Loans and Leases

12 Months Ended

Dec. 31, 2022

Loans and Leases.

Loans and Leases

4. Loans and Leases

As of December 31, 2022 and 2021, loans and leases were comprised of the following:

	December 31,		December 31,
(dollars in thousands)	2022		2021
Commercial and industrial	$	2,235,897	$	2,087,099
Commercial real estate		4,132,309		3,639,623
Construction		844,643		813,969
Residential:
Residential mortgage		4,302,788		4,083,367
Home equity line		1,055,351		876,608
Total residential		5,358,139		4,959,975
Consumer		1,222,934		1,229,939
Lease financing		298,090		231,394
Total loans and leases	$	14,092,012	$	12,961,999

Outstanding loan balances are reported net of deferred loan costs and fees of $56.1 million and $42.2 million at December 31, 2022 and 2021, respectively.

Accrued interest receivable related to loans and leases was $61.6 million and $49.0 million as of December 31, 2022 and 2021, respectively, and is recorded separately from the amortized cost basis of loans and leases on the Company’s consolidated balance sheets.

As of December 31, 2022, residential real estate loans totaling $3.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate and residential real estate loans totaling $1.7 billion were pledged to collateralize the borrowing capacity at the FRB. As of December 31, 2021, residential real estate loans totaling $2.4 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate and residential real estate loans totaling $1.7 billion 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 $2.8 million and $4.7 million at December 31, 2022 and 2021, respectively.

Net losses related to the sales of loans, recorded as a component of other noninterest income, were nil for the year ended December 31, 2022. Net gains related to the sales of loans, recorded as a component of other noninterest income, were $1.3 million and $14.5 million for the years ended December 31, 2021 and 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 stability of the state or territories, which affects property values, and the financial strength and creditworthiness of the borrowers.