Loans and Leases

The following table presents the major types of loans and leases, net of deferred fees and costs, as of September 30, 2015 and December 31, 2014:



(in thousands)	September 30,		December 31,
	2015		2014
Commercial real estate
Non-owner occupied term, net	$	3,148,288	$	3,290,610
Owner occupied term, net	2,655,340		2,633,864
Multifamily, net	2,961,609		2,638,618
Construction & development, net	287,757		258,722
Residential development, net	94,380		81,846
Commercial
Term, net	1,398,346		1,396,089
LOC & other, net	1,014,523		1,029,620
Leases and equipment finance, net	679,033		523,114
Residential
Mortgage, net	2,740,228		2,233,735
Home equity loans & lines, net	910,287		852,478
Consumer & other, net	498,143		389,036
Total loans and leases, net of deferred fees and costs	$	16,387,934	$	15,327,732

The loan balances are net of deferred fees and costs of $42.8 million and $26.3 million as of September 30, 2015 and December 31, 2014, respectively. Net loans include discounts on acquired loans of $131.9 million and $236.6 million as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, loans totaling $9.4 billion were pledged to secure borrowings and available lines of credit.

The outstanding contractual unpaid principal balance of purchased impaired loans, excluding acquisition accounting adjustments, was $599.2 million and $770.9 million at September 30, 2015 and December 31, 2014, respectively. The carrying balance of purchased impaired loans was $448.1 million and $562.9 million at September 30, 2015 and December 31, 2014, respectively.

The following table presents the changes in the accretable yield for purchased impaired loans for the three and nine months ended September 30, 2015 and 2014:



(in thousands)	Three Months Ended
	September 30, 2015
	Evergreen			Rainier			Nevada Security			Circle			Sterling			Total
Balance, beginning of period	$	7,057		$	43,242		$	17,453		$	422		$	97,188		$	165,362
Accretion to interest income	(1,228		)	(3,585		)	(2,107		)	(56		)	(7,456		)	(14,432		)
Disposals	(844		)	(1,468		)	(1,230		)	(69		)	(2,958		)	(6,569		)
Reclassifications from nonaccretable difference	745			872			1,992			—			1,676			5,285
Balance, end of period	$	5,730		$	39,061		$	16,108		$	297		$	88,450		$	149,646

	Three Months Ended
	September 30, 2014
	Evergreen			Rainier			Nevada Security			Circle			Sterling			Total
Balance, beginning of period	$	10,576		$	56,609		$	27,837		$	965		$	104,540		$	200,527
Additions	—			—			—			—			—			—
Accretion to interest income	(1,546		)	(4,134		)	(2,798		)	(36		)	(9,743		)	(18,257		)
Disposals	(320		)	(1,051		)	(1,352		)	—			(4,111		)	(6,834		)
Reclassifications from (to) nonaccretable difference	2,213			3,260			728			(49		)	2,843			8,995
Balance, end of period	$	10,923		$	54,684		$	24,415		$	880		$	93,529		$	184,431

(in thousands)	Nine Months Ended
	September 30, 2015
	Evergreen			Rainier			Nevada Security			Circle			Sterling			Total
Balance, beginning of period	$	9,466		$	49,989		$	23,666		$	796		$	117,782		$	201,699
Accretion to interest income	(3,748		)	(10,522		)	(6,822		)	(205		)	(21,567		)	(42,864		)
Disposals	(3,227		)	(4,081		)	(3,295		)	(331		)	(10,891		)	(21,825		)
Reclassifications from nonaccretable difference	3,239			3,675			2,559			37			3,126			12,636
Balance, end of period	$	5,730		$	39,061		$	16,108		$	297		$	88,450		$	149,646

	Nine Months Ended
	September 30, 2014
	Evergreen			Rainier			Nevada Security			Circle			Sterling			Total
Balance, beginning of period	$	20,063		$	71,789		$	34,632		$	1,140		$	—		$	127,624
Additions	—			—			—			—			110,757			110,757
Accretion to interest income	(9,998		)	(14,671		)	(11,792		)	(211		)	(15,645		)	(52,317		)
Disposals	(5,061		)	(9,658		)	(5,258		)	—			(4,426		)	(24,403		)
Reclassifications from (to) nonaccretable difference	5,919			7,224			6,833			(49		)	2,843			22,770
Balance, end of period	$	10,923		$	54,684		$	24,415		$	880		$	93,529		$	184,431

Loans acquired in an FDIC-assisted acquisition that are subject to a loss-share agreement are referred to as covered loans. Covered loans are reported exclusive of the cash flow reimbursements expected from the FDIC. The following table summarizes the activity related to the FDIC indemnification asset for the three and nine months ended September 30, 2015 and 2014:



(in thousands)	Three Months ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	432		$	11,293		$	4,417		$	23,174
Change in FDIC indemnification asset	1,432			(2,728		)	(1,053		)	(13,169		)
Transfers to due from FDIC and other	(972		)	(754		)	(2,472		)	(2,194		)
Balance, end of period	$	892		$	7,811		$	892		$	7,811

Loans and leases sold

In the course of managing the loan and lease portfolio, at certain times, management may decide to sell loans and leases. The following table summarizes loans and leases sold by loan portfolio during the three and nine months ended September 30, 2015 and 2014:



(in thousands)	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Commercial real estate
Non-owner occupied term, net	$	—	$	—	$	7,181	$	14,799
Owner occupied term, net	20,003		22,884		39,963		71,128
Multifamily, net	—		35,306		435		60,508
Construction & development, net	—		—		—		566
Residential development, net	—		—		—		800
Commercial
Term, net	1,079		4,199		4,499		30,068
LOC & other, net	—		299		—		5,361
Residential
Mortgage, net	54,938		54,917		173,371		60,951
Home equity loans & lines. net	—		—		—		24,445
Consumer & other, net	—		—		—		7,344
Total, net of deferred fees and costs	$	76,020	$	117,605	$	225,449	$	275,970