Loans and Leases

12 Months Ended

Dec. 31, 2024

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


(in thousands)	December 31, 2024		December 31, 2023
Commercial real estate
Non-owner occupied term, net	$	6,278,154	$	6,482,940
Owner occupied term, net	5,270,294		5,195,605
Multifamily, net	5,804,364		5,704,734
Construction & development, net	1,983,213		1,747,302
Residential development, net	231,647		323,899
Commercial
Term, net	5,537,618		5,536,765
Lines of credit & other, net	2,769,643		2,430,127
Leases & equipment finance, net	1,660,835		1,729,512
Residential
Mortgage, net	5,933,352		6,157,166
Home equity loans & lines, net	2,031,653		1,938,166
Consumer & other, net	180,128		195,735
Total loans and leases, net of deferred fees and costs	$	37,680,901	$	37,441,951

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this note. Interest accrued on loans totaled $148.0 million and $154.9 million as of December 31, 2024 and December 31, 2023, respectively, and is included in other assets on the Consolidated Balance Sheets. As of December 31, 2024, loans totaling $22.0 billion were pledged to secure borrowings and available lines of credit.

As of December 31, 2024 and December 31, 2023, the net deferred fees and costs were $62.0 million and $71.8 million, respectively. Originated loans are reported at the principal amount outstanding, net of unearned interest, deferred fees and costs, any partial charge-offs recorded, and interest applied to principal. Purchased loans are recorded at fair value at the date of purchase. 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 loans and leases also include discounts on acquired loans of $439.0 million and $552.5 million as of December 31, 2024 and December 31, 2023, respectively. The outstanding contractual unpaid principal balance of PCD loans, excluding acquisition accounting adjustments, was $199.9 million and $331.9 million as of December 31, 2024 and December 31, 2023, respectively. The carrying balance of PCD loans was $178.5 million and $300.2 million as of December 31, 2024 and December 31, 2023, respectively.

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 $21.4 million for the year ended December 31, 2024, as compared to $18.8 million for both the years ended December 31, 2023 and 2022.

Residual values on leases are established at the time equipment is leased based on an estimate of the value of the leased equipment when the Company expects to dispose of the equipment, typically at the termination of the lease. An annual evaluation is also performed each fiscal year by an independent valuation specialist and equipment residuals are confirmed or adjusted in conjunction with such evaluation.

The following table presents the net investment in direct financing leases as of the dates presented:


(in thousands)	December 31, 2024		December 31, 2023
Minimum lease payments receivable	$	365,125	$	362,152
Estimated guaranteed & unguaranteed residual value	68,977		74,880
Initial direct costs - net of accumulated amortization	4,257		5,373
Unearned income	(52,830)		(48,433)
Net investment in direct financing leases	$	385,529	$	393,972

The following table presents the scheduled minimum lease payments receivable as of December 31, 2024:


(in thousands)
Year	Amount
2025	$	114,176
2026	92,988
2027	71,947
2028	46,924
2029	20,746
Thereafter	18,344
Total minimum lease payments receivable	$	365,125

In the course of managing the loan and lease portfolio, at certain times, management may decide to sell pools of loans and leases. For the years ended December 31, 2024 and 2023, the Bank sold a total of $148.5 million and $743.9 million, respectively, in loans from its portfolio.