Loans and Leases

6 Months Ended

Jun. 30, 2021

Loans and Leases.

Loans and Leases

3. Loans and Leases

As of June 30, 2021 and December 31, 2020, loans and leases were comprised of the following:

	June 30,		December 31,
(dollars in thousands)	2021		2020
Commercial and industrial	$	2,564,547	$	3,019,507
Commercial real estate		3,528,068		3,392,676
Construction		853,865		735,819
Residential:
Residential mortgage		3,821,407		3,690,218
Home equity line		825,368		841,624
Total residential		4,646,775		4,531,842
Consumer		1,267,559		1,353,842
Lease financing		242,971		245,411
Total loans and leases	$	13,103,785	$	13,279,097

Outstanding loan balances are reported net of deferred loan costs and fees of $20.4 million and $26.1 million at June 30, 2021 and December 31, 2020, respectively.

Accrued interest receivable related to loans and leases was $55.1 million and $59.0 million as of June 30, 2021 and December 31, 2020, respectively, and is recorded separately from the amortized cost basis of loans and leases on the Company’s unaudited interim consolidated balance sheets.

As of June 30, 2021, 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, commercial and industrial, commercial real estate and residential real estate loans totaling $1.9 billion were pledged to collateralize the Company’s borrowing capacity at the Federal Reserve Bank of San Francisco (“FRB”). 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 Company’s borrowing capacity at the FRB. Residential real estate loans collateralized by properties that were in the process of foreclosure totaled $2.6 million and $2.3 million as of June 30, 2021 and December 31, 2020, 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 strength and stability of the state or territories, which affects property values, and the financial strength and creditworthiness of the borrowers.