LOANS

The following table details our loan portfolio by category:



	December 31,
(Dollars in thousands)	2017		2016
Commercial and industrial	$	1,464,554	$	1,287,731
Owner-occupied commercial	1,079,247		1,078,162
Commercial mortgages	1,187,705		1,163,554
Construction	281,608		222,712
Residential⁽¹⁾	253,301		289,611
Consumer	558,493		450,029
	4,824,908		4,491,799
Less:
Deferred fees, net	7,991		7,673
Allowance for loan losses	40,599		39,751
Net loans	$	4,776,318	$	4,444,375

⁽¹⁾ Includes reverse mortgages, at fair value of $19.8 million and $22.6 million at December 31, 2017 and 2016, respectively.

Nonaccruing loans totaled $36.4 million and $22.9 million at December 31, 2017 and 2016, respectively. If interest on all such loans had been recorded in accordance with contractual terms, net interest income would have increased by $1.8 million and $1.2 million in 2017 and 2016, respectively.

The total amounts of loans serviced for others were $102.5 million and $124.7 million at December 31, 2017 and 2016, respectively, which consisted of residential first mortgage loans and reverse mortgage loans. We received fees from the servicing of loans of $0.4 million and $0.3 million during 2017 and 2016, respectively.

We record mortgage-servicing rights on our mortgage loan-servicing portfolio. Mortgage servicing rights represent the present value of the future net servicing fees from servicing mortgage loans we acquire or originate. The value of these servicing rights was $0.4 million and $0.5 million at December 31, 2017 and 2016, respectively. Mortgage loans serviced for others are not included in loans in the accompanying Consolidated Statements of Financial Condition. Changes in the value of these servicing rights resulted in net losses of less than $0.1 million during 2017 and 2016. 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. We also record servicing rights on SBA loans. The value of these rights was $0.5 million and $0.2 million at December 31, 2017 and 2016, respectively.

Accrued interest receivable on loans outstanding was $15.4 million and $13.0 million at December 31, 2017 and 2016, respectively.