
(in millions)	June 30, 2026		December 31, 2025
Commercial real estate
Non-owner occupied term	$	7,584	$	8,206
Owner occupied term	7,405		7,314
Multifamily	10,122		10,281
Construction & development	1,529		1,707
Residential development	369		362
Commercial
Term	7,004		6,713
Lines of credit & other	3,794		3,643
Leases & equipment finance	1,617		1,599
Residential
Mortgage	5,402		5,624
Home equity loans & lines	2,176		2,149
Consumer & other	164		178
Total loans and leases, net of deferred fees and costs	$	47,166	$	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 $181 million and $186 million as of June 30, 2026 and December 31, 2025, respectively, and is included in other assets on the Consolidated Balance Sheets. As of June 30, 2026, loans totaling $29.9 billion were pledged to secure borrowings and available lines of credit, compared to $30.6 billion as of December 31, 2025.

As of June 30, 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, partial charge-offs, and interest applied to principal. Total loans and leases also include discounts on acquired loans of $622 million and $707 million as of June 30, 2026 and December 31, 2025, respectively.

Purchased loans are recorded at fair value at the date of purchase. The Company evaluates purchased loans to determine whether they have experienced more-than-insignificant deterioration since origination. 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 $428 million and $473 million as of June 30, 2026 and December 31, 2025, respectively. The carrying balance of PCD loans was $372 million and $416 million as of June 30, 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 $5 million and $11 million for the three and six months ended June 30, 2026, respectively, as compared to $6 million and $11 million for the three and six months ended June 30, 2025, respectively.