Loans and Leases

3 Months Ended

Mar. 31, 2024

Loans and Leases

Loans and Leases

3. Loans and Leases

As of March 31, 2024 and December 31, 2023, loans and leases were comprised of the following:

	March 31,		December 31,
(dollars in thousands)	2024		2023
Commercial and industrial	$	2,189,875	$	2,165,349
Commercial real estate		4,301,300		4,340,243
Construction		972,517		900,292
Residential:
Residential mortgage		4,242,502		4,283,315
Home equity line		1,165,778		1,174,588
Total residential		5,408,280		5,457,903
Consumer		1,054,227		1,109,901
Lease financing		394,009		379,809
Total loans and leases	$	14,320,208	$	14,353,497

Outstanding loan balances are reported net of deferred loan costs and fees of $56.9 million and $57.5 million at March 31, 2024 and December 31, 2023, respectively.

Accrued interest receivable related to loans and leases was $71.4 million and $70.1 million as of March 31, 2024 and December 31, 2023, 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 March 31, 2024, residential real estate loans and commercial real estate loans totaling $5.0 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, residential real estate loans and pledged securities totaling $3.9 billion were pledged to collateralize the borrowing capacity at the Federal Reserve Bank of San Francisco (“FRB”). As of December 31, 2023, residential real estate loans and commercial real estate loans totaling $4.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities totaling $4.3 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 $7.8 million and $6.9 million as of March 31, 2024 and December 31, 2023, 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.