Loans and Leases

12 Months Ended

Dec. 31, 2020

Loans and Leases.

Loans and Leases

4. Loans and Leases

As of December 31, 2020 and 2019, loans and leases were comprised of the following:

	December 31,
(dollars in thousands)	2020		2019
Commercial and industrial	$	3,019,507	$	2,743,242
Commercial real estate		3,392,676		3,463,953
Construction		735,819		519,241
Residential:
Residential mortgage		3,690,218		3,768,936
Home equity line		841,624		893,239
Total residential		4,531,842		4,662,175
Consumer		1,353,842		1,620,556
Lease financing		245,411		202,483
Total loans and leases	$	13,279,097	$	13,211,650

Outstanding loan balances are reported net of deferred loan costs and fees of $26.1 million and $41.0 million at December 31, 2020 and 2019, respectively.

As of December 31, 2020, residential real estate loans totaling $2.9 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate and residential mortgage loans totaling $1.9 billion were pledged to collateralize the borrowing capacity at the FRB. As of December 31, 2019, residential real estate loans totaling $2.9 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial and commercial real estate loans totaling $953.2 million 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 $2.3 million and $4.1 million at December 31, 2020 and 2019, respectively.

Net gains related to the sales of loans, recorded as a component of other noninterest income, were $14.5 million for the year ended December 31, 2020. Net losses related to the sales of loans, recorded as a component of other noninterest income, were $1.3 million and $0.2 million for the years ended December 31, 2019 and 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 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.