0 | $ 1,642 | ||||
Residential Portfolio Segment | Residential real estate | |||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 142 | 10 | 148 | 2 | 6 | ||
Pre- Modification Outstanding Recorded Investment | 2,842 | 498 | $ 920 | ||||
Post-Modification Outstanding Recorded Investment | 2,842 | 498 | $ 920 | ||||
Consumer Portfolio Segment | Consumer home equity | |||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 70 | 7 | 83 | 3 | 22 | ||
Pre- Modification Outstanding Recorded Investment | 1,535 | 300 | $ 969 | ||||
Post-Modification Outstanding Recorded Investment | 1,535 | 300 | $ 973 | ||||
Consumer Portfolio Segment | Other consumer | |||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||||
Number of Contracts | 1 | 0 | 2 | 0 | 4 | ||
Pre- Modification Outstanding Recorded Investment | 0 | 0 | $ 58 | ||||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 58 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Summary of Post-modification Balance of TDRs listed by Type of Modification (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | $ 12,590 | $ 798 | $ 4,239 |
Principal and interest deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 3,353 | 0 | 422 |
Extended maturity and interest only/principal deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 2,997 | 0 | 427 |
Covenant modification | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 2,418 | 0 | 0 |
Interest only/principal deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 1,499 | 0 | 1,305 |
Adjusted interest rate and extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 1,088 | 0 | 0 |
Extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 1,011 | 200 | 35 |
Court-ordered concession | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 0 | 396 | 1,995 |
Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | $ 224 | $ 202 | $ 55 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Subsequent Default (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 1 |
Recorded Investment | $ | $ 988 | $ 0 | $ 40 |
Consumer Portfolio Segment | Consumer home equity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 1 |
Recorded Investment | $ | $ 988 | $ 0 | $ 40 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Schedule of Participating Mortgage Loans (Details) - Loan Participations and Assignments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 1,542,358 | $ 1,132,502 |
Non-performing Loan Rate (%) | 0.55% | 0.88% |
Gross Charge-offs | $ 3 | $ 0 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 1,024,131 | $ 732,425 |
Non-performing Loan Rate (%) | 0.83% | 1.36% |
Gross Charge-offs | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 422,042 | $ 362,898 |
Non-performing Loan Rate (%) | 0% | 0% |
Gross Charge-offs | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 96,134 | $ 37,081 |
Non-performing Loan Rate (%) | 0% | 0% |
Gross Charge-offs | $ 0 | $ 0 |
Commercial Portfolio Segment | Business banking | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 51 | $ 98 |
Non-performing Loan Rate (%) | 0% | 0% |
Gross Charge-offs | $ 3 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses by Loan Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 97,787 | $ 113,031 | |
Charge-offs | (4,831) | (9,002) | |
Recoveries | 4,244 | 3,444 | |
(Release of) Provision | 17,925 | (9,686) | $ 38,800 |
Ending balance | 142,211 | 97,787 | 113,031 |
Individually evaluated for impairment | 3,970 | ||
Acquired with deteriorated credit quality | 546 | ||
Collectively evaluated for impairment | 93,271 | ||
Total allowance for loan losses by group | 142,211 | 97,787 | 113,031 |
Loans ending balance: | |||
Individually evaluated for impairment | 58,204 | ||
Acquired with deteriorated credit quality | 69,639 | ||
Collectively evaluated for impairment | 12,153,667 | ||
Total loans by group | 13,575,531 | 12,281,510 | |
Commercial and industrial | Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 18,018 | 26,617 | |
Charge-offs | (269) | (1,558) | |
Recoveries | 1,322 | 935 | |
(Release of) Provision | (3,745) | (7,976) | |
Ending balance | 26,859 | 18,018 | 26,617 |
Individually evaluated for impairment | 1,540 | ||
Acquired with deteriorated credit quality | 5 | ||
Collectively evaluated for impairment | 16,473 | ||
Total allowance for loan losses by group | 26,859 | 18,018 | 26,617 |
Loans ending balance: | |||
Individually evaluated for impairment | 16,145 | ||
Acquired with deteriorated credit quality | 19,028 | ||
Collectively evaluated for impairment | 2,925,354 | ||
Total loans by group | 3,150,946 | 2,960,527 | |
Commercial real estate | Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 52,373 | 54,569 | |
Charge-offs | 0 | (247) | |
Recoveries | 91 | 4 | |
(Release of) Provision | 8,921 | (1,953) | |
Ending balance | 54,730 | 52,373 | 54,569 |
Individually evaluated for impairment | 0 | ||
Acquired with deteriorated credit quality | 298 | ||
Collectively evaluated for impairment | 52,075 | ||
Total allowance for loan losses by group | 54,730 | 52,373 | 54,569 |
Loans ending balance: | |||
Individually evaluated for impairment | 3,520 | ||
Acquired with deteriorated credit quality | 47,553 | ||
Collectively evaluated for impairment | 4,471,440 | ||
Total loans by group | 5,155,323 | 4,522,513 | |
Commercial construction | Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,585 | 4,553 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
(Release of) Provision | 3,015 | (1,968) | |
Ending balance | 7,085 | 2,585 | 4,553 |
Individually evaluated for impairment | 0 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 2,585 | ||
Total allowance for loan losses by group | 7,085 | 2,585 | 4,553 |
Loans ending balance: | |||
Individually evaluated for impairment | 0 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 222,328 | ||
Total loans by group | 336,276 | 222,328 | |
Business Banking | Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10,983 | 13,152 | |
Charge-offs | (2,292) | (5,091) | |
Recoveries | 2,069 | 1,524 | |
(Release of) Provision | (731) | 1,398 | |
Ending balance | 16,189 | 10,983 | 13,152 |
Individually evaluated for impairment | 450 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 10,533 | ||
Total allowance for loan losses by group | 16,189 | 10,983 | 13,152 |
Loans ending balance: | |||
Individually evaluated for impairment | 12,060 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 1,322,634 | ||
Total loans by group | 1,090,492 | 1,334,694 | |
Residential real estate | Residential Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 6,556 | 6,435 | |
Charge-offs | 0 | (35) | |
Recoveries | 94 | 122 | |
(Release of) Provision | 7,990 | 34 | |
Ending balance | 28,129 | 6,556 | 6,435 |
Individually evaluated for impairment | 1,549 | ||
Acquired with deteriorated credit quality | 243 | ||
Collectively evaluated for impairment | 4,764 | ||
Total allowance for loan losses by group | 28,129 | 6,556 | 6,435 |
Loans ending balance: | |||
Individually evaluated for impairment | 22,378 | ||
Acquired with deteriorated credit quality | 3,058 | ||
Collectively evaluated for impairment | 1,901,374 | ||
Total loans by group | 2,460,849 | 1,926,810 | |
Consumer home equity | Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,722 | 3,744 | |
Charge-offs | (1) | (24) | |
Recoveries | 24 | 185 | |
(Release of) Provision | 852 | (183) | |
Ending balance | 6,454 | 3,722 | 3,744 |
Individually evaluated for impairment | 270 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 3,452 | ||
Total allowance for loan losses by group | 6,454 | 3,722 | 3,744 |
Loans ending balance: | |||
Individually evaluated for impairment | 3,922 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 1,096,231 | ||
Total loans by group | 1,187,547 | 1,100,153 | |
Other Consumer | Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,308 | 3,467 | |
Charge-offs | (2,269) | (2,047) | |
Recoveries | 644 | 674 | |
(Release of) Provision | 1,623 | 1,214 | |
Ending balance | 2,765 | 3,308 | 3,467 |
Individually evaluated for impairment | 161 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 3,147 | ||
Total allowance for loan losses by group | 2,765 | 3,308 | 3,467 |
Loans ending balance: | |||
Individually evaluated for impairment | 179 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 214,306 | ||
Total loans by group | 194,098 | 214,485 | |
Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 242 | 494 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
(Release of) Provision | 0 | (252) | |
Ending balance | 0 | 242 | 494 |
Individually evaluated for impairment | 0 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 242 | ||
Total allowance for loan losses by group | $ 0 | 242 | $ 494 |
Loans ending balance: | |||
Individually evaluated for impairment | 0 | ||
Acquired with deteriorated credit quality | 0 | ||
Collectively evaluated for impairment | 0 | ||
Total loans by group | $ 0 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of Internal Risk-Rating Categories (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | $ 13,575,531 | $ 12,281,510 |
Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 9,040,062 | |
Unrated | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 872,544 | |
Pass | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 7,640,376 | |
Special mention | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 226,632 | |
Substandard | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 288,663 | |
Doubtful | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 11,847 | |
Loss | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Commercial and industrial | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 3,150,946 | 2,960,527 |
Commercial and industrial | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 2,960,527 | |
Commercial and industrial | Unrated | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 171,537 | |
Commercial and industrial | Pass | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 2,656,873 | |
Commercial and industrial | Special mention | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 70,141 | |
Commercial and industrial | Substandard | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 50,339 | |
Commercial and industrial | Doubtful | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 11,637 | |
Commercial and industrial | Loss | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Commercial real estate | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 5,155,323 | 4,522,513 |
Commercial real estate | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 4,522,513 | |
Commercial real estate | Unrated | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 4,378 | |
Commercial real estate | Pass | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 4,199,803 | |
Commercial real estate | Special mention | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 104,517 | |
Commercial real estate | Substandard | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 213,815 | |
Commercial real estate | Doubtful | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Commercial real estate | Loss | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Commercial construction | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 336,276 | 222,328 |
Commercial construction | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 222,328 | |
Commercial construction | Unrated | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Commercial construction | Pass | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 213,744 | |
Commercial construction | Special mention | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 1,889 | |
Commercial construction | Substandard | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 6,695 | |
Commercial construction | Doubtful | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Commercial construction | Loss | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 0 | |
Business Banking | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | $ 1,090,492 | 1,334,694 |
Business Banking | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 1,334,694 | |
Business Banking | Unrated | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 696,629 | |
Business Banking | Pass | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 569,956 | |
Business Banking | Special mention | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 50,085 | |
Business Banking | Substandard | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 17,814 | |
Business Banking | Doubtful | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | 210 | |
Business Banking | Loss | Nonperforming Loans | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans before unamortized premiums, unearned discounts and deferred fees and costs | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | $ 13,575,531 | $ 12,281,510 |
Commercial and industrial | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 3,150,946 | 2,960,527 |
Business banking | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 1,090,492 | 1,334,694 |
Nonperforming Loans | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 9,040,062 | |
Nonperforming Loans | Commercial and industrial | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 2,960,527 | |
Nonperforming Loans | Business banking | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 1,334,694 | |
Unrated | Nonperforming Loans | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 872,544 | |
Unrated | Nonperforming Loans | Commercial and industrial | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 171,537 | |
Unrated | Nonperforming Loans | Business banking | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 696,629 | |
Unrated | Nonperforming Loans | Paycheck Protection Program | Commercial and industrial | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | 3,600 | 112,800 |
Unrated | Nonperforming Loans | Paycheck Protection Program | Business banking | Commercial Portfolio Segment | ||
Changes in lines of credit,resrticted to commercial exposure | ||
Total loans | $ 6,200 | $ 218,600 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Company's Impaired Loans by Loan Portfolio (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Recorded Investment | |
With no related allowance recorded: | $ 33,187 |
With an allowance recorded: | 25,017 |
Total | 58,204 |
Unpaid Principal Balance | |
With no related allowance recorded: | 36,330 |
With an allowance recorded: | 28,786 |
Total | 65,116 |
Related Allowance | 3,970 |
Commercial and industrial | Commercial Portfolio Segment | |
Recorded Investment | |
With no related allowance recorded: | 12,309 |
With an allowance recorded: | 3,836 |
Unpaid Principal Balance | |
With no related allowance recorded: | 13,212 |
With an allowance recorded: | 4,226 |
Related Allowance | 1,540 |
Commercial real estate | Commercial Portfolio Segment | |
Recorded Investment | |
With no related allowance recorded: | 3,520 |
With an allowance recorded: | 0 |
Unpaid Principal Balance | |
With no related allowance recorded: | 3,520 |
With an allowance recorded: | 0 |
Related Allowance | 0 |
Business banking | Commercial Portfolio Segment | |
Recorded Investment | |
With no related allowance recorded: | 4,199 |
With an allowance recorded: | 7,861 |
Unpaid Principal Balance | |
With no related allowance recorded: | 5,069 |
With an allowance recorded: | 11,240 |
Related Allowance | 450 |
Residential real estate | Residential Portfolio Segment | |
Recorded Investment | |
With no related allowance recorded: | 11,217 |
With an allowance recorded: | 11,161 |
Unpaid Principal Balance | |
With no related allowance recorded: | 12,587 |
With an allowance recorded: | 11,161 |
Related Allowance | 1,549 |
Consumer home equity | Consumer Portfolio Segment | |
Recorded Investment | |
With no related allowance recorded: | 1,924 |
With an allowance recorded: | 1,998 |
Unpaid Principal Balance | |
With no related allowance recorded: | 1,924 |
With an allowance recorded: | 1,998 |
Related Allowance | 270 |
Other consumer | Consumer Portfolio Segment | |
Recorded Investment | |
With no related allowance recorded: | 18 |
With an allowance recorded: | 161 |
Unpaid Principal Balance | |
With no related allowance recorded: | 18 |
With an allowance recorded: | 161 |
Related Allowance | $ 161 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Information Regarding Interest Income Recognized on Impaired Loans,by Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Average Recorded Investment | ||
With no allowance recorded: | $ 34,637 | $ 39,062 |
With an allowance recorded: | 35,673 | 36,782 |
Total | 70,310 | 75,844 |
Total Interest Recognized | ||
With no allowance recorded: | 956 | 1,154 |
With an allowance recorded: | 596 | 660 |
Total | 1,552 | 1,814 |
Commercial and industrial | Commercial Portfolio Segment | ||
Average Recorded Investment | ||
With no allowance recorded: | 11,813 | 12,941 |
With an allowance recorded: | 7,229 | 7,947 |
Total Interest Recognized | ||
With no allowance recorded: | 161 | 206 |
With an allowance recorded: | 0 | 0 |
Commercial real estate | Commercial Portfolio Segment | ||
Average Recorded Investment | ||
With no allowance recorded: | 3,916 | 5,124 |
With an allowance recorded: | 926 | 644 |
Total Interest Recognized | ||
With no allowance recorded: | 178 | 179 |
With an allowance recorded: | 0 | 0 |
Business banking | Commercial Portfolio Segment | ||
Average Recorded Investment | ||
With no allowance recorded: | 4,352 | 3,008 |
With an allowance recorded: | 13,027 | 13,663 |
Total Interest Recognized | ||
With no allowance recorded: | 99 | 92 |
With an allowance recorded: | 57 | 62 |
Residential real estate | Residential Portfolio Segment | ||
Average Recorded Investment | ||
With no allowance recorded: | 12,506 | 14,654 |
With an allowance recorded: | 12,322 | 12,194 |
Total Interest Recognized | ||
With no allowance recorded: | 456 | 589 |
With an allowance recorded: | 474 | 521 |
Consumer home equity | Consumer Portfolio Segment | ||
Average Recorded Investment | ||
With no allowance recorded: | 2,027 | 3,299 |
With an allowance recorded: | 2,106 | 2,334 |
Total Interest Recognized | ||
With no allowance recorded: | 62 | 87 |
With an allowance recorded: | 65 | 77 |
Other consumer | Consumer Portfolio Segment | ||
Average Recorded Investment | ||
With no allowance recorded: | 23 | 36 |
With an allowance recorded: | 63 | 0 |
Total Interest Recognized | ||
With no allowance recorded: | 0 | 1 |
With an allowance recorded: | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Outstanding and Carrying Amounts of PCI Loans (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Financing receivable, purchased with credit deterioration, amount at purchase price | $ 58,204 |
Outstanding balance | |
Financing Receivable, Impaired [Line Items] | |
Financing receivable, purchased with credit deterioration, amount at purchase price | 78,074 |
Carrying amount | |
Financing Receivable, Impaired [Line Items] | |
Financing receivable, purchased with credit deterioration, amount at purchase price | $ 69,639 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Activity in the Accretable Yield for the PCI Loan Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 2,495 | $ 3,923 |
Acquisition | 8,896 | 0 |
Accretion | (1,194) | (1,374) |
Other change in expected cash flows | (1,475) | (185) |
Reclassification from non-accretable difference for loans with improved cash flows | 1,649 | 131 |
Balance at end of period | $ 10,371 | $ 2,495 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 154,865 | $ 172,709 |
Accumulated depreciation | (92,372) | (107,282) |
Premises and equipment used in operations, net | 62,493 | 65,427 |
Premises and equipment held for sale | 0 | 15,128 |
Premises and equipment held for sale | 62,493 | 80,555 |
Century Bancorp, Inc. | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment held for sale | 64,500 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 12,585 | 12,814 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 70,771 | 71,415 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 30 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 35,085 | 46,324 |
Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 36,424 | $ 42,156 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 25 years |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) | 12 Months Ended | |||
Nov. 12, 2021 USD ($) | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) branch property | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 10,700,000 | $ 11,600,000 | $ 12,700,000 | |
Number of properties sold | property | 5 | 3 | ||
Number of branch locations transferred to held for sale | branch | 5 | |||
Proceeds from sale of bank premises and equipment | $ 17,313,000 | $ 21,981,000 | 0 | |
Gain (loss) on disposition of property plant equipment | 1,412,000 | (4,715,000) | $ (73,000) | |
Premises transferred to held for sale | 37,600,000 | |||
Gain (loss) on properties transferred to held for sale | $ 1,200,000 | |||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of properties sold | property | 1 | |||
Gain (loss) on disposition of property plant equipment | $ 1,400,000 | $ 0 | ||
Century Bancorp, Inc. | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of properties sold | property | 2 | |||
Number of branch locations transferred to held for sale | branch | 4 | |||
Gain (loss) on disposition of property plant equipment | $ 0 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) extension lease | Dec. 31, 2021 USD ($) lease location | Dec. 31, 2020 USD ($) | |
Disclosure of Leases [Line Items] | |||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Payment of lease payments | $ 15,200 | $ 13,600 | $ 12,200 |
Number of lease extensions not exercised | extension | 3 | ||
Number of lease extensions exercised | extension | 2 | ||
Number of leases terminated | lease | 4 | ||
Net decrease in operating lease right of use assets and operating lease liabilities relating to lease remeasurements | $ 14,836 | $ 0 | 0 |
Operating lease, impairment loss | 600 | ||
Right-of-use asset amortization | $ 11,432 | $ 10,982 | $ 10,349 |
Number of lease locations closed | location | 3 | ||
Number of leases sublet | lease | 5 | ||
Century Bancorp, Inc. | |||
Disclosure of Leases [Line Items] | |||
Number of leases terminated | lease | 4 | 1 | |
Number of leases sublet | lease | 2 | ||
Operating Lease Right-Of-Use Assets, Lease Termination | |||
Disclosure of Leases [Line Items] | |||
Right-of-use asset amortization | $ 1,700 | ||
Operating Lease Right-Of-Use Assets, Lease Abandonment | |||
Disclosure of Leases [Line Items] | |||
Operating lease, impairment loss | 300 | ||
Operating Lease Right-Of-Use Assets, Sublease | |||
Disclosure of Leases [Line Items] | |||
Operating lease, impairment loss | $ 500 | ||
Minimum | |||
Disclosure of Leases [Line Items] | |||
Operating lease remaining lease term | 1 year | ||
Maximum | |||
Disclosure of Leases [Line Items] | |||
Operating lease remaining lease term | 25 years |
Leases - Summary of Information
Leases - Summary of Information Relating to Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use assets | $ 48,817 | $ 74,092 |
Lease liabilities | $ 52,105 | $ 78,977 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Leases - Summary of Net Lease C
Leases - Summary of Net Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 12,716 | $ 12,559 | $ 12,360 |
Finance lease cost | 309 | 160 | 60 |
Variable lease cost | 2,547 | 2,012 | 1,889 |
Total lease cost | $ 15,572 | $ 14,731 | $ 14,309 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 7 years 3 months | 7 years 10 months 20 days |
Weighted-average discount rate | 2.62% | 2.52% |
Leases - Summary of Reconciliat
Leases - Summary of Reconciliation to the Operating Lease Liability Recognized in the Company's Consolidated Balance Sheet in Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 12,472 | |
2024 | 9,774 | |
2025 | 7,804 | |
2026 | 6,763 | |
2027 | 5,602 | |
Thereafter | 15,075 | |
Total minimum lease payments | 57,490 | |
Less: amount representing interest | 5,385 | |
Present value of future minimum lease payments | $ 52,105 | $ 78,977 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Summary of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Balances subject to amortization | |||
Core deposits | $ 10,374 | $ 11,572 | |
Total goodwill and other intangible assets | 568,009 | 569,207 | |
Core deposits | |||
Balances subject to amortization | |||
Core deposits | 10,374 | 11,572 | |
Banking Business Segment | |||
Balances not subject to amortization | |||
Goodwill | 557,635 | 557,635 | $ 298,611 |
Balances subject to amortization | |||
Total goodwill and other intangible assets | 568,009 | 569,207 | |
Banking Business Segment | Core deposits | |||
Balances subject to amortization | |||
Core deposits | $ 10,374 | $ 11,572 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Goodwill Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance Agency Acquisition | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 2,995 | |
Balance at end of year | 8,726 | $ 2,995 |
Banking Business Segment | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 557,635 | 298,611 |
Goodwill recorded during the year | 0 | 259,024 |
Goodwill disposed of during the year | 0 | 0 |
Balance at end of year | $ 557,635 | $ 557,635 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 15,969 | $ 18,212 |
Accumulated Amortization | (5,595) | (6,640) |
Total amortization expense | 10,374 | 11,572 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,969 | 18,212 |
Accumulated Amortization | (5,595) | (6,640) |
Total amortization expense | $ 10,374 | $ 11,572 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) reporting_unit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of reporting units | reporting_unit | 2 | ||
Amortization of intangible assets | $ 1,198,000 | $ 219,000 | $ 596,000 |
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Original amortization period | 10 years | ||
Remaining useful life | 8 years 10 months 24 days |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,163 | |
2024 | 1,163 | |
2025 | 1,163 | |
2026 | 1,163 | |
2027 | 1,163 | |
Thereafter | 4,559 | |
Total amortization expense | $ 10,374 | $ 11,572 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Liability [Line Items] | ||
Money market investments | $ 9,500 | $ 10,500 |
Bank overdrafts | 2.3 | 1.6 |
Carrying value of securities pledged as collateral | 437.9 | 2,200 |
Time deposits equal to or grater than $250,000 | 239.1 | $ 224 |
Brokered certificates of deposit | $ 928.6 |
Deposits - Summary of the Certi
Deposits - Summary of the Certificates of Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance | ||
2023 | $ 1,575,617 | |
2024 | 30,617 | |
2025 | 9,297 | |
2026 | 5,092 | |
2027 | 3,726 | |
Thereafter | 33 | |
Total certificates of deposit | $ 1,624,382 | $ 526,381 |
Percentage of Total | ||
2023 | 97% | |
2024 | 1.90% | |
2025 | 0.60% | |
2026 | 0.30% | |
2027 | 0.20% | |
Thereafter | 0% | |
Total certificates of deposit | 100% |
Borrowed Funds - Summary of Bor
Borrowed Funds - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Banks [Abstract] | ||
Short-term FHLB advances | $ 691,297 | $ 17 |
Escrow deposits of borrowers | 22,314 | 20,258 |
Interest rate swap collateral funds | 14,430 | 0 |
Long-term FHLB advances | 12,787 | 14,003 |
Total borrowed funds | $ 740,828 | $ 34,278 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank stock, at cost | $ 41,363 | $ 10,904 | |
Dividends received from investment in FHLB of Boston | 300 | 200 | $ 400 |
Federal Home Loan Bank of Boston | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank stock, at cost | 41,400 | 10,900 | |
Federal Home Loan Bank of Boston | Short-term FHLB advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, available and unused borrowing capacity | 2,000,000 | 1,800,000 | |
Federal Home Loan Bank of Boston | Short-term FHLB advances | Residential Mortgage Backed Securities | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, advances secured by mortgage-backed securities | 1,500,000 | 1,000,000 | |
Federal Home Loan Bank of Boston | Short-term FHLB advances | Commercial Mortgage Backed Securities | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, advances secured by mortgage-backed securities | 1,200,000 | 888,300 | |
Federal Reserve Bank Advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Reserve Discount Window, available and unused borrowing capacity | $ 538,900 | $ 455,300 |
Borrowed Funds - Interest Expen
Borrowed Funds - Interest Expense on Borrowed Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | $ 8,506 | $ 165 | $ 762 |
Federal Home Loan Bank advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | 8,263 | 163 | 190 |
Escrow deposits of borrowers | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | 3 | 2 | 2 |
Interest rate swap collateral funds | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | 216 | 0 | 0 |
Federal funds purchased | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | $ 24 | $ 0 | $ 570 |
Borrowed Funds - Summary of FHL
Borrowed Funds - Summary of FHLB of Boston Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amount | ||
Within one year | $ 691,297 | $ 17 |
Federal Home Loan Bank of Boston | ||
Amount | ||
Within one year | 691,297 | 17 |
Over one year to three years | 2,835 | 1,488 |
Over three years to five years | 2,534 | 2,854 |
Over five years | 7,418 | 9,661 |
Advance from Federal Home Loan Bank | $ 704,084 | $ 14,020 |
Weighted Average Interest Rate | ||
Within one year | 4.36% | 0.14% |
Over one year to three years | 0.86% | 0.32% |
Over three years to five years | 1.89% | 1.10% |
Over five years | 0.94% | 1.24% |
Total Federal Home Loan Bank advances | 4.30% | 1.11% |
Federal Home Loan Bank of Boston | Long-term FHLB advances | ||
Weighted Average Interest Rate | ||
Total Federal Home Loan Bank advances | 1.11% | 1.11% |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income from continuing operations | $ 186,511 | $ 145,531 | $ 8,861 |
Net income from discontinued operations | 13,248 | 9,134 | 13,877 |
Net income | $ 199,759 | $ 154,665 | $ 22,738 |
Average number of common shares outstanding used to calculated basic earnings per common share (in shares) | 179,529,613 | 186,713,020 | 186,663,593 |
Less: Average unallocated ESOP shares (in shares) | (14,019,256) | (14,520,684) | (14,851,058) |
Average number of common shares outstanding used to calculated basic earnings per common share (in shares) | 165,510,357 | 172,192,336 | 171,812,535 |
Common stock equivalents - restricted stock awards and units (in shares) | 138,214 | 59,721 | 0 |
Average number of common shares outstanding used to calculate diluted earnings per common share (in shares) | 165,648,571 | 172,252,057 | 171,812,535 |
Basic earnings per share | |||
Basic earnings per share from continuing operations (in dollars per share) | $ 1.13 | $ 0.85 | $ 0.05 |
Basic earnings per share from discontinued operations (in dollars per share) | 0.08 | 0.05 | 0.08 |
Basic earnings per share (in dollars per share) | 1.21 | 0.90 | 0.13 |
Diluted earnings per share | |||
Diluted earnings per share from continuing operations (in dollars per share) | 1.13 | 0.85 | 0.05 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0.08 | 0.05 | 0.08 |
Diluted earnings per share (in dollars per share) | $ 1.21 | $ 0.90 | $ 0.13 |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Tax Provision and Applicable Tax Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Combined federal and state income tax expense - continuing operations | $ 51,719 | $ 30,464 | $ 7,778 |
Combined federal and state income tax expense - discontinued operations | 5,210 | 3,583 | 5,385 |
Total combined federal and state income tax expense | 56,929 | 34,047 | 13,163 |
Income from continuing operations before income tax expense | 238,230 | 175,995 | 16,639 |
Income from discontinued operations before income tax expense | 18,458 | 12,717 | 19,262 |
Total income before income tax expense | $ 256,688 | $ 188,712 | $ 35,901 |
Effective income tax rates | 22.18% | 18.04% | 36.67% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2023 | |
Income Tax Examination [Line Items] | |||||
Provision for income taxes | $ 56,929,000 | $ 34,047,000 | $ 13,163,000 | ||
Effective income tax rates | 22.18% | 18.04% | 36.67% | ||
Valuation allowance, deferred tax asset, decrease, amount | $ 700,000 | $ 11,300,000 | |||
Release of uncertain tax positions | $ 2,100,000 | ||||
Deferred tax asset valuation allowance | 0 | 0 | 700,000 | $ 12,000,000 | $ 17,400,000 |
Issuance of common shares donated to the Eastern Bank Foundation | 91,287,000 | ||||
Charitable cash contribution | 3,700,000 | ||||
Total deferred tax assets | 331,648,000 | 331,648,000 | 76,535,000 | ||
Unrecognized tax benefits | 5,782,000 | 5,782,000 | 7,923,000 | 0 | |
Unrecognized tax benefits that would impact effective tax rate | 6,000,000 | 6,000,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 1,500,000 | 1,500,000 | 2,000,000 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 500,000 | ||||
Reductions as a result of a lapse of the applicable statute of limitations | 2,141,000 | 0 | |||
Tax interest and penalties, reduction resulting from lapse of applicable statute of limitations | 600,000 | ||||
Decrease in unrecognized tax benefits is reasonably possible | 2,300,000 | 2,300,000 | |||
Decrease in tax interest and penalties is reasonably possible | 700,000 | 700,000 | |||
Net operating loss carryforwards | 0 | 0 | 0 | ||
Federal pre-1988 reserve with no tax provision | 20,800,000 | 20,800,000 | |||
Tax credits and other tax benefits recognized | 9,146,000 | 6,484,000 | $ 5,033,000 | ||
Federal | |||||
Income Tax Examination [Line Items] | |||||
Tax credits and other tax benefits recognized | 7,300,000 | 6,500,000 | |||
State | |||||
Income Tax Examination [Line Items] | |||||
Release of uncertain tax positions | 2,300,000 | ||||
Unrecognized tax benefits | $ 6,000,000 | 6,000,000 | $ 8,200,000 | ||
Tax credits and other tax benefits recognized | $ 100,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense: | |||
Federal | $ 39,453 | $ 26,114 | $ 23,002 |
State | 11,453 | 13,246 | 10,520 |
Total current tax expense | 50,906 | 39,360 | 33,522 |
Deferred tax expense (benefit): | |||
Federal | 3,244 | (7,747) | (13,736) |
State | 2,779 | 2,434 | (6,623) |
Total deferred tax expense (benefit) | 6,023 | (5,313) | (20,359) |
Total income tax expense | $ 56,929 | $ 34,047 | $ 13,163 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense at statutory rate | $ 53,904 | $ 39,630 | $ 7,539 |
State income tax, net of federal tax benefit | 11,244 | 12,387 | 43 |
Valuation allowance | (700) | (11,300) | 12,000 |
Amortization of qualified low-income housing investments | 7,503 | 5,753 | 4,977 |
Tax credits | (7,300) | (6,539) | (7,085) |
Tax-exempt income | (10,298) | (5,665) | (4,091) |
Other, net | 2,576 | (219) | (220) |
Total income tax expense | $ 56,929 | $ 34,047 | $ 13,163 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax expense at statutory rate | 21% | 21% | 21% |
State income tax, net of federal tax benefit | 4.38% | 6.56% | 0.12% |
Valuation allowance | (0.27%) | (5.99%) | 33.43% |
Amortization of qualified low-income housing investments | 2.92% | 3.05% | 13.86% |
Tax credits | (2.84%) | (3.46%) | (19.73%) |
Tax-exempt income | (4.01%) | (3.00%) | (11.40%) |
Other, net | 1% | (0.12%) | (0.61%) |
Actual income tax expense | 22.18% | 18.04% | 36.67% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||||
Unrealized loss on available for sale securities | $ 254,502 | $ 17,370 | ||
Allowance for loan losses | 43,686 | 30,335 | ||
Cash flow hedges | 18,192 | 0 | ||
Leases | 17,447 | 25,389 | ||
Charitable contribution limitation carryover | 12,273 | 18,278 | ||
Investment losses | 7,918 | 10,680 | ||
Accrued expenses | 6,294 | 6,888 | ||
Fixed assets | 4,287 | 3,799 | ||
Loan basis difference fair value adjustments | 4,009 | 3,949 | ||
Employee benefits | 354 | 13,996 | ||
PPP loans fee income | 58 | 2,967 | ||
Other | 2,083 | 1,783 | ||
Total deferred tax assets before valuation allowance | 371,103 | 135,434 | ||
Valuation allowance | $ (17,400) | 0 | (700) | $ (12,000) |
Total deferred tax assets | 371,103 | 134,734 | ||
Deferred tax liabilities: | ||||
Amortization of intangibles | 17,565 | 17,339 | ||
Lease obligation | 16,383 | 23,849 | ||
Partnerships | 2,340 | 3,324 | ||
Trading securities | 938 | 6,482 | ||
Cash flow hedges | 0 | 2,878 | ||
Other | 2,229 | 4,327 | ||
Total deferred tax liabilities | 39,455 | 58,199 | ||
Net deferred income tax (liabilities) assets | 331,648 | 76,535 | ||
Discontinued Operations | ||||
Deferred tax assets: | ||||
Leases | 2,589 | 2,928 | ||
Accrued expenses | 868 | 897 | ||
Total deferred tax assets | 3,457 | 3,825 | ||
Deferred tax liabilities: | ||||
Amortization of intangibles | 1,126 | 550 | ||
Lease obligation | 2,450 | 2,762 | ||
Other | 196 | 67 | ||
Total deferred tax liabilities | 3,772 | 3,379 | ||
Net deferred income tax (liabilities) assets | $ (315) | |||
Net deferred income tax (liabilities) assets | $ 446 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning | $ 7,923 | $ 0 |
Additions based on tax positions related to the current year | 0 | 0 |
Additions for tax positions of prior years | 0 | 7,923 |
Reductions related to settlements with taxing authorities | 0 | 0 |
Reductions as a result of a lapse of the applicable statute of limitations | (2,141) | 0 |
Ending | $ 5,782 | $ 7,923 |
Low Income Housing Tax Credit_3
Low Income Housing Tax Credits and Other Tax Credit Investments - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments In Affordable Housing Projects [Line Items] | |||
Tax credit investments | $ 131,300,000 | $ 83,800,000 | |
Renewable Energy Program | |||
Investments In Affordable Housing Projects [Line Items] | |||
Equity investments | 2,600,000 | 2,800,000 | |
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 | ||
Tax credit write off | $ 0 | $ 7,600,000 | |
Tax credit recovery | $ 200,000 |
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 (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in Affordable Housing Projects [Abstract] | |||
Current recorded investment included in other assets | $ 128,765 | $ 81,035 | |
Commitments to fund qualified affordable housing projects included in recorded investment noted above | 84,145 | 48,399 | |
Tax credits and other tax benefits recognized | 9,146 | 6,484 | $ 5,033 |
Amortization expense included in income tax expense | $ 7,503 | $ 5,753 | $ 4,977 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ in Millions | Sep. 07, 2022 USD ($) shares | Nov. 12, 2021 USD ($) shares |
Equity [Abstract] | ||
Share repurchase program, shares authorized (in shares) | shares | 8,900,000 | 9,337,900 |
Share repurchase program, percentage of outstanding shares of common stock over a 12-month period | 0.05 | |
Purchase period | 12 months | 12 months |
Share repurchase program, authorized amount | $ | $ 200 | $ 225 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Shares Repurchased (Details) - $ / shares | 1 Months Ended | ||||||||||||
Dec. 31, 2022 | Nov. 30, 2022 | Oct. 31, 2022 | Sep. 30, 2022 | Aug. 31, 2022 | Jul. 31, 2022 | Jun. 30, 2022 | May 31, 2022 | Apr. 30, 2022 | Mar. 31, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||||||||||||
Total Number of Shares Repurchased (in shares) | 0 | 453,885 | 1,094,049 | 571,463 | 0 | 909,785 | 1,141,903 | 1,880,381 | 1,194,185 | 769,398 | 1,109,697 | 987,526 | 1,135,878 |
Average Price Paid per Share (in dollars per share) | $ 0 | $ 18.91 | $ 20.32 | $ 20.33 | $ 0 | $ 19.02 | $ 18.78 | $ 18.93 | $ 20.19 | $ 21.31 | $ 21.08 | $ 21.02 | $ 20.42 |
Total Number of Shares Repurchased as Part of the Share Repurchase Programs (in shares) | 11,248,150 | 11,248,150 | 10,794,265 | 9,700,216 | 9,128,753 | 9,128,753 | 8,218,968 | 7,077,065 | 5,196,684 | 4,002,499 | 3,233,101 | 2,123,404 | 1,135,878 |
Maximum Number of Shares That May Yet Be Purchased Under the Share Repurchase Programs (in shares) | 6,989,750 | 6,989,750 | 7,443,635 | 8,537,684 | 209,147 | 209,147 | 1,118,932 | 2,260,835 | 4,141,216 | 5,335,401 | 6,104,799 | 7,214,496 | 8,202,022 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||||||||||
Dividends Declared per Share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.06 | |||
Dividends Declared | $ 16,300 | $ 16,500 | $ 16,700 | $ 17,100 | $ 13,700 | $ 13,800 | $ 13,800 | $ 10,300 | |||
Dividends Paid | $ 16,100 | $ 16,300 | $ 16,500 | $ 16,900 | $ 13,700 | $ 13,800 | $ 13,800 | $ 10,300 | $ 65,886 | $ 51,564 | $ 0 |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total regulatory capital (to risk-weighted assets) | ||
Actual, Amount | $ 2,906,742 | $ 2,939,016 |
Actual, Ratio | 0.1789 | 0.1977 |
For Capital Adequacy, Amount | $ 1,299,657 | $ 1,189,466 |
For Capital Adequacy, Ratio | 0.08 | 0.08 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 1,624,571 | $ 1,486,832 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.10 |
Common equity Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | $ 2,751,694 | $ 2,831,102 |
Actual, Ratio | 0.1694 | 0.1904 |
For Capital Adequacy, Amount | $ 731,057 | $ 669,075 |
For Capital Adequacy, Ratio | 0.045 | 0.045 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 1,055,971 | $ 966,441 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065 | 0.065 |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | $ 2,751,694 | $ 2,831,102 |
Actual, Ratio | 0.1694 | 0.1904 |
For Capital Adequacy, Amount | $ 974,743 | $ 892,099 |
For Capital Adequacy, Ratio | 0.06 | 0.06 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 1,299,657 | $ 1,189,466 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.08 | 0.08 |
Tier 1 capital (to average assets) leverage | ||
Actual, Amount | $ 2,751,694 | $ 2,831,102 |
Actual, Ratio | 0.1203 | 0.1396 |
For Capital Adequacy, Amount | $ 915,233 | $ 811,000 |
For Capital Adequacy, Ratio | 0.04 | 0.04 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 1,144,041 | $ 1,013,750 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.05 | 0.05 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Detail) | 1 Months Ended | 12 Months Ended | 13 Months Ended | |||||||||
May 17, 2022 shares | Mar. 01, 2022 shares | Nov. 29, 2021 shares | Oct. 14, 2020 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) plan h shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 USD ($) shares | Nov. 01, 2020 | Oct. 31, 2020 | Dec. 31, 2019 USD ($) | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Defined benefit plan, age requirement | 21 years | |||||||||||
Defined benefit plan, service requirement | 1 year | |||||||||||
Defined benefit plan, service requirement for full vesting for individuals employed on or before October 21, 1989 | 3 years | |||||||||||
Defined benefit plan, service requirement for full vesting for individuals employed subsequent to October 31, 1989 | 5 years | |||||||||||
Defined benefit plan, service requirement for full vesting for individuals who were not already in the defined benefit plan as of November 1, 2020 | 3 years | |||||||||||
Defined benefit plan, expected future employer contributions, current fiscal year | $ 0 | $ 0 | ||||||||||
Discretionary employer contribution to the Defined Benefit Plan | $ 7,200,000 | $ 0 | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other | |||||||||
Settlements | $ 12,045,000 | $ 0 | $ 0 | |||||||||
Discretionary contributions for the Defined Contribution Plan | $ 5,000,000 | $ 4,600,000 | 4,400,000 | |||||||||
Amount borrowed under ESOP | $ 149,400,000 | |||||||||||
Shares purchased under ESOP (in shares) | shares | 14,940,652 | 14,940,652 | 14,920,942 | 14,940,652 | 14,920,942 | |||||||
ESOP loan term | 30 years | |||||||||||
ESOP expense | $ 9,923,000 | $ 9,408,000 | 2,351,000 | |||||||||
ESOP compensation expense related to releases and allocation | 900,000 | |||||||||||
ESOP compensation expense related to accrued loan payments | 1,500,000 | |||||||||||
Loan payments from ESOP | 7,900,000 | 7,900,000 | ||||||||||
Principal payments from ESOP | 3,200,000 | 3,000,000 | ||||||||||
Interest payments from ESOP | $ 4,700,000 | $ 4,900,000 | ||||||||||
ESOP upfront principal payment | $ 1,000,000 | |||||||||||
Allocated shares (in shares) | shares | 565,134 | 1,046,850 | 565,134 | 63,690 | 1,046,850 | |||||||
Shares committed to be allocated (in shares) | shares | 104,464 | 104,464 | 104,464 | 104,464 | ||||||||
Defined contribution liability | $ 33,400,000 | $ 17,300,000 | $ 33,400,000 | $ 17,300,000 | ||||||||
Number of deferred compensation plans | plan | 3 | |||||||||||
Deferred compensation plans, liabilities | $ 31,500,000 | $ 25,400,000 | 31,500,000 | $ 25,400,000 | ||||||||
Share-based compensation arrangement by share-based payment award, reduction of shares available to be issued upon exercise of stock options with each additional restricted stock grant | shares | 3 | |||||||||||
Share-based payment arrangement, noncash expense | $ 10,507,000 | $ 0 | $ 0 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period (in shares) | shares | 978,364 | 978,364 | 0 | |||||||||
Restricted Stock | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period (in shares) | shares | 31,559 | 31,559 | 683,056 | |||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period (in shares) | shares | 136,609 | 0 | ||||||||||
Performance Shares | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period (in shares) | shares | 533,676 | 533,676 | 0 | |||||||||
2021 Plan | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | shares | 26,146,141 | |||||||||||
Share-based payment arrangement, noncash expense | $ 10,500,000 | $ 200,000 | ||||||||||
Share-based payment arrangement, expense, tax benefit (less than) | $ 3,000,000 | $ 100,000 | ||||||||||
2021 Plan | Restricted Stock Units (RSUs) | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | shares | 7,470,326 | |||||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | shares | 6,787,270 | 5,302,256 | 6,787,270 | 5,302,256 | ||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period (in shares) | shares | 0 | 0 | ||||||||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 13,500,000 | $ 34,600,000 | $ 13,500,000 | $ 34,600,000 | ||||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 3 years 3 months 18 days | 4 years 10 months 24 days | ||||||||||
2021 Plan | Share-based Payment Arrangement, Option | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | shares | 18,675,815 | |||||||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | shares | 18,675,815 | 18,675,815 | 18,675,815 | 18,675,815 | ||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross (in shares) | shares | 0 | 0 | ||||||||||
2021 Plan | Restricted Stock | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | 5 years | ||||||||||
Annual amount from 2022 through 2049 | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Shares committed to be allocated (in shares) | shares | 501,426 | 501,426 | ||||||||||
Annual amount for 2050 | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Shares committed to be allocated (in shares) | shares | 231,124 | 231,124 | ||||||||||
Asset Management Arrangement | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Actuarial (gain) loss | $ 91,474,000 | $ (50,878,000) | ||||||||||
Benefit obligation | $ 546,056,000 | 419,366,000 | 546,056,000 | 449,643,000 | $ 419,366,000 | |||||||
Equity Securities | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Rabbi trust investments | 91,700,000 | 63,700,000 | 91,700,000 | 63,700,000 | ||||||||
Fair value, net asset (liability) | $ 58,100,000 | $ 38,900,000 | $ 58,100,000 | $ 38,900,000 | ||||||||
Minimum | 2021 Plan | Restricted Stock Units (RSUs) | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |||||||||||
Maximum | 2021 Plan | Restricted Stock Units (RSUs) | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 5 years | |||||||||||
Fixed income | Minimum | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Plan asset, target allocation percentages | 28% | 28% | ||||||||||
Fixed income | Maximum | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Plan asset, target allocation percentages | 42% | 42% | ||||||||||
Hedge Funds | Minimum | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Plan asset, target allocation percentages | 3% | 3% | ||||||||||
Hedge Funds | Maximum | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Plan asset, target allocation percentages | 15% | 15% | ||||||||||
Defined Benefit Plan, Equity Securities | Minimum | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Plan asset, target allocation percentages | 49% | 49% | ||||||||||
Defined Benefit Plan, Equity Securities | Maximum | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Plan asset, target allocation percentages | 63% | 63% | ||||||||||
Pension Plan | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Contribution credits rate | 3.50% | 3.55% | 3.50% | 3.55% | ||||||||
Actuarial (gain) loss | $ (133,282,000) | $ (1,697,000) | 78,095,000 | |||||||||
Benefit obligation | $ 501,507,000 | 362,530,000 | 501,507,000 | 361,147,000 | $ 362,530,000 | $ 396,769,000 | ||||||
Supplemental Employee Retirement Plan | DC SERP | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Defined contribution expense | $ 400,000 | $ 900,000 | $ 900,000 | |||||||||
Qualified Plan | Pension Plan | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Defined benefit plan, minimum working hours for eligibility | h | 1,000 | |||||||||||
Defined benefit plan, treasury rate, term | 30 years | |||||||||||
Contribution credits rate | 3.50% | |||||||||||
Defined benefit plan, normal retirement age | 65 years | |||||||||||
Nonqualified Plan | Pension Plan | ||||||||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||||||||
Contribution credits rate | 5% |
Employee Benefits - Obligations
Employee Benefits - Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | |||
Service cost | $ 31,382 | $ 31,660 | $ 25,970 |
Interest cost | 10,582 | 5,694 | 9,657 |
Discontinued Operations, Held-for-Sale | Insurance Agency Business | |||
Change in benefit obligation: | |||
Service cost | 7,500 | 7,700 | 6,200 |
Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of the year | 501,507 | 361,147 | 396,769 |
Service cost | 31,382 | 31,660 | 25,970 |
Interest cost | 10,582 | 5,694 | 9,657 |
Amendments | 0 | (1,106) | (133,439) |
Actuarial (gain) loss | (133,282) | (1,697) | 78,095 |
Acquisitions | 0 | 125,854 | 0 |
Benefits paid | (47,659) | (20,045) | (15,905) |
Benefit obligation at end of the year | 362,530 | 501,507 | 361,147 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 546,056 | 449,643 | 378,879 |
Actual return on plan assets | (91,474) | 50,879 | 48,895 |
Acquisitions | 0 | 63,468 | 0 |
Employer contribution | 12,443 | 2,111 | 37,773 |
Benefits paid | (47,659) | (20,045) | (15,904) |
Fair value of plan assets at end of year | 419,366 | 546,056 | 449,643 |
Overfunded status | 56,836 | 44,549 | 88,496 |
Reconciliation of funding status: | |||
Past service credit | 108,909 | 120,792 | 131,482 |
Unrecognized net loss | (99,002) | (128,402) | (161,045) |
Prepaid benefit cost | 46,929 | 52,159 | 118,059 |
Accumulated benefit obligation | 362,530 | 501,507 | 361,147 |
Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: | |||
Unrecognized past service credit | 78,295 | 86,837 | 94,522 |
Unrecognized net loss | (71,172) | (92,308) | (115,775) |
Net amount | $ 7,123 | $ (5,471) | $ (21,253) |
Employee Benefits - Actuarial A
Employee Benefits - Actuarial Assumptions (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.18% | 2.65% |
Rate of increase in compensation levels | 4.50% | 4.50% |
Interest rate credit for determining projected cash balance | 3.55% | 3.50% |
Pension Plan | BEP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.07% | 2.32% |
Rate of increase in compensation levels | 4.50% | 4.50% |
Interest rate credit for determining projected cash balance | 3.55% | 3.50% |
Pension Plan | ODRCP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.13% | 2.32% |
Rate of increase in compensation levels | 0% | 0% |
Interest rate credit for determining projected cash balance | 0% | 0% |
Supplemental Employee Retirement Plan | DB SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.18% | 2.68% |
Rate of increase in compensation levels | 0% | 0% |
Interest rate credit for determining projected cash balance | 0% | 0% |
Employee Benefits - Assumptions
Employee Benefits - Assumptions Used to Determine Net Periodic Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 2.65% | 2.26% | 3.16% |
Rate of compensation increase | 4.50% | 5.25% | 5.25% |
Expected rate of return on plan assets | 7% | 7.50% | 7.50% |
Interest rate credit for determining projected cash balance | 3.50% | 3.50% | 3.50% |
Pension Plan | BEP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 2.32% | 1.77% | 3.15% |
Rate of compensation increase | 4.50% | 5.25% | 5.25% |
Interest rate credit for determining projected cash balance | 3.50% | 3.50% | 3.50% |
Pension Plan | ODRCP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 2.32% | 1.81% | 2.86% |
Rate of compensation increase | 0% | 0% | 3% |
Supplemental Employee Retirement Plan | DB SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 2.68% | 1.63% | 2.72% |
Employee Benefits - Reconciliat
Employee Benefits - Reconciliation of Interest SBERA Common Collective (Details) - Asset Management Arrangement - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of the year | $ 546,056 | $ 449,643 |
Net realized and unrealized gains and (losses) | (91,474) | 50,878 |
Contributions | 7,222 | 0 |
Benefits paid | (42,438) | (17,934) |
Acquisitions | 0 | 63,469 |
Benefit obligation at end of the year | $ 419,366 | $ 546,056 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of net periodic benefit cost: | |||
Service cost | $ 31,382 | $ 31,660 | $ 25,970 |
Interest cost | 10,582 | 5,694 | 9,657 |
Expected return on plan assets | (35,486) | (33,333) | (29,610) |
Past service credit | (11,882) | (11,796) | (1,931) |
Recognized net actuarial loss | 11,032 | 13,400 | 10,787 |
Settlements | 12,045 | 0 | 0 |
Net periodic benefit cost | $ 17,673 | $ 5,625 | $ 14,873 |
Employee Benefits - Benefits Ex
Employee Benefits - Benefits Expected to be Paid (Details) - Pension Plan $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 45,367 |
2024 | 34,286 |
2025 | 37,454 |
2026 | 38,296 |
2027 | 37,915 |
In aggregate for 2028-2032 | $ 202,187 |
Employee Benefits - Employee St
Employee Benefits - Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 14, 2020 |
Retirement Benefits [Abstract] | ||||
Allocated shares (in shares) | 1,046,850 | 565,134 | 63,690 | |
Shares committed to be allocated (in shares) | 104,464 | 104,464 | ||
Unallocated shares (in shares) | 13,769,628 | 14,271,054 | ||
Total shares (in shares) | 14,920,942 | 14,940,652 | 14,940,652 | |
Fair value of unallocated shares | $ 237,526 | $ 287,847 |
Employee Benefits- Assets Held
Employee Benefits- Assets Held in Rabbi Trust (Details) - Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | $ 76,286 | $ 104,372 |
Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 76,286 | 104,372 |
Nonqualified Plan | Deferred compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 25,909 | 32,042 |
Supplemental Employee Retirement Plan | Nonqualified Plan | DB SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 17,209 | 20,810 |
Supplemental Employee Retirement Plan | Nonqualified Plan | DC SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 17,764 | 34,002 |
Pension Plan | Nonqualified Plan | BEP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 11,734 | 13,202 |
Pension Plan | Nonqualified Plan | ODRCP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | $ 3,670 | $ 4,316 |
Employee Benefits - Asset Held
Employee Benefits - Asset Held In Rabbi Trust By Plan Type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | $ 73,430 | $ 80,021 |
Unrealized Gain/(Loss) | 2,856 | 24,351 |
Fair Value | 76,286 | 104,372 |
Cash and cash equivalents | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 5,575 | 4,494 |
Fair Value | 5,575 | 4,494 |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 63,700 | 91,700 |
Equity Securities | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 60,056 | 67,401 |
Unrealized Gain/(Loss) | 3,626 | 24,295 |
Fair Value | 63,682 | 91,696 |
Fixed income | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 7,799 | 8,126 |
Unrealized Gain/(Loss) | (770) | 56 |
Fair Value | $ 7,029 | $ 8,182 |
Employee Benefits - Share-based
Employee Benefits - Share-based Payment Arrangement, Restricted Stock, Restricted Stock Unit, and Performance Stock Unit, Activity (Details) - $ / shares | 12 Months Ended | |||
May 17, 2022 | Mar. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock | ||||
Number of Shares | ||||
Non-vested restricted stock at beginning of year (in shares) | 683,056 | 0 | ||
Granted (in shares) | 31,559 | 31,559 | 683,056 | |
Vested (in shares) | (136,609) | 0 | ||
Forfeited (in shares) | (52,546) | 0 | ||
Non-vested restricted stock at end of year (in shares) | 525,460 | 683,056 | ||
Weighted-Average Grant Price Per Share | ||||
Non-vested restricted stock at beginning of year (in dollars per share) | $ 20.13 | $ 0 | ||
Granted (in dollars per share) | 19.17 | 20.13 | ||
Vested (in dollars per share) | 20.13 | 0 | ||
Forfeited (in dollars per share) | 20.08 | 0 | ||
Non-vested restricted stock at end of year (in dollars per share) | $ 20.08 | $ 20.13 | ||
Restricted Stock Units (RSUs) | ||||
Number of Shares | ||||
Non-vested restricted stock at beginning of year (in shares) | 0 | 0 | ||
Granted (in shares) | 978,364 | 978,364 | 0 | |
Forfeited (in shares) | (6,039) | 0 | ||
Non-vested restricted stock at end of year (in shares) | 972,325 | 0 | ||
Weighted-Average Grant Price Per Share | ||||
Non-vested restricted stock at beginning of year (in dollars per share) | $ 0 | $ 0 | ||
Granted (in dollars per share) | 21.08 | 0 | ||
Forfeited (in dollars per share) | 21.08 | 0 | ||
Non-vested restricted stock at end of year (in dollars per share) | $ 21.08 | $ 0 | ||
Performance Shares | ||||
Number of Shares | ||||
Non-vested restricted stock at beginning of year (in shares) | 0 | 0 | ||
Granted (in shares) | 533,676 | 533,676 | 0 | |
Non-vested restricted stock at end of year (in shares) | 533,676 | 0 | ||
Weighted-Average Grant Price Per Share | ||||
Non-vested restricted stock at beginning of year (in dollars per share) | $ 0 | $ 0 | ||
Granted (in dollars per share) | 21.12 | 0 | ||
Non-vested restricted stock at end of year (in dollars per share) | $ 21.12 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments as of the Dates Indicated (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments to extend credit | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | $ 5,680,438 | $ 5,175,521 |
Standby letters of credit | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | 65,154 | 65,602 |
Forward commitments to sell loans | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | $ 10,008 | $ 24,440 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Detail) | 3 Months Ended | |||
Mar. 31, 2022 USD ($) | Jun. 30, 2021 settlement | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of Commitments and Contingencies [Line Items] | ||||
Number of new claims filed | settlement | 2 | |||
Loss contingency, loss in period | $ 3,300,000 | |||
Other contingencies | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | |
Notional Amount | $ 2,400,000 |
Fair Value | (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 |
Weighted Average Maturity | 4 years 6 months 25 days |
Current Rate Paid | 4.07% |
Receive Fixed Swap Rate | 3.02% |
Fair Value | $ (2,401) |
Accrued interest payable | $ 1,500 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Pre-tax Impact of Terminated Cash Flow Hedges on AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | |||
OCI, Cash Flow Hedge, Reclassification for Discontinuance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net interest income | Net interest income | Net interest income |
Beginning balance | $ 3,406,352 | $ 3,428,052 | $ 1,600,153 |
Unrealized gains on terminated hedges arising during the period | 0 | 0 | 57,362 |
Reclassification adjustments for amortization of unrealized (gains) into net interest income | (10,193) | (31,234) | (15,889) |
Ending balance | 2,471,790 | 3,406,352 | 3,428,052 |
Accumulated Gain (Loss), Net, Terminated Cash Flow Hedge, Parent | |||
AOCI Attributable to Parent, Before Tax [Roll Forward] | |||
Beginning balance | 10,239 | 41,473 | 0 |
Ending balance | $ 46 | $ 10,239 | $ 41,473 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Maximum length of time hedged in cash flow hedge | 5 years | ||
Credit exposure to settled variation margin in excess of customer related interest rate swap | $ 0 | $ 400,000 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other |
Derivative, notional amount | $ 2,400,000,000 | ||
Derivative, gain (loss) on derivative, net | (200,000) | $ (700,000) | $ 900,000 |
Derivative Asset | 23,861,000 | 64,714,000 | |
Derivative liability | 81,422,000 | 18,593,000 | |
Loan Origination Commitments | |||
Derivative [Line Items] | |||
Derivative, notional amount | 8,300,000 | 31,900,000 | |
Derivative Asset | 100,000 | 300,000 | |
Derivative liability | 100,000 | 100,000 | |
Forward Contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | 10,000,000 | 24,400,000 | |
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 | 13,700,000 | |
Cash and Cash Equivalents | Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | |||
Derivative [Line Items] | |||
Additional collateral posted | 1,000,000 | ||
Available-for-sale Securities | Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | |||
Derivative [Line Items] | |||
Additional collateral posted | 21,300,000 | ||
Restricted Assets | Cash and Cash Equivalents | Cleared Derivative Transaction | |||
Derivative [Line Items] | |||
Additional collateral posted | 84,100,000 | ||
Restricted Assets | Available-for-sale Securities | Cleared Derivative Transaction | |||
Derivative [Line Items] | |||
Additional collateral posted | $ 48,900,000 | ||
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 (less than for amounts related to terminated cash flow hedges) | 42,000,000 | ||
Interest Income | Termination Of 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 (less than for amounts related to terminated cash flow hedges) | $ 100,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Customer-Related Derivative Positions (Detail) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Total Notional | $ 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 | 382 | 494 |
Total Notional | $ 2,404,003 | $ 3,009,150 |
Risk participation agreements | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 63 | 64 |
Total Notional | $ 241,029 | $ 238,772 |
Matched commercial customer book | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 32 | 72 |
Total Notional | $ 7,877 | $ 7,922 |
Foreign currency loan | Not Designated as Hedging Instrument | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 5 | 6 |
Total Notional | $ 13,948 | $ 10,830 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Classification On The Balance Sheet For The Periods Indicated (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Total | $ 23,861 | $ 64,714 |
Liability Derivatives | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total | $ 81,422 | $ 18,593 |
Asset Derivatives | ||
Asset Derivatives | ||
Derivatives designated as hedging instruments, assets, at fair value | 16 | 0 |
Derivatives not designated as hedging instruments, Interest rate swaps, Other assets | 23,567 | 64,338 |
Derivatives not designated as hedging instruments, Other assets | 23,845 | 64,714 |
Asset Derivatives | Risk participation agreements | ||
Asset Derivatives | ||
Derivatives not designated as hedging instruments, Other assets | 78 | 315 |
Asset Derivatives | Foreign currency exchange contracts — matched customer book | ||
Asset Derivatives | ||
Derivatives not designated as hedging instruments, Other assets | 198 | 61 |
Asset Derivatives | Foreign currency exchange contracts — foreign currency loan | ||
Asset Derivatives | ||
Derivatives not designated as hedging instruments, Other assets | 2 | 0 |
Liability Derivatives | ||
Liability Derivatives | ||
Derivatives designated as hedging instruments, liabilities, at fair value | 2,417 | 0 |
Derivative not designated as hedging instruments, Interest rate swaps, Other liabilities | 78,577 | 17,880 |
Derivatives not designated as hedging instruments, Other liabilities | 79,005 | 18,593 |
Liability Derivatives | Risk participation agreements | ||
Liability Derivatives | ||
Derivatives not designated as hedging instruments, Other liabilities | 130 | 580 |
Liability Derivatives | Foreign currency exchange contracts — matched customer book | ||
Liability Derivatives | ||
Derivatives not designated as hedging instruments, Other liabilities | 205 | 46 |
Liability Derivatives | Foreign currency exchange contracts — foreign currency loan | ||
Liability Derivatives | ||
Derivatives not designated as hedging instruments, Other liabilities | $ 93 | $ 87 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Company's Derivative Financial Instruments Included in OCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain in OCI on derivatives | $ (69,010) | $ 0 | $ 46,871 |
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 |
Gain (loss) recognized in other income for foreign currency exchange contracts: | 4,511 | 5,179 | (4,081) |
Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain reclassified from OCI into interest income (effective portion) | 9,580 | 31,234 | 27,131 |
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 |
Interest Income | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) recognized in interest rate swap income | 4,324 | 4,962 | (3,812) |
Interest Income | Risk participation agreements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) recognized in interest rate swap income | 213 | 243 | (384) |
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 |
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: | (22) | 1 | (28) |
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: | $ (4) | $ (27) | $ 143 |
Balance Sheet Offsetting - Disc
Balance Sheet Offsetting - Disclosure Detail Of Balance Sheet Offsetting Of Financial Assets And Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Liabilities | ||
Net Amount | $ 81,422 | $ 18,593 |
Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 23,861 | 64,714 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 23,861 | 64,714 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 381 | 1,440 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | (14,430) | 0 |
Net Amount | 9,050 | 63,274 |
Derivative Liabilities | ||
Gross Amounts Recognized | 81,422 | 18,593 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 81,422 | 18,593 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 381 | 1,440 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 2,417 | 16,440 |
Net Amount | 78,624 | 713 |
Interest rate swaps | ||
Derivative Assets | ||
Gross Amounts Recognized | 16 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts Presented in the Statement of Financial Position | 16 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | |
Net Amount | 16 | |
Derivative Liabilities | ||
Gross Amounts Recognized | 2,417 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts Presented in the Statement of Financial Position | 2,417 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 2,417 | |
Net Amount | 0 | |
Interest rate swaps | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 23,567 | 64,338 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 23,567 | 64,338 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 381 | 1,440 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | (14,430) | 0 |
Net Amount | 8,756 | 62,898 |
Derivative Liabilities | ||
Gross Amounts Recognized | 78,577 | 17,880 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 78,577 | 17,880 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 381 | 1,440 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 16,440 |
Net Amount | 78,196 | 0 |
Risk participation agreements | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 78 | 315 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 78 | 315 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 78 | 315 |
Derivative Liabilities | ||
Gross Amounts Recognized | 130 | 580 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 130 | 580 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 130 | 580 |
Foreign currency exchange contracts — matched customer book | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 198 | 61 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 198 | 61 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 198 | 61 |
Derivative Liabilities | ||
Gross Amounts Recognized | 205 | 46 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 205 | 46 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 205 | 46 |
Foreign currency exchange contracts — foreign currency loan | ||
Derivative Assets | ||
Gross Amounts Recognized | 2 | 0 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 2 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 2 | 0 |
Foreign currency exchange contracts — foreign currency loan | Customer-related positions | ||
Derivative Liabilities | ||
Gross Amounts Recognized | 93 | 87 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 93 | 87 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | $ 93 | $ 87 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in mutual funds | $ 38.9 | $ 58.1 |
Carrying amount | 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 (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Securities available for sale | $ 6,690,778 | $ 8,511,224 |
Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 4,111,908 | 5,524,708 |
Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,348,954 | 1,408,868 |
U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 952,482 | 1,175,014 |
U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 93,057 | 88,605 |
Small Business Administration pooled securities | ||
Assets | ||
Securities available for sale | 32,103 | |
Other debt securities | ||
Assets | ||
Securities available for sale | 1,285 | 1,597 |
Fair Value, Recurring | ||
Assets | ||
Rabbi trust investments | 76,286 | 104,372 |
Loans held for sale | 4,543 | 1,206 |
Customer-related positions | 64,338 | |
Risk participation agreements | 78 | 315 |
Matched customer book | 198 | 61 |
Foreign currency loan | 2 | 0 |
Mortgage derivatives | 62 | 256 |
Total | 6,795,530 | 8,681,772 |
Liabilities | ||
Customer-related positions | 17,880 | |
Risk participation agreements | 130 | 580 |
Matched customer book | 205 | 46 |
Foreign currency loan | 93 | 87 |
Mortgage derivatives | 58 | 16 |
Total | 81,480 | 18,609 |
Fair Value, Recurring | Designated as Hedging Instrument | ||
Assets | ||
Customer-related positions | 16 | |
Liabilities | ||
Cash flow hedges - interest rate positions | 2,417 | |
Fair Value, Recurring | Not Designated as Hedging Instrument | ||
Assets | ||
Customer-related positions | 23,567 | |
Liabilities | ||
Customer-related positions | 78,577 | |
Fair Value, Recurring | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 4,111,908 | 5,524,708 |
Fair Value, Recurring | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,348,954 | 1,408,868 |
Fair Value, Recurring | U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 952,482 | 1,175,014 |
Fair Value, Recurring | U.S. Treasury securities | ||
Assets | ||
Securities available for sale | 93,057 | 88,605 |
Fair Value, Recurring | State and municipal bonds and obligations | ||
Assets | ||
Securities available for sale | 183,092 | 280,329 |
Fair Value, Recurring | Small Business Administration pooled securities | ||
Assets | ||
Securities available for sale | 32,103 | |
Fair Value, Recurring | Other debt securities | ||
Assets | ||
Securities available for sale | 1,285 | 1,597 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Rabbi trust investments | 69,257 | 96,190 |
Loans held for sale | 0 | 0 |
Customer-related positions | 0 | |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Mortgage derivatives | 0 | 0 |
Total | 162,314 | 184,795 |
Liabilities | ||
Customer-related positions | 0 | |
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 | ||
Customer-related positions | 0 | |
Liabilities | ||
Cash flow hedges - interest rate positions | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Not Designated as Hedging Instrument | ||
Assets | ||
Customer-related positions | 0 | |
Liabilities | ||
Customer-related positions | 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 | 93,057 | 88,605 |
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) | Small Business Administration pooled securities | ||
Assets | ||
Securities available for sale | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Rabbi trust investments | 7,029 | 8,182 |
Loans held for sale | 4,543 | 1,206 |
Customer-related positions | 64,338 | |
Risk participation agreements | 78 | 315 |
Matched customer book | 198 | 61 |
Foreign currency loan | 2 | 0 |
Mortgage derivatives | 62 | 256 |
Total | 6,633,216 | 8,496,977 |
Liabilities | ||
Customer-related positions | 17,880 | |
Risk participation agreements | 130 | 580 |
Matched customer book | 205 | 46 |
Foreign currency loan | 93 | 87 |
Mortgage derivatives | 58 | 16 |
Total | 81,480 | 18,609 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Designated as Hedging Instrument | ||
Assets | ||
Customer-related positions | 16 | |
Liabilities | ||
Cash flow hedges - interest rate positions | 2,417 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Not Designated as Hedging Instrument | ||
Assets | ||
Customer-related positions | 23,567 | |
Liabilities | ||
Customer-related positions | 78,577 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available for sale | 4,111,908 | 5,524,708 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,348,954 | 1,408,868 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Agency bonds | ||
Assets | ||
Securities available for sale | 952,482 | 1,175,014 |
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 | 183,092 | 280,329 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Small Business Administration pooled securities | ||
Assets | ||
Securities available for sale | 32,103 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Assets | ||
Securities available for sale | 1,285 | 1,597 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Rabbi trust investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Customer-related positions | 0 | |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Mortgage derivatives | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Customer-related positions | 0 | |
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 | ||
Customer-related positions | 0 | |
Liabilities | ||
Cash flow hedges - interest rate positions | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Not Designated as Hedging Instrument | ||
Assets | ||
Customer-related positions | 0 | |
Liabilities | ||
Customer-related positions | 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) | Small Business Administration pooled securities | ||
Assets | ||
Securities available for sale | 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 (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
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 | |
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 | |
Fair Value, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Individually assessed collateral-dependent loans whose fair value is based upon appraisals | $ 16,432 | 12,068 |
Fair Value, Nonrecurring | 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 | |
Fair Value, Nonrecurring | 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 | |
Fair Value, Nonrecurring | 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 | $ 16,432 | $ 12,068 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Schedule of Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | $ 476,647,000 | $ 0 |
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 13,420,317,000 | 12,157,281,000 |
FHLB stock | 41,363,000 | 10,904,000 |
Bank-owned life insurance | 160,790,000 | 157,091,000 |
Deposits | 18,974,359,000 | 19,628,311,000 |
Escrow deposits of borrowers | 22,314,000 | 20,258,000 |
Interest rate swap collateral funds | 14,430,000 | 0 |
Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 276,493,000 | |
Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 200,154,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 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 | |
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 | |
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 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 0 | 0 |
FHLB stock | 41,363,000 | 10,904,000 |
Bank-owned life insurance | 160,790,000 | 157,091,000 |
Deposits | 18,960,407,000 | 19,626,376,000 |
FHLB advances | 702,954,000 | 13,558,000 |
Escrow deposits of borrowers | 22,314,000 | 20,258,000 |
Interest rate swap collateral funds | 14,430,000 | |
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: | 246,343,000 | |
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: | 176,883,000 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 13,149,096,000 | 12,282,323,000 |
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 | |
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 | |
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 | |
Carrying Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 13,420,317,000 | 12,157,281,000 |
FHLB stock | 41,363,000 | 10,904,000 |
Bank-owned life insurance | 160,790,000 | 157,091,000 |
Deposits | 18,974,359,000 | 19,628,311,000 |
FHLB advances | 704,084,000 | 14,020,000 |
Escrow deposits of borrowers | 22,314,000 | 20,258,000 |
Interest rate swap collateral funds | 14,430,000 | |
Carrying Value | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 276,493,000 | |
Carrying Value | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 200,154,000 | |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans after the allowance for loan losses, unamortized premiums, unearned discounts and deferred fees and costs | 13,149,096,000 | 12,282,323,000 |
FHLB stock | 41,363,000 | 10,904,000 |
Bank-owned life insurance | 160,790,000 | 157,091,000 |
Deposits | 18,960,407,000 | 19,626,376,000 |
FHLB advances | 702,954,000 | 13,558,000 |
Escrow deposits of borrowers | 22,314,000 | $ 20,258,000 |
Interest rate swap collateral funds | 14,430,000 | |
Fair Value | Government-sponsored residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | 246,343,000 | |
Fair Value | Government-sponsored commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Held to maturity securities: | $ 176,883,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue from External Customers by Products and Services (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | |||
Total noninterest income in-scope of ASC 606 | $ 77,299 | $ 69,423 | $ 60,167 |
Total noninterest (loss) income out-of-scope of ASC 606 | (549) | 28,014 | 23,512 |
Total noninterest income | 76,750 | 97,437 | 83,679 |
Service charges on deposit accounts | |||
Revenue from External Customer [Line Items] | |||
Total noninterest income in-scope of ASC 606 | 30,392 | 24,271 | 21,560 |
Trust and investment advisory fees | |||
Revenue from External Customer [Line Items] | |||
Total noninterest income in-scope of ASC 606 | 23,593 | 24,588 | 21,102 |
Debit card processing fees | |||
Revenue from External Customer [Line Items] | |||
Total noninterest income in-scope of ASC 606 | 12,644 | 12,118 | 10,277 |
Other non-interest income | |||
Revenue from External Customer [Line Items] | |||
Total noninterest income in-scope of ASC 606 | $ 10,670 | $ 8,446 | $ 7,228 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash Management Fees | ||
Disaggregation of Revenue [Line Items] | ||
Fess earned but not yet received | $ 2.1 | $ 1.8 |
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) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pre Tax Amount | |||
Total other comprehensive loss | $ (1,119,774) | $ (143,913) | $ 133,862 |
Tax Benefit (Expense) | |||
Total other comprehensive loss | 253,278 | 32,983 | (35,781) |
After Tax Amount | |||
Before reclassifications | (869,941) | (88,720) | 111,444 |
Less: reclassification adjustments | (3,445) | 22,210 | 13,363 |
Total other comprehensive (loss) income | (866,496) | (110,930) | 98,081 |
Amortization of gains from terminated interest rate swaps | (10,193) | (31,234) | (15,889) |
Total realized gain, net of tax | 41,200 | ||
Balance of gain after amortization, net of tax | 100 | 7,400 | 29,800 |
Change in fair value of securities available for sale | |||
Pre Tax Amount | |||
Before reclassifications | (1,061,859) | (133,466) | 30,926 |
Less: reclassification adjustments | (3,157) | 1,166 | 288 |
Total other comprehensive loss | (1,058,702) | (134,632) | 30,638 |
Tax Benefit (Expense) | |||
Before reclassifications | 238,005 | 30,117 | (6,828) |
Less: reclassification adjustments | 873 | (257) | (64) |
Total other comprehensive loss | 237,132 | 30,374 | (6,764) |
After Tax Amount | |||
Before reclassifications | (823,854) | (103,349) | 24,098 |
Less: reclassification adjustments | (2,284) | 909 | 224 |
Total other comprehensive (loss) income | (821,570) | (104,258) | 23,874 |
Unrealized losses on cash flow hedges: | |||
Pre Tax Amount | |||
Before reclassifications | (69,010) | 0 | 46,871 |
Less: reclassification adjustments | 9,580 | 31,234 | 27,131 |
Total other comprehensive loss | (78,590) | (31,234) | 19,740 |
Tax Benefit (Expense) | |||
Before reclassifications | 18,377 | 0 | (13,175) |
Less: reclassification adjustments | (2,693) | (8,780) | (7,626) |
Total other comprehensive loss | 21,070 | 8,780 | (5,549) |
After Tax Amount | |||
Before reclassifications | (50,633) | 0 | 33,696 |
Less: reclassification adjustments | 6,887 | 22,454 | 19,505 |
Total other comprehensive (loss) income | (57,520) | (22,454) | 14,191 |
Defined benefit pension plans: | |||
Pre Tax Amount | |||
Total other comprehensive loss | 17,518 | 21,953 | 83,484 |
Tax Benefit (Expense) | |||
Total other comprehensive loss | (4,924) | (6,171) | (23,468) |
After Tax Amount | |||
Before reclassifications | 4,546 | 14,629 | 53,650 |
Less: reclassification adjustments | (8,048) | (1,153) | (6,366) |
Total other comprehensive (loss) income | 12,594 | 15,782 | 60,016 |
Change in actuarial net loss | |||
Pre Tax Amount | |||
Before reclassifications | 6,323 | 19,243 | (58,811) |
Tax Benefit (Expense) | |||
Before reclassifications | (1,777) | (5,409) | 16,532 |
After Tax Amount | |||
Before reclassifications | 4,546 | 13,834 | (42,279) |
Less: amortization of actuarial net loss | |||
Pre Tax Amount | |||
Less: reclassification adjustments | (11,032) | (13,400) | (10,787) |
Tax Benefit (Expense) | |||
Less: reclassification adjustments | 3,101 | 3,767 | 3,033 |
After Tax Amount | |||
Less: reclassification adjustments | (7,931) | (9,633) | (7,754) |
Less: Defined Benefit Plan settlement loss | |||
Pre Tax Amount | |||
Less: reclassification adjustments | (12,045) | 1,106 | 133,439 |
Tax Benefit (Expense) | |||
Less: reclassification adjustments | 3,386 | (311) | (37,510) |
After Tax Amount | |||
Less: reclassification adjustments | (8,659) | 795 | 95,929 |
Less: net accretion of prior service credit | |||
Pre Tax Amount | |||
Less: reclassification adjustments | 11,882 | 11,796 | 1,931 |
Tax Benefit (Expense) | |||
Less: reclassification adjustments | (3,340) | (3,316) | (543) |
After Tax Amount | |||
Less: reclassification adjustments | 8,542 | 8,480 | 1,388 |
Interest rate swaps | |||
After Tax Amount | |||
Amortization of gains from terminated interest rate swaps | $ 7,300 | $ 22,500 | $ 11,400 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,406,352 | $ 3,428,052 | $ 1,600,153 |
Other comprehensive (loss) income before reclassifications | (869,941) | (88,720) | 111,444 |
Less: Amounts reclassified from accumulated other comprehensive income | (3,445) | 22,210 | 13,363 |
Net current-period other comprehensive (loss) income | (866,496) | (110,930) | 98,081 |
Ending balance | 2,471,790 | 3,406,352 | 3,428,052 |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (56,696) | 54,234 | (43,847) |
Ending balance | (923,192) | (56,696) | 54,234 |
Unrealized (Losses) and Gains on Available for Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive (loss) income before reclassifications | (823,854) | (103,349) | 24,098 |
Less: Amounts reclassified from accumulated other comprehensive income | (2,284) | 909 | 224 |
Unrealized (Losses) and Gains on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive (loss) income before reclassifications | (50,633) | 0 | 33,696 |
Less: Amounts reclassified from accumulated other comprehensive income | 6,887 | 22,454 | 19,505 |
Defined benefit pension plans: | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (5,471) | (21,253) | (81,269) |
Other comprehensive (loss) income before reclassifications | 4,546 | 14,629 | 53,650 |
Less: Amounts reclassified from accumulated other comprehensive income | (8,048) | (1,153) | (6,366) |
Net current-period other comprehensive (loss) income | 12,594 | 15,782 | 60,016 |
Ending balance | 7,123 | (5,471) | (21,253) |
Unrealized (Losses) and Gains on Cash Flow Hedges | Unrealized (Losses) and Gains on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 7,361 | 29,815 | 15,624 |
Other comprehensive (loss) income before reclassifications | (50,633) | 0 | 33,696 |
Less: Amounts reclassified from accumulated other comprehensive income | 6,887 | 22,454 | 19,505 |
Net current-period other comprehensive (loss) income | (57,520) | (22,454) | 14,191 |
Ending balance | (50,159) | 7,361 | 29,815 |
Unrealized (Losses) and Gains on Available for Sale Securities | Unrealized (Losses) and Gains on Available for Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (58,586) | 45,672 | 21,798 |
Other comprehensive (loss) income before reclassifications | (823,854) | (103,349) | 24,098 |
Less: Amounts reclassified from accumulated other comprehensive income | (2,284) | 909 | 224 |
Net current-period other comprehensive (loss) income | (821,570) | (104,258) | 23,874 |
Ending balance | $ (880,156) | $ (58,586) | $ 45,672 |
Other Comprehensive Income - _2
Other Comprehensive Income - Schedule of Reclassified Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
(Losses) gains on sales of securities available for sale, net | $ (333,200) | $ (3,157) | $ 1,166 | $ 288 |
Total before tax | 256,688 | 188,712 | 35,901 | |
Tax benefit or (expense) | (51,719) | (30,464) | (7,778) | |
Net of tax | 199,759 | 154,665 | 22,738 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net of tax | (3,445) | 22,210 | 13,363 | |
Unrealized (losses) and gains on available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
(Losses) gains on sales of securities available for sale, net | (3,157) | 1,166 | 288 | |
Total before tax | (3,157) | 1,166 | 288 | |
Tax benefit or (expense) | 873 | (257) | (64) | |
Net of tax | (2,284) | 909 | 224 | |
Unrealized gains on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | 9,580 | 31,234 | 27,131 | |
Interest income | 9,580 | 31,234 | 27,131 | |
Tax benefit or (expense) | (2,693) | (8,780) | (7,626) | |
Net of tax | 6,887 | 22,454 | 19,505 | |
Amortization of defined benefit pension items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Nonoperating Income (Expense) | (23,077) | (13,400) | (10,787) | |
Accretion of prior service credit | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (11,195) | (1,604) | (8,856) | |
Tax benefit or (expense) | 3,147 | 451 | 2,490 | |
Other Nonoperating Income (Expense) | 11,882 | 11,796 | 1,931 | |
Net of tax | $ (8,048) | $ (1,153) | $ (6,366) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) business | Dec. 31, 2021 USD ($) business | Oct. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 19, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Acquisition-related and professional fee costs | $ 35,456 | ||||
Insurance Agency Acquisition | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of businesses acquired | business | 2 | 2 | |||
Total cash paid | $ 13,400 | $ 4,354 | |||
Contingent consideration | 400 | ||||
Contingent consideration liability, payouts, high | 500 | ||||
Acquisition-related and professional fee costs | 300 | 100 | |||
Contingent consideration liability, payouts, low | 0 | ||||
Insurance Agency Acquisition One | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash paid | 5,200 | 500 | |||
Contingent consideration | 700 | ||||
Insurance Agency Acquisition One | Minimum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Contingent consideration liability, payouts, high | 0 | ||||
Insurance Agency Acquisition One | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Contingent consideration liability, payouts, high | 800 | ||||
Insurance Agency Acquisition Two | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash paid | 8,200 | 3,900 | |||
Contingent consideration | 1,200 | ||||
Insurance Agency Acquisition Two | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Contingent consideration liability, payouts, high | 1,400 | ||||
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 | $ 515,000 | |||
Total compensation | $ 1,000 | ||||
ROU lease asset | 8,700 | 9,800 | |||
Lease liability | 9,200 | 10,400 | |||
Insurance commission receivable | 15,100 | 15,600 | |||
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 | 1,900 | 2,300 | |||
Lease liability | $ 2,200 | $ 2,500 |
Discontinued Operations - Summa
Discontinued Operations - Summary of the Asset and Liabilities of the Discontinued Insurance Agency Business (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Total assets | $ 128,219 | $ 114,018 |
Liabilities | ||
Total liabilities | 34,930 | 31,222 |
Discontinued Operations, Held-for-Sale | Insurance Agency Business | ||
Assets | ||
Premises and equipment | 163 | 429 |
Goodwill and intangibles, net | 93,117 | 80,496 |
Deferred income taxes, net | (315) | 446 |
Prepaid expenses | 532 | 527 |
Other assets | 34,722 | 32,120 |
Total assets | 128,219 | 114,018 |
Liabilities | ||
Other liabilities | 34,930 | 31,222 |
Total liabilities | 34,930 | 31,222 |
Disposal Group, Not Discontinued Operations, Transferrable Upon Sale To Entity | Insurance Agency Business | ||
Assets | ||
Cash | 66,507 | 69,161 |
Premises and equipment | 1,792 | 1,884 |
Bank-owned life insurance | 2,066 | 2,012 |
Deferred income taxes, net | 3,662 | 315 |
Other assets | 12,944 | 17,377 |
Total assets | 86,971 | 90,749 |
Liabilities | ||
Other liabilities | 14,013 | 18,497 |
Total liabilities | $ 14,013 | $ 18,497 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of the Operating Results of the Discontinued Insurance Agency Business (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noninterest expense: | |||
Income from discontinued operations before income tax expense | $ 18,458 | $ 12,717 | $ 19,262 |
Discontinued Operations, Held-for-Sale | Insurance Agency Business | |||
Noninterest income: | |||
Insurance commissions | 99,887 | 95,164 | 95,195 |
Other noninterest income | 179 | 1,014 | 199 |
Total noninterest income | 100,066 | 96,178 | 95,394 |
Noninterest expense: | |||
Salaries and employee benefits | 65,089 | 68,292 | 60,593 |
Office occupancy and equipment | 3,319 | 3,204 | 3,176 |
Data processing | 4,335 | 4,424 | 4,049 |
Professional services | 1,009 | 596 | 770 |
Marketing expenses | 246 | 241 | 152 |
Amortization of intangible assets | 2,666 | 2,293 | 2,261 |
Other | 4,944 | 4,411 | 5,131 |
Total noninterest expense | 81,608 | 83,461 | 76,132 |
Income from discontinued operations before income tax expense | 18,458 | 12,717 | 19,262 |
Income tax expense | 5,210 | 3,583 | 5,385 |
Income from discontinued operations, net of taxes | 13,248 | 9,134 | 13,877 |
Disposal Group, Not Discontinued Operations, Transferrable Upon Sale To Entity | Insurance Agency Business | |||
Noninterest income: | |||
(Losses) income from investments held in rabbi trusts | (1,305) | 937 | 1,293 |
Other noninterest income | 54 | 52 | 52 |
Total noninterest income | (1,251) | 989 | 1,345 |
Noninterest expense: | |||
Salaries and employee benefits | (1,292) | 967 | 1,098 |
Office occupancy and equipment | 499 | 501 | 511 |
Other | 2,396 | (2,151) | 64 |
Total noninterest expense | 1,603 | (683) | 1,673 |
Income from discontinued operations before income tax expense | (2,854) | 1,672 | (328) |
Income tax expense | (802) | 470 | (92) |
Income from discontinued operations, net of taxes | $ (2,052) | $ 1,202 | $ (236) |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Consideration (Details) - Insurance Agency Acquisition - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Other assets | $ 40 | $ 133 |
Total assets acquired | 6,600 | 2,163 |
Total cash paid | (13,400) | (4,354) |
Contingent consideration | (1,926) | (449) |
Other liabilities assumed | 0 | (355) |
Total fair value of consideration | (15,326) | (5,158) |
Goodwill | 8,726 | 2,995 |
Customer list intangible | ||
Business Acquisition [Line Items] | ||
Total assets acquired | 6,120 | 1,860 |
Non-compete intangible | ||
Business Acquisition [Line Items] | ||
Total assets acquired | $ 440 | $ 170 |
Parent Company Financial Stat_2
Parent Company Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||||
Goodwill and other intangibles, net | $ 568,009 | $ 569,207 | ||
Deferred income taxes, net | 331,963 | 76,089 | ||
Other assets | 426,863 | 423,958 | ||
Total assets | 22,646,858 | 23,512,128 | ||
Liabilities [Abstract] | ||||
Other liabilities | 424,951 | 411,965 | ||
Total liabilities | 20,175,068 | 20,105,776 | ||
Shareholders’ equity | ||||
Total shareholders’ equity | 2,471,790 | 3,406,352 | $ 3,428,052 | $ 1,600,153 |
Total liabilities and shareholders’ equity | 22,646,858 | 23,512,128 | ||
Parent Company | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 126,441 | 134,671 | ||
Goodwill and other intangibles, net | 744 | 744 | ||
Deferred income taxes, net | 13,182 | 17,974 | ||
Investment in subsidiaries | 2,327,521 | 3,250,133 | ||
Other assets | 4,557 | 3,080 | ||
Total assets | 2,472,445 | 3,406,602 | ||
Liabilities [Abstract] | ||||
Other liabilities | 655 | 250 | ||
Total liabilities | 655 | 250 | ||
Shareholders’ equity | ||||
Total shareholders’ equity | 2,471,790 | 3,406,352 | ||
Total liabilities and shareholders’ equity | 2,472,445 | 3,406,602 | ||
Other/Eliminations | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | $ 125,000 | $ 133,500 |
Parent Company Financial Stat_3
Parent Company Financial Statements - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses | |||
Professional services | $ 15,805 | $ 21,283 | $ 15,675 |
Charitable contributions | 0 | 0 | 95,272 |
Other | 26,238 | 6,313 | 23,239 |
Total noninterest expense | 388,649 | 360,955 | 429,491 |
Income tax expense (benefit) | 51,719 | 30,464 | 7,778 |
Net income | 199,759 | 154,665 | 22,738 |
Parent | |||
Income | |||
Interest income | 15 | 0 | 0 |
Expenses | |||
Professional services | 899 | 7,393 | 1,485 |
Charitable contributions | 0 | 0 | 91,287 |
Other | 3,070 | 222 | 151 |
Total noninterest expense | 3,969 | 7,615 | 92,923 |
Loss before income taxes and equity in undistributed income of subsidiaries | (3,954) | (7,615) | (92,923) |
Income tax expense (benefit) | 269 | (11,344) | (13,933) |
(Loss) income before equity in undistributed income of subsidiaries | (4,223) | 3,729 | (78,990) |
Equity in undistributed income of subsidiaries | 203,982 | 150,936 | 101,728 |
Net income | $ 199,759 | $ 154,665 | $ 22,738 |
Parents Company Financial Sta_2
Parents Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating activities | ||||
Net income | $ 199,759 | $ 154,665 | $ 22,738 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Share-based compensation | 10,507 | 0 | 0 | |
ESOP expense | 9,923 | 9,408 | 2,351 | |
Net cash provided by operating activities | 229,942 | 174,490 | 69,851 | |
Investing activities | ||||
Acquisitions, net of cash and cash equivalents acquired | 0 | (9,085) | 0 | |
Contributions to other equity investments | (788) | (2,519) | (4,395) | |
Net cash provided by (used in) investing activities | (1,076,655) | (1,985,744) | (2,390,183) | |
Financing activities | ||||
Proceeds from issuance of common shares | 0 | 0 | 1,792,878 | |
Payments for deferred offering costs | 0 | 0 | (28,552) | |
Payment of subordinated debentures assumed in business combination | [1] | 0 | (36,277) | 0 |
Payments for shares repurchased under share repurchase plans | (201,618) | (23,224) | 0 | |
Net cash (used in) provided by financing activities | (215,574) | 988,976 | 4,011,800 | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,062,287) | (822,278) | 1,691,468 | |
Cash, cash equivalents, and restricted cash at beginning of period | 1,231,792 | 2,054,070 | 362,602 | |
Cash, cash equivalents, and restricted cash at end of period | 169,505 | 1,231,792 | 2,054,070 | |
Parent | ||||
Operating activities | ||||
Net income | 199,759 | 154,665 | 22,738 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Equity in undistributed income of subsidiaries | (203,982) | (150,936) | (101,728) | |
Issuance of common shares donated to the Eastern Bank Foundation | 0 | 0 | 91,287 | |
Share-based compensation | 10,507 | 0 | 0 | |
ESOP expense | 9,923 | 9,408 | 2,351 | |
Deferred income taxes, net | 4,792 | (7,157) | (10,817) | |
Other, net | (937) | (388) | (350) | |
Net cash provided by operating activities | 20,062 | 5,592 | 3,481 | |
Investing activities | ||||
Investment in Eastern Bank | 0 | 0 | (882,096) | |
Acquisitions, net of cash and cash equivalents acquired | 0 | (640,890) | 0 | |
Return of investments in subsidiary | 240,000 | 140,000 | 0 | |
Contributions to other equity investments | (788) | 0 | 0 | |
Net cash provided by (used in) investing activities | 239,212 | (500,890) | (882,096) | |
Financing activities | ||||
Proceeds from issuance of common shares | 0 | 0 | 1,792,878 | |
Purchase of shares by ESOP | 0 | 0 | (149,407) | |
Payments for deferred offering costs | 0 | 0 | (28,552) | |
Payment of subordinated debentures assumed in business combination | 0 | (36,277) | 0 | |
Payments for shares repurchased under share repurchase plans | (201,618) | (23,224) | 0 | |
Dividends declared and paid to common shareholders | (65,886) | (51,564) | 0 | |
Net cash (used in) provided by financing activities | (267,504) | (111,065) | 1,614,919 | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (8,230) | (606,363) | 736,304 | |
Cash, cash equivalents, and restricted cash at beginning of period | 134,671 | 741,034 | 4,730 | |
Cash, cash equivalents, and restricted cash at end of period | $ 126,441 | $ 134,671 | $ 741,034 | |
[1]The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be a defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition and is reflected as such balance in the summary of net assets acquired included in Note 3 to the Consolidated Financial Statements. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt. |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 08, 2023 | Sep. 19, 2023 | |
Subsequent Event [Line Items] | ||||||||||
Proceeds from sales of securities available for sale | $ 1,900,000 | $ 431,193 | $ 23,798 | $ 9,097 | ||||||
(Losses) gains on sales of securities available for sale, net | (333,200) | (3,157) | 1,166 | 288 | ||||||
Deferred tax asset valuation allowance | $ 17,400 | $ 17,400 | 0 | 700 | 12,000 | |||||
Deferred state income tax benefit | $ 23,700 | |||||||||
Noninterest expense | 388,649 | 360,955 | 429,491 | |||||||
Net decrease in operating lease right of use assets and operating lease liabilities relating to lease remeasurements | 14,836 | $ 0 | $ 0 | |||||||
Operating lease, impairment loss | $ 600 | |||||||||
Cambridge | Forecast | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Entity shares issued per acquiree share (in shares) | 4.956 | |||||||||
Equity interest issuable, number of shares (in shares) | 39,400,000 | |||||||||
Share price (in dollars per share) | $ 13.41 | |||||||||
Business combination, consideration transferred | $ 528,100 | |||||||||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Net cash consideration | $ 498,100 | |||||||||
Gross cash consideration | 515,000 | $ 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 | |||||||||
Net decrease in operating lease right of use assets and operating lease liabilities relating to lease remeasurements | $ 6,400 | |||||||||
Operating lease, impairment loss | $ 2,000 | |||||||||
Discontinued Operations, Held-for-Sale | Insurance Agency Business | 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 | Maximum | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Estimated curtailment gain at the time of the amendments to the Plans | $ 18,000 |
Uncategorized Items - _IXDS
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |