Loans and Leases

6 Months Ended

Jun. 30, 2023

The following table presents the major types of loans and leases, net of deferred fees and costs, as of the dates presented:


(in thousands)	June 30, 2023		December 31, 2022
Commercial real estate
Non-owner occupied term, net	$	6,434,673	$	3,894,840
Owner occupied term, net	5,254,401		2,567,761
Multifamily, net	5,622,875		5,285,791
Construction & development, net	1,528,924		1,077,346
Residential development, net	388,641		200,838
Commercial
Term, net	5,449,787		3,029,547
Lines of credit & other, net	2,268,790		960,054
Leases & equipment finance, net	1,740,037		1,706,172
Residential
Mortgage, net	6,272,898		5,647,035
Home equity loans & lines, net	1,898,958		1,631,965
Consumer & other, net	189,315		154,632
Total loans and leases, net of deferred fees and costs	$	37,049,299	$	26,155,981

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. Interest accrued on loans totaled $140.5 million and $86.8 million as of June 30, 2023 and December 31, 2022, respectively, and is included in Other Assets. As of June 30, 2023, loans totaling $20.7 billion were pledged to secure borrowings and available lines of credit.

Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded. Purchased loans are recorded at fair value at the date of purchase. As of June 30, 2023 and December 31, 2022, the net deferred fees and costs were $79.8 million and $84.7 million, respectively.

The Company evaluates purchased loans for more-than-insignificant deterioration at the date of purchase. Purchased loans that have experienced more-than-insignificant deterioration from origination are considered PCD loans. All other purchased loans are considered non-PCD loans. Total discounts on acquired loans were $656.9 million and $6.1 million as of June 30, 2023 and December 31, 2022, respectively. The outstanding contractual unpaid principal balance of PCD loans, excluding acquisition accounting adjustments, was $425.4 million as of June 30, 2023. The carrying balance of PCD loans was $381.6 million at June 30, 2023.

In the course of managing the loan and lease portfolio, at certain times, management may decide to sell pools of loans and leases. As of June 30, 2023, the Bank sold $372.8 million in commercial loans and transferred an additional $118.1 million in commercial and commercial real estate loans to loans held for sale, as the sale had not been completed prior to June 30, 2023.

The Bank, through its commercial equipment leasing subsidiary, FinPac, is a provider of commercial equipment leasing and financing. Direct finance leases are included within the leases and equipment finance segment within the loans and leases, net line item. These direct financing leases typically have terms of three to five years. Interest income recognized on these leases was $4.7 million and $9.4 million for the three and six months ended June 30, 2023, respectively, as compared to $4.7 million and $9.8 million for the three and six months ended June 30, 2022, respectively.