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Loans and Leases
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Loans and Leases Loans and Leases
The following table presents the major types of loans and leases, net of deferred fees and costs, as of the dates presented: 
(in millions)September 30, 2025December 31, 2024
Commercial real estate  
Non-owner occupied term$8,444 $6,278 
Owner occupied term7,361 5,270 
Multifamily10,377 5,804 
Construction & development2,071 1,983 
Residential development367 232 
Commercial
Term6,590 5,538 
Lines of credit & other3,582 2,770 
Leases & equipment finance1,614 1,661 
Residential
Mortgage5,722 5,933 
Home equity loans & lines2,153 2,032 
Consumer & other181 180 
Total loans and leases, net of deferred fees and costs$48,462 $37,681 
 
The Company elected to exclude accrued interest receivable from the amortized cost basis of loans and leases disclosed throughout this note. Interest accrued on loans and leases totaled $191 million and $148 million as of September 30, 2025 and December 31, 2024, respectively, and is included in other assets on the Condensed Consolidated Balance Sheets. As of September 30, 2025, loans totaling $31.0 billion were pledged to secure borrowings and available lines of credit, compared to $22.0 billion as of December 31, 2024.

As of September 30, 2025 and December 31, 2024, the net deferred fees and costs were $58 million and $62 million, respectively. Total loans and leases also include discounts on acquired loans of $760 million and $439 million as of September 30, 2025 and December 31, 2024, respectively. Originated loans and leases are reported at the principal amount outstanding, net of 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. The outstanding contractual unpaid principal balance of PCD loans, excluding acquisition accounting adjustments, was $569 million and $200 million as of September 30, 2025 and December 31, 2024, respectively. The carrying balance of PCD loans was $506 million and $179 million as of September 30, 2025 and December 31, 2024, 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 years to five years. Interest income recognized on these leases was $6 million and $17 million for the three and nine months ended September 30, 2025, respectively, as compared to $6 million and $16 million for the nine months ended September 30, 2024, respectively.

In connection with the acquisition of Pacific Premier, the Company obtained Freddie Mac-guaranteed structured pass-through certificates from a securitization of $509 million in multifamily loans. The Company's ongoing involvement includes sub-servicing duties, representations and warranties, and reimbursement obligations. As sub-servicer, the Company collects and remits payments, manages taxes and insurance, and administers loans, except for foreclosed or defaulted loans, which are handled by an independent special servicer. The master servicer, Freddie Mac, may terminate the Company's sub-servicing role at its discretion. If the resolution of defaulted loans results in payment shortfalls, the Company must reimburse Freddie Mac up to 10% of the original securitization pool principal. The total multifamily loan balances transferred through securitization with Freddie Mac was $32 million at September 30, 2025.