Loans and Leases

3 Months Ended

Mar. 31, 2023

The following table presents the major types of loans and leases, net of deferred fees and costs, as of March 31, 2023 and December 31, 2022:


(in thousands)	March 31, 2023		December 31, 2022
Commercial real estate
Non-owner occupied term, net	$	6,353,550	$	3,894,840
Owner occupied term, net	5,156,848		2,567,761
Multifamily, net	5,590,587		5,285,791
Construction & development, net	1,467,561		1,077,346
Residential development, net	440,667		200,838
Commercial
Term, net	5,906,774		3,029,547
Lines of credit & other, net	2,184,762		960,054
Leases & equipment finance, net	1,746,267		1,706,172
Residential
Mortgage, net	6,187,964		5,647,035
Home equity loans & lines, net	1,870,002		1,631,965
Consumer & other, net	186,298		154,632
Total loans and leases, net of deferred fees and costs	$	37,091,280	$	26,155,981

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. Interest accrued on loans totaled $139.0 million and $86.8 million as of March 31, 2023 and December 31, 2022, respectively, and is included in Other Assets. As of March 31, 2023, loans totaling $19.0 billion were pledged to secure borrowings and available lines of credit.

Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded. Purchased loans are recorded at fair value at the date of purchase. As of March 31, 2023 and December 31, 2022, the net deferred fees and costs were $83.7 million and $84.7 million, respectively.

The Company evaluates purchased loans for more-than-insignificant deterioration at the date of purchase. Purchased loans that have experienced more-than-insignificant deterioration from origination are considered PCD loans. All other purchased loans are considered non-PCD loans. Total discounts on acquired loans were $711.7 million and $6.1 million as of March 31, 2023 and December 31, 2022, respectively. The outstanding contractual unpaid principal balance of PCD loans, excluding acquisition accounting adjustments, was $520.7 million as of March 31, 2023. The carrying balance of PCD loans was $467.8 million at March 31, 2023.

The Bank, through its commercial equipment leasing subsidiary, FinPac, is a provider of commercial equipment leasing and financing. Direct finance leases are included within the leases and equipment finance segment within the loans and leases, net line item. These direct financing leases typically have terms of three to five years. Interest income recognized on these leases was $4.7 million for the three months ended March 31, 2023, as compared to $5.1 million for the three months ended March 31, 2022.