Loans and Leases

9 Months Ended

Sep. 30, 2021

The following table presents the major types of loans and leases, net of deferred fees and costs, as of September 30, 2021 and December 31, 2020:


(in thousands)	September 30, 2021		December 31, 2020
Commercial real estate
Non-owner occupied term, net	$	3,561,764	$	3,505,802
Owner occupied term, net	2,330,338		2,333,945
Multifamily, net	3,813,024		3,349,196
Construction & development, net	882,778		828,478
Residential development, net	177,148		192,761
Commercial
Term, net	3,159,466		4,024,467
Lines of credit & other, net	930,350		862,760
Leases & equipment finance, net	1,457,248		1,456,630
Residential
Mortgage, net	4,330,860		3,871,906
Home equity loans & lines, net	1,133,823		1,136,064
Consumer & other, net	193,141		217,358
Total loans and leases, net of deferred fees and costs	$	21,969,940	$	21,779,367

As of September 30, 2021 and December 31, 2020, the net deferred costs were $47.7 million and $38.6 million, respectively. The Bank participated in the PPP to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. As of September 30, 2021, the Bank had approximately 7,500 PPP loans, totaling $726.7 million in net loans, which are classified as commercial term loans in the table above. As of December 31, 2020, the Bank had approximately 15,000 PPP loans totaling $1.8 billion in net loans. Net deferred costs for the loan portfolio include the net deferred fees for the origination of PPP loans of $21.2 million and $26.9 million as of September 30, 2021 and December 31, 2020, respectively. The PPP net deferred fees and costs are a yield adjustment over the remaining term of these loans. The loans are fully guaranteed by the SBA and the maximum term of the loans is either two or five years; however, the majority of the loan balances are expected to be forgiven by the SBA, which will accelerate the recognition of these net deferred fees at the forgiveness date.

Total loans and leases also include discounts on acquired loans of $11.4 million and $17.9 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, loans totaling $14.4 billion were pledged to secure borrowings and available lines of credit. The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. Interest accrued on loans totaled $63.3 million and $74.8 million as of September 30, 2021 and December 31, 2020, respectively, and is included in Other Assets.

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 lease and equipment finance segment within the loans and leases, net line item. These leases typically have terms of three to five years and are considered to be direct financing leases. Interest income recognized on these leases was $6.1 million and $17.3 million for the three and nine months ended September 30, 2021, respectively, as compared to $6.7 million and $20.5 million for the three and nine months ended September 30, 2020, respectively.

Loans and leases sold

In the course of managing the loan and lease portfolio, management may decide to sell loans and leases. The following table summarizes the carrying value of loans and leases sold by major loan type during the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Commercial real estate
Non-owner occupied term, net	$	14,828	$	3,009	$	38,124	$	12,767
Owner occupied term, net	12,692		6,138		25,115		15,330
Multifamily, net	—		—		3,776		—


Commercial
Term, net	10,866		8,628		39,180		28,780
Lines of credit & other, net	—		159		—		159
Leases & equipment finance, net	—		—		—		43
Residential
Mortgage, net	—		365		1,712		365

Consumer & other	—		—		63,799		—
Total loans and leases sold, net	$	38,386	$	18,299	$	171,706	$	57,444