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Loans and Leases

12 Months Ended

Dec. 31, 2023

4. Loans and Leases

As of December 31, 2023 and 2022, loans and leases were comprised of the following:


	December 31,		December 31,
(dollars in thousands)	2023		2022
Commercial and industrial	$	2,165,349	$	2,235,897
Commercial real estate		4,340,243		4,132,309
Construction		900,292		844,643
Residential:
Residential mortgage		4,283,315		4,302,788
Home equity line		1,174,588		1,055,351
Total residential		5,457,903		5,358,139
Consumer		1,109,901		1,222,934
Lease financing		379,809		298,090
Total loans and leases	$	14,353,497	$	14,092,012

Outstanding loan balances are reported net of deferred loan costs and fees of $57.5 million and $56.1 million at December 31, 2023 and 2022, respectively.

Accrued interest receivable related to loans and leases was $70.1 million and $61.6 million as of December 31, 2023 and 2022, respectively, and is recorded separately from the amortized cost basis of loans and leases on the Company’s consolidated balance sheets.

As of December 31, 2023, residential real estate loans and commercial real estate loans totaling $4.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities totaling $4.3 billion were pledged to collateralize the borrowing capacity at the FRB. As of December 31, 2022, residential real estate loans totaling $3.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate and residential real estate loans totaling $1.7 billion were pledged to collateralize the borrowing capacity at the FRB. Residential real estate loans collateralized by properties that were in the process of foreclosure totaled $6.9 million and $2.8 million at December 31, 2023 and 2022, respectively.

Net gains related to the sales of loans, recorded as a component of other noninterest income, were $0.2 million and $1.3 million for the years ended December 31, 2023 and 2021, respectively. Net losses related to the sales of loans, recorded as a component of other noninterest income, were nil for the year ended December 31, 2022.

In the course of evaluating the credit risk presented by a customer and the pricing that will adequately compensate the Company for assuming that risk, management may require a certain amount of collateral support. The type of collateral held varies, but may include accounts receivable, inventory, land, buildings, equipment, income-producing commercial properties and residential real estate. The Company applies the same collateral policy for loans whether they are funded immediately or on a delayed basis. The loan and lease portfolio is principally located in Hawaii and, to a lesser extent, on the U.S. Mainland, Guam and Saipan. The risk inherent in the portfolio depends upon both the economic stability of the state or territories, which affects property values, and the financial strength and creditworthiness of the borrowers.