5. LOANS

The following details our loan portfolio by category:


	June 30, 2016		December 31, 2015
(In Thousands)
Commercial and industrial	$	1,108,610	$	1,061,597
Owner occupied commercial		938,330		880,643
Commercial mortgages		990,245		966,698
Construction		199,039		245,773
Residential		236,657		259,679
Consumer		374,634		360,249

	$	3,847,515	$	3,774,639
Less:
Deferred fees, net	$	8,529	$	8,500
Allowance for loan losses		37,746		37,089

Net loans	$	3,801,240	$	3,729,050

The following is 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:


(In Thousands)	June 30, 2016		December 31, 2015
Outstanding principal balance	$	31,773		38,067
Carrying amount		26,777		32,658
Allowance for loan losses		295		132

The following table presents the changes in accretable yield on the acquired credit impaired loans for the following six month period:


(In Thousands)	January 1 through June 30, 2016
Balance at beginning of period	$	4,764
Accretion		(1,228	)
Reclassification from nonaccretable difference		1,090
Additions/adjustments		(283	)
Disposals		(7	)

Balance at the end of the period	$	4,336