v3.26.1
Loans and Leases
3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and Leases Loans and Leases
The following table presents the major types of loans and leases, net of deferred fees and costs, as of the dates presented: 
(in millions)March 31, 2026December 31, 2025
Commercial real estate  
Non-owner occupied term$8,113 $8,206 
Owner occupied term7,258 7,314 
Multifamily10,173 10,281 
Construction & development1,670 1,707 
Residential development373 362 
Commercial
Term6,887 6,713 
Lines of credit & other3,804 3,643 
Leases & equipment finance1,619 1,599 
Residential
Mortgage5,483 5,624 
Home equity loans & lines2,147 2,149 
Consumer & other170 178 
Total loans and leases, net of deferred fees and costs$47,697 $47,776 
 
The Company elected to exclude accrued interest receivable from the amortized cost basis of loans and leases disclosed throughout this note. Interest accrued on loans and leases totaled $188 million and $186 million as of March 31, 2026 and December 31, 2025, respectively, and is included in other assets on the Consolidated Balance Sheets. As of March 31, 2026, loans totaling $30.3 billion were pledged to secure borrowings and available lines of credit, compared to $30.6 billion as of December 31, 2025.

As of March 31, 2026 and December 31, 2025, the net deferred fees and costs were $57 million and $54 million, respectively. Originated loans and leases are reported at the principal amount outstanding, net of deferred fees and costs, any partial charge-offs recorded, and interest applied to principal. Total loans and leases also include discounts on acquired loans of $666 million and $707 million as of March 31, 2026 and December 31, 2025, respectively.

Purchased loans are recorded at fair value at the date of purchase. 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. The outstanding contractual unpaid principal balance of PCD loans, excluding acquisition accounting adjustments, was $467 million and $473 million as of March 31, 2026 and December 31, 2025, respectively. The carrying balance of PCD loans was $411 million and $416 million as of March 31, 2026 and December 31, 2025, respectively.

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 years to five years. Interest income recognized on these leases was $6 million for both the three months ended March 31, 2026 and March 31, 2025.