3. Loans and Leases

As of March 31, 2019 and December 31, 2018, loans and leases were comprised of the following:


	March 31,		December 31,
(dollars in thousands)	2019		2018
Commercial and industrial	$	3,203,770	$	3,208,760
Commercial real estate		3,147,304		2,990,783
Construction		595,491		626,757
Residential:
Residential mortgage		3,543,964		3,527,101
Home equity line		907,829		912,517
Total residential		4,451,793		4,439,618
Consumer		1,653,109		1,662,504
Lease financing		145,987		147,769
Total loans and leases	$	13,197,454	$	13,076,191

Outstanding loan balances are reported net of net deferred loan costs of $37.3 million and $36.3 million at March 31, 2019 and December 31, 2018, respectively.

As of March 31, 2019, residential real estate loans totaling $2.6 billion were pledged to collateralize the Company’s borrowing capacity at the Federal Home Loan Bank of Des Moines (“FHLB”), and consumer and commercial and industrial loans totaling $937.4 million were pledged to collateralize the Company’s borrowing capacity at the Federal Reserve Bank of San Francisco (“FRB”). As of December 31, 2018, residential real estate loans totaling $2.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer and commercial and industrial loans totaling $957.0 million were pledged to collateralize the Company’s borrowing capacity at the FRB. Residential real estate loans collateralized by properties that were in the process of foreclosure totaled $4.9 million and $4.6 million at March 31, 2019 and December 31, 2018, respectively.

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 Company’s 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.

At March 31, 2019 and December 31, 2018, remaining loan and lease commitments were comprised of the following:


	March 31,		December 31,
(dollars in thousands)	2019		2018
Commercial and industrial	$	2,384,738	$	2,484,857
Commercial real estate		132,701		114,186
Construction		529,679		526,938
Residential:
Residential mortgage		479		121
Home equity line		894,162		913,636
Total residential		894,641		913,757
Consumer		1,527,217		1,509,853
Total loan and lease commitments	$	5,468,976	$	5,549,591