6. LOANS

The following table shows our loan portfolio by category:



	December 31,
(Dollars in thousands)	2018		2017
Commercial and industrial	$	1,472,489	$	1,464,554
Owner-occupied commercial	1,059,974		1,079,247
Commercial mortgages	1,162,739		1,187,705
Construction	316,566		281,608
Residential real estate⁽¹⁾	218,099		253,301
Consumer	680,939		558,493
	4,910,806		4,824,908
Less:
Deferred fees, net	7,348		7,991
Allowance for loan losses	39,539		40,599
Net loans	$	4,863,919	$	4,776,318


(1)	Includes reverse mortgages, at fair value of $16.5 million and $19.8 million at December 31, 2018 and 2017, respectively.

Nonaccruing loans totaled $30.1 million and $36.4 million at December 31, 2018 and 2017, respectively. If interest on all such loans had been recorded in accordance with contractual terms, net interest income would have increased by $2.0 million and $1.8 million in 2018 and 2017, respectively.

The total amounts of loans serviced for others were $98.6 million and $102.5 million at December 31, 2018 and 2017, respectively, which consisted of residential first mortgage loans and reverse mortgage loans. We received fees from the servicing of loans of $0.5 million and $0.4 million during 2018 and 2017, respectively.

We record mortgage servicing rights on our mortgage loan servicing portfolio, which includes mortgages that we acquire or originate as well as mortgages that we service for others, and servicing rights on SBA loans. Mortgage servicing rights and Small Business Administration (SBA) loan servicing rights are included are in Intangible assets in the accompanying Consolidated Statements of Financial Condition. Mortgage loans which we service for others are not included in Loans, net of allowance for loan losses in the accompanying Consolidated Statements of Financial Condition. Servicing rights represent the present value of the future net servicing fees from servicing mortgage loans we acquire or originate, or that we service for others. The value of our mortgage servicing rights was $0.3 million and $0.4 million at December 31, 2018 and 2017, respectively, and the value of our SBA loan servicing rights was $1.1 million and $0.5 million at December 31, 2018 and 2017, respectively. Changes in the value of these servicing rights resulted in net losses of $0.2 million and less than $0.1 million during 2018 and 2017, respectively. Revenues from originating, marketing and servicing mortgage loans as well as valuation adjustments related to capitalized mortgage servicing rights are included in Mortgage Banking Activities, Net in the Consolidated Statements of Income and revenues from our SBA loan servicing rights are included in Loan fee income, in the Consolidated Statements of Income.

Accrued interest receivable on loans outstanding was $17.0 million and $15.4 million at December 31, 2018 and 2017, respectively.