LOANS (Tables)

9 Months Ended

Sep. 30, 2019

The following table shows our loan and lease portfolio by category:



(Dollars in thousands)	September 30, 2019		December 31, 2018
Commercial and industrial	$	2,116,654	$	1,472,489
Owner-occupied commercial	1,273,408		1,059,974
Commercial mortgages	2,271,985		1,162,739
Construction	514,402		316,566
Commercial small business leases	169,697		—
Residential⁽¹⁾	1,051,551		218,099
Consumer	1,138,873		680,939
	8,536,570		4,910,806
Less:
Deferred fees, net	8,187		7,348
Allowance for loan and lease losses	47,671		39,539
Net loans and leases	$	8,480,712	$	4,863,919

⁽¹⁾ Includes reverse mortgages at fair value of $17.7 million at September 30, 2019 and $16.5 million at December 31, 2018.

Schedule of Loans Acquired

The following table details the loans acquired from Beneficial that are accounted for in accordance with ASC 310-30, as of the date of the acquisition.


(Dollars in thousands)	March 1, 2019
Contractual required principal and interest at acquisition	$	53,647
Contractual cash flows not expected to be collected (nonaccretable difference)	20,118
Expected cash flows at acquisition	33,529
Interest component of expected cash flows (accretable yield)	3,068
Fair value of acquired loans accounted for under ASC 310-30	$	30,461

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)	September 30, 2019		December 31, 2018
Outstanding principal balance	$	45,326	$	18,642
Carrying amount	31,641		14,718
Allowance for loan losses	175		227

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 and nine months ended September 30, 2019 and 2018.


	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
Balance at beginning of period	$	4,055	$	2,925	$	2,463	$	3,035
Addition from Beneficial	—		—		3,068		—
Accretion	(507)		(433)		(1,581)		(1,351)
Reclassification from nonaccretable difference	—		2		207		1,080
Additions/adjustments	(52)		(52)		(661)		(322)

Balance at end of period	$	3,496	$	2,442	$	3,496	$	2,442