LOANS (Tables)

3 Months Ended

Mar. 31, 2018

The following table shows our loan portfolio by category:



(Dollars in thousands)	March 31, 2018		December 31, 2017
Commercial and industrial	$	1,489,563	$	1,464,554
Owner-occupied commercial	1,080,662		1,079,247
Commercial mortgages	1,164,424		1,187,705
Construction	289,943		281,608
Residential ⁽¹⁾	247,083		253,301
Consumer	582,722		558,493
	4,854,397		4,824,908
Less:
Deferred fees, net	7,829		7,991
Allowance for loan losses	40,810		40,599
Net loans	$	4,805,758	$	4,776,318

⁽¹⁾ Includes reverse mortgages, at fair value of $20.0 million at March 31, 2018 and $19.8 million at December 31, 2017.

Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans

The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated:



(Dollars in thousands)	March 31, 2018		December 31, 2017
Outstanding principal balance	$	24,838	$	27,034
Carrying amount	19,828		21,295
Allowance for loan losses	326		358

Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans

The following table presents the changes in accretable yield on the acquired credit impaired loans for the three months ended March 31, 2018:



(Dollars in thousands)	Three months ended March 31, 2018
Balance at beginning of period	$	3,035
Accretion	(417		)
Reclassification from nonaccretable difference	2
Additions/adjustments	(180		)
Disposals	—
Balance at end of period	$	2,440