10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

       EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number 001-12647

OFG Bancorp

Incorporated in the Commonwealth of Puerto Rico, IRS Employer Identification No. 66-0538893

Principal Executive Offices:

254 Muñoz Rivera Avenue

San Juan, Puerto Rico 00918

Telephone Number: (787) 771-6800

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐             Accelerated Filer ý               Non-Accelerated Filer ☐                Smaller Reporting Company ☐                                                                                           (Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Number of shares outstanding of the registrant’s common stock, as of thelatest practicable date:

 43,913,719  common shares ($1.00 par value per share) outstanding as of April 29, 2016

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION			Page
Item 1.	Financial Statements
	Unaudited Consolidated Statements of Financial Condition		1
	Unaudited Consolidated Statements of Operations		2
	Unaudited Consolidated Statements of Comprehensive Income		3
	Unaudited Consolidated Statements of Changes in Stockholders’ Equity		4
	Unaudited Consolidated Statements of Cash Flows		5
	Notes to Unaudited Consolidated Financial Statements
		Note 1 – Organization, Consolidation and Basis of Presentation	7
		Note 2 – Restricted Cash	9
		Note 3 – Investment Securities	9
		Note 4 – Loans	16
		Note 5 – Allowance for Loan and Lease Losses	39
		Note 6 – FDIC Indemnification Asset, True-Up Payment Obligation, and FDIC                                         Shared-Loss Expense	46
		Note 7 – Servicing Assets	48
		Note 8 – Derivatives	49
		Note 9 – Accrued Interest Receivable and Other Assets	52
		Note 10 – Deposits and Related Interest	53
		Note 11 – Borrowings and Related Interest	54
		Note 12 – Offsetting of  Financial Assets and Liabilities	57
		Note 13 – Related Party Transactions	58
		Note 14 – Income Taxes	59
		Note 15 – Regulatory Capital Requirements	60
		Note 16 – Stockholders’ Equity	62
		Note 17 – Accumulated Other Comprehensive Income	63
		Note 18 – Earnings (Loss) per Common Share	65
		Note 19 – Guarantees	66
	Note 20 – Commitments and Contingencies		67
	Note 21 – Fair Value of Financial Instruments		69
	Note 22 – Business Segments		77
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		79
		Critical Accounting Policies and  Estimates	79
		Overview of Financial Performance:	80
		Selected Financial Data	80
		Financial Highlights of the First Quarter of 2016	82
		Analysis of Results of Operations	86
		Analysis of Financial Condition	96
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		122
Item 4.	Controls and Procedures		126
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		127
Item 1A.	Risk Factors		127
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		127
Item 3.	Default upon Senior Securities		127
Item 4.	Mine Safety Disclosures		127
Item 5.	Other Information		127
Item 6.	Exhibits		128
SIGNATURES			129
EXHIBIT INDEX

FORWARD-LOOKING STATEMENTS

The information included in this quarterly report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the financial condition, results of operations, plans, objectives, future performance and business of OFG Bancorp (“we,” “our,” “us” or the “Company”), including, but not limited to, statements with respect to the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital markets conditions, capital adequacy and liquidity, and the effect of legal proceedings and new accounting standards on the Company’s financial condition and results of operations. All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions are generally intended to identify forward-looking statements.

These statements are not guarantees of future performance and involve certain risks, uncertainties, estimates and assumptions by management that are difficult to predict. Various factors, some of which by their nature are beyond the Company’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Factors that might cause such a difference include, but are not limited to:

·a credit default or potential restructuring by the Commonwealth of Puerto Rico or any of its agencies, municipalities or instrumentalities;

·possible legislative, tax or regulatory changes;

·the rate of growth in the economy and employment levels, as well as general business and economic conditions;

·the relative strength or weakness of the consumer and commercial credit sectors and of the real estate market in

Puerto Rico;

·competition in the financial services industry;

·the fiscal and monetary policies of the federal government and its agencies;

·changes in interest rates, as well as the magnitude of such changes;

·changes in federal bank regulatory and supervisory policies, including required levels of capital;

·the impact of the industry regulations on the Company’s businesses, business practices and cost of operations;

·the performance of the securities markets; and

·additional Federal Deposit Insurance Corporation (“FDIC”) assessments.

Other possible events or factors that could cause results or performance to differ materially from those expressed in these forward-looking statements include the following: negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; changes in interest rates and market liquidity which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets; adverse movements and volatility in debt and equity capital markets; changes in market rates and prices which may adversely impact the value of financial assets and liabilities; liabilities resulting from litigation and regulatory investigations; changes in accounting standards, rules and interpretations; increased competition; the Company’s ability to grow its core businesses; decisions to downsize, sell or close units or otherwise change the Company’s business mix; and management’s ability to identify and manage these and other risks.

All forward-looking statements included in this quarterly report on Form 10-Q are based upon information available to the Company as of the date of this report, and other than as required by law, including the requirements of applicable securities laws, the Company assumes no obligation to update or revise any such forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

ITEM 1.     FINANCIAL STATEMENTS

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

AS OF MARCH 31, 2016 AND DECEMBER 31, 2015

	March 31,		December 31,
	2016		2015
	(In thousands)
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	671,952	$	532,010
Money market investments		5,897		4,699
Total cash and cash equivalents		677,849		536,709
Restricted cash		3,349		3,349
Investments:
Trading securities, at fair value, with amortized cost of $667 (December 31, 2015 - $667)		314		288
Investment securities available-for-sale, at fair value, with amortized cost of $653,673 (December 31, 2015 - $955,646)		669,285		974,609
Investment securities held-to-maturity, at amortized cost, with fair value of $641,346 (December 31, 2015 - $614,679)		637,036		620,189
Federal Home Loan Bank (FHLB) stock, at cost		20,761		20,783
Other investments		3		3
Total investments		1,327,399		1,615,872
Loans:
Mortgage loans held-for-sale, at lower of cost or fair value		17,165		13,614
Loans held for investment, net of allowance for loan and lease losses of $238,271 (December 31, 2015 - $234,131)		4,342,964		4,420,599
Total loans		4,360,129		4,434,213
Other assets:
FDIC indemnification asset		20,923		22,599
Foreclosed real estate		56,777		58,176
Accrued interest receivable		18,392		20,637
Deferred tax asset, net		145,518		145,901
Premises and equipment, net		73,975		74,590
Customers' liability on acceptances		19,381		14,582
Servicing assets		7,819		7,455
Derivative assets		2,662		3,025
Goodwill		86,069		86,069
Other assets		74,330		75,972
Total assets	$	6,874,572	$	7,099,149
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	$	2,018,346	$	1,862,572
Savings accounts		1,180,936		1,179,229
Time deposits		1,580,411		1,675,950
Total deposits		4,779,693		4,717,751
Borrowings:
Securities sold under agreements to repurchase		636,172		934,691
Advances from FHLB		331,980		332,476
Subordinated capital notes		102,808		102,633
Other borrowings		1,756		1,734
Total borrowings		1,072,716		1,371,534
Other liabilities:
Derivative liabilities		6,220		6,162
Acceptances executed and outstanding		19,381		14,582
Accrued expenses and other liabilities		92,761		92,043
Total liabilities		5,970,771		6,202,072
Commitments and contingencies (See Note 20)
Stockholders’ equity:
Preferred stock; 10,000,000 shares authorized;
1,340,000 shares of Series A, 1,380,000 shares of Series B, and 960,000 shares of Series D
issued and outstanding, (December 31, 2015 - 1,340,000 shares; 1,380,000 shares; and 960,000 shares)
$25 liquidation value		92,000		92,000
84,000 shares of Series C issued and outstanding (December 31, 2015 - 84,000 shares); $1,000 liquidation value		84,000		84,000
Common stock, $1 par value; 100,000,000 shares authorized; 52,625,869 shares issued:
43,913,719 shares outstanding (December 31, 2015 - 52,625,869; 43,867,909)		52,626		52,626
Additional paid-in capital		540,371		540,512
Legal surplus		71,865		70,435
Retained earnings		155,529		148,886
Treasury stock, at cost, 8,712,150 shares (December 31, 2015 - 8,757,960 shares)		(104,874)		(105,379)
Accumulated other comprehensive income, net of tax of $177 (December 31, 2015 - $1,182)		12,284		13,997
Total stockholders’ equity		903,801		897,077
Total liabilities and stockholders’ equity	$	6,874,572	$	7,099,149
See notes to unaudited consolidated financial statements

1

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE QUARTERS ENDED MARCH 31, 2016 AND 2015

	Quarter Ended March 31
	2016		2015
	(In thousands, except per share data)
Interest income:
Loans	$	81,152	$	97,483
Mortgage-backed securities		8,997		8,590
Investment securities and other		1,157		928
Total interest income		91,306		107,001
Interest expense:
Deposits		7,124		7,104
Securities sold under agreements to repurchase		6,099		7,164
Advances from FHLB and other borrowings		2,240		2,235
Subordinated capital notes		868		863
Total interest expense		16,331		17,366
Net interest income		74,975		89,635
Provision for loan and lease losses, net		13,789		42,193
Net interest income after provision for loan and lease losses		61,186		47,442
Non-interest income:
Banking service revenue		10,118		10,205
Wealth management revenue		6,152		7,155
Mortgage banking activities		855		1,863
Total banking and financial service revenues		17,125		19,223
FDIC shared-loss expense, net		(4,029)		(13,084)
Net gain (loss) on:
Sale of securities		11,996		2,572
Derivatives		(3)		(90)
Early extinguishment of debt		(12,000)		-
Other non-interest income (loss)		414		(1,740)
Total non-interest income, net		13,503		6,881
Non-interest expense:
Compensation and employee benefits		20,284		20,180
Professional and service fees		3,626		4,181
Occupancy and equipment		7,822		8,636
Insurance		3,150		1,953
Electronic banking charges		5,589		5,367
Information technology expenses		1,657		1,454
Advertising, business promotion, and strategic initiatives		1,443		1,629
Foreclosure, repossession and other real estate expenses		2,806		5,447
Loan servicing and clearing expenses		2,081		2,353
Taxes, other than payroll and income taxes		2,671		1,479
Communication		819		691
Printing, postage, stationary and supplies		725		637
Director and investor relations		278		294
Other		1,906		2,031
Total non-interest expense		54,857		56,332
Income (loss) before income taxes		19,832		(2,009)
Income tax expense		5,661		979
Net income (loss)		14,171		(2,988)
Less: dividends on preferred stock		(3,465)		(3,465)
Net income (loss) available to common shareholders	$	10,706	$	(6,453)
Earnings (loss) per common share:
Basic	$	0.24	$	(0.14)
Diluted	$	0.24	$	(0.14)
Average common shares outstanding and equivalents		51,064		51,977
Cash dividends per share of common stock	$	0.06	$	0.10
See notes to unaudited consolidated financial statements

2

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE QUARTERS ENDED MARCH 31, 2016 AND 2015

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Net income (loss)	$	14,171	$	(2,988)
Other comprehensive (loss) income before tax:
Unrealized gain on securities available-for-sale		8,643		7,375
Realized gain on investment securities included in net income (loss)		(11,996)		(2,572)
Unrealized (loss) gain on cash flow hedges		(11)		55
Other comprehensive (loss) income before taxes		(3,364)		4,858
Income tax effect		1,651		(245)
Other comprehensive (loss) income after taxes		(1,713)		4,613
Comprehensive income	$	12,458	$	1,625
See notes to unaudited consolidated financial statements

3

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE QUARTERS ENDED MARCH 31, 2016 AND 2015

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Preferred stock:
Balance at beginning of period	$	176,000	$	176,000
Balance at end of period		176,000		176,000
Common stock:
Balance at beginning of period		52,626		52,626
Balance at end of period		52,626		52,626
Additional paid-in capital:
Balance at beginning of period		540,512		539,311
Stock-based compensation expense		364		347
Lapsed restricted stock units		(505)		(436)
Balance at end of period		540,371		539,222
Legal surplus:
Balance at beginning of period		70,435		70,467
Transfer from (to) retained earnings		1,430		(370)
Balance at end of period		71,865		70,097
Retained earnings:
Balance at beginning of period		148,886		181,152
Net (loss) income		14,171		(2,988)
Cash dividends declared on common stock		(2,633)		(4,464)
Cash dividends declared on preferred stock		(3,465)		(3,465)
Transfer to (from) legal surplus		(1,430)		370
Balance at end of period		155,529		170,605
Treasury stock:
Balance at beginning of period		(105,379)		(97,070)
Lapsed restricted stock units		505		575
Balance at end of period		(104,874)		(96,495)
Accumulated other comprehensive income, net of tax:
Balance at beginning of period		13,997		19,711
Other comprehensive (loss) income, net of tax		(1,713)		4,613
Balance at end of period		12,284		24,324
Total stockholders’ equity	$	903,801	$	936,379
See notes to unaudited consolidated financial statements

4

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE QUARTERS ENDED MARCH 31, 2016 AND 2015

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	14,171	$	(2,988)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred loan origination fees, net of costs		888		860
Amortization of fair value premiums, net of discounts, on acquired loans		39		2,295
Amortization of investment securities premiums, net of accretion of discounts		2,129		2,500
Amortization of core deposit and customer relationship intangibles		419		476
Amortization of fair value premiums on acquired deposits		97		346
FDIC shared-loss expense, net		4,029		13,084
Depreciation and amortization of premises and equipment		2,487		2,714
Deferred income tax expense (benefit), net		2,033		(613)
Provision for loan and lease losses, net		13,789		42,193
Stock-based compensation		364		347
(Gain) loss on:
Sale of securities		(11,996)		(2,572)
Sale of mortgage loans held-for-sale		(344)		(1,258)
Derivatives		61		(18)
Early extinguishment of debt		12,000		-
Foreclosed real estate		2,483		(567)
Sale of other repossessed assets		(723)		2,148
Sale of premises and equipment		14		4
Originations of loans held-for-sale		(39,513)		(54,615)
Proceeds from sale of loans held-for-sale		13,303		22,613
Net (increase) decrease in:
Trading securities		(26)		630
Accrued interest receivable		2,245		1,751
Servicing assets		(364)		1,828
Other assets		(949)		(801)
Net increase (decrease) in:
Accrued interest on deposits and borrowings		(397)		(765)
Accrued expenses and other liabilities		7,239		4,573
Net cash provided by operating activities		23,478		34,165
Cash flows from investing activities:
Purchases of:
Investment securities available-for-sale		(107)		(948)
Investment securities held-to-maturity		(32,552)		(14,221)
Maturities and redemptions of:
Investment securities available-for-sale		40,778		55,605
Investment securities held-to-maturity		14,704		3,925
FHLB stock		22		21
Proceeds from sales of:
Investment securities available-for-sale		295,172		67,075
Foreclosed real estate and other repossessed assets, including write-offs		12,248		15,635
Proceeds from sale of loans held-for-sale		478		-
Premises and equipment		36		-
Origination and purchase of loans, excluding loans held-for-sale		(186,640)		(184,834)
Principal repayment of loans, including covered loans		236,787		228,993
Reimbursements from the FDIC on shared-loss agreements		406		15,462
Additions to premises and equipment		(1,922)		(864)
Net change in restricted cash		-		(6,999)
Net cash provided by investing activities		379,410		178,850

5

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE QUARTERS ENDED MARCH 31, 2016 AND 2015 – (CONTINUED)

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Cash flows from financing activities:
Net increase (decrease) in:
Deposits		54,635		(44,468)
Securities sold under agreements to repurchase		(310,000)		(52,816)
FHLB advances, federal funds purchased, and other borrowings		(460)		(2,728)
Subordinated capital notes		175		262
Exercise of stock options and restricted units lapsed, net		-		139
Dividends paid on preferred stock		(3,465)		(3,465)
Dividends paid on common stock		(2,633)		(4,464)
Net cash used in financing activities	$	(261,748)	$	(107,540)
Net change in cash and cash equivalents		141,140		105,475
Cash and cash equivalents at beginning of year		536,709		573,427
Cash and cash equivalents at end of year	$	677,849	$	678,902
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities:
Interest paid	$	16,310	$	17,893
Income taxes paid	$	3,642	$	-
Mortgage loans securitized into mortgage-backed securities	$	23,003	$	25,820
Transfer from loans to foreclosed real estate and other repossessed assets	$	11,629	$	13,618
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio	$	-	$	1,485
See notes to unaudited consolidated financial statements

6

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION

Nature of Operations

OFG Bancorp (the “Company”) is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. The Company operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer, Oriental Financial Services Corp. (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”) and a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”). Through these subsidiaries and their respective divisions, the Company provides a wide range of banking and financial services such as commercial, consumer and mortgage lending, auto loans, financial planning, insurance sales, money management and investment banking and brokerage services, as well as corporate and individual trust services.

On April 30, 2010, the Bank acquired certain assets and assumed certain deposits and other liabilities of Eurobank, a Puerto Rico commercial bank, in an FDIC-assisted acquisition. On December 18, 2012, the Company acquired a group of Puerto Rico-based entities that included Banco Bilbao Vizcaya Argentaria Puerto Rico (“BBVAPR”), a Puerto Rico commercial bank, as well as a securities broker-dealer and an insurance agency, which is referred to herein as the “BBVAPR Acquisition.” The businesses acquired in these acquisitions have been integrated with the Company’s existing business.

Recent Accounting Developments

Adoption of New Accounting Standards

In December 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update ("ASU") that required a company that issues or invests in a hybrid financial instrument (e.g., a preferred share with a redemption feature, a conversion feature, or both) to determine the nature of the host contract by considering the economic characteristics of the entire instrument, including the embedded derivative feature that is being evaluated for separate accounting. Concluding the host contract is debt-like (versus equity-like) may result in substantially different answers about whether certain features must be accounted for separately. The guidance provides a modified retrospective transition for all existing hybrid financial instruments in the form of a share, with the option for full retrospective application. For public business entities, the amendments of this update are effective for interim and annual periods beginning after December 15, 2015. This update did not have a material impact on the Company’s financial position, results of operations or cash flows.

Recently Issued but not yet Effective Accounting Standards

ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting - In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies and improves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date of ASU 2016-09 is for interim and annual reporting periods beginning after December 15, 2016. The ASU has not yet been adopted; however, it is not expected to have a material impact on the Company's consolidated financial position, cash flows or results of operations.

ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting - In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU 2016-07 eliminates the requirement to retroactively adjust an investment, results of operations, and retained earnings once an investment qualifies for use of the equity method. It requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting without retroactive adjustment. The effective date of ASU 2016-07 is for interim and annual reporting periods beginning after December 15, 2016. The ASU has not yet been adopted; however, it is not expected to have a material impact on the Company's consolidated financial position, cash flows or results of operations.

7

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

ASU 2016-02, Leases (Topic 842) - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous Generally Accepted Accounting Principles ("GAAP"). The effective date of ASU 2016-02 is for interim and annual reporting periods beginning after December 15, 2018. The ASU has not yet been adopted. The Company is currently evaluating the impact on our Company’s consolidated financial position, cash flows and results of operations.

ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities - In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The effective date of ASU 2016-01 is for interim and annual reporting periods beginning after December 15, 2017. The ASU has not yet been adopted; however, it is not expected to have a material impact on the Company's consolidated financial position, cash flows or results of operations.

ASU 2014-09, Revenue from Contracts with Customers  - In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. The main provisions of the update require the identification of performance obligations within a contract and require the recognition of revenue based on a stand-alone allocation of contract revenue to each performance obligation. Performance obligations may be satisfied and revenue recognized over a period of time if: (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs, or (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. After a recent one-year deferral of the effective date, the amendments of the update are to be effective for public entities beginning with interim and annual reporting periods beginning after December 15, 2017. Management does not expect the requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows.

Other than the accounting pronouncement disclosed above, there are no other new accounting pronouncements issued during the first quarter of 2016 that could have a material impact on the Company’s financial position, operating results or financials statement disclosures.

8

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 2 – RESTRICTED CASH

The following table includes the composition of the Company’s restricted cash:

	March 31,		December 31,
	2016		2015
	(In thousands)
Cash pledged as collateral to other financial institutions to secure:
Derivatives	$	1,980	$	1,980
Obligations under agreement of loans sold with recourse		1,369		1,369
	$	3,349	$	3,349

At March 31, 2016 and December 31, 2015, the Bank’s international banking entities, Oriental International Bank Inc. (“OIB”) and Oriental Overseas, a division of the Bank, each held unencumbered certificates of deposit in the amount of $300 thousand as the legal reserve required for international banking entities under Puerto Rico law. Each certificate of deposit cannot be withdrawn by OIB or Oriental Overseas without prior written approval of the Office of the Commissioner of Financial Institutions of Puerto Rico.

As part of its derivative activities, the Company has entered into collateral agreements with certain financial counterparties.  At March 31, 2016 and December 31, 2015, the Company had delivered $2.0 million of cash as collateral for such derivatives activities.

As part of the BBVA Acquisition, the Company assumed a contract with FNMA which required collateral to guarantee the repurchase, if necessary, of loans sold with recourse. At March 31, 2016 and December 31, 2015, the Company delivered as collateral cash amounting to $1.4 million for both periods.

The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits. The amount of those minimum average reserve balances for the week that covered March 31, 2016 was $152.8 million (December 31, 2015 - $148.9 million). At March 31, 2016 and December 31, 2015, the Bank complied with such requirement. Cash and due from bank as well as other short-term, highly liquid securities are used to cover the required average reserve balances.

NOTE 3 – INVESTMENT SECURITIES

Money Market Investments

The Company considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At March 31, 2016 and December 31, 2015, money market instruments included as part of cash and cash equivalents amounted to $5.9 million and $4.7 million, respectively.

9

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Investment Securities

The amortized cost, gross unrealized gains and losses, fair value, and weighted average yield of the securities owned by the Company at March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	431,411	$	13,445	$	-	$	444,856	2.63%
GNMA certificates		79,477		3,220		-		82,697	3.15%
CMOs issued by US government-sponsored agencies		128,957		353		728		128,583	1.86%
Total mortgage-backed securities		639,845		17,018		728		656,136	2.54%
Investment securities
Obligations of US government-sponsored agencies		4,785		51		-		4,837	1.36%
Obligations of Puerto Rico government and             public instrumentalities		6,720		-		873		5,847	5.55%
Other debt securities		2,323		142		-		2,465	2.99%
Total investment securities		13,828		193		873		13,149	3.67%
Total securities available for sale	$	653,673	$	17,211	$	1,601	$	669,285	2.56%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates	$	612,012		4,402		81		616,333	2.23%
Investment securities
US Treasury securities		25,024		-		11		25,013	0.49%
Total securities held to maturity		637,036		4,402		92		641,346	2.17%
Total	$	1,290,709	$	21,613	$	1,693	$	1,310,631	2.37%

	December 31, 2015
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	735,363	$	25,791	$	1,509	$	759,645	2.97%
GNMA certificates		57,129		1,366		-		58,495	3.19%
CMOs issued by US government-sponsored agencies		137,787		27		2,741		135,073	1.85%
Total mortgage-backed securities		930,279		27,184		4,250		953,213	2.82%
Investment securities
Obligations of US government-sponsored agencies		5,122		-		29		5,093	1.36%
Obligations of Puerto Rico government and             public instrumentalities		17,801		-		4,070		13,731	6.24%
Other debt securities		2,444		128		-		2,572	2.98%
Total investment securities		25,367		128		4,099		21,396	4.94%
Total securities available-for-sale	$	955,646	$	27,312	$	8,349	$	974,609	2.87%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		595,157		426		5,865		589,718	2.24%
Investment securities
US Treasury securities		25,032		-		71		24,961	0.49%
Total securities held to maturity		620,189		426		5,936		614,679	2.17%
Total	$	1,575,835	$	27,738	$	14,285	$	1,589,288	2.60%

10

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The amortized cost and fair value of the Company’s investment securities at March 31, 2016, by contractual maturity, are shown in the next table. Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2016
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)				(In thousands)
Mortgage-backed securities
Due from 5 to 10 years
FNMA and FHLMC certificates	$	13,936	$	14,250	$	-	$	-
Total due from 5 to 10 years		13,936		14,250		-		-
Due after 10 years
FNMA and FHLMC certificates		417,475		430,606		612,012		616,333
GNMA certificates		79,477		82,697		-		-
CMOs issued by US government-sponsored agencies		128,957		128,583		-		-
Total due after 10 years		625,909		641,886		612,012		616,333
Total  mortgage-backed securities		639,845		656,136		612,012		616,333
Investment securities
Due from 1 to 5 years
US Treasury securities		-		-		25,024		25,013
Obligations of Puerto Rico government and             public instrumentalities		6,720		5,847		-		-
Total due from 1 to 5 years		6,720		5,847		25,024		25,013
Due from 5 to 10 years
Obligations of US government and sponsored agencies		4,785		4,837		-		-
Other debt securities		2,323		2,465		-		-
Total due from 5 to 10 years		7,108		7,302		-		-
Total  investment securities		13,828		13,149		25,024		25,013
Total securities available-for-sale and held-to-maturity	$	653,673	$	669,285	$	637,036	$	641,346

11

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Company, as part of its asset/liability management, may purchase U.S. Treasury securities and U.S. government-sponsored agency discount notes close to their maturities as alternatives to cash deposits at correspondent banks or as a short term vehicle to reinvest the proceeds of sale transactions until investment securities with attractive yields can be purchased. During the first quarter ended March 31, 2016, the Company retained securitized Government National Mortgage Association ("GNMA") pools totaling $23.0 million amortized cost, at a yield of 3.06% from its own originations. Previously, the Company was selling all securitized GNMA pools. The GNMA pools were sold until June 2015. During the first quarter of 2015, the Company sold $26.8 million of available-for-sale GNMA certificates as part of its recurring mortgage loan origination and securitization activities. These sales did not realize any gains or losses during such period.

During the first quarter of 2016, the Company sold $272.1 million of mortgage-backed securities and $11.1 million of Puerto Rico government bonds, and  recorded a net gain on sale of securities of $12.0 million. Among the 2016 sales, the Company sold all but one of the Puerto Rico government bonds it held. The Company had book other-than-temporary impairment charges on such securities sold totaling $1.5 million during the previous two quarters. During the first quarter of 2015, the Company sold $37.7 million of mortgage-backed securities and  recorded a net gain on sale of securities of $2.6 million. The table below presents the gross realized gains and gross realized losses by category for such periods.

	Quarter Ended March 31, 2016
			Book Value
Description	Sale Price		at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of securities available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	288,194	$	272,081	$	16,113	$	-
Investment securities
Obligations of Puerto Rico government and             public instrumentalities		6,978		11,095		-		4,117
Total	$	295,172	$	283,176	$	16,113	$	4,117

	Quarter Ended March 31, 2015
			Book Value
Description	Sale Price		at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of securities available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	40,307	$	37,735	$	2,572	$	-
GNMA certificates		26,768		26,768		-		-
Total	$	67,075	$	64,503	$	2,572	$	-

12

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables show the Company’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015:

	March 31, 2016
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies	$	83,400	$	728	$	82,672
Obligations of Puerto Rico government and public instrumentalities		6,720		873		5,847
		90,120		1,601		88,519
Securities held to maturity
FNMA and FHLMC certificates		30,309	$	46	$	30,263
	$	120,429	$	1,647	$	118,782
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities held-to-maturity
FNMA and FHLMC certificates		58,589		35		58,554
US Treausury Securities		25,024		11		25,013
	$	83,613	$	46	$	83,567
	Total
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies	$	83,400	$	728	$	82,672
Obligations of Puerto Rico government and public instrumentalities		6,720		873		5,847
		90,120		1,601		88,519
Securities held-to-maturity
FNMA and FHLMC certificates		88,898		81		88,817
US Treasury Securities		25,024		11		25,013
	$	204,042	$	1,693	$	202,349

13

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2015
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
Obligations of Puerto Rico Government and public instrumentalities	$	17,801	$	4,070	$	13,731
CMOs issued by US government-sponsored agencies		103,340		2,410		100,930
	$	121,141	$	6,480	$	114,661
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies		25,736		331		25,405
FNMA and FHLMC certificates		149,480		1,509		147,971
Obligations of US government and sponsored agencies		5,122		29		5,093
Securities held to maturity
FNMA and FHLMC certificates		468,487		5,865		462,622
US Treausury Securities		25,032		71		24,961
	$	673,857	$	7,805	$	666,052
	Total
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies		129,076		2,741		126,335
FNMA and FHLMC certificates		149,480		1,509		147,971
Obligations of Puerto Rico Government and public instrumentalities		17,801		4,070		13,731
Obligations of US government and sponsored agencies		5,122		29		5,093
	$	301,479	$	8,349	$	293,130
Securities held to maturity
FNMA and FHLMC certificates		468,487		5,865		462,622
US Treasury Securities		25,032		71		24,961
	$	794,998	$	14,285	$	780,713

The Company performs valuations of the investment securities on a monthly basis. Moreover, the Company conducts quarterly reviews to identify and evaluate each investment in an unrealized loss position for other-than-temporary impairment. Any portion of a decline in value associated with credit loss is recognized in the statements of operations with the remaining noncredit-related component recognized in other comprehensive income (loss). A credit loss is determined by assessing whether the amortized cost basis of the security will be recovered by comparing the present value of cash flows expected to be collected from the security, discounted at the rate equal to the yield used to accrete current and prospective beneficial interest for the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is considered to be the “credit loss.” Other-than-temporary impairment analysis is based on estimates that depend on market conditions and are subject to further change over time. In addition, while the Company believes that the methodology used to value these exposures is reasonable, the methodology is subject to continuing refinement, including those made as a result of market developments. Consequently, it is reasonably possible that changes in estimates or conditions could result in the need to recognize additional other-than-temporary impairment charges in the future.

14

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Most of the investments ($197.3 million, amortized cost, or 97%) with an unrealized loss position at March 31, 2016 consist of securities issued or guaranteed by the U.S. Treasury or U.S. government-sponsored agencies, all of which are highly liquid securities that have a large and efficient secondary market. Their aggregate losses and their variability from period to period are the result of changes in market conditions, and not due to the repayment capacity or creditworthiness of the issuers or guarantors of such securities.

The remaining investments ($6.7 million, amortized cost, or 3%) with an unrealized loss position at March 31, 2016 consist of obligations issued or guaranteed by the government of Puerto Rico and its instrumentalities. The decline in the market value of these securities is mainly attributed to an increase in volatility as a result of changes in market conditions that reflect the significant economic and fiscal challenges that Puerto Rico is facing, including the government's credit default, a protracted economic recession, sizable government debt-service obligations and structural budget deficits, high unemployment and a shrinking population.

As of March 31, 2016, the Company applied a discounted cash flow analysis to the Puerto Rico government bonds to calculate the cash flows expected to be collected and determine if any portion of the decline in market value of these investments was considered an other-than-temporary impairment. The analysis derives an estimate of value based on the present value of risk-adjusted future cash flows of the underlying investments, and included the following components:

·The contractual future cash flows of the bonds are projected based on the key terms as set forth in the official statements for each investment. Such key terms include among others the interest rate, amortization schedule, if any, and maturity date.

·The risk-adjusted cash flows are calculated based on a monthly default probability and recovery rate assumptions based on the credit rating of each investment. Constant monthly default rates are assumed throughout the life of the bonds which are based on the respective security’s credit rating as of the date of the analysis.

·The adjusted future cash flows are then discounted at the original effective yield of each investment based on the purchase price and expected risk-adjusted future cash flows as of the purchase date of each investment.

The only obligation issued or guaranteed by the government of Puerto Rico and its instrumentalities held at the end of the first quarter of 2016 by the Company was the Puerto Rico Highways and Transportation Authority (“PRHTA”) – Teodoro Moscoso Bridge revenue bond. The pledge income sources of this bond comes from gross revenues from Teodoro Moscoso Bridge operations. Although PRHTA is included in the Puerto Rico Governor's executive order of November 30, 2015 ordering the '"clawback" of certain government revenues  the toll bridge revenues for the repayment of such bonds were not subject to the “clawback”. All other securities were sold during the first quarter of 2016. The PRHTA bond in the principal amount of  $6.7 million had an aggregate fair value of $5.8 million at March 31, 2016 (0.45% of the portfolio's total fair value). The discounted cash flow analysis for the investments showed a cumulative default probability at maturity of 8.81%, thus reflecting that it is more likely than not that the bond will not default during its remaining term. Based on this analysis, the Company determined that it is more likely than not that it will recover all interest and principal invested in this Puerto Rico government bond and is, therefore, not required to recognize a credit loss as of March 31, 2016. Also, the Company’s conclusion is based on the assessment of the specific source of repayment of the outstanding bond, which continues to perform. PRHTA started principal repayments on July 1, 2014. All scheduled principal and interest payments to date have been collected. As a result of the aforementioned analysis, no other-than-temporary losses were recorded during the quarter ended March 31, 2016 and 2015.

The following table presents a rollforward of credit-related impairment losses recognized in earnings for the quarters ended March 31, 2016 and 2015 on available-for-sale securities:.

	Quarter Ended March 31,
	2016		2015
Balance at beginning of period	$	1,490	$	-
Reductions for securities sold during the period (realized)		(1,490)		-
Balance at end of period	$	-	$	-

15

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 4 - LOANS 

The Company’s loan portfolio is composed of two segments, loans initially accounted for under the amortized cost method (referred to as "originated and other" loans) and loans acquired (referred to as "acquired" loans). Acquired loans are further segregated between acquired BBVAPR loans and acquired Eurobank loans. Acquired Eurobank loans were purchased subject to loss-sharing agreements with the FDIC. The FDIC loss-share coverage related to commercial and other-non single family acquired Eurobank loans expiredon June 30, 2015. Notwithstanding the expiration of loss share coverage of commercial loans, on July 2, 2015, the Company entered into an agreement with the FDIC pursuant to which the FDIC concurred with a potential sale of a pool of loss-share assets covered under the commercial loss-sharing agreement. Pursuant to such agreement, and as further discussed below, the FDIC agreed to and paid $20 million in loss share coverage with respect to the aggregate loss resulting from any portfolio sale within 120 days of the agreement. This sale was completed on September 28, 2015. Covered loans are no longer a material amount. Therefore, the Company changed its loan disclosures during 2015.

The coverage for the single family residential loans will expire on June 30, 2020. At March 31, 2016, the remaining covered loans amounting to $69.7 million, net carrying amount ($91.1 million gross amount), are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties". At December 31, 2015, covered loans amounted to $67.2 million, net carrying amount ($92.3 million gross amount). Interest income recognized for covered loans during March 31, 2016 and 2015 was $2.2 million and $15.5 million, respectively. The decrease in interest income recognized for covered loans is due to the expiration of the FDIC loss-share coverage related to commercial and other-non single family acquired Eurobank on June 30, 2015.

16

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The composition of the Company’s loan portfolio at March 31, 2016 and December 31, 2015 was as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment:
Mortgage	$	751,819	$	757,828
Commercial		1,425,385		1,441,649
Consumer		252,327		242,950
Auto and leasing		687,159		669,163
		3,116,690		3,111,590
Allowance for loan and lease losses on originated and other loans and leases		(113,238)		(112,626)
		3,003,452		2,998,964
Deferred loan costs, net		4,350		4,203
Total originated and other loans loans held for investment, net		3,007,802		3,003,167
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		6,558		7,457
Consumer		36,346		38,385
Auto		91,406		106,911
		134,310		152,753
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20		(4,993)		(5,542)
		129,317		147,211
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		600,901		608,294
Commercial		267,931		287,311
Construction		77,858		88,180
Consumer		9,345		11,843
Auto		134,669		153,592
		1,090,704		1,149,220
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30		(27,747)		(25,785)
		1,062,957		1,123,435
Total acquired BBVAPR loans, net		1,192,274		1,270,646
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		91,113		92,273
Commercial and construction		142,298		142,377
Consumer		1,770		2,314
Total acquired Eurobank loans		235,181		236,964
Allowance for loan and lease losses on Eurobank loans		(92,293)		(90,178)
Total acquired Eurobank loans, net		142,888		146,786
Total acquired loans, net		1,335,162		1,417,432
Total held for investment, net		4,342,964		4,420,599
Mortgage loans held-for-sale		17,165		13,614
Total loans, net	$	4,360,129	$	4,434,213

17

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Originated and Other Loans and Leases Held for Investment

The Company’s originated and other loans held for investment are encompassed within four portfolio segments: mortgage, commercial, consumer, and auto and leasing.

The following tables present the aging of the recorded investment in gross originated and other loans held for investment as of March 31, 2016 and December 31, 2015 by class of loans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	82	$	1,218	$	3,208	$	4,508	$	40	$	51,085	$	55,633	$	268
Years 2003 and 2004		388		3,579		5,844		9,811		20		87,458		97,289		-
Year 2005		313		1,893		3,864		6,070		-		47,421		53,491		-
Year 2006		634		1,238		7,212		9,084		233		66,753		76,070		-
Years 2007, 2008             and 2009		282		1,417		14,128		15,827		-		72,650		88,477		705
Years 2010, 2011, 2012, 2013		511		2,015		9,017		11,543		-		136,702		148,245		271
Years 2014, 2015 and 2016		-		444		1,099		1,543		63		91,213		92,819		-
		2,210		11,804		44,372		58,386		356		553,282		612,024		1,244
Non-traditional		-		395		5,014		5,409		12		22,286		27,707		-
Loss mitigation program		10,679		6,537		16,411		33,627		4,580		65,804		104,011		3,422
		12,889		18,736		65,797		97,422		4,948		641,372		743,742		4,666
Home equity secured personal loans		-		-		-		-		-		393		393		-
GNMA's buy-back option program		-		-		7,684		7,684		-		-		7,684		-
Total mortgage		12,889		18,736		73,481		105,106		4,948		641,765		751,819		4,666
Commercial
Commercial secured by real estate:
Corporate		-		-		-		-		-		228,782		228,782		-
Institutional		-		-		-		-		-		27,584		27,584		-
Middle market		-		-		9,498		9,498		2,515		196,890		208,903		-
Retail		644		455		7,088		8,187		2,659		233,174		244,020		-
Floor plan		-		-		-		-		-		2,859		2,859		-
Real estate		-		-		-		-		-		16,372		16,372		-
		644		455		16,586		17,685		5,174		705,661		728,520		-
Other commercial and industrial:
Corporate		-		-		-		-		-		120,881		120,881		-
Institutional		-		-		-		-		186,675		176,580		363,255		-
Middle market		-		-		-		-		1,493		102,295		103,788		-
Retail		260		948		706		1,914		21		72,689		74,624		-
Floor plan		28		18		41		87		-		34,230		34,317		-
		288		966		747		2,001		188,189		506,675		696,865		-
Total commercial		932		1,421		17,333		19,686		193,363		1,212,336		1,425,385		-

18

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Consumer
Credit cards		387		159		422		968		-		22,397		23,365		-
Overdrafts		17		-		-		17		-		203		220		-
Personal lines of credit		51		49		53		153		3		2,194		2,350		-
Personal loans		2,518		927		1,104		4,549		434		205,240		210,223		-
Cash collateral personal loans		214		19		14		247		-		15,922		16,169		-
Total consumer		3,187		1,154		1,593		5,934		437		245,956		252,327		-
Auto and leasing		53,801		17,203		7,742		78,746		57		608,356		687,159		-
Total	$	70,809	$	38,514	$	100,149	$	209,472	$	198,805	$	2,708,413	$	3,116,690	$	4,666

19

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	80	$	2,217	$	3,889	$	6,186	$	41	$	51,562	$	57,789	$	144
Years 2003 and 2004		251		5,036		5,536		10,823		-		88,623		99,446		-
Year 2005		79		2,553		3,549		6,181		-		48,040		54,221		-
Year 2006		551		2,878		7,934		11,363		176		66,864		78,403		-
Years 2007, 2008             and 2009		170		2,053		14,733		16,956		-		74,590		91,546		526
Years 2010, 2011, 2012, 2013		662		1,673		10,519		12,854		141		137,749		150,744		72
Years 2014 and 2015		-		65		663		728		-		85,128		85,856		-
		1,793		16,475		46,823		65,091		358		552,556		618,005		742
Non-traditional		-		977		5,079		6,056		13		23,483		29,552		-
Loss mitigation program		9,958		6,887		14,930		31,775		5,593		64,548		101,916		3,083
		11,751		24,339		66,832		102,922		5,964		640,587		749,473		3,825
Home equity secured personal loans		-		-		64		64		-		346		410		-
GNMA's buy-back option program		-		-		7,945		7,945		-		-		7,945		-
Total mortgage		11,751		24,339		74,841		110,931		5,964		640,933		757,828		3,825
Commercial
Commercial secured by real estate:
Corporate		-		-		-		-		-		227,557		227,557		-
Institutional		213		-		-		213		-		33,594		33,807		-
Middle market		1,174		712		9,113		10,999		1,730		194,219		206,948		-
Retail		686		466		6,921		8,073		1,177		231,840		241,090		-
Floor plan		-		-		-		-		-		2,892		2,892		-
Real estate		-		-		-		-		-		16,662		16,662		-
		2,073		1,178		16,034		19,285		2,907		706,764		728,956		-
Other commercial and industrial:
Corporate		-		-		-		-		-		108,582		108,582		-
Institutional		-		-		-		-		190,290		190,695		380,985		-
Middle market		-		-		-		-		1,565		105,748		107,313		-
Retail		282		639		604		1,525		783		75,489		77,797		-
Floor plan		238		51		39		328		-		37,688		38,016		-
		520		690		643		1,853		192,638		518,202		712,693		-
Total commercial		2,593		1,868		16,677		21,138		195,545		1,224,966		1,441,649		-

20

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Consumer
Credit cards		449		182		369		1,000		-		21,766		22,766		-
Overdrafts		24		-		-		24		-		166		190		-
Personal lines of credit		74		-		45		119		19		2,106		2,244		-
Personal loans		2,078		1,179		627		3,884		414		196,858		201,156		-
Cash collateral personal loans		125		17		2		144		-		16,450		16,594		-
Total consumer		2,750		1,378		1,043		5,171		433		237,346		242,950		-
Auto and leasing		53,566		16,898		8,293		78,757		49		590,357		669,163		-
Total	$	70,660	$	44,483	$	100,854	$	215,997	$	201,991	$	2,693,602	$	3,111,590	$	3,825

During 2015, the Company changed its early delinquency reporting on mortgage loans from one scheduled payment due to two scheduled payments due in order to comply with regulatory reporting instructions and be comparable with local peers, except for troubled-debt restructured loans which continue using one scheduled payment due for delinquency reporting.

At March 31, 2016 and December 31, 2015, the Company had a carrying balances of $330.8 million and $334.6 million, respectively, in loans granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities as part of the institutional commercial loan segment. All loans granted to the Puerto Rico government were current at March 31, 2016 and December 31, 2015. We, as part of a bank syndicate, have granted various extensions to the Puerto Rico Electric Power Authority (“PREPA”) and on November 5, 2015 entered into a Restructuring Support Agreement with a view towards restructuring the debt on terms that provide for full repayment of the debt to the Bank. After the first extension in the third quarter of 2014, the Company classified the credit as substandard and a troubled-debt restructuring. The Company conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under various scenarios and its capacity to service its financial obligations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite the Company’s analysis showing PREPA’s capacity to repay the line of credit, the Company placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015. During the fourth quarter of 2015, the Company recorded an additional $29.3 million provision for loan and lease losses on PREPA. Since it was placed in non-accrual, interest payments have been applied to principal.  At March 31, 2016, and December 31, 2015, the allowance for loan and lease losses to PREPA was $53.3 million.

21

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Acquired Loans

Acquired loans were initially measured at fair value and subsequently accounted for under either ASC 310-30 (Loans and Debt Securities Acquired with Deteriorated Credit Quality) or ASC 310-20 (Non-refundable fees and Other Costs). We have acquired loans in two bank acquisitions, BBVAPR and Eurobank.

Acquired BBVAPR Loans

Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

Credit cards, retail and commercial revolving lines of credits, floor plans and performing auto loans with FICO scores over 660 acquired at a premium, excluding the acquired Eurobank loan portfolio, are accounted for under the guidance of ASC 310-20, which requires that any contractually required loan payment receivable in excess of the Company’s initial investment in the loans be accreted into interest income on a level-yield basis over the life of the loan. Loans accounted for under ASC 310-20 are placed on non-accrual status when past due in accordance with the Company’s non-accrual policy, and any accretion of discount or amortization of premium is discontinued. Acquired BBVAPR loans that were accounted for under the provisions of ASC 310-20 are removed from the acquired loan category at the end of the reporting period upon refinancing, renewal or normal re-underwriting.

The following tables present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as March 31, 2016 and December 31, 2015, by class of loans:

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate
Retail	$	-	$	-	$	214	$	214	$	-	$	-	$	214	$	-
Floor plan		-		-		457		457		-		2,363		2,820		-
		-		-		671		671		-		2,363		3,034		-
Other commercial and industrial
Retail		68		8		177		253		-		3,264		3,517		-
Floor plan		-		-		7		7		-		-		7		-
		68		8		184		260		-		3,264		3,524		-
		68		8		855		931		-		5,627		6,558		-
Consumer
Credit cards		650		328		779		1,757		-		31,631		33,388		-
Personal loans		37		9		9		55		-		2,903		2,958		-
		687		337		788		1,812		-		34,534		36,346		-
Auto		6,895		2,108		553		9,556		-		81,850		91,406		-
Total	$	7,650	$	2,453	$	2,196	$	12,299	$	-	$	122,011	$	134,310	$	-

22

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate
Retail	$	-	$	-	$	228	$	228	$	-	$	-	$	228	$	-
Floor plan		-		-		467		467		-		2,422		2,889		-
		-		-		695		695		-		2,422		3,117		-
Other commercial and industrial
Retail		186		29		178		393		-		3,331		3,724		-
Floor plan		-		-		7		7		-		609		616		-
		186		29		185		400		-		3,940		4,340		-
		186		29		880		1,095		-		6,362		7,457		-
Consumer
Credit cards		930		384		489		1,803		-		33,414		35,217		-
Personal loans		14		29		46		89		-		3,079		3,168		-
		944		413		535		1,892		-		36,493		38,385		-
Auto		7,553		2,279		831		10,663		-		96,248		106,911		-
Total	$	8,683	$	2,721	$	2,246	$	13,650	$	-	$	139,103	$	152,753	$	-

Acquired BBVAPR Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

Acquired BBVAPR loans, except for credit cards, retail and commercial revolving lines of credits, floor plans and performing auto loans with FICO scores over 660 acquired at a premium, are accounted for by the Company in accordance with ASC 310-30.

The carrying amount corresponding to acquired BBVAPR loans with deteriorated credit quality, including those accounted under ASC 310-30 by analogy, in the statements of financial condition at March 31, 2016 and December 31, 2015 is as follows:

	March 31,	December 31,
	2016	2015
	(In thousands)
Contractual required payments receivable	$1,860,343	$1,945,098
Less: Non-accretable discount	$428,976	$434,190
Cash expected to be collected	1,431,367	1,510,908
Less: Accretable yield	340,663	361,688
Carrying amount, gross	1,090,704	1,149,220
Less: allowance for loan and lease losses	27,747	25,785
Carrying amount, net	$1,062,957	$1,123,435

At March 31, 2016 and December 31, 2015, the Company had $71.0 million and $80.9 million, respectively, in loans granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities as part of its acquired BBVAPR loans accounted for under ASC 310-30.  This entire amount was current at March 31, 2016 and December 31, 2015.

23

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Construction		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	268,794	$	45,411	$	19,615	$	21,578	$	6,290	$	361,688
Accretion		(8,307)		(5,839)		(1,869)		(4,211)		(938)		(21,164)
Change in expected cash flows		-		128		200		1		-		329
Transfer from (to) non-accretable discount		70		402		(790)		219		(91)		(190)
Balance at end of period	$	260,557	$	40,102	$	17,156	$	17,587	$	5,261	$	340,663
Non-Accretable Discount Activity:
Balance at beginning of period	$	374,772	$	11,781	$	6,764	$	22,039	$	18,834	$	434,190
Change in actual and expected cash flows		(4,547)		(663)		(122)		118		(190)		(5,404)
Transfer (to) from accretable yield		(70)		(402)		790		(219)		91		190
Balance at end of period	$	370,155	$	10,716	$	7,432	$	21,938	$	18,735	$	428,976

	Quarter Ended March 31, 2015
	Mortgage		Commercial		Construction		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	298,364	$	61,196	$	25,829	$	53,998	$	6,559	$	445,946
Accretion		(8,987)		(10,759)		(3,810)		(6,988)		(926)		(31,470)
Transfer (to) from non-accretable discount		(4,765)		6,893		(2,629)		87		(32)		(446)
Balance at end of period	$	284,612	$	57,330	$	19,390	$	47,097	$	5,601	$	414,030
Non-Accretable Discount Activity:
Balance at beginning of period	$	389,839	$	23,069	$	3,486	$	16,215	$	24,018	$	456,627
Change in actual and expected cash flows		(1,995)		(350)		(2,158)		(1,585)		(474)		(6,562)
Transfer from (to) accretable yield		4,765		(6,893)		2,629		(87)		32		446
Balance at end of period	$	392,609	$	15,826	$	3,957	$	14,543	$	23,576	$	450,511

24

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Acquired Eurobank Loans

The carrying amount of acquired Eurobank loans at March 31, 2016 and December 31, 2015 is as follows:

		March 31		December 31
	2016		2015
	(In thousands)
Contractual required payments receivable	$	334,111	$	342,511
Less: Non-accretable discount		12,703		21,156
Cash expected to be collected		321,408		321,355
Less: Accretable yield		86,227		84,391
Carrying amount, gross		235,181		236,964
Less: Allowance for loan and lease losses		92,293		90,178
Carrying amount, net	$	142,888	$	146,786

The following tables describe the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Loans Secured by   1-4 Family Residential Properties		Commercial and Other Construction		Construction & Development Secured by 1-4 Family Residential Properties		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	51,954	$	26,970	$	2,255	$	3,213	$	84,392
Accretion		(2,266)		(4,095)		(14)		(1,185)		(7,560)
Change in expected cash flows		984		11,093		(23)		(2,028)		10,026
Transfer from (to) non-accretable discount		115		(765)		19		-		(631)
Balance at end of period	$	50,787	$	33,203	$	2,237	$	-	$	86,227
Non-Accretable Discount Activity:
Balance at beginning of period	$	12,869	$	-	$	-	$	8,287	$	21,156
Change in actual and expected cash flows		(51)		(765)		19		(8,287)		(9,084)
Transfer (to) from accretable yield		(115)		765		(19)		-		631
Balance at end of period	$	12,703	$	-	$	-	$	-	$	12,703

25

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Quarter Ended March 31, 2015
	Loans Secured by   1-4 Family Residential Properties		Commercial and Other Construction		Construction & Development Secured by 1-4 Family Residential Properties		Leasing		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	47,636	$	37,919	$	20,753	$	2,479	$	1,072	$	109,859
Accretion		(3,518)		(9,855)		(619)		(1,392)		(120)		(15,504)
Transfer from non-accretable discount		14,214		5,417		672		578		1,052		21,933
Balance at end of period	$	58,332	$	33,481	$	20,806	$	1,665	$	2,004	$	116,288
Non-Accretable Discount Activity:
Balance at beginning of period	$	27,348	$	24,464	$	-	$	-	$	10,598	$	62,410
Change in actual and expected cash flows		(577)		(8,554)		672		578		116		(7,765)
Transfer to accretable yield		(14,214)		(5,417)		(672)		(578)		(1,052)		(21,933)
Balance at end of period	$	12,557	$	10,493	$	-	$	-	$	9,662	$	32,712

26

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Non-accrual Loans

The following table presents the recorded investment in loans in non-accrual status by class of loans as of March 31, 2016 and December 31, 2015:

	March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year):
Up to the year 2002	$	3,051	$	3,786
Years 2003 and 2004		5,958		5,737
Year 2005		3,941		3,627
Year 2006		7,532		8,189
Years 2007, 2008 and 2009		13,742		14,625
Years 2010, 2011, 2012, 2013		9,056		10,588
Years 2014, 2015 and 2016		1,162		663
		44,442		47,215
Non-traditional		5,055		5,092
Loss mitigation program		19,630		20,172
		69,127		72,479
Home equity loans, secured personal loans		-		64
		69,127		72,543
Commercial
Commercial secured by real estate
Middle market		12,012		12,729
Retail		10,597		8,726
		22,609		21,455
Other commercial and industrial
Institutional		186,675		190,290
Middle market		1,493		1,565
Retail		1,527		1,932
Floor plan		41		39
		189,736		193,826
		212,345		215,281
Consumer
Credit cards		422		369
Personal lines of credit		64		100
Personal loans		1,539		1,146
Cash collateral personal loans		14		16
		2,039		1,631
Auto and leasing		7,873		8,418
Total non-accrual originated loans	$	291,384	$	297,873

27

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	March 31,		December 31,
	2016		2015
	(In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20
Commercial
Commercial secured by real estate
Retail	$	214	$	228
Floor plan		456		467
		670		695
Other commercial and industrial
Retail		177		178
Floor plan		7		7
		184		185
		854		880
Consumer
Credit cards		779		489
Personal loans		9		46
		788		535
Auto		572		831
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20		2,214		2,246
Total non-accrual loans	$	293,598	$	300,119

Loans accounted for under ASC 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses or are accounted under the cost recovery method.

Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due, but are not placed in non-accrual status until they become 18 months or more past due, since they are insured loans. Therefore, these loans are included as non-performing loans but excluded from non-accrual loans.

During the first quarter of 2015, the revolving line of credit to PREPA was classified as non-accrual. At March 31, 2016, this line of credit had an unpaid principal balance of $186.7 million. Since the second quarter of 2015, interest payments are applied to principal. As of March 31, 2016, the specific reserve for the PREPA line of credit is $53.3 million.

At March 31, 2016 and December 31, 2015, loans whose terms have been extended and which are classified as troubled-debt restructurings that are not included in non-accrual loans amounted to $96.5 million and $93.6 million, respectively, as they are performing under their new terms.

28

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Impaired Loans

The Company evaluates all loans, some individually and others as homogeneous groups, for purposes of determining impairment. The total investment in impaired commercial loans was $227.1 million and $235.8 million at March 31, 2016 and December 31, 2015, respectively. Impaired commercial loans at March 31, 2016 and December 31, 2015 included the PREPA line of credit with an unpaid principal balance of $186.7 million and $190.3 million, respectively. The impaired commercial loans were measured based on the fair value of collateral or the present value of cash flows, including those identified as troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to $56.6 million at March 31, 2016 and $55.9 million at December 31, 2015.  The valuation allowance for impaired commercial loans at March 31, 2016 and December 31, 2015 included $53.3 million of specific allowance for PREPA. The total investment in impaired mortgage loans was $90.8 million and $90.0 million at March 31, 2016 and December 15, 2015, respectively. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The valuation allowance for impaired mortgage loans amounted to $9.1 million at March 31, 2016 and $9.2 million at December 31, 2015.

Originated and Other Loans and Leases Held for Investment

The Company’s recorded investment in commercial and mortgage loans categorized as originated and other loans and leases held for investment that were individually evaluated for impairment and the related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	211,543	$	196,997	$	56,580	29%
Residential impaired and troubled-debt restructuring		98,610		90,772		9,135	10%
Impaired loans with no specific allowance:
Commercial		37,034		29,656		-	0%
Total investment in impaired loans	$	347,187	$	317,425	$	65,715	21%

	December 31, 2015
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	210,718	$	199,366	$	55,947	29%
Residential impaired and troubled-debt restructuring		97,424		89,973		9,233	10%
Impaired loans with no specific allowance
Commercial		42,110		35,928		-	0%
Total investment in impaired loans	$	350,252	$	325,267	$	65,180	21%

29

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Acquired BBVAPR Loans

Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

The Company’s recorded investment in acquired BBVAPR commercial loans accounted for under ASC 310-20 that were individually evaluated for impairment and the related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with no specific allowance
Commercial	$	478	$	464	$	-	0%
Total investment in impaired loans	$	478	$	464	$	-	0%
	December 31, 2015
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with no specific allowance
Commercial	$	486	$	474	$	-	0%
Total investment in impaired loans	$	486	$	474	$	-	0%

Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

The Company’s recorded investment in acquired BBVAPR loan pools accounted for under ASC 310-30 that have recorded impairments and their related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	600,901	$	600,901	$	1,762	0%
Commercial		267,931		164,913		15,668	10%
Construction		77,619		77,619		4,762	6%
Auto		134,669		134,669		5,555	4%
Total investment in impaired loan pools	$	1,081,120	$	978,102	$	27,747	3%

30

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31 , 2015
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	608,294	$	608,294	$	1,762	0%
Commercial		287,311		168,107		15,454	9%
Construction		88,180		87,983		5,707	6%
Auto		153,592		153,592		2,862	2%
Total investment in impaired loan pools	$	1,137,377	$	1,017,976	$	25,785	3%

The tables above only present information with respect to acquired BBVAPR loans and pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses.

Acquired Eurobank Loans

The Company’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their related allowance for loan and lease losses as of March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Loans secured by 1-4 family residential properties	$	96,028	$	91,113	$	23,961	26%
Commercial and construction		130,042		142,298		68,089	48%
Consumer		1,708		1,770		243	14%
Total investment in impaired loan pools	$	227,778	$	235,181	$	92,293	39%

	December 31, 2015
							Coverage
	Unpaid		Recorded		Specific		to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	101,444	$	92,273	$	22,570	24%
Commercial and construction		133,148		142,377		67,365	47%
Consumer		6,713		2,314		243	11%
Total investment in impaired loan pools	$	241,305	$	236,964	$	90,178	38%

The tables above only present information with respect to acquired Eurobank loans and loan pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses.

31

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents the interest recognized in commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30 for the quarters ended  March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016				2015
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
	(In thousands)
Originated and other loans held for investment:
Impaired loans with specific allowance
Commercial	$	71	$	196,795	$	3,695	$	79,873
Residential troubled-debt restructuring		798		90,292		733		93,391
Impaired loans with no specific allowance
Commercial		270		33,626		241		161,568
		1,139		320,713		4,669		334,832
Acquired loans accounted for under ASC 310-20:
Impaired loans with no specific allowance
Commercial		-		467		12		2,401
Total interest income from impaired loans	$	1,139	$	321,180	$	4,681	$	337,233

Modifications

The following tables present the troubled-debt restructurings during the quarters ended March 31, 2016 and 2015.

	Quarter Ended March 31, 2016
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	33	$	3,957	6.03%	361	$	4,854	4.83%	493
Commercial	2		655	6.81%	41		656	6.71%	36
Consumer	21		192	14.28%	75		231	11.15%	72
	Quarter Ended March 31, 2015
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	51	$	6,182	4.00%	356	$	6,054	4.02%	357
Commercial	3		4,505	6.83%	80		4,505	7.00%	141
Consumer	11		146	14.67%	75		182	14.80%	66

32

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month periods ended March 31, 2016 and 2015:

	Twelve Month Period Ended March 31,
	2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Mortgage	31	$	3,732	60	$	6,963
Consumer	3	$	77	6	$	81
Auto	1	$	17	-	$	-

Credit Quality Indicators

The Company categorizes originated and other loans and acquired loans accounted for under ASC 310-20 into risk categories based on relevant information about the ability of borrowers to service their debt, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans.

The Company uses the following definitions for risk ratings:

Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards.

Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

33

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of gross originated and other loans and BBVAPR acquired loans accounted for under ASC 310-20 subject to risk rating by class of loans is as follows:

	March 31, 2016
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate:
Corporate	$	228,782	$	213,714	$	15,068	$	-	$	-	$	-
Institutional		27,584		25,779		-		-		-		1,805
Middle market		208,903		180,248		14,078		189		-		14,388
Retail		244,020		219,150		7,592		5,069		-		12,209
Floor plan		2,859		2,859		-		-		-		-
Real estate		16,372		16,372		-		-		-		-
		728,520		658,122		36,738		5,258		-		28,402
Other commercial and industrial:
Corporate		120,881		113,235		-		-		-		7,646
Institutional		363,255		176,580		-		-		-		186,675
Middle market		103,788		92,896		8,787		218		-		1,887
Retail		74,624		69,644		1,749		1,227		-		2,004
Floor plan		34,317		34,195		-		83		-		39
		696,865		486,550		10,536		1,528		-		198,251
Total		1,425,385		1,144,672		47,274		6,786		-		226,653
Commercial - acquired loans       (under ASC 310-20)
Commercial secured by real estate:
Retail		214		-		-		214		-		-
Floor plan		2,820		574		1,789		-		-		457
		3,034		574		1,789		214		-		457
Other commercial and industrial:
Retail		3,517		3,444		-		73		-		-
Floor plan		7		-		-		-		-		7
		3,524		3,444		-		73		-		7
Total		6,558		4,018		1,789		287		-		464
Total	$	1,431,943	$	1,148,690	$	49,063	$	7,073	$	-	$	227,117

34

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2015
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate:
Corporate	$	227,557	$	212,410	$	15,147	$	-	$	-	$	-
Institutional		33,807		25,907		-		-		-		7,900
Middle market		206,948		181,916		9,697		-		-		15,335
Retail		241,090		217,836		7,936		5,097		-		10,221
Floor plan		2,892		2,892		-		-		-		-
Real estate		16,662		16,662		-		-		-		-
		728,956		657,623		32,780		5,097		-		33,456
Other commercial and industrial:
Corporate		108,582		100,826		-		-		-		7,756
Institutional		380,985		190,695		-		-		-		190,290
Middle market		107,313		97,288		8,052		-		-		1,973
Retail		77,797		73,757		1,076		1,184		-		1,780
Floor plan		38,016		35,862		2,115		-		-		39
		712,693		498,428		11,243		1,184		-		201,838
Total		1,441,649		1,156,051		44,023		6,281		-		235,294
Commercial - acquired loans       (under ASC 310-20)
Commercial secured by real estate:
Retail		228		-		-		228		-		-
Floor plan		2,889		602		1,820		-		-		467
		3,117		602		1,820		228		-		467
Other commercial and industrial:
Retail		3,724		3,637		-		87		-		-
Floor plan		616		609		-		-		-		7
		4,340		4,246		-		87		-		7
Total		7,457		4,848		1,820		315		-		474
Total	$	1,449,106	$	1,160,899	$	45,843	$	6,596	$	-	$	235,768

35

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

At March 31, 2016 and 2015, the Company had outstanding credit facilities of approximately $401.8 million and $415.4 million, respectively, granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, included within portfolio of originated and other loans and acquired BBVAPR loans accounted for under ASC 310-30. A substantial portion of the Company’s credit exposure to Puerto Rico’s government consists of collateralized loans or obligations that have a specific source of income or revenues identified for their repayment. Approximately $204 million of these loans are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities.  The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations. 

At March 31, 2016, we had approximately $198.2 million of credit facilities to central government and public corporations of the Commonwealth, including:

·PREPA with an outstanding balance of $186.7 million; and

·The PRHFA with an outstanding balance of $11.0 million to be repaid from abandoned or unclaimed funds at financial institutions that revert to the government under a Puerto Rico escheat law.

The outstanding balance of credit facilities to public corporations decreased to $10.0 during the first quarter of 2016 as a result of partial repayment by PRHFA.

Oriental Bank is part of a four bank syndicate providing a $550 million revolving line of credit to finance the purchase of fuel for PREPA’s day-to-day power generation activities. Our participation in the line of credit has an unpaid principal balance of $186.7 million as of March 31, 2016. As part of the bank syndicate, the Bank entered into a forbearance agreement with PREPA, which was extended several times during 2015 until the execution of a Restructuring Support Agreement on November 5, 2015 with PREPA and certain other creditors. The Restructuring Support Agreement provides for the restructuring of the fuel line of credit subject to the accomplishment of several milestones, including some milestones that depend on the actions of third parties to the agreement, such as the negotiation of agreements with other creditors and legislative action. The Company has classified the credit facility to PREPA as doubtful and on non-accrual status. The Company conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under various scenarios and its capacity to service its financial obligations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite the Company’s analysis showing PREPA’s capacity to repay the line of credit, the Company placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015. During the fourth quarter of 2015, the Company recorded an additional $29.3 million provision for loan and lease losses for PREPA as a result of the increased level of uncertainty as to the closing of the restructuring agreement, which is expected by the second half of 2016. Since April 1, 2015, interest payments have been applied to principal.

The PREPA Revitalization Act was recently signed into law by the Governor of Puerto Rico. It provides for a major debt restructuring of PREPA’s outstanding debt and sets forth a legal framework for PREPA to execute on the agreements reached with its creditors.  Among other things, it (i) enhances PREPA’s governance processes; (ii) adjusts PREPA’s practices for hiring and managing personnel; (iii) changes PREPA’s processes for collecting outstanding bills from public and private entities; (iv) improves transparency of PREPA’s billing practices; (v) implements a competitive bidding process for soliciting third party investment in PREPA’s infrastructure; (vi) allows for the refinancing of existing PREPA bonds through a securitization that would reduce PREPA’s indebtedness and cost of borrowing; and (vii) sets forth a process for the Energy Commission to address PREPA’s proposal for a new rate structure that consistent with its recovery plan.

PREPA’s enabling act provides for local receivership upon request to any Puerto Rico court of competent jurisdiction in the event of a default in debt-service payments or other obligations in connection with PREPA’s bonds.  The receiver so appointed would be empowered, directly or through its agents and attorneys, to take possession of the undertakings, income and revenues pledged to the payment of the bonds in default; to have, hold, use, operate, manage and control the same; and to exercise all of PREPA’s rights and powers with respect to such undertakings.  However, any such receiver would not have the power to sell, assign, mortgage or otherwise dispose of PREPA’s assets, and its powers would be limited to the operation and maintenance of such undertakings and the collection and application of the income and revenues therefrom. Although the Puerto Rico government is actively seeking the right to bankruptcy relief for some of its public instrumentalities, including PREPA, both through an amendment to the federal bankruptcy code and the enactment of a local debt restructuring law, such efforts have thus far been unsuccessful.

36

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of gross originated and other loans and acquired BBVAPR loans accounted for under ASC 310-20 not subject to risk rating by class of loans is as follows:

	March 31, 2016
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional         (by origination year)
Up to the year 2002	$	55,633	$	50,439	$	82	$	1,219	$	629	$	1,352	$	1,229	$	683
Years 2003 and 2004		97,289		85,896		388		3,580		1,681		1,552		2,444		1,748
Year 2005		53,491		46,578		314		1,893		315		1,412		2,140		839
Year 2006		76,070		63,614		402		1,238		816		1,620		4,775		3,605
Years 2007, 2008             and 2009		88,477		69,491		282		1,420		997		2,909		9,617		3,761
Years 2010, 2011, 2012             2013		148,245		134,179		452		1,819		69		1,777		5,866		4,083
Years 2014, 2015 and 2016		92,819		91,277		-		444		639		225		234		-
		612,024		541,474		1,920		11,613		5,146		10,847		26,305		14,719
Non-traditional		27,707		22,299		-		395		128		2,337		2,548		-
Loss mitigation program		104,011		17,800		2,890		1,953		669		1,498		3,148		76,053
		743,742		581,573		4,810		13,961		5,943		14,682		32,001		90,772
Home equity secured         personal loans		393		393		-		-		-		-		-		-
GNMA's buy-back         option program		7,684		-		-		-		805		3,730		3,149		-
		751,819		581,966		4,810		13,961		6,748		18,412		35,150		90,772
Consumer
Credit cards		23,365		22,403		387		153		192		230		-		-
Overdrafts		220		203		17		-		-		-		-		-
Unsecured personal lines of credit		2,350		2,197		51		49		22		31		-		-
Unsecured personal loans		210,223		205,756		2,458		920		1,082		7		-		-
Cash collateral personal loans		16,169		15,922		214		19		14		-		-		-
		252,327		246,481		3,127		1,141		1,310		268		-		-
Auto and Leasing		687,159		608,442		53,801		17,203		5,572		2,141		-		-
		1,691,305		1,436,889		61,738		32,305		13,630		20,821		35,150		90,772
Acquired loans (accounted for under ASC 310-20)
Consumer
Credit cards		33,388		31,631		650		328		287		492		-		-
Personal loans		2,959		2,903		37		9		-		10		-		-
		36,346		34,534		687		337		287		502		-		-
Auto		91,406		81,849		6,895		2,108		342		212		-		-
		127,752		116,383		7,582		2,445		629		714		-		-
Total	$	1,819,057	$	1,553,272	$	69,320	$	34,750	$	14,259	$	21,535	$	35,150	$	90,772

37

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2015
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional         (by origination year)
Up to the year 2002	$	57,789	$	50,912	$	82	$	2,218	$	530	$	1,504	$	1,858	$	685
Years 2003 and 2004		99,446		87,060		251		4,867		1,261		1,353		2,921		1,733
Year 2005		54,221		47,197		79		2,553		292		1,068		2,189		843
Year 2006		78,403		63,659		318		2,878		1,168		1,895		4,871		3,614
Years 2007, 2008             and 2009		91,546		71,439		170		1,665		685		2,972		10,725		3,890
Years 2010, 2011, 2012             2013		150,744		134,945		569		1,611		434		1,982		6,737		4,466
Year 2014 and 2015		85,856		85,128		-		65		148		281		234		-
		618,005		540,340		1,469		15,857		4,518		11,055		29,535		15,231
Non-traditional		29,552		23,497		-		977		552		2,621		1,905		-
Loss mitigation program		101,916		16,031		4,173		1,977		727		1,728		2,538		74,742
		749,473		579,868		5,642		18,811		5,797		15,404		33,978		89,973
Home equity secured         personal loans		410		346		-		-		-		64		-		-
GNMA's buy-back         option program		7,945		-		-		-		1,593		3,578		2,774		-
		757,828		580,214		5,642		18,811		7,390		19,046		36,752		89,973
Consumer
Credit cards		22,766		21,766		449		182		179		190		-		-
Overdrafts		190		166		24		-		-		-		-		-
Unsecured personal lines of credit		2,244		2,125		74		-		17		28		-		-
Unsecured personal loans		201,156		197,339		2,083		1,107		621		6		-		-
Cash collateral personal loans		16,594		16,450		125		17		2		-		-		-
		242,950		237,846		2,755		1,306		819		224		-		-
Auto and Leasing		669,163		590,482		53,549		16,839		5,708		2,585		-		-
		1,669,941		1,408,542		61,946		36,956		13,917		21,855		36,752		89,973
Acquired loans (accounted for under ASC 310-20)
Consumer
Credit cards		35,217		33,414		930		384		186		303		-		-
Personal loans		3,168		3,079		14		29		1		45		-		-
		38,385		36,493		944		413		187		348		-		-
Auto		106,911		96,247		7,553		2,279		623		209		-		-
		145,296		132,740		8,497		2,692		810		557		-		-
Total	$	1,815,237	$	1,541,282	$	70,443	$	39,648	$	14,727	$	22,412	$	36,752	$	89,973

38

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 5 – ALLOWANCE FOR LOAN AND LEASE LOSSES

The composition of the Company’s allowance for loan and lease losses at March 31, 2016 and December 31, 2015 was as follows:

	March 31,		December 31,
	2016		2015
	(In thousands)
Allowance for loans and lease losses on non-acquired loans:
Originated and other loans and leases held for investment:
Mortgage	$	18,784	$	18,352
Commercial		64,206		64,791
Consumer		11,414		11,197
Auto and leasing		18,716		18,261
Unallocated		118		25
Total allowance for originated and other loans and lease losses		113,238		112,626
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		23		26
Consumer		3,243		3,429
Auto		1,727		2,087
		4,993		5,542
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		1,762		1,762
Commercial		20,430		21,161
Auto		5,555		2,862
		27,747		25,785
Total allowance for acquired BBVAPR loans and lease losses		145,978		143,953
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		23,961		22,570
Commercial and other construction		68,089		67,365
Consumer		243		243
Total allowance for acquired Eurobank loan and lease losses		92,293		90,178
Total allowance for loan and lease losses	$	238,271	$	234,131

The Company maintains an allowance for loan and lease losses at a level that management considers adequate to provide for probable losses based upon an evaluation of known and inherent risks. The Company’s allowance for loan and lease losses policy provides for a detailed quarterly analysis of probable losses. The analysis includes a review of historical loan loss experience, value of underlying collateral, current economic conditions, financial condition of borrowers and other pertinent factors. While management uses available information in estimating probable loan losses, future additions to the allowance may be required based on factors beyond the Company’s control. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition, and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition.

39

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Allowance for Originated and Other Loan and Lease Losses Held for Investment

The following tables presents the activity in our allowance for loan and lease losses and the related recorded investment of the originated and other loans held for investment portfolio by segment for the periods indicated:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for originated and other loans:
Balance at beginning of period	$	18,352	$	64,791	$	11,197	$	18,261	$	25	$	112,626
Charge-offs		(1,662)		(1,011)		(2,327)		(8,362)		-		(13,362)
Recoveries		145		88		102		2,979		-		3,314
Provision for originated and other loans             and lease losses		1,949		338		2,442		5,838		93		10,660
Balance at end of period	$	18,784	$	64,206	$	11,414	$	18,716	$	118	$	113,238

	March 31, 2016
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses on originated and other loans:
Ending allowance balance attributable       to loans:
Individually evaluated for impairment	$	9,135	$	56,580	$	-	$	-	$	-	$	65,715
Collectively evaluated for impairment		9,649		7,626		11,414		18,716		118		47,523
Total ending allowance balance	$	18,784	$	64,206	$	11,414	$	18,716	$	118	$	113,238
Loans:
Individually evaluated for impairment	$	90,772	$	226,653	$	-	$	-	$	-	$	317,425
Collectively evaluated for impairment		661,047		1,198,732		252,327		687,159		-		2,799,265
Total ending loan balance	$	751,819	$	1,425,385	$	252,327	$	687,159	$	-	$	3,116,690

40

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Quarter Ended March 31, 2015
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for originated and other loans:
Balance at beginning of period	$	19,679	$	8,432	$	9,072	$	14,255	$	1	$	51,439
Charge-offs		(1,414)		(992)		(1,676)		(8,136)		-		(12,218)
Recoveries		-		89		153		3,384		-		3,626
Provision (recapture) for originated and             other loans and lease losses		(179)		25,594		1,856		6,259		382		33,912
Balance at end of period	$	18,086	$	33,123	$	9,405	$	15,762	$	383	$	76,759

	December 31, 2015
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses on originated and other loans:
Ending allowance balance attributable       to loans:
Individually evaluated for impairment	$	9,233	$	55,947	$	-	$	-	$	-	$	65,180
Collectively evaluated for impairment		9,119		8,844		11,197		18,261		25		47,446
Total ending allowance balance	$	18,352	$	64,791	$	11,197	$	18,261	$	25	$	112,626
Loans:
Individually evaluated for impairment	$	89,973	$	235,294	$	-	$	-	$	-	$	325,267
Collectively evaluated for impairment		667,855		1,206,355		242,950		669,163		-		2,786,323
Total ending loan balance	$	757,828	$	1,441,649	$	242,950	$	669,163	$	-	$	3,111,590

41

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Allowance for BBVAPR Acquired Loan Losses

Loans accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

The following tables present the activity in our allowance for loan losses and related recorded investment of the associated loans in our BBVAPR acquired loan portfolio, excluding loans accounted for under ASC 310-30, for the periods indicated:

	Quarter Ended March 31, 2016
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses     for acquired BBVAPR loans      accounted for under ASC 310-20:
Balance at beginning of period	$	26	$	3,429	$	2,087	$	-	$	5,542
Charge-offs		(7)		(812)		(737)		-		(1,556)
Recoveries		32		81		598		-		711
Provision (recapture) for acquired BBVAPR           loan and lease losses accounted for           under ASC 310-20		(28)		545		(221)		-		296
Balance at end of period	$	23	$	3,243	$	1,727	$	-	$	4,993

	March 31, 2016
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses   for acquired BBVAPR loans    accounted for under ASC 310-20:
Ending allowance balance attributable       to loans:
Collectively evaluated for impairment	$	23	$	3,243	$	1,727	$	-	$	4,993
Total ending allowance balance	$	23	$	3,243	$	1,727	$	-	$	4,993
Loans:
Individually evaluated for impairment	$	464	$	-	$	-	$	-	$	464
Collectively evaluated for impairment		6,094		36,346		91,406		-		133,846
Total ending loan balance	$	6,558	$	36,346	$	91,406	$	-	$	134,310

42

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Quarter Ended March 31, 2015
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses     for acquired BBVAPR loans      accounted for under ASC 310-20:
Balance at beginning of period	$	65	$	1,211	$	3,321	$	-	$	4,597
Charge-offs		-		(1,380)		(1,267)		-		(2,647)
Recoveries		9		134		570		-		713
Provision (recapture) for acquired             loan and lease losses accounted for             under ASC 310-20		(25)		1,920		892		-		2,787
Balance at end of period	$	49	$	1,885	$	3,516	$	-	$	5,450

	December 31, 2015
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses     for acquired BBVAPR loans      accounted for under ASC 310-20:
Ending allowance balance attributable       to loans:
Collectively evaluated for impairment	$	26	$	3,429	$	2,087	$	-	$	5,542
Total ending allowance balance	$	26	$	3,429	$	2,087	$	-	$	5,542
Loans:
Individually evaluated for impairment	$	474	$	-	$	-	$	-	$	474
Collectively evaluated for impairment		6,983		38,385		106,911		-		152,279
Total ending loan balance	$	7,457	$	38,385	$	106,911	$	-	$	152,753

43

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

The following tables present the activity in our allowance for loan losses and related recorded investment of the acquired BBVAPR loan portfolio accounted for under ASC 310-30, for the periods indicated:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Consumer		Auto		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-30:
Balance at beginning of period	$	1,678	$	21,245	$	-	$	2,862	$	25,785
Provision (recapture) for BBVAPR loans and             lease losses accounted for             under ASC 310-30		84		(749)		-		2,693		2,028
Loan pools fully charged-off		-		(66)		-		-		(66)
Balance at end of period	$	1,762	$	20,430	$	-	$	5,555	$	27,747
	Quarter Ended March 31, 2015
	Mortgage		Commercial		Consumer		Auto		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-30:
Balance at beginning of period	$	-	$	13,476	$	-	$	5	$	13,481
Provision for BBVAPR loans             and lease losses accounted for             under ASC 310-30		-		211		-		474		685
Balance at end of period	$	-	$	13,687	$	-	$	479	$	14,166

44

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Allowance for Acquired Eurobank Loan Losses

For loans accounted for under ASC 310-30, as part of the evaluation of actual versus expected cash flows, the Company assesses on a quarterly basis the credit quality of these loans based on delinquency, severity factors and risk ratings, among other assumptions.  Migration and credit quality trends are assessed at the pool level, by comparing information from the latest evaluation period through the end of the reporting period.

The changes in the allowance for loan and lease losses on acquired Eurobank loans for the quarters ended March 31, 2016 and 2015 were as follows:

	Quarter Ended March 31, 2016
	Loans Secured by   1-4 Family Residential Properties		Commercial and Construction		Consumer		Leasing		Total
	(In thousands)
Allowance for loan and lease losses for acquired Eurobank loans:
Balance at beginning of period	$	22,570	$	67,365	$	243	$	-	$	90,178
Provision (recapture) for acquired Eurobank loans and             lease losses, net		(53)		858		-		-		805
Loan pools fully charged-off		-		(134)		-		-		(134)
FDIC shared-loss portion of provision for covered             loan and lease losses, net		1,444		-		-		-		1,444
Balance at end of period	$	23,961	$	68,089	$	243	$	-	$	92,293

	Quarter Ended March 31, 2015
	Mortgage		Commercial and Construction		Consumer		Leasing		Total
	(In thousands)
Allowance for loan and lease losses for acquired Eurobank loans:
Balance at beginning of period	$	15,522	$	48,334	$	389	$	-	$	64,245
Provision for covered loan and lease losses, net		1,818		2,991		-		-		4,809
FDIC shared-loss portion of provision for covered             loan and lease losses, net		-		1,597		-		-		1,597
Balance at end of period	$	17,340	$	52,922	$	389	$	-	$	70,651

The FDIC shared-loss portion of provision for acquired Eurobank loans and lease losses, net, represents the credit impairment losses to be covered under the FDIC loss-share agreement which is increasing the FDIC loss-share indemnification asset.

The FDIC loss sharing obligation, related to commercial and other-non single family acquired Eurobank loans expired on June 30, 2015. The coverage for the single family residential loans will expire on June 30, 2020. The remaining covered loans are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties." At March 31, 2016 and December 31, 2015, allowance for loan losses on loans covered by the FDIC shared-loss agreement amounted to $24.0 million and $22.6 million, respectively. The provision for covered loan and lease losses for the quarters ended March 31, 2016 and 2015 was $54 thousand and $4.8 million, respectively.

45

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 6- FDIC INDEMNIFICATION ASSET, TRUE-UP PAYMENT OBLIGATION, AND FDIC SHARED-LOSS EXPENSE

In connection with the FDIC-assisted acquisition, the Bank and the FDIC entered into shared-loss agreements pursuant to which the FDIC covers a substantial portion of any losses on loans (and related unfunded loan commitments), foreclosed real estate and other repossessed properties covered by the agreements.

The acquired loans, foreclosed real estate, and other repossessed properties subject to the shared-loss agreements are collectively referred to as “covered assets.” Under the terms of the shared-loss agreements, the FDIC absorbs 80% of losses and shares in 80% of loss recoveries on covered assets. The term of the shared-loss agreement covering single family residential mortgage loans is ten years with respect to losses and loss recoveries, while the term of the shared-loss agreement covering commercial loans is five years with respect to losses and eight years with respect to loss recoveries, from the April 30, 2010 acquisition date. The coverage under the commercial shared-loss agreement expired on June 30, 2015. The shared-loss agreements also provide for certain costs directly related to the collection and preservation of covered assets to be reimbursed at an 80% level. The FDIC indemnification asset represents the portion of estimated losses covered by the shared-loss agreements between the Bank and the FDIC.

The following table presents the activity in the FDIC indemnification asset and true-up payment obligation for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset:
Balance at beginning of period	$	22,599	$	97,378
Shared-loss agreements reimbursements from the FDIC		(406)		(17,172)
Increase in expected credit losses to be       covered under shared-loss agreements, net		1,444		1,597
FDIC indemnification asset expense		(2,865)		(12,221)
Incurred expenses to be reimbursed under shared-loss agreements		151		5,639
Balance at end of period	$	20,923	$	75,221
True-up payment obligation:
Balance at beginning of period	$	24,658	$	21,981
Change in true-up payment obligation		577		863
Balance at end of period	$	25,235	$	22,844

The FDIC shared-loss expense bears an inverse relationship with a change in the yield of covered loan pools in accordance with ASC 310-30. ASC 310-30 dictates that such pools should be subject to increases in their yield when the present value of the expected cash flows is higher than the pool’s carrying balance. When the increases in cash flow expectations are driven by reductions in the expected credit losses, the Bank recognizes that such losses are no longer expected to be collected from the FDIC. Accordingly, the Bank reduces the FDIC indemnification asset by amortizing the reduction in expected collections throughout the remaining life of the underlying pools. This amortization is recognized in the FDIC shared-loss expense account.

The underlying factors that caused an increase in the expected cash flows and resulting reduction in projected losses are derived from the pool-level cash flow forecasts. Credit loss assumptions used to develop each pool-level cash flow forecast are based on the behavior of defaults, recoveries and losses of the corresponding pool of covered loans.

46

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The FDIC loss-share coverage for the commercial loans was in effect until June 30, 2015. Accordingly, the Company amortized the remaining portion of the FDIC indemnification asset attributable to non-single family loans at the close of the second quarter of 2015. At March 31, 2016 and December 31, 2015, the FDIC indemnification asset reflects only the balance for single family residential mortgage loans.

The Company has owed payments to the FDIC for the recovery of prior claims for commercial loans. At March 31, 2016, the liability for these payments amounted to $587 thousand and is recorded in other liabilities in the consolidated statements of financial condition until cash is paid to the FDIC. There was no liability at March 31, 2015. 

The FDIC indemnification asset expense decreased to $2.9 million for the quarter ended March 31, 2016 when compared to $12.2 million for the same period in 2015. The decrease during the period was principally driven by the expiration of the FDIC loss-share coverage for commercial loans and other non-single family loans. 

Also in connection with the FDIC-assisted acquisition, the Bank agreed to make a true-up payment, also known as clawback liability or clawback provision, to the FDIC on the date that is 45 days following the last day (such day, the “True-Up Measurement Date”) of the final shared-loss month, or upon the final disposition of all covered assets under the shared-loss agreements in the event losses thereunder fail to reach expected levels. Under the shared-loss agreements, the Bank will pay to the FDIC 50% of the excess, if any, of: (i) 20% of the Intrinsic Loss Estimate of $906.0 million (or $181.2 million) (as determined by the FDIC) less (ii) the sum of: (A) 25% of the asset discount (per bid) (or $227.5 million); plus (B) 25% of the cumulative shared-loss payments (defined as the aggregate of all of the payments made or payable to the Bank minus the aggregate of all of the payments made or payable to the FDIC); plus (C) the sum of the period servicing amounts for every consecutive twelve-month period prior to and ending on the True-Up Measurement Date in respect of each of the shared-loss agreements during which the shared-loss provisions of the applicable shared-loss agreement is in effect (defined as the product of the simple average of the principal amount of shared-loss loans and shared-loss assets at the beginning and end of such period times 1%). The estimated liability is included within accrued expenses and other liabilities in the unaudited consolidated statements of financial condition.

This true-up payment obligation may increase if actual and expected losses decline. The Company measures the true-up payment obligation at fair value. The changes in fair value are included as a change in true-up payment obligation within the FDIC shared-loss expense, net, in the unaudited consolidated statements of operations.

The following table provides the fair value and the undiscounted amount of the true-up payment obligation at March 31, 2016 and December 31, 2015:

		March 31,		December 31,
	2016		2015
	(In thousands)
Carrying amount (fair value)	$	25,235	$	24,658
Undiscounted amount	$	34,966	$	34,956

In connection with the FDIC-assisted acquisition, the Company recognized an FDIC shared-loss expense, net, in the unaudited consolidated statements of operations, which consists of the following for the quarters ended March 31, 2016 and December 31, 2015:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset expense	$	2,865	$	12,221
Change in true-up payment obligation		577		863
Reimbursement to FDIC for recoveries		587		-
Total FDIC shared-loss expense, net	$	4,029	$	13,084

47

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 7 - SERVICING ASSETS

The Company periodically sells or securitizes mortgage loans while retaining the obligation to perform the servicing of such loans. In addition, the Company may purchase or assume the right to service mortgage loans originated by others. Whenever the Company undertakes an obligation to service a loan, management assesses whether a servicing asset and/or liability should be recognized. A servicing asset is recognized whenever the compensation for servicing is expected to more than adequately compensate the Company for servicing the loans and leases. Likewise, a servicing liability would be recognized in the event that servicing fees to be received are not expected to adequately compensate the Company for its expected cost.

All separately recognized servicing assets are recognized at fair value using the fair value measurement method. Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes, if any, with mortgage banking activities in the consolidated statements of operations. The fair value of servicing rights is subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

The fair value of servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

At March 31, 2016, the servicing asset amounted to $7.8 million ($7.5 million — December 31, 2015) related to mortgage servicing rights.

The following table presents the changes in servicing rights measured using the fair value method for the quarters ended March 31, 2016 and 2015:

		Quarter Ended March 31,
		2016	2015
		(In thousands)
Fair value at beginning of period	$	7,455	$	13,992
Servicing from mortgage securitizations or asset transfers		557		531
Changes due to payments on loans		(104)		(418)
Changes in fair value due to changes in valuation model        inputs or assumptions		(89)		(59)
Changes in fair value due to changes sales price of        mortgage servicing rights held-for-sale inputs        or assumptions		-		(1,882)
Fair value at end of period	$	7,819	$	12,164

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016	2015
Constant prepayment rate	4.43% - 12.17%	4.51% - 11.39%
Discount rate	10.00% - 12.00%	10.00% - 12.00%

48

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows:

	March 31, 2016
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	7,819
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(197)
Decrease in fair value due to 20% adverse change	$	(385)
Discount rate
Decrease in fair value due to 10% adverse change	$	(22)
Decrease in fair value due to 20% adverse change	$	(43)

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10 percent variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption.

Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Servicing fee income is based on a contractual percentage of the outstanding principal balance and is recorded as income when earned. Servicing fees on mortgage loans for the quarters ended March 31, 2016  and 2015, totaled $876 thousand and $1.8 million, respectively.

NOTE 8 — DERIVATIVES

The following table presents the Company’s derivative assets and liabilities at March 31, 2016 and December 31, 2015:

	March 31,		December 31,
	2016		2015
	(In thousands)
Derivative assets:
Options tied to S&P 500 Index	$	772	$	1,170
Interest rate swaps not designated as hedges		1,829		1,819
Interest rate caps		61		32
Other		-		4
	$	2,662	$	3,025
Derivative liabilities:
Interest rate swaps designated as cash flow hedges		4,318		4,307
Interest rate swaps not designated as hedges		1,829		1,819
Interest rate caps		61		32
Other		12		4
	$	6,220	$	6,162

49

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Interest Rate Swaps

The Company enters into interest rate swap contracts to hedge the variability of future interest cash flows of forecasted wholesale borrowings attributable to changes in a predetermined variable index rate. The interest rate swaps effectively fix the Company’s interest payments on an amount of forecasted interest expense attributable to the variable index rate corresponding to the swap notional stated rate. These swaps are designated as cash flow hedges for the forecasted wholesale borrowing transactions, are properly documented as such, and therefore, qualify for cash flow hedge accounting. Any gain or loss associated with the effective portion of the cash flow hedges is recognized in other comprehensive income (loss) and is subsequently reclassified into operations in the period during which the hedged forecasted transactions affect earnings. Changes in the fair value of these derivatives are recorded in accumulated other comprehensive income to the extent there is no significant ineffectiveness in the cash flow hedging relationships. Currently, the Company does not expect to reclassify any amount included in other comprehensive income (loss) related to these interest rate swaps to operations in the next twelve months.

.

The following table shows a summary of these swaps and their terms at March 31, 2016:

	Notional		Fixed	Variable	Trade	Settlement	Maturity
Type	Amount		Rate	Rate Index	Date	Date	Date
	(In thousands)
Interest Rate Swaps	$	25,000	2.4365%	1-Month LIBOR	05/05/11	05/04/12	05/04/16
		25,000	2.6200%	1-Month LIBOR	05/05/11	07/24/12	07/24/16
		25,000	2.6350%	1-Month LIBOR	05/05/11	07/30/12	07/30/16
		50,000	2.6590%	1-Month LIBOR	05/05/11	08/10/12	08/10/16
		100,000	2.6750%	1-Month LIBOR	05/05/11	08/16/12	08/16/16
		37,638	2.4210%	1-Month LIBOR	07/03/13	07/03/13	08/01/23
	$	262,638

An accumulated unrealized loss of $4.3 million was recognized in accumulated other comprehensive income (loss) related to the valuation of these swaps at March 31, 2016 and at December 31, 2015, and the related liability is being reflected in the accompanying unaudited consolidated statements of financial condition.

For both March 31, 2016 and at December 31, 2015, interest rate swaps not designated as hedging instruments that were offered to clients represented an asset of $1.8 million, and were included as part of derivative assets in the unaudited consolidated statements of financial position. The credit risk to these clients stemming from these derivatives, if any, is not material. At both, March 31, 2016 and December 31, 2015, interest rate swaps not designated as hedging instruments that are the mirror-images of the derivatives offered to clients represented a liability of $1.8 million, and were included as part of derivative liabilities in the unaudited consolidated statements of financial condition.

50

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table shows a summary of these interest rate swaps not designated as hedging instruments and their terms at March 31, 2016:

	Notional		Fixed	Variable	Settlement	Maturity
Type	Amount		Rate	Rate Index	Date	Date
	(In thousands)
Interest Rate Swaps - Derivatives Offered to Clients	$	3,728	5.1300%	1-Month LIBOR	07/03/06	07/03/16
		12,500	5.5050%	1-Month LIBOR	04/11/09	04/11/19
	$	16,228
Interest Rate Swaps - Mirror Image Derivatives	$	3,728	5.1300%	1-Month LIBOR	07/03/06	07/03/16
		12,500	5.5050%	1-Month LIBOR	04/11/09	04/11/19
	$	16,228

Options Tied to Standard & Poor’s 500 Stock Market Index

The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P 500 Index. The Company uses option agreements with major broker-dealers to manage its exposure to changes in this index. Under the terms of the option agreements, the Company receives the average increase in the month-end value of the index in exchange for a fixed premium. The changes in fair value of the option agreements used to manage the exposure in the stock market in the certificates of deposit are recorded in earnings. At March 31, 2016 and December 31, 2015, the purchased options used to manage exposure to the S&P 500 Index on stock indexed deposits represented an asset of $772 thousand (notional amount of $2.2 million) and $1.2 million (notional amount of $3.4 million), respectively, and the options sold to customers embedded in the certificates of deposit and recorded as deposits in the unaudited consolidated statements of financial condition, represented a liability of $746 thousand (notional amount of $2.1 million) and $1.1 million (notional amount of $3.2 million), respectively.

Interest Rate Caps

The Company has entered into interest rate cap transactions with various clients with floating-rate debt who wish to protect their financial results against increases in interest rates. In these cases, the Company simultaneously enters into mirror-image interest rate cap transactions with financial counterparties. None of these cap transactions qualify for hedge accounting, and therefore, they are marked to market through earnings. As of March 31, 2016 and December 31, 2015, the outstanding total notional amount of interest rate caps was $124.6 million and $109.8 million, respectively. At March 31, 2016 and December 31, 2015, the interest rate caps sold to clients represented a liability of $61 thousand and $32 thousand, respectively, and were included as part of derivative liabilities in the unaudited consolidated statements of financial condition. At March 31, 2016 and December 31, 2015, the interest rate caps purchased as mirror-images represented an asset of $61 thousand and $32 thousand, respectively, and were included as part of derivative assets in the unaudited consolidated statements of financial condition.

51

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 9 — ACCRUED INTEREST RECEIVABLE ANDOTHER ASSETS

Accrued interest receivable at March 31, 2016 and December 31, 2015 consists of the following:

	March 31,		December 31,
	2016		2015
	(In thousands)
Loans, excluding acquired loans	$	14,829	$	16,020
Investments		3,563		4,617
	$	18,392	$	20,637

Other assets at March 31, 2016 and December 31, 2015 consist of the following:

	March 31,		December 31,
	2016		2015
	(In thousands)
Prepaid expenses		10,363		11,762
Other repossessed assets		4,408		6,226
Core deposit and customer relationship intangibles		7,418		7,838
Mortgage tax credits		6,277		6,277
Investment in Statutory Trust		1,083		1,083
Accounts receivable and other assets		44,781		42,786
	$	74,330	$	75,972

Prepaid expenses amounting to $10.4 million and $11.8 million at March 31, 2016 and December 31, 2015, respectively, include prepaid municipal, property and income taxes aggregating to $5.7 million and $7.0 million, respectively.

In connection with the FDIC-assisted acquisition and the BBVAPR Acquisition, the Company recorded a core deposit intangible representing the value of checking and savings deposits acquired. At March 31, 2016 and December 31, 2015 this core deposit intangible amounted to $5.0 million and $5.3 million, respectively. In addition, the Company recorded a customer relationship intangible representing the value of customer relationships acquired with the acquisition of the securities broker-dealer and insurance agency in the BBVAPR Acquisition. At March 31, 2016 and December 31, 2015 this customer relationship intangible amounted to $2.4 million and $2.5 million, respectively.

Other repossessed assets totaled $4.4 million at March 31, 2016 and $6.2 million at December 31, 2015, include repossessed automobiles amounting to $4.2 million and $5.5 million, respectively, which are recorded at their net realizable value.

At March 31, 2016 and December 31, 2015, mortgage tax credits for the Company totaled $6.3 million for both periods. These tax credits do not have an expiration date.

52

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 10— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of March 31, 2016 and December 31, 2015 consist of the following:

		March 31,		December 31,
	2016		2015
	(In thousands)
Non-interest bearing demand deposits	$	816,887	$	762,009
Interest-bearing savings and demand deposits		2,311,926		2,208,180
Individual retirement accounts		266,161		268,799
Retail certificates of deposit		491,072		441,998
Institutional certificates of deposit		205,541		253,791
Total core deposits		4,091,587		3,934,777
Brokered deposits		688,106		782,974
Total deposits	$	4,779,693	$	4,717,751

Brokered deposits include $617.6 million in certificates of deposits and $70.5 million in money market accounts at March 31, 2016, and $711.4 million in certificates of deposits and $71.6 million in money market accounts at December 31, 2015.

The weighted average interest rate of the Company’s deposits was 0.60% and 0.56% at March 31, 2016 and December 31, 2015, respectively. Interest expense for the quarters ended March 31, 2016 and 2015 was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Demand and savings deposits	$	2,842	$	3,382
Certificates of deposit		4,282		3,722
	$	7,124	$	7,104

At March 31, 2016 and December 31, 2015, demand and interest-bearing deposits and certificates of deposit included deposits of the Puerto Rico Cash & Money Market Fund, Inc., which amounted to $103.0 million and $103.7 million, respectively, with a weighted average rate of 0.77% for both periods, and were collateralized with investment securities with a fair value of $78.8 million and $81.6 million, respectively.

At March 31, 2016 and December 31, 2015, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $591.0 million and $597.6 million, respectively. Such amounts include public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $5.4 million and $7.7 million at a weighted average rate of 0.47% and 0.49% at March 31, 2016 and December 31, 2015, respectively.

At March 31, 2016 and December 31, 2015, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $220.5 million and $99.0 million, respectively. These public funds were collateralized with commercial loans amounting to $410.9 million at March 31, 2016 and at December 31, 2015.

53

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Excluding equity indexed options in the amount of $746 thousand, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.7 million and unamortized deposit discount in the amount of $234 thousand, the scheduled maturities of certificates of deposit at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016		December 31, 205
	(In thousands)
Within one year:
Three (3) months or less	$	342,072	$	474,051
Over 3 months through 1 year		451,919		501,551
		793,991		975,602
Over 1 through 2 years		489,143		454,906
Over 2 through 3 years		222,568		176,406
Over 3 through 4 years		36,253		32,396
Over 4 through 5 years		35,824		33,715
	$	1,577,779	$	1,673,025

The table of scheduled maturities of certificates of deposits above includes brokered-deposits and individual retirement accounts.

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $565 thousand as of March 31, 2016 and $1.5 million as of December 31, 2015.

NOTE 11 — BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At March 31, 2016, securities underlying agreements to repurchase were delivered to, and are being held by, the counterparties with whom the repurchase agreements were transacted. The counterparties have agreed to resell to the Company the same or similar securities at the maturity of these agreements.

At March 31, 2016 and December 31, 2015, securities sold under agreements to repurchase (classified by counterparty), excluding accrued interest in the amount of $1.7 million and $2.2 million, respectively, were as follows:

	March 31,				December 31,
	2016				2015
			Fair Value of				Fair Value of
	Borrowing		Underlying		Borrowing		Underlying
	Balance		Collateral		Balance		Collateral
	(In thousands)
JP Morgan Chase Bank NA		232,500		252,402		262,500		283,483
Credit Suisse Securities (USA) LLC		402,000		439,538		670,000		737,887
Total	$	634,500	$	691,940	$	932,500	$	1,021,370

54

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table shows a summary of the Company’s repurchase agreements and their terms, excluding accrued interest in the amount of $1.7 million, at March 31, 2016:

			Weighted-
	Borrowing		Average		Maturity
Year of Maturity	Balance		Coupon	Settlement Date	Date
	(In thousands)
2016		170,000	1.500%	12/6/2012	12/8/2016
2017		232,000	4.780%	3/2/2007	3/2/2017
2018		232,500	1.420%	12/10/2012	4/29/2018
	$	634,500	2.670%

The Company's repurchase agreement in the original amount of $500 million with an original term of ten years, maturing on March 2, 2017, was modified in February 2016 to terminate before maturity $268.0 million of this repurchase agreement at a cost of $12.0 million, included as a loss on early extinguishment of debt in the unaudited statements of operations.  The remaining balance of this repurchase agreement was $232.0 million at March 31, 2016.

The following table presents the repurchase liability associated with the repurchase agreement transactions (excluding accrued interest) by maturity. Also, it includes the carrying value and approximate market value of collateral (excluding accrued interest) at March 31, 2016  and December 31, 2015. There was no cash collateral at March 31, 2016 and at December 31, 2015.

	March 31, 2016
					Market Value of Underlying Collateral
			Weighted		FNMA and					US Treasury
	Repurchase		Average		FHLMC		GNMA			Treasury
	Liability		Rate		Certificates		Certificates			Notes	Total
	(Dollars in thousands)
Over 90 days		634,500		2.67%		665,206		1,721		25,013		691,940
Total	$	634,500		2.67%	$	665,206	$	1,721	$	25,013	$	691,940
	December 31, 2015
					Market Value of Underlying Collateral
			Weighted		FNMA and					US Treasury
	Repurchase		Average		FHLMC		GNMA			Treasury
	Liability		Rate		Certificates		Certificates			Notes	Total
	(Dollars in thousands)
Less than 90 days		30,000		0.70%		31,961		-		-		31,961
Over 90 days		902,500		3.18%		974,698		2,131		12,580		989,409
Total	$	932,500		3.10%	$	1,006,659	$	2,131	$	12,580	$	1,021,370

55

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Advances from the Federal Home Loan Bank of New York

Advances are received from the Federal Home Loan Bank of New York (the “FHLB-NY”) under an agreement whereby the Company is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At March 31, 2016 and December 31, 2015, these advances were secured by mortgage and commercial loans amounting to $1.5 billion and $1.3 billion, respectively. Also, at March 31, 2016 and December 31, 2015, the Company had an additional borrowing capacity with the FHLB-NY of $875.3 million and $770.6 million, respectively. At March 31, 2016 and December 31, 2015, the weighted average remaining maturity of FHLB’s advances was 5.6 months and 6.3 months, respectively. The original terms of these advances ranges between one month and seven years, and the FHLB-NY does not have the right to exercise put options at par on any advances outstanding as of March 31, 2016.

The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $348 thousand, at March 31, 2016:

			Weighted-
		Borrowing	Average		Maturity
Year of Maturity		Balance	Coupon	Settlement Date	Date
		(In thousands)
2016	$	25,000	0.59%	3/4/2016	4/4/2016
		50,000	0.60%	3/10/2016	4/11/2016
		100,000	0.58%	3/16/2016	4/18/2016
		25,000	0.58%	3/24/2016	4/25/2016
		25,000	0.52%	3/30/2016	4/29/2016
		37,638	0.60%	3/1/2016	4/1/2016
		262,638
2017		4,209	1.24%	4/3/2012	4/3/2017
2018		30,000	2.19%	1/16/2013	1/16/2018
		25,000	2.18%	1/16/2013	1/16/2018
		55,000
2020		9,785	2.59%	7/19/2013	7/20/2020
	$	331,632	0.92%

All of the advances referred to above with maturity dates up to the date of this report were renewed as one-month short-term advances.

Subordinated Capital Notes

Subordinated capital notes amounted to $102.8 million and $102.6 million at March 31, 2016 and December 31, 2015, respectively.

Under the requirements of Puerto Rico Banking Act, the Bank must establish a redemption fund for the subordinated capital notes, which will mature in September 29, 2016, by transferring from undivided profits pre-established amounts as follows:

	Redemption fund
	(In thousands)
Redemption fund at March 31, 2016	$	64,488
2016		2,512
	$	67,000

56

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Other borrowings

Other borrowings, presented in the unaudited consolidated statements of financial condition amounted to $1.8 million at March 31, 2016 and $1.7 million at December 31, 2015 which mainly consists of unsecured fixed-rate borrowings.

NOTE 12 – OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

The Company’s derivatives are subject to agreements which allow a right of set-off with each respective counterparty. In addition, the Company’s securities purchased under agreements to resell and securities sold under agreements to repurchase have a right of set-off with the respective counterparty under the supplemental terms of the master repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the related agreements and any other amount or obligation owed in respect of any other agreement or transaction between them. Security collateral posted to open and maintain a master netting agreement with a counterparty, in the form of cash and securities, may from time to time be segregated in an account at a third-party custodian pursuant to a an account control agreement.

The following table presents the potential effect of rights of set-off associated with the Company’s recognized financial assets and liabilities at March 31, 2016 and December 31, 2015:

March 31, 2016

Gross Amounts Not Offset in the Statement of Financial Condition

Gross Amounts

Net Amount of

Offset in the

Assets Presented

Gross Amount

Statement of

in Statement

Cash

of Recognized

Financial

of Financial

Financial

Collateral

Net

Assets

Condition

Condition

Instruments

Received

Amount

(In thousands)

Derivatives

$

2,662

$

-

$

2,662

$

2,007

$

-

$

655

December 31, 2015

Gross Amounts Not Offset in the Statement of Financial Condition

Gross Amounts

Net amount of

Offset in the

Assets Presented

Gross Amount

Statement of

in Statement

Cash

of Recognized

Financial

of Financial

Financial

Collateral

Net

Assets

Condition

Condition

Instruments

Received

Amount

(In thousands)

Derivatives

$

3,025

$

-

$

3,025

$

2,000

$

-

$

1,025

57

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

March 31, 2016
							Gross Amounts Not Offset in the Statement of Financial Condition
					Net Amount of
			Gross Amounts		Liabilities
			Offset in the		Presented
	Gross Amount		Statement of		in Statement				Cash
	of Recognized		Financial		of Financial		Financial		Collateral		Net
	Liabilities		Condition		Condition		Instruments		Provided		Amount
					(In thousands)
Derivatives	$	6,966	$	-	$	6,966	$	-	$	1,980	$	4,986
Securities sold under agreements to repurchase		634,500		-		634,500		691,940		-		(57,440)
Total	$	641,466	$	-	$	641,466	$	691,940	$	1,980	$	(52,454)
December 31, 2015
							Gross Amounts Not Offset in the Statement of Financial Condition
					Net Amount of
			Gross Amounts		Liabilities
			Offset in the		Presented
	Gross Amount		Statement of		in Statement				Cash
	of Recognized		Financial		of Financial		Financial		Collateral		Net
	Liabilities		Condition		Condition		Instruments		Provided		Amount
	(In thousands)
Derivatives	$	7,257	$	-	$	7,257	$	-	$	1,980	$	5,277
Securities sold under agreements to repurchase		932,500		-		932,500		1,021,370		-		(88,870)
Total	$	939,757	$	-	$	939,757	$	1,021,370	$	1,980	$	(83,593)

NOTE 13 — RELATED PARTY TRANSACTIONS

The Bank grants loans to its directors, executive officers and certain related individuals or organizations in the ordinary course of business. These loans are offered at the same terms as loans to unrelated third parties. The activity and balance of these loans for the quarters ended March 31, 2016 and  2015 was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at the beginning of year	$	31,475	$	27,011
New loans and disbursements		233		3,855
Repayments		(574)		(3,358)
Balance at the end of period	$	31,134	$	27,508

58

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 14 — INCOME TAXES

On May 29, 2015 the Governor signed Act No. 72 of 2015.  The main purpose of this Act is to increase government collections in order to alleviate the structural deficit.  The most relevant provisions of the Act, as applicable to the Company, for taxable years beginning after December 31, 2014, are as follows: (1) establishes a new definition of “large taxpayers,” which require them to file its tax return following a special procedure established by the Secretary of the Treasury, (2) net operating losses carried forward may be deducted up to 70% of the alternative minimum net income for purposes of computing the alternative minimum tax, and (3) net operating losses carried forward may be deducted up to 80% of the net income for purposes of computing the regular corporate income tax.

Other relevant provisions under Act 72 of 2015 are the enacted Value Added Tax (VAT) of 10.5%, which is expected to go into effect on June 1, 2016, along with a Municipal SUT of 1% on certain taxable items.  

At March 31, 2016 and December 31, 2015, the Company’s net deferred tax asset amounted to $145.5 million and $145.9 million, respectively. In assessing the realizability of the deferred tax asset, management considers whether it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.  Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax asset are deductible, management believes it is more likely than not that the Company will realize the deferred tax asset, net of the existing valuation allowances recorded at March 31, 2016 and December 31, 2015. The amount of the deferred tax asset that is considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

The Company classifies unrecognized tax benefits in income taxes payable. These gross unrecognized tax benefits would affect the effective tax rate if realized. The balance of unrecognized tax benefits was $2.2 million at March 31, 2016 and at December 31, 2015. The Company had accrued $40 thousand at March 31, 2016 and $175 thousand at December 31, 2015 for the payment of interest and penalties relating to unrecognized tax benefits.

For the quarter ended March 31, 2016, income tax expense was $5.7 million compared to $979 thousand for the same period in 2015.

59

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 15 — REGULATORY CAPITAL REQUIREMENTS

Regulatory Capital Requirements

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Pursuant to the Dodd-Frank Act, federal banking regulators have adopted new capital rules that became effective January 1, 2015 for the Company and the Bank (subject to certain phase-in periods through January 1, 2019) and that replaced their general risk-based capital rules, advanced approaches rule, market risk rule, and leverage rules. Among other matters, the new capital rules: (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to prior regulations. The new capital rules prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current four Basel I-derived categories (0%, 20%, 50% and 100%) to a larger and more risk-sensitive number of categories, depending on the nature of the assets, and resulting in higher risk weights for a variety of asset classes.

Pursuant to the new capital rules, the minimum capital ratios requirements as of January 1, 2015 are as follows:

             4.5% CET1 to risk-weighted assets;

             6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

             8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

             4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known  

             as the “leverage ratio”).

As of March 31, 2016 and December 31, 2015, the Company and the Bank met all capital adequacy requirements to which they are subject. As of March 31, 2016 and December 31, 2015, the Bank is “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the tables presented below.

The New Capital Rules also introduce a new 2.5% “capital conservation buffer”, composed entirely of CET1, on top of the three minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. Thus, when fully phased-in on January 1, 2019, the Company and the Bank will be required to maintain such an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019. At March 31, 2016 the Company and the Bank met the capital buffer requirement.

60

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2016 and December 31, 2015 are as follows:

				Minimum Capital			Minimum to be Well
	Actual			Requirement			Capitalized
	Amount		Ratio	Amount		Ratio		Amount	Ratio
	(Dollars in thousands)
Company Ratios
As of March 31, 2016
Total capital to risk-weighted assets	$	838,284	17.67%	$	379,570	8.00%	$	474,463	10.00%
Tier 1 capital to risk-weighted assets	$	776,181	16.36%	$	284,678	6.00%	$	379,570	8.00%
Common equity tier 1 capital to risk-weighted assets	$	585,144	12.33%	$	213,508	4.50%	$	308,401	6.50%
Tier 1 capital to average total assets	$	776,181	11.38%	$	272,797	4.00%	$	340,996	5.00%
As of December 31, 2015
Total capital to risk-weighted assets	$	846,748	17.29%	$	391,723	8.00%	$	489,654	10.00%
Tier 1 capital to risk-weighted assets	$	782,912	15.99%	$	293,792	6.00%	$	391,723	8.00%
Common equity tier 1 capital to risk-weighted assets	$	594,482	12.14%	$	220,344	4.50%	$	318,275	6.50%
Tier 1 capital to average total assets	$	782,912	11.18%	$	280,009	4.00%	$	350,011	5.00%

				Minimum Capital			Minimum to be Well
	Actual			Requirement			Capitalized
	Amount		Ratio	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of March 31, 2016
Total capital to risk-weighted assets	$	819,731	17.29%	$	379,242	8.00%	$	474,502	10.00%
Tier 1 capital to risk-weighted assets	$	757,828	15.99%	$	284,431	6.00%	$	379,242	8.00%
Common equity tier 1 capital to risk-weighted assets	$	757,828	15.99%	$	213,323	4.50%	$	3,308,134	6.50%
Tier 1 capital to average total assets	$	757,828	11.16%	$	271,538	4.00%	$	339,423	5.00%
As of December 31, 2015
Total capital to risk-weighted assets	$	815,458	16.70%	$	390,688	8.00%	$	488,360	10.00%
Tier 1 capital to risk-weighted assets	$	751,886	15.40%	$	293,016	6.00%	$	390,688	8.00%
Common equity tier 1 capital to risk-weighted assets	$	751,886	15.40%	$	219,762	4.50%	$	317,434	6.50%
Tier 1 capital to average total assets	$	751,886	10.80%	$	278,399	4.00%	$	347,999	5.00%

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 16 – STOCKHOLDERS’ EQUITY

    Additional Paid-in Capital

Additional paid-in capital represents contributed capital in excess of par value of common and preferred stock net of the costs of issuance. As of March 31, 2016 and December 31, 2015 accumulated issuance costs charged against additional paid-in capital amounted to $13.6 million and $10.1 million for preferred and common stock, respectively.

Legal Surplus

The Puerto Rico Banking Act requires that a minimum of 10% of the Bank’s net income for the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid-in capital on common and preferred stock. At March 31, 2016 and December 31, 2015, the Bank’s legal surplus amounted to $71.9 million and $70.4 million, respectively. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

Under the Company’s current stock repurchase program it is authorized to purchase in the open market up to $70 million of its outstanding shares of common stock, of which approximately $7.7 million of authority remains. The shares of common stock repurchased are to be held by the Company as treasury shares. There were no repurchases during the quarters ended March 31, 2016 or 2015.

The number of shares that may yet be purchased under the $70 million program is estimated at 1,105,988 and was calculated by dividing the remaining balance of $7.7 million by $6.99 (closing price of the Company common stock at March 31, 2016). The Company did not purchase any shares of its common stock during the quarter ended March 31, 2016 or 2015.

The activity in connection with common shares held in treasury by the Company for the quarters ended March 31, 2016 and 2015 is set forth below:

	Quarter Ended March 31,
	2016			2015
		Dollar			Dollar
	Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of period	8,757,960	$	105,379	8,012,254	$	97,070
Common shares used upon lapse of restricted stock units	(45,810)		(505)	(51,078)		(575)
End of period	8,712,150	$	104,874	7,961,176	$	96,495

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OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income, net of income tax, as of March 31, 2016 and December 31, 2015 consisted of:

	March 31,		December 31,
	2016		2015
	(In thousands)
Unrealized gain on securities available-for-sale which are not     other-than-temporarily impaired	$	15,496	$	22,044
Unrealized loss on securities available-for-sale which are     other-than-temporarily impaired		-		(3,196)
Income tax effect of unrealized gain on securities available-for-sale		(407)		(1,924)
Net unrealized gain on securities available-for-sale which are not         other-than-temporarily impaired		15,089		16,924
Unrealized loss on cash flow hedges		(4,318)		(4,307)
Income tax effect of unrealized loss on cash flow hedges		1,513		1,380
Net unrealized loss on cash flow hedges		(2,805)		(2,927)
Accumulated other comprehensive income, net of taxes	$	12,284	$	13,997

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents changes in accumulated other comprehensive income by component, net of taxes, for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		income
	(In thousands)
Beginning balance	$	16,924	$	(2,927)	$	13,997
Other comprehensive income (loss) before reclassifications		(4,326)		(1,457)		(5,783)
Amounts reclassified out of accumulated other comprehensive income (loss)		2,491		1,579		4,070
Other comprehensive income (loss)		(1,835)		122		(1,713)
Ending balance	$	15,089	$	(2,805)	$	12,284
	Quarter Ended March 31,
	2015
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		income
	(In thousands)
Beginning balance	$	25,764	$	(6,053)	$	19,711
Other comprehensive income (loss) before reclassifications		4,311		(1,369)		2,942
Amounts reclassified out of accumulated other comprehensive income (loss)		139		1,532		1,671
Other comprehensive income		4,450		163		4,613
Ending balance	$	30,214	$	(5,890)	$	24,324

64

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2016 and 2015:

	Amount reclassified out of accumulated
	other comprehensive income				Affected Line Item in
	Quarter Ended March 31,				Consolidated Statement
		2016		2015	of Operations
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	1,450	$	1,606	Net interest expense
Tax effect from increase in capital gains tax rate		129		(74)	Income tax expense
Available-for-sale securities:
Residual tax effect from OIB's change in applicable tax rate		8		10	Income tax expense
Other-than-temporary impairment losses on available for sale securities realized during the period		2,557		-
Tax effect from increase in capital gains tax rate		(74)		129	Income tax expense
	$	4,070	$	1,671

NOTE 18 – EARNINGS (LOSS) PER COMMON SHARE

The calculation of earnings (loss) per common share for the quarters ended March 31, 2016 and 2015 is as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands, except per share data)
Net income (loss)	$	14,171	$	(2,988)
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(1,627)		(1,628)
Convertible preferred stock (Series C)		(1,838)		(1,837)
Income (loss) available to common shareholders	$	10,706	$	(6,453)
Effect of assumed conversion of the convertible preferred stock		1,838		1,837
Income (loss) available to common shareholders assuming conversion	$	12,544	$	(4,616)
Weighted average common shares and share equivalents:
Average common shares outstanding		43,898		44,634
Effect of dilutive securities:
Average potential common shares-options		28		188
Average potential common shares-assuming conversion of convertible preferred stock		7,138		7,155
Total weighted average common shares outstanding and equivalents		51,064		51,977
Earnings (loss) per common share - basic	$	0.24	$	(0.14)
Earnings (loss) per common share - diluted	$	0.24	$	(0.14)

In computing diluted earnings (loss) per common share, the 84,000 shares of convertible preferred stock, which remain outstanding at March 31, 2016, with a conversion rate, subject to certain conditions, of 86.4225 shares of common stock per share, were included as average potential common shares from the date they were issued and outstanding. Moreover, in computing diluted earnings (loss) per common share, the dividends declared during the quarters ended March 31, 2016 and 2015 on the convertible preferred stock were added back as income available to common shareholders.

For the quarters ended March 31, 2016 and 2015, weighted-average stock options with an anti-dilutive effect on (loss) earnings per share not included in the calculation amounted to 977,823 and 390,078, respectively

65

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 19 – GUARANTEES

At March 31, 2016, the unamortized balance of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $4.7 million (December 31, 2015 - $14.7 million).

As a result of the BBVAPR Acquisition, the Company assumed a liability for residential mortgage loans sold subject to credit recourse pursuant to FNMA’s residential mortgage loan sales and securitization programs. At March 31, 2016 and December 31, 2015, the unpaid principal balance of residential mortgage loans sold subject to credit recourse was $22.0 million and $22.4 million, respectively.

The following table shows the changes in the Company’s liability for estimated losses from these credit recourse agreements, included in the unaudited consolidated statements of financial condition during the quarters ended March 31, 2016 and 2015.

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at beginning of period	$	439	$	927
Net (charge-offs/terminations) recoveries		(258)		(440)
Balance at end of period	$	181	$	487

The estimated losses to be absorbed under the credit recourse arrangements were recorded as a liability when the credit recourse was assumed, and are updated on a quarterly basis. The expected loss, which represents the amount expected to be lost on a given loan, considers the probability of default and loss severity. The probability of default represents the probability that a loan in good standing would become 120 days delinquent, in which case the Company is obligated to repurchase the loan. The recourse obligation will be fully extinguished before the end of 2017.

If a borrower defaults, pursuant to the credit recourse provided, the Company is required to repurchase the loan or reimburse the third party investor for the incurred loss. The maximum potential amount of future payments that the Company would be required to make under the recourse arrangements is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarters ended March 31, 2016  and 2015, the Company repurchased approximately $209 thousand and $2.1 million, respectively of unpaid principal balance in mortgage loans subject to the credit recourse provisions.  If a borrower defaults, the Company has rights to the underlying collateral securing the mortgage loan. The Company suffers losses on these mortgage loans when the proceeds from a foreclosure sale of the collateral property are less than the outstanding principal balance of the loan, any uncollected interest advanced, and the costs of holding and disposing the related property. At March 31, 2016, the Company’s liability for estimated credit losses related to loans sold with credit recourse amounted to $181 thousand (December 31, 2015– $439 thousand).

When the Company sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. The Company's mortgage operations division groups conforming mortgage loans into pools which are exchanged for FNMA and GNMA mortgage-backed securities that are generally sold to private investors, or are sold directly to FNMA or other private investors for cash. As required under such mortgage backed securities programs, quality review procedures are performed by the Company to ensure that asset guideline qualifications are met. To the extent the loans do not meet specified characteristics, the Company may be required to repurchase such loans or indemnify for losses and bear any subsequent loss related to the loans. During the quarter ended March 31, 2016, the Company’s representation and warranty arrangements, excluding mortgage loans subject to credit recourse provisions referred to above, approximated $1.5 million in unpaid principal balance (March 31, 2015 – $9.0 million).

During the quarter ended March 31, 2016, the Company recognized $19 thousand in losses from the repurchase of residential mortgage loans sold subject to credit recourse, and $501 thousand in losses from the repurchase of residential mortgage loans as a result of breaches of the customary representations and warranties. During the quarter ended March 31, 2015, the Company recognized $39 thousand in losses from the repurchase of residential mortgage loans sold subject to credit recourse, and $832 thousand in losses from the repurchase of residential mortgage loans as a result of breaches of the customary representations and warranties

66

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Servicing agreements relating to the mortgage-backed securities programs of FNMA and GNMA, and to mortgage loans sold or serviced to certain other investors, including the Federal Home Loan Mortgage Corporation (“FHLMC”), require the Company to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. At March 31, 2016, the Company serviced $690.0 million in mortgage loans for third-parties. The Company generally recovers funds advanced pursuant to these arrangements from the mortgage owner, from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and VA insurance and guarantees programs. However, in the meantime, the Company must absorb the cost of the funds it advances during the time the advance is outstanding. The Company must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and the Company would not receive any future servicing income with respect to that loan. At March 31, 2016, the outstanding balance of funds advanced by the Company under such mortgage loan servicing agreements was approximately $333 thousand (December 31, 2015 - $301 thousand). To the extent the mortgage loans underlying the Company's servicing portfolio experience increased delinquencies, the Company would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts.

NOTE 20— COMMITMENTS AND CONTINGENCIES

Loan Commitments

In the normal course of business, the Company becomes a party to credit-related financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby and commercial letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated statements of financial condition. The contract or notional amount of those instruments reflects the extent of the Company’s involvement in particular types of financial instruments.

The Company’s exposure to credit losses in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit, including commitments under credit card arrangements, and commercial letters of credit is represented by the contractual notional amounts of those instruments, which do not necessarily represent the amounts potentially subject to risk. In addition, the measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are identified. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Credit-related financial instruments at March 31, 2016 and December 31, 2015 were as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Commitments to extend credit	$	498,249	$	456,720
Commercial letters of credit		2,619		1,508

Commitments to extend credit represent agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the counterparty.

At March 31, 2016 and December 31, 2015, commitments to extend credit consisted mainly of undisbursed available amounts on commercial lines of credit, construction loans, and revolving credit card arrangements. Since many of the unused commitments are expected to expire unused or be only partially used, the total amount of these unused commitments does not necessarily represent future cash requirements. These lines of credit had a reserve of $667 thousand at both periods, March 31, 2016 and December 31, 2015.

67

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Commercial letters of credit are issued or confirmed to guarantee payment of customers’ payables or receivables in short-term international trade transactions. Generally, drafts will be drawn when the underlying transaction is consummated as intended. However, the short-term nature of this instrument serves to mitigate the risk associated with these contracts.

The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at March 31, 2016 and December 31, 2015, is as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Standby letters of credit and financial guarantees	$	4,656	$	14,656
Loans sold with recourse		21,957		22,374
Commitments to sell or securitize mortgage loans		11,886		34,888

Standby letters of credit and financial guarantees are written conditional commitments issued by the Company to guarantee the payment and/or performance of a customer to a third party (“beneficiary”). If the customer fails to comply with the agreement, the beneficiary may draw on the standby letter of credit or financial guarantee as a remedy. The amount of credit risk involved in issuing letters of credit in the event of nonperformance is the face amount of the letter of credit or financial guarantee. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer.

Lease Commitments

The Company has entered into various operating lease agreements for branch facilities and administrative offices. Rent expense for the quarters ended March 31, 2016 and 2015, amounted to $2.1 million and $2.4 million, respectively, and is included in the “occupancy and equipment” caption in the unaudited consolidated statements of operations. Future rental commitments under leases in effect at March 31, 2016 exclusive of taxes, insurance, and maintenance expenses payable by the Company, are summarized as follows:

	Minimum Rent
Year Ending December 31,	(In thousands)
2016	$	6,519
2017		7,308
2018		6,278
2019		6,182
2020		5,455
Thereafter		12,397
	$	44,139

68

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Contingencies

The Company and its subsidiaries are defendants in a number of legal proceedings incidental to their business. In the ordinary course of business, the Company and its subsidiaries are also subject to governmental and regulatory examinations. Certain subsidiaries of the Company, including the Bank (and its subsidiary OIB), Oriental Financial Services, and Oriental Insurance, are subject to regulation by various U.S., Puerto Rico and other regulators.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests allegations of liability or wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

Subject to the accounting and disclosure framework under the provisions of ASC 450, it is the opinion of the Company’s management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of all matters would not be likely to have a material adverse effect on the consolidated statements of financial condition of the Company. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on the Company’s consolidated results of operations or cash flows in particular quarterly or annual periods. The Company has evaluated all litigation and regulatory matters where the likelihood of a potential loss is deemed reasonably possible. The Company has determined that the estimate of the reasonably possible loss is not significant.

NOTE 21 - FAIR VALUEOF FINANCIAL INSTRUMENTS

The Company follows the fair value measurement framework under GAAP.

Fair Value Measurement

The fair value measurement framework defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This framework also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Money market investments

The fair value of money market investments is based on the carrying amounts reflected in the unaudited consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

Investment securities

The fair value of investment securities is based on quoted market prices, when available, or market prices provided by Interactive Data Corporation (“IDC”), an independent, well-recognized pricing company. Such securities are classified as Level 1 or Level 2 depending on the basis for determining fair value. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument, and such securities are classified as Level 3. At March 31, 2016 and December 31, 2015, the Company did not have investment securities classified as Level 3.

Derivative instruments

The fair value of the interest rate swaps is largely a function of the financial market’s expectations regarding the future direction of interest rates. Accordingly, current market values are not necessarily indicative of the future impact of derivative instruments on earnings. This will depend, for the most part, on the shape of the yield curve, the level of interest rates, as well as the expectations for rates in the future. The fair value of most of these derivative instruments is based on observable market parameters, which include discounting the instruments’ cash flows using the U.S. dollar LIBOR-based discount rates, and also applying yield curves that account for the industry sector and the credit rating of the counterparty and/or the Company.

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OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Certain other derivative instruments with limited market activity are valued using externally developed models that consider unobservable market parameters. Based on their valuation methodology, derivative instruments are classified as Level 2 or Level 3. The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P Index and uses equity indexed option agreements with major broker-dealers to manage its exposure to changes in this index. Their fair value is obtained through the use of an external based valuation that was thoroughly evaluated and adopted by management as its measurement tool for these options. The payoff of these options is linked to the average value of the S&P Index on a specific set of dates during the life of the option. The methodology uses an average rate option or a cash-settled option whose payoff is based on the difference between the expected average value of the S&P Index during the remaining life of the option and the strike price at inception. The assumptions, which are uncertain and require a degree of judgment, include primarily S&P Index volatility, forward interest rate projections, estimated index dividend payout, and leverage.

Servicing assets

Servicing assets do not trade in an active market with readily observable prices. Servicing assets are priced using a discounted cash flow model. The valuation model considers servicing fees, portfolio characteristics, prepayment assumptions, delinquency rates, late charges, other ancillary revenues, cost to service and other economic factors. Due to the unobservable nature of certain valuation inputs, the servicing rights are classified as Level 3.

Impaired Loans

Impaired loans are carried at the present value of expected future cash flows using the loan’s existing rate in a discounted cash flow calculation, or the fair value of the collateral if the loan is collateral-dependent. Expected cash flows are based on internal inputs reflecting expected default rates on contractual cash flows. This method of estimating fair value does not incorporate the exit-price concept of fair value described in Accounting Standards Codification (“ASC”) 820-10 and would generally result in a higher value than the exit-price approach. For loans measured using the estimated fair value of collateral less costs to sell, fair value is generally determined based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations, in accordance with the provisions of ASC 310-10-35 less disposition costs. Currently, the associated loans considered impaired are classified as Level 3.

Foreclosed real estate

Foreclosed real estate includes real estate properties securing residential mortgage and commercial loans. The fair value of foreclosed real estate may be determined using an external appraisal, broker price option or an internal valuation. These foreclosed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

Other repossessed assets

Other repossessed assets include repossessed automobile loans and leases. The fair value of the repossessed automobiles may be determined using internal valuation and an external appraisal. These repossessed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

70

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

	March 31, 2016
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	669,285	$	-	$	669,285
Trading securities		-		314		-		314
Money market investments		5,897		-		-		5,897
Derivative assets		-		1,890		772		2,662
Servicing assets		-		-		7,819		7,819
Derivative liabilities		-		(6,220)		(746)		(6,966)
	$	5,897	$	665,269	$	7,845	$	679,011
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	227,117	$	227,117
Foreclosed real estate		-		-		56,777		56,777
Other repossessed assets		-		-		4,408		4,408
	$	-	$	-	$	288,302	$	288,302

	December 31, 2015
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	974,609	$	-	$	974,609
Trading securities		-		288		-		288
Money market investments		4,699		-		-		4,699
Derivative assets		-		1,854		1,171		3,025
Servicing assets		-		-		7,455		7,455
Derivative liabilities		-		(6,162)		(1,095)		(7,257)
	$	4,699	$	970,589	$	7,531	$	982,819
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	235,767	$	235,767
Foreclosed real estate		-		-		58,176		58,176
Other repossessed assets		-		-		6,226		6,226
	$	-	$	-	$	300,169	$	300,169

71

OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended March 31, 2016 and  2015:

	Quarter Ended March 31, 2016
	Derivative				Derivative
	asset				liability
	(S&P				(S&P
	Purchased			Servicing	Embedded
Level 3 Instruments Only	Options)			assets	Options)		Total
Balance at beginning of period	$	1,171	$	7,455	$	(1,095)	$	7,531
Gains (losses) included in earnings		(399)		-		330		(69)
New instruments acquired		-		557		-		557
Principal repayments		-		(104)		-		(104)
Amortization		-		-		19		19
Changes in fair value of servicing assets		-		(89)		-		(89)
Balance at end of period	$	772	$	7,819	$	(746)	$	7,845
	Quarter Ended March 31, 2015
	Derivative					Derivative
	asset					liability
	(S&P					(S&P
	Purchased			Servicing		Embedded
Level 3 Instruments Only	Options)			assets		Options)		Total
Balance at beginning of period	$	5,555	$	13,992	$	(5,477)	$	14,070
(Losses) gains included in earnings		(1,821)		-		1,782		(39)
New instruments acquired		-		531		-		531
Principal repayments		-		(418)		-		(418)
Amortization		-		-		78		78
Changes in fair value of servicing assets				(59)		-		(59)
Changes in fair value due to sales price of mortgage servicing         rights held-for-sale		-		(1,882)		-		(1,882)
Balance at end of period	$	3,734	$	12,164	$	(3,617)	$	12,281

During the quarters ended March 31, 2016 and 2015, there were purchases and sales of assets and liabilities measured at fair value on a recurring basis. There were no transfers into or out of Level 1 and Level 2 fair value measurements during such periods.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at March 31, 2016:

	March 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range
	(In thousands)
Derivative assets (S&P     Purchased Options)	$	772	Option pricing model	Implied option volatility	35.32% -38.69%
				Counterparty credit risk     (based on 5-year credit     default swap ("CDS")     spread)	79.96%-89.03%
Servicing assets	$	7,819	Cash flow valuation	Constant prepayment rate	4.43%-12.17%
				Discount rate	10.00% - 12.00%
Derivative liability (S&P     Embedded Options)	$	(746)	Option pricing model	Implied option volatility	35.32% -38.69%
				Counterparty credit risk (based on 5-year CDS spread)	79.96%-89.03
Collateral dependant     impaired loans	$	25,252	Fair value of property     or collateral	Appraised value less disposition costs	30.20%-42.40%
Puerto Rico Electric Power    Authority line of credit, net	$	186,675	Cash flow valuation	Discount rate	7.25%
Other non-collateral dependant  impaired loans	$	15,190	Cash flow valuation	Discount rate	4.25%-16.95%
Foreclosed real estate	$	56,777	Fair value of property     or collateral	Appraised value less disposition costs	30.20%-42.20%
Other repossessed assets	$	4,408	Fair value of property     or collateral	Appraised value less disposition costs	30.20%-42.20%

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Information about Sensitivity to Changes in Significant Unobservable Inputs

Other debt securities – The significant unobservable inputs used in the fair value measurement of one of the Company’s other debt securities are indicative comparable pricing, option adjusted spread (“OAS”), yield to maturity, and spread to maturity. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. Generally, a change in the assumption used for indicative comparable pricing is accompanied by a directionally opposite change in the assumption used for OAS and a directionally, although not equally proportional, opposite change in the assumptions used for yield to maturity and spread to maturity.

Derivative asset (S&P Purchased Options) – The significant unobservable inputs used in the fair value measurement of the Company’s derivative assets related to S&P purchased options are implied option volatility and counterparty credit risk. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. Generally, a change in the assumption used for implied option volatility is not necessarily accompanied by directionally similar or opposite changes in the assumption used for counterparty credit risk.

Servicing assets – The significant unobservable inputs used in the fair value measurement of the Company’s servicing assets are constant prepayment rates and discount rates. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Derivative liability (S&P Embedded Options) – The significant unobservable inputs used in the fair value measurement of the Company’s derivative liability related to S&P purchased options are implied option volatility and counterparty credit risk. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. Generally, a change in the assumption used for implied option volatility is not necessarily accompanied by directionally similar or opposite changes in the assumption used for counterparty credit risk.

Fair Value of Financial Instruments

The information about the estimated fair value of financial instruments required by GAAP is presented hereunder. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Company.

The estimated fair value is subjective in nature, involves uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could affect these fair value estimates. The fair value estimates do not take into consideration the value of future business and the value of assets and liabilities that are not financial instruments. Other significant tangible and intangible assets that are not considered financial instruments are the value of long-term customer relationships of retail deposits, and premises and equipment.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The estimated fair value and carrying value of the Company’s financial instruments at March 31, 2016 and December 31, 2015 is as follows:

	March 31,				December 31,
	2016				2015
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	677,849	$	677,849	$	536,710	$	536,710
Restricted cash		3,349	$	3,349	$	3,349	$	3,349
Level 2
Financial Assets:
Trading securities		314	$	314	$	288	$	288
Investment securities available-for-sale		669,285	$	669,285	$	974,609	$	974,609
Investment securities held-to-maturity		641,346	$	637,036	$	614,679	$	620,189
Federal Home Loan Bank (FHLB) stock		20,761	$	20,761	$	20,783	$	20,783
Other investments		3	$	3	$	3	$	3
Derivative assets		1,890	$	1,890	$	1,855	$	1,855
Financial Liabilities:
Derivative liabilities		6,220	$	6,220	$	6,162	$	6,162
Level 3
Financial Assets:
Total loans (including loans held-for-sale)		4,088,158		4,360,129		4,101,219		4,434,213
Derivative assets		772		772		1,170		1,170
FDIC indemnification asset		10,897		20,923		17,786		22,599
Accrued interest receivable		18,392		18,392		20,637		20,637
Servicing assets		7,819		7,819		7,455		7,455
Accounts receivable and other assets		44,781		44,781		42,786		42,786
Financial Liabilities:
Deposits		4,772,507		4,778,947		4,705,878		4,715,764
Securities sold under agreements to repurchase		645,098		636,172		955,859		934,691
Advances from FHLB		334,782		331,980		335,812		332,476
Other borrowings		2,661		1,756		2,593		1,734
Subordinated capital notes		97,330		102,808		94,940		102,633
Accrued expenses and other liabilities		92,761		92,761		92,935		92,935
Derivative liabilities embedded in deposits		746		746		1,095		1,095

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OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following methods and assumptions were used to estimate the fair values of significant financial instruments at March 31, 2016 and December 31, 2015:

•     Cash and cash equivalents (including money market investments and time deposits with other banks), restricted cash, accrued interest receivable, accounts receivable and other assets and accrued expenses and other liabilities have been valued at the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

•     Investments in FHLB-NY stock are valued at their redemption value.

•     The fair value of investment securities, including trading securities and other investments, is based on quoted market prices, when available or prices provided from contracted pricing providers, or market prices provided by recognized broker-dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument.

•     The fair value of the FDIC indemnification asset represents the present value of the net estimated cash payments expected to be received from the FDIC for future losses on covered assets based on the credit assumptions on estimated cash flows for each covered asset and the loss sharing percentages. The ultimate collectability of the FDIC indemnification asset is dependent upon the performance of the underlying covered loans, the passage of time and claims paid by the FDIC which are impacted by the Bank’s adherence to certain guidelines established by the FDIC.

•     The fair value of servicing asset is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

•     The fair values of the derivative instruments are provided by valuation experts and counterparties. Certain derivatives with limited market activity are valued using externally developed models that consider unobservable market parameters. The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P Index, and uses equity indexed option agreements with major broker-dealers to manage its exposure to changes in this index. Their fair value is obtained through the use of an external based valuation that was thoroughly evaluated and adopted by management as its measurement tool for these options. The payoff of these options is linked to the average value of the S&P Index on a specific set of dates during the life of the option. The methodology uses an average rate option or a cash-settled option whose payoff is based on the difference between the expected average value of the S&P Index during the remaining life of the option and the strike price at inception. The assumptions, which are uncertain and require a degree of judgment, include primarily S&P Index volatility, forward interest rate projections, estimated index dividend payout, and leverage.

•     Fair value of derivative liabilities, which include interest rate swaps and forward-settlement swaps, are based on the net discounted value of the contractual projected cash flows of both the pay-fixed receive-variable legs of the contracts. The projected cash flows are based on the forward yield curve, and discounted using current estimated market rates.

•     The fair value of the loan portfolio (including loans held-for-sale) is estimated by segregating by type, such as mortgage, commercial, consumer, auto and leasing. Each loan segment is further segmented into fixed and adjustable interest rates and by performing and non-performing categories. The fair value of performing loans is calculated by discounting contractual cash flows, adjusted for prepayment estimates (voluntary and involuntary), if any, using estimated current market discount rates that reflect the credit and interest rate risk inherent in the loan. This fair value is not currently an indication of an exit price as that type of assumption could result in a different fair value estimate. Non-performing loans have been valued at the carrying amounts.

•     The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is based on the discounted value of the contractual cash flows, using estimated current market discount rates for deposits of similar remaining maturities.

•    The fair value of long-term borrowings, which include securities sold under agreements to repurchase, advances from FHLB-NY, other borrowings, and subordinated capital notes, is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 22 – BUSINESSSEGMENTS 

The Company segregates its businesses into the following major reportable segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Company’s organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. The Company measures the performance of these reportable segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. The Company’s methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodical basis and may change if the conditions warrant. 

Banking includes the Bank’s branches and traditional banking products such as deposits and commercial, consumer and mortgage loans. Mortgage banking activities are carried out by the Bank’s mortgage banking division, whose principal activity is to originate mortgage loans for the Company’s own portfolio. As part of its mortgage banking activities, the Company may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities.

Wealth Management is comprised of the Bank’s trust division, Oriental Financial Services, Oriental Insurance, and OPC. The core operations of this segment are financial planning, money management and investment banking, brokerage services, insurance sales activity, corporate and individual trust and retirement services, as well as retirement plan administration services.

The Treasury segment encompasses all of the Company’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices.

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OFG BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Following are the results of operations and the selected financial information by operating segment for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	81,152	$	18	$	10,136	$	91,306	$	-	$	91,306
Interest expense		(6,807)		-		(9,524)		(16,331)		-		(16,331)
Net interest income		74,345		18		612		74,975		-		74,975
Provision for loan and  lease losses		(13,789)		-		-		(13,789)		-		(13,789)
Non-interest income (loss)		7,795		6,020		(312)		13,503		-		13,503
Non-interest expenses		(48,249)		(4,484)		(2,124)		(54,857)		-		(54,857)
Intersegment revenue		399		-		100		499		(499)		-
Intersegment expenses		(101)		(291)		(107)		(499)		499		-
Income (loss) before income taxes	$	20,400	$	1,263	$	(1,831)	$	19,832	$	-	$	19,832
Total assets	$	5,814,279	$	23,369	$	1,970,264	$	7,807,912	$	(933,340)	$	6,874,572
	Quarter Ended March 31, 2015
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	97,482	$	23	$	9,496	$	107,001	$	-	$	107,001
Interest expense		(7,454)		-		(9,912)		(17,366)		-		(17,366)
Net interest income		90,028		23		(416)		89,635		-		89,635
Provision for loan and  lease losses		(42,193)		-		-		(42,193)		-		(42,193)
Non-interest (loss) income		(2,249)		7,010		2,120		6,881		-		6,881
Non-interest expenses		(49,313)		(4,790)		(2,229)		(56,332)		-		(56,332)
Intersegment revenue		544		-		98		642		(642)		-
Intersegment expenses		(98)		(432)		(112)		(642)		642		-
(Loss) income before income taxes	$	(3,281)	$	1,811	$	(539)	$	(2,009)	$	-	$	(2,009)
Total assets	$	6,302,044	$	21,995	$	1,965,342	$	8,289,381	$	(925,225)	$	7,364,156

78

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

The following discussion of the Company’s financial condition and results of operations should be read in conjunction with the “Selected Financial Data” and the Company’s unaudited consolidated financial statements and related notes. This discussion and analysis contains forward-looking statements. Please see “Forward-Looking Statements” and the risk factors set forth in our Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”), for discussion of the uncertainties, risks and assumptions associated with these statements.

The Company is a publicly-owned financial holding company that provides a full range of banking and financial services through its subsidiaries, including commercial, consumer, auto and mortgage lending; checking and savings accounts; financial planning, insurance and securities brokerage services; and corporate and individual trust and retirement services. The Company operates through three major business segments: Banking, Wealth Management, and Treasury, and distinguishes itself based on quality service. The Company has 48 branches in Puerto Rico and a subsidiary in Boca Raton, Florida. The Company’s long-term goal is to strengthen its banking and financial services franchise by expanding its lending businesses, increasing the level of integration in the marketing and delivery of banking and financial services, maintaining effective asset-liability management, growing non-interest revenue from banking and financial services, and improving operating efficiencies.

The Company’s diversified mix of businesses and products generates both the interest income traditionally associated with a banking institution and non-interest income traditionally associated with a financial services institution (generated by such businesses as securities brokerage, fiduciary services, investment banking, insurance agency, and retirement plan administration). Although all of these businesses, to varying degrees, are affected by interest rate and financial market fluctuations and other external factors, the Company’s commitment is to continue producing a balanced and growing revenue stream.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses in the consolidated financial statements. Understanding our accounting policies and the extent to which we use management judgment and estimates in applying these policies is integral to understanding our financial statements. We provide a summary of our significant accounting policies in “Note 1—Summary of Significant Accounting Policies” of our 2015 Form 10-K.

In the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” section of our 2015 Form 10-K, we identified the following accounting policies as critical because they require significant judgments and assumptions about highly complex and inherently uncertain matters and the use of reasonably different estimates and assumptions could have a material impact on our reported results of operations or financial condition:

• Loans and lease receivables

• Allowance for loan and lease losses

• Financial instruments

We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary based on changing conditions. Management has reviewed and approved these critical accounting policies and has discussed its judgments and assumptions with the Audit Committee of our Board of Directors. There have been no material changes in the methods used to formulate these critical accounting estimates from those discussed in our 2015 Form 10-K.

79

OVERVIEW OF FINANCIAL PERFORMANCE

SELECTED FINANCIAL DATA
	Quarter Ended March 31,
					Variance
	2016		2015		%
EARNINGS DATA:	(In thousands, except per share data)
Interest income	$	91,306	$	107,001	-14.7%
Interest expense		16,331		17,366	-6.0%
Net interest income		74,975		89,635	-16.4%
Provision for loan and lease losses		13,789		42,193	-67.3%
Net interest income after provision for loan             and lease losses		61,186		47,442	29.0%
Non-interest income		13,503		6,881	96.2%
Non-interest expenses		54,857		56,332	-2.6%
Income (loss) before taxes		19,832		(2,009)	1087.2%
Income tax expense		5,661		979	478.2%
Net income (loss)		14,171		(2,988)	574.3%
Less: dividends on preferred stock		(3,465)		(3,465)	153.0%
Income (loss) available to common shareholders	$	10,706	$	(6,453)	265.9%
PER SHARE DATA:
Basic	$	0.24	$	(0.14)	268.7%
Diluted	$	0.24	$	(0.14)	268.7%
Average common shares outstanding		43,898		44,634	-1.6%
Average common shares outstanding and equivalents		51,064		51,977	-1.8%
Cash dividends declared per common share	$	0.06	$	0.10	-40.0%
Cash dividends declared on common shares	$	2,633	$	4,464	-41.0%
PERFORMANCE RATIOS:
Return on average assets (ROA)		0.81%		-0.16%	600.5%
Return on average tangible common equity		6.69%		-3.76%	278.0%
Return on average common equity (ROE)		5.83%		-3.30%	276.9%
Equity-to-assets ratio		13.09%		12.72%	2.9%
Efficiency ratio		59.56%		51.75%	15.1%
Interest rate spread		4.59%		5.20%	-11.7%
Interest rate margin		4.67%		5.42%	-13.8%

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SELECTED FINANCIAL DATA - (Continued)
	March 31,		December 31,		Variance
	2016		2015		%
PERIOD END BALANCES AND CAPITAL RATIOS:	(In thousands, except per share data)
Investments and loans
Investment securities	$	1,327,399	$	1,615,872	-17.9%
Loans and leases , net		4,360,129		4,434,213	-1.7%
Total investments and loans	$	5,687,528	$	6,050,085	-6.0%
Deposits and borrowings
Deposits	$	4,779,693	$	4,717,751	1.3%
Securities sold under agreements to repurchase		636,172		934,691	-31.9%
Other borrowings		436,544		436,843	-0.1%
Total deposits and borrowings	$	5,852,409	$	6,089,285	-3.9%
Stockholders’ equity
Preferred stock	$	176,000	$	176,000	0.0%
Common stock		52,626		52,626	0.0%
Additional paid-in capital		540,371		540,512	0.0%
Legal surplus		71,865		70,435	2.0%
Retained earnings		155,529		148,886	4.5%
Treasury stock, at cost		(104,874)		(105,379)	0.5%
Accumulated other comprehensive income		12,284		13,997	-12.2%
Total stockholders' equity	$	903,801	$	897,077	0.7%
Per share data
Book value per common share	$	16.80	$	16.67	0.8%
Tangible book value per common share	$	14.68	$	14.53	1.0%
Market price at end of period	$	6.99	$	7.32	-4.5%
Capital ratios
Leverage capital		11.38%		11.18%	1.8%
Common equity Tier 1 capital		12.33%		12.14%	1.6%
Tier 1 risk-based capital		16.36%		15.99%	2.3%
Total risk-based capital		17.67%		17.29%	2.2%
Financial assets managed
Trust assets managed	$	2,757,631	$	2,691,433	2.5%
Broker-dealer assets gathered	$	2,351,746	$	2,374,709	-1.0%

81

FINANCIAL HIGHLIGHTS OF THE FIRST QUARTER OF 2016

•Net income available to shareholders amounted to $10.7 million, or $0.24 per share fully diluted. This compares to a loss of $4.4 million, or ($0.10) per share, in the preceding quarter, and a loss of $6.5 million, or ($0.14) per share, in the same quarter a year ago.

•The Bank’s retail franchise continued to grow. The Bank originated $226 million in new loans, while maintaining the Bank's credit and pricing standards. Total customers increased in excess of a 4.0% annualized rate from December 31, 2015.

•Credit quality continued to improve. Net charge-offs of loans (excluding acquired loans) declined to 1.30% from 1.67% in the fourth quarter of 2015. The provision for loan losses fell 18.6% from 4Q15’s adjusted. Early and total delinquency rates declined below both the previous and year-ago quarters.

•Puerto Rico investment securities balance fell 62.2% to $6.7 million, reflecting the sale of $12.8 million (average yield of 6.60%) in securities of the Puerto Rico Industrial Development Company (PRIDCO) and the Puerto Rico Public Buildings Authority (PBA). The Bank capitalized on market conditions to partially unwind a high-rate repurchase agreement, and to sell our PRIDCO and PBA securities and certain of our mortgage-backed securities. The aggregate gains and losses had no impact on the 1Q16 income statement, but will help to improve Net Interest Margin (NIM) going forward.

•NIM expanded to 4.67%, reflecting better yields on interest earning assets.

•Tangible book value per common share increased to $14.68 from $14.53, and tangible common equity (TCE) ratio increased to 9.50% from 9.10%.

Comparison of quarters ended March 31, 2016 and 2015

Interest Income

Total interest income decreased $15.7 million to $91.3 million, compared to $107.0 million in the first quarter of 2015, reflecting the transition in our loan portfolio as originated loans with normal yields grow at a slower pace than higher-yielding acquired loans fall, due to repayments and maturities. In addition, during the first quarter of 2015, the revolving line of credit to PREPA was classified as non-accrual. Starting with the second quarter of 2015, quarterly interest payments received of $3.6 million per quarter, have been applied to principal, reducing the yield on originated loans.The yield on interest-earning assets decreased to 5.69% from 6.47%.

Interest Expense

Total interest expense decreased by 6.0%, or $1.0 million, as compared to the same period in 2015. Such decrease reflects the lower cost of borrowings (2.98% vs. 3.02%). Such lower cost reflects a partial unwinding of a $268.0 million in repurchase agreement funding,which carried a cost of 4.78%, and other reductions in its cost of funds during the first quarter of 2016.

Net Interest Income

Net interest income decreased $14.7 million for the first quarter of 2016, mostly due to lower balances in our acquired loan portfolios and lower yields in our originated loan portfolio, partially offset by the decrease in interest expenses as a result of lower costs of borrowings. Such decrease reflects a decrease in net interest margin of 75 basis points to 4.67% when compared to the first quarter of 2015.

Provision for Loan and Lease Losses

Provision for loan and lease losses decreased $28.4 million to $13.8 million when compared to $42.2 million for the first quarter of 2015, which reflects the $24.0 million provision related to the PREPA line of credit during the first quarter of 2015. Such decrease also reflects a reduction of $4.0 million in the provision for Eurobank-acquired loan and lease losses, which reflects an additional provision of $3.5 million during the first quarter of 2015 related to the expiration of the commercial loans shared-loss coverage on June 30, 2015.

Non-Interest Income, net

Core banking and wealth management revenues decreased to $17.1 million from $19.2 million as compared to the same period in 2015, primarily reflecting a decrease of $1.0 million for wealth management revenues due to lower client trading volumes as a result of general investor uncertainty in the Puerto Rico market, and a decrease of $1.0 million in mortgage banking activities mainly due to

82

foregone gains on sale as a result of the Company retaining securitized GNMA pools. Banking service revenue slightly decreased $87 thousand to $10.1 million from $10.2 million when compared to the same period in 2015.

The decrease in the FDIC shared-loss expense of $9.1 million to $4.0 million, compared to $13.1 million for the same period in 2015, resulted from the expiration of the FDIC loss-share coverage for commercial loans and other non-single family loans on June 30, 2015.

A net gain on sale of securities available-for-sale of $12.0 million was recorded for the first quarter of 2016, including a gross gain of $16.1 million related to $272.1 million mortgage-backed securities sold, partially offset by a gross loss of $4.1 million related to the sale of $11.1 million in Puerto Rico government bonds, as all but one of the municipal securities held were sold.

A loss on extinguishment of debt was recorded for the first quarter of 2016, due to the unwinding of $268.0 in repurchase agreements at a cost of $12.0 million.

Non-Interest Expense

Non-interest expense of $54.9 million decreased $1.5 million or 2.6% compared to the same period in 2015, reflecting lower general and administrative expenses mostly related to a decrease of 48.5% in foreclosure, repossession and other real estate expenses, partially offset by higher insurance expenses from the first quarter of 2015. The Company’s efficiency ratio for the first quarter of 2016 was 59.56%, compared to 51.75% for the same period in 2015.

Income Tax Expense

Income tax expense was $5.7 million, compared to $979 thousand for the same period in 2015. Income tax expense reflects the net income before income taxes of $19.8 million for the first quarter of 2016, compared to a net loss before income taxes of $2.0 million for the year ago quarter.

Income (Loss) Available to Common Shareholders

The Company’s net income available to common shareholders amounted to $10.7 million, compared to a net loss to common shareholders of $6.5 million for the same period in 2015. Income per basic common share and fully diluted common share was $0.24, compared to a loss per basic common share and fully diluted common share of $0.14 for the first quarter of 2015.

Interest Earning Assets

The loan portfolio declined to $4.360 billion at March 31, 2016, compared to $4.434 billion at December 31, 2015, primarily due to repayments and maturities. The investment portfolio of $1.327 billion at March 31, 2016 decreased 17.9% compared to $1.616 billion at December 31, 2015 due to the sale of $272.1 million in mortgage-backed securities and $11.1 million in Puerto Rico government bonds, and the prepayments of mortgage-backed securities during the first quarter of 2016.

Interest Bearing Liabilities

Total deposits amounted to $4.780 billion at March 31, 2016, an increase of 1.3% compared to $4.718 billion at December 31, 2015. Demand and savings deposits increased 5.3% to $3.129 billion. Time deposits, including brokered deposits, declined 5.7% as part of our efforts to reduce the cost of deposits, which averaged 0.60% at March 31, 2016 and 0.59% at December 31, 2015.

Stockholders’ Equity

Stockholders’ equity at March 31, 2016 was $903.8 million compared to $897.1 million at December 31, 2015, an increase of 0.8%. This increase reflects the net income for the first quarter of 2016. Book value per share was $16.80 at March 31, 2016, compared to $16.67 at December 31, 2015.

The Company maintains capital ratios in excess of regulatory requirements. At March 31, 2016, Tier 1 Leverage capital ratio was 11.38% (December 31, 2015– 11.18%), Common Equity Tier 1 capital ratio was 12.33% (December 31, 2015 – 12.14%), Tier 1 Risk-Based capital ratio was 16.36% (December 31, 2015– 15.99%), and Total Risk-Based capital ratio was 17.67% (December 31, 2015– 17.29%).

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Return on Average Assets and Common Equity

Return on average common equity (“ROE”) was 5.83% compared to (3.30%) for the quarter ended March 31, 2015. Return on average assets (“ROA”) was 0.81% compared to (0.16%) for the same period in 2015. Both increases reflect the net income for the first quarter of 2016.

Assets under Management

At March 31, 2016, total assets managed by the Company’s trust division and OPC increased to $2.758 billion compared to $2.691 billion at December 31, 2015. At March 31, 2016, total assets gathered by the securities broker-dealer subsidiary from its customer investment accounts decreased to $2.352 billion, compared to $2.375 billion at December 31, 2015. Changes in trust and broker-dealer related assets primarily reflect a slight increase in portfolio balances and differences in market values.

Lending

Total loan production of $226.2 million decreased 5.6% compared to the same period in 2015. Total commercial loan production of $79.3 million decreased 7.5% from $85.7 million for the same period in 2015. Mortgage loan production of $48.3 million decreased 21.7% from $61.7 million for the same period in 2015. In the aggregate, consumer loan and auto and leasing production totaled $98.6 million, an increase of 7.1% from the same period in 2015.

Credit Quality on Non-Acquired Loans

Net credit losses, excluding acquired loans, increased $1.5 million to $10.0 million, representing 1.30% of average non-acquired loans outstanding versus 1.21% in the same period in 2015. The allowances for loan and lease losses, excluding acquired loans, increased to $113.2 million (3.63% of total non-acquired loans) at March 31, 2016, compared to $112.6 million (3.62% of total non-acquired loans) at December 31, 2015.

Non-GAAP Measures

The Company uses certain non-GAAP measures of financial performance to supplement the unaudited consolidated financial statements presented in accordance with GAAP. The Company presents non-GAAP measures that management believes are useful and meaningful to investors. Non-GAAP measures do not have any standardized meaning, are not required to be uniformly applied, and are not audited. Therefore, they are unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP.

The Company’s management has reported and discussed the results of operations herein both on a GAAP basis and on a pre-tax pre-provision operating income basis (defined as net interest income, plus banking and financial services revenue, less non-interest expenses, as calculated on the table below). The Company’s management believes that, given the nature of the items excluded from the definition of pre-tax pre-provision operating income, it is useful to state what the results of operations would have been without them so that investors can see the financial trends from the Company’s continuing business.

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During the quarter ended March 31, 2016, the Company’s pre-tax pre-provision operating income decreased 29.1% to $37.2 million as compared to $52.5 million for the same period in 2015. Pre-tax pre-provision operating income is calculated as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
PRE-TAX PRE-PROVISION OPERATING INCOME
Net interest income	$	74,975	$	89,635
Core non-interest income:
Banking service revenue		10,118		10,205
Wealth management revenue		6,152		7,155
Mortgage banking activities		855		1,863
Total core non-interest income		17,125		19,223
Non-interest expenses		54,857		56,331
Total pre-tax pre-provision operating income	$	37,243	$	52,527

At March 31, 2016, tangible common equity to total assets increased to 9.37% from 8.98% and tangible common equity to risk-weighted assets increased to13.58% from 13.02% at December 31, 2015. Total equity to risk-weighted assets increased to 19.05% from 18.32% at December 31, 2015.

The tangible common equity ratio and tangible book value per common share are non-GAAP measures and, unlike Tier 1 capital and Common Equity Tier 1 capital, are not codified in the federal banking regulations. Management and many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations. Neither tangible common equity nor tangible assets or related measures should be considered in isolation or as a substitute for stockholders’ equity, total assets or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Company calculates its tangible common equity, tangible assets and any other related measures may differ from that of other companies reporting measures with similar names.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, the Company has procedures in place to calculate these measures using the appropriate GAAP or regulatory components. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

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ANALYSIS OF RESULTS OF OPERATIONS

The following tables show major categories of interest-earning assets and interest-bearing liabilities, their respective interest income, expenses, yields and costs, and their impact on net interest income due to changes in volume and rates for the quarters ended March 31, 2016 and 2015:

TABLE 1 - QUARTERLY ANALYSIS OF NET INTEREST INCOME AND CHANGES DUE TO VOLUME/RATE
FOR THE QUARTERS ENDED MARCH 31, 2016 AND 2015
	Interest				Average rate		Average balance
	March		March		March	March	March		March
	2016		2015		2016	2015	2016		2015
	(Dollars in thousands)
A - TAX EQUIVALENT SPREAD
Interest-earning assets	$	91,306	$	107,001	5.69%	6.47%	$	6,437,255	$	6,703,286
Tax equivalent adjustment		1,166		4,167	0.07%	0.25%		-		-
Interest-earning assets - tax equivalent		92,472		111,168	5.76%	6.72%		6,437,255		6,703,286
Interest-bearing liabilities		16,331		17,366	1.10%	1.12%		5,971,412		6,296,576
Tax equivalent net interest income / spread		76,141		93,802	4.66%	5.60%		465,843		406,710
Tax equivalent interest rate margin					4.74%	5.68%
B - NORMAL SPREAD
Interest-earning assets:
Investments:
Investment securities		9,508		9,195	2.63%	2.77%		1,450,127		1,344,617
Interest bearing cash and money market investments		646		323	0.52%	0.23%		502,718		564,237
Total investments		10,154		9,518	2.09%	2.02%		1,952,845		1,908,854
Non-acquired loans
Mortgage		9,606		10,211	5.09%	5.26%		756,291		787,330
Commercial		15,414		16,954	4.34%	5.42%		1,425,332		1,269,104
Consumer		6,185		4,585	10.58%	10.25%		234,499		181,464
Auto and leasing		16,710		14,534	9.80%	9.91%		684,035		594,760
Total non-acquired loans		47,915		46,284	6.20%	6.63%		3,100,157		2,832,658
Acquired loans:
Acquired BBVAPR
Mortgage		8,307		8,987	5.54%	5.61%		601,761		649,710
Commercial		7,696		14,572	9.21%	10.79%		335,240		547,578
Consumer		3,088		3,189	17.56%	14.54%		70,553		88,954
Auto		6,570		8,947	11.32%	9.05%		232,699		400,803
Total acquired BBVAPR loans		25,661		35,695	8.30%	8.58%		1,240,252		1,687,044
Acquired Eurobank		7,576		15,504	21.10%	22.89%		144,001		274,731
Total loans		81,152		97,483	7.26%	8.25%		4,484,410		4,794,432
Total interest earning assets		91,306		107,001	5.69%	6.47%		6,437,255		6,703,286

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	Interest					Average rate		Average balance
	March		March			March	March	March		March
	2016		2015			2016	2015	2016		2015
	(Dollars in thousands)
Interest-bearing liabilities:
Deposits:
NOW Accounts	$	1,081	$	1,281		0.38%	0.41%	$	1,152,055	$	1,260,952
Savings and money market		1,398		1,734		0.50%	0.54%		1,115,552		1,314,360
Individual retirement accounts		502		771		0.75%	1.05%		267,058		296,661
Retail certificates of deposits		1,339		1,407		1.28%	1.33%		417,992		428,466
Total core deposits		4,320		5,193		0.59%	0.65%		2,952,657		3,300,439
Institutional deposits		654		798		0.97%	1.22%		269,807		264,964
Brokered deposits		1,988		1,166		1.09%	0.79%		734,326		602,189
Total wholesale deposits		2,642		1,964		1.06%	0.92%		1,004,133		867,153
		6,962		7,157		0.71%	0.70%		3,956,790		4,167,592
Non-interest bearing deposits		-		-		0.00%	0.00%		774,950	$	750,640
Deposits fair value premium amortization		(96)		(345)		0.00%	0.00%		-		-
Core deposit intangible amortization		258		292		0.00%	0.00%		-		-
Total deposits		7,124		7,104		0.60%	0.69%		4,731,740		4,918,232
Borrowings:
Securities sold under agreements to repurchase		6,099		7,164		3.06%	3.09%		799,613		939,377
Advances from FHLB and other borrowings		2,240		2,235		2.66%	2.69%		337,364		337,292
Subordinated capital notes		868		863		3.39%	3.44%		102,695		101,675
Total borrowings		9,207		10,262		2.98%	3.02%		1,239,672		1,378,344
Total interest bearing liabilities		16,331		17,366		1.10%	1.12%		5,971,412		6,296,576
Net interest income / spread	$	74,975	$	89,635		4.59%	5.35%
Interest rate margin						4.67%	5.42%
Excess of average interest-earning assets over     average interest-bearing liabilities								$	465,843	$	406,710
Average interest-earning assets to average     interest-bearing liabilities ratio									107.80%		106.46%
C - CHANGES IN NET INTEREST INCOME DUE TO:
	Volume		Rate		Total
	(In thousands)
Interest Income:
Investments	$	219	$	417	$	636
Loans		(12,460)		(3,871)		(16,331)
Total interest income		(12,241)		(3,454)		(15,695)
Interest Expense:
Deposits		(269)		289		20
Repurchase agreements		(1,066)		1		(1,065)
Other borrowings		8		2		10
Total interest  expense		(1,327)		292		(1,035)
Net Interest Income	$	(10,914)	$	(3,746)	$	(14,660)

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Net Interest Income

Comparison of quarters ended March 31, 2016 and 2015

Net interest income is a function of the difference between rates earned on the Company’s interest-earning assets and rates paid on its interest-bearing liabilities (interest rate spread) and the relative amounts of its interest earning assets and interest-bearing liabilities (interest rate margin). The Company constantly monitors the composition and re-pricing of its assets and liabilities to maintain its net interest income at adequate levels. Table 1 above shows the major categories of interest-earning assets and interest-bearing liabilities, their respective interest income, expenses, yields and costs, and their impact on net interest income due to changes in volume and rates for the quarters ended March 31, 2016 and 2015.

Net interest income of $75.0 million decreased 16.4% compared with $89.6 million reported in the first quarter of 2015, reflecting a decrease of 16.8% in interest income from loans.

Interest rate spread decreased 76 basis points from 5.35% to 4.59%. This decrease is mainly due to the net effect of a 78 basis points decrease in the average yield of interest-earning assets from 6.47% to 5.69%.

Interest income decreased to $91.3 million from $107.0 million in the first quarter of 2016. Such decrease reflects decreases of $12.2 million and $3.5 million in the volume and interest rate, respectively, of interest-earning assets. Interest income from loans decreased 16.8% to $81.2 million, reflecting a decrease in volume and interest rate by $12.5 million and a $3.9 million, respectively, primarily due to lower acquired loan balances and yields. Our loan portfolio is transitioning as originated loans with normal yields grow at a slower pace than higher-yielding acquired loans fall due to repayments and maturities.

Originated loans interest income increased 3.5% to $47.9 million as average balances grew 9.4% and yields decreased 43 basis points to 6.20%. During the first quarter of 2015, the revolving line of credit to PREPA was classified as non-accrual. Starting with the second quarter of 2015, quarterly interest payments of $3.6 million per quarter, have been applied to principal, reducing the yield on originated loans. In addition, as a result of the Company's efforts to reduce our risk in Puerto Rico government exposures, the outstanding balance of credit facilities to public corporations decreased as a result of a repayment in full of a $75 million loan by the Puerto Rico Aqueduct and Sewer Authority in the second quarter of 2015 and a repayment in full of a $78 million loan by the State Insurance Fund Corporation in the third quarter of 2015.

Acquired BBVAPR loans interest income declined 28.1% to $25.7 million as average balances declined 26.5% and yields decreased 28 basis points to 8.30%. Acquired Eurobank loans interest income fell 51.2% to $7.6 million as average balances declined 47.6% and yields decreased 183 basis points to 21.06%. Interest income from investments increased 6.7% to $10.2 million, reflecting increases in volume and interest rate of $219 thousand and $417 thousand, respectively.The average balance of total interest-earning assets was $6.437 billion, a decrease of 4.0% from the same period in 2015. The decrease in average balance of interest-earning assets was mainly attributable to a decrease of 6.5% in average loans, partially offset by an increase of 2.3% in average investments. The decrease in average loans is mostly related to the bulk sale on September 28, 2015, of a portion of covered non-performing commercial loans amounting to $197.1 million unpaid principal balance or UPB ($100.0 million carrying amount). The FDIC agreed to cover $20.0 million of losses as part of its loss-share agreement with the Company. Also, as part of this transaction, the Company sold certain non-performing commercial loans and real estate owned from the BBVAPR acquisition amounting to $38.1 million of unpaid principal balance ($9.9 million carrying amount).

Interest expense decreased 6.0% to $16.3 million, primarily because of a $1.3 million decrease in the volume of interest-bearing liabilities and an increase of $292 thousand in interest rate. The decrease in interest-bearing liabilities is mostly due to the decrease in repurchase agreements volume of $1.1 million and a decrease in deposit volume of $269 thousand which was offset by an increase in interest rate of $289 thousand. The decrease in repurchase agreement volume reflects a partial unwinding of repurchase agreements amounting to $268.0 million, which carried a cost of 4.78%. The cost of deposits before fair value amortization and core deposit intangible amortization slightly increased 1 basis point to 0.71% for the first quarter of 2016, compared to 0.70% for the first quarter of 2015. The cost of borrowings decreased 4 basis points to 2.98% from 3.02%.

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TABLE 2 - NON-INTEREST INCOME SUMMARY
	Quarter Ended March 31,
	2016		2015		Variance
	(Dollars in thousands)
Banking service revenue	$	10,118	$	10,205	-0.9%
Wealth management revenue		6,152		7,155	-14.0%
Mortgage banking activities		855		1,863	-54.1%
Total banking and financial service revenue		17,125		19,223	-10.9%
FDIC shared-loss expense, net		(4,029)		(13,084)	69.2%
Net gain (loss) on:
Sale of securities available for sale		11,996		2,572	366.4%
Derivatives		(3)		(90)	96.7%
Early extinguishment of debt		(12,000)		-	-100.0%
Other non-interest income (loss)		414		(1,740)	123.8%
		(3,622)		(12,342)	70.7%
Total non-interest income, net	$	13,503	$	6,881	96.2%

Non-Interest Income, net

Non-interest income is affected by the level of trust assets under management, transactions generated by clients’ financial assets serviced by the securities broker-dealer and insurance agency subsidiaries, the level of mortgage banking activities, and the fees generated from loans and deposit accounts. It is also affected by the FDIC shared-loss expense, which varies depending on the results of the on-going evaluation of expected cash flows of the loan portfolio acquired in the FDIC-assisted acquisition. In addition, it is affected by the amount of securities, derivatives, trading and other transactions.

Comparison of quarters ended March 31, 2016 and 2015

As shown in Table 2 above, the Company recorded non-interest income, net in the amount of $13.5 million, compared to $6.9 million for the same period in 2015, an increase of 96.2%, or $6.6 million.

Banking service revenue, which consists primarily of fees generated by deposit accounts, electronic banking services, and customer services, slightly decreased 1.0% to $10.1 million, from $10.2 million for the same period in 2015. The decrease is mainly due to a decrease in electronic banking fees of $242 thousand, partially offset by an increase of $195 thousand for prepayment penalty fees.

Wealth management revenue, which consists of commissions and fees from fiduciary activities, and securities brokerage and insurance activities, decreased 14.0% to $6.2 million, compared to $7.2 million for the same period in 2015. Such decrease reflects a reduction in some securities brokerage activities and the cancellation of various retirement plans. Client trading volumes in our broker-dealer subsidiary continued to fall due to the general investor uncertainty in the Puerto Rico market.

Income generated from mortgage banking activities decreased 54.1% to $855 thousand, compared to $1.9 million for the same period in 2015. The decrease in mortgage banking activities was mostly due to foregone gains on sales as a result of the Company retaining securitized GNMA pools. During the first quarter of 2016, the Company retained securitized GNMA pools totaling $23.0 million, amortized cost, at a yield of 3.06%, from its own originations.

The net FDIC shared-loss expense decreased to $4.0 million as compared to $13.1 million for the first quarter of 2015, primarily from the expiration of the FDIC commercial loss share coverage. The decrease is also related to the ongoing evaluation of expected cash flows of the covered loan portfolio and from changes in the fair value of the true-up payment obligation (also known as a clawback liability).

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During the first quarter of 2016, the Company capitalized on favorable market conditions to partially unwind a high-rate repurchase agreement amounting to $268.0 million at a cost of $12 million, included as a loss on early extinguishment of debt in the unaudited statements of operations. In addition, the Company sold $272.1 million in mortgage backed securities and $11.1 million in Puerto Rico government bonds. As a result, the Company recorded a net gain on sale of securities of $12.0 million, compared to $2.6 million for the first quarter of 2015.

Other non-interest income increased $2.2 million, as the first quarter of 2015 included the recognition of $1.9 million loss in the valuation of part of the mortgage servicing asset subsequently sold to Scotiabank Puerto Rico.

TABLE 3 - NON-INTEREST EXPENSES SUMMARY
	Quarter Ended March 31,
	2016		2015		Variance %
	(Dollars in thousands)
Compensation and employee benefits	$	20,284	$	20,180	0.5%
Professional and service fees		3,626		4,181	-13.3%
Occupancy and equipment		7,822		8,636	-9.4%
Insurance		3,150		1,953	61.3%
Electronic banking charges		5,589		5,367	4.1%
Information technology expenses		1,657		1,454	14.0%
Advertising, business promotion, and strategic initiatives		1,443		1,629	-11.4%
Foreclosure, repossession and other real estate expenses		2,806		5,447	-48.5%
Loan servicing and clearing expenses		2,081		2,353	-11.6%
Taxes, other than payroll and income taxes		2,671		1,479	80.6%
Communication		819		691	18.5%
Printing, postage, stationery and supplies		725		637	13.8%
Director and investor relations		278		294	-5.4%
Other operating expenses		1,906		2,031	-6.2%
Total non-interest expenses	$	54,857	$	56,332	-2.6%
Relevant ratios and data:
Efficiency ratio		59.56%		51.75%
Compensation and benefits to         non-interest expense		36.98%		35.82%
Compensation to average total assets owned		1.16%		1.09%
Average number of employees		1,468		1,510
Average compensation per employee	$	13.8	$	13.4
Average loans per average employee	$	3,055	$	3,175

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Non-Interest Expenses

Comparison of quarters ended March 31, 2016 and 2015

Non-interest expense for the first quarter of 2016 was $54.9 million, representing a decrease of 2.6% compared to $56.3 million in the same quarter of the previous year.

Professional and service fees decreased 13.3% or $555 thousand to $3.6 million, mostly due to a decrease of $522 thousand in legal expenses from reduced billings.

Occupancy and equipment decreased 9.4% to $7.8 million, reflecting decreases in rent expense and in depreciation expenses of $890 thousand and $227 thousand, respectively, and was partially offset by an increase of $332 thousand in new technology for clients. The rent expense decrease is mainly due to a reduction in the number of branches.

Foreclosure, repossession and other real estate expenses decreased 48.5% to $2.8 million, as compared to $5.4 million in the same period for the previous year. The first quarter of 2015 included a loss of $2.1 million on the sale of repossessed assets, contrasting with 2016 which included a gain of $723 thousand on the sale of repossessed assets, as the unit count decreased from 1,195 to 928 mostly due to reduction in new entries and efficiencies in the selling process.

The decreases in the foregoing non-interest expenses were partially offset by increases in insurance and taxes, other than payroll and income taxes.

Insurance expense increased 61.3% to $3.2 million, as compared to $2.0 million in the same period of 2015, mainly due to an increase in the State Accident Insurance Fund (“SAIF”) premiums.

Taxes, other than payroll and income taxes increased 80.6% to $2.7 million from $1.5 million for the same quarter in 2015. The first quarter of 2015 included a $1.2 million adjustment related to a special gross receipts tax (“Patente Nacional”) taxes from a 2014 accrual, which reduced the expense balance in such period.

The efficiency ratio was 59.56% compared to 51.75% for the same period in 2015. The efficiency ratio measures how much of the Company’s revenues is used to pay operating expenses. The Company computes its efficiency ratio by dividing non-interest expenses by the sum of its net interest income and non-interest income, but excluding gains on the sale of investment securities, derivatives gains or losses, FDIC shared-loss expense, losses on the early extinguishment of debt, other gains and losses, and other income that may be considered volatile in nature. Management believes that the exclusion of those items permits consistent comparability. Amounts presented as part of non-interest (losses) income that are excluded from the efficiency ratio computation for the quarter ended March 31, 2016 amounted to losses of $3.6 million, compared to income of $12.3 million for the quarter ended March 31, 2015.

     Provision for Loan and Lease Losses

Comparison of quarters ended March 31, 2016 and 2015

Provision for loan and lease losses decreased 67.3% or $28.4 million, to $13.8 million, as a result of a $24.0 million provision for loan and lease losses related to the PREPA line of credit recorded during the first quarter of 2015.

Based on an analysis of the credit quality and the composition of the Company’s loan portfolio, management determined that the provision for the quarter was adequate in order to maintain the allowance for loan and lease losses at an adequate level to provide for probable losses based upon an evaluation of known and inherent risks.

Provision for originated and other loan and lease losses decreased 68.6%, or $23.3 million, to $10.7 million from $33.9 million when compared with the same period in 2015. During the first quarter of 2015, the Company changed to non-accrual status of the PREPA line of credit recorded a $24.0 million provision for loan and lease losses related thereto. Management determined that no additional provision was required on the PREPA line of credit after the evaluation made during the first quarter of 2016.

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Total charge-offs on originated and other loans increased 9.4% to $13.4 million, as compared to $12.2 million for the same quarter in 2015. Consumer charge-offs increased $651 thousand to $1.7 million. Mortgage charge-offs increased $248 thousand to $1.7 million. Auto and leasing charge-offs increased $226 thousand to $8.4 million. Commercial charge-offs increased $19 thousand to $1.0 million. Total recoveries on originated and other loans decreased from $3.6 million to $3.3 million. As a result, the recoveries to charge-offs ratio decreased from 29.68% to 24.80%. Net credit losses increased $1.5 million to $10.0 million, representing 1.30% of average originated and other loans outstanding versus 1.21% for the same quarter in 2015, annualized.

Provision for acquired loan and lease losses decreased 62.2%, or $5.2 million, to $3.1 million from $8.3 million when compared with the same period in 2015. Provision for acquired BBVAPR loan and lease losses decreased $1.1 million to $2.3 million from $3.5 million, when compared to the same period in 2015. Provision for acquired Eurobank loan and lease losses decreased $4.0 million from $4.8 million to $805 thousand. Such decrease reflects an additional provision of $3.5 million in the first quarter of 2015 related to the commercial shared-loss coverage with the FDIC that ended on June 30, 2015.

Income Taxes

Comparison of quarters ended March 31, 2016 and 2015

Income tax expense was $5.7 million, compared to $979 thousand for the same period in 2015. Income tax expense reflects the net income before income taxes of $19.8 million for the first quarter of 2016, compared to a net loss before income taxes of $2.0 million for the year-ago quarter.

Business Segments

The Company segregates its businesses into the following major reportable segments: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Company’s organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. The Company measures the performance of these reportable segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. The Company’s methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others.  Following are the results of operations and the selected financial information by operating segment for the first quarters of 2016 and 2015.

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	Quarter Ended March 31, 2016
				Wealth				Total Major				Consolidated
	Banking			Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	81,152	$	18	$	10,136	$	91,306	$	-	$	91,306
Interest expense		(6,807)		-		(9,524)		(16,331)		-		(16,331)
Net interest income		74,345		18		612		74,975		-		74,975
Provision for     loan and lease losses		(13,789)		-		-		(13,789)		-		(13,789)
Non-interest income (loss), net		7,795		6,020		(312)		13,503		-		13,503
Non-interest expenses		(48,249)		(4,484)		(2,124)		(54,857)		-		(54,857)
Intersegment revenue		398		-		1,198		1,596		(1,596)		-
Intersegment expenses		(1,198)		(291)		(107)		(1,596)		1,596		-
Income (loss) before income taxes	$	19,302	$	1,263		(733)	$	19,832	$	-	$	19,832
Total assets	$	5,814,279	$	23,369	$	1,970,264	$	7,807,912	$	(933,340)	$	6,874,572
	Quarter Ended March 31, 2015
				Wealth				Total Major				Consolidated
	Banking			Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	97,482	$	23	$	9,496	$	107,001	$	-	$	107,001
Interest expense		(7,454)		-		(9,912)		(17,366)		-		(17,366)
Net interest income		90,028		23		(416)		89,635		-		89,635
Provision for     loan and lease losses		(42,193)		-		-		(42,193)		-		(42,193)
Non-interest income (loss), net		(2,249)		7,010		2,120		6,881		-		6,881
Non-interest expenses		(49,313)		(4,790)		(2,229)		(56,332)		-		(56,332)
Intersegment revenue		544		-		98		642		(642)		-
Intersegment expenses		(98)		(432)		(112)		(642)		642		-
(Loss) income before income taxes	$	(3,281)	$	1,811	$	(539)	$	(2,009)	$	-	$	(2,009)
Total assets	$	6,302,044	$	21,995	$	1,965,342	$	8,289,381		(925,225)	$	7,364,156

93

Comparison of quarters ended March 31, 2016 and 2015

Banking

Net interest income of the Company’s Banking segment decreased $14.7 million for 2016, or 16.4%, reflecting a decrease of 16.8% in interest income from loans. Interest income from loans decreased 16.8% to $81.2 million, reflecting a decrease in volume and in interest rate by $12.5 million and $3.9 million, respectively, primarily due to lower acquired loan balances and yields. Our loan portfolio is transitioning as originated loans with normal yields grow at a slower pace than higher-yielding acquired loans fall due to repayments and maturities.

Originated loans interest income increased 3.5% to $47.9 million as average balances grew 9.4% and yields declined 43 basis points to 6.20%. During the first quarter of 2015, the revolving line of credit to PREPA was classified as non-accrual. Starting with the second quarter of 2015, quarterly interest payments of $3.6 million, have been applied to principal, reducing the yield on originated loans. In addition, as a result of the Company's efforts to reduce our risk in government exposures, the outstanding balance of credit facilities to public corporations decreased as a result of a repayment in full of a $75 million loan by the Puerto Rico Aqueduct and Sewer Authority in the second quarter of 2015 and a repayment in full of a $78 million loan by the State Insurance Fund Corporation in the third quarter of 2015.

Acquired BBVAPR loans interest income decreased 28.1% to $25.7 million as average balances declined 26.5% and yields declined 28 basis points to 8.30%. Acquired Eurobank loans interest income fell 51.2% to $7.6 million as average balances declined 47.6% and yields declined 183 basis points to 21.06%. The decrease in average loans is mostly related to the bulk sale on September 28, 2015, of a portion of covered non-performing commercial loans amounting to $197.1 million unpaid principal balance or UPB ($100.0 million carrying amount). The FDIC agreed to cover $20.0 million of losses as part of its loss-share agreement with the Company. Also, as part of this transaction, the Company sold certain non-performing commercial loans and real estate owned from the BBVAPR acquisition amounting to $38.1 million of unpaid principal balance ($9.9 million carrying amount).

Provision for originated and other loan and lease losses decreased 68.6%, or $23.3 million, to $10.7 million from $33.9 million when compared with the same period in 2015. During the first quarter of 2015, the Company recorded a $24.0 million provision for loan and lease losses for the PREPA line of credit. No additional provision was required on the PREPA line of credit during the first quarter of 2016. Provision for acquired loan and lease losses decreased 62.2%, or $5.2 million, when compared with the same period in 2015. Provision for acquired Eurobank loan and lease losses decreased $4.0 million, which reflects an additional provision of $3.5 million in the first quarter of 2015 related to the commercial shared-loss coverage with the FDIC that ended on June 30, 2015.

Non-interest income, net, is affected by the level of mortgage banking activities and fees generated from loans and deposit accounts. It is also affected by the FDIC shared-loss expense, which varies depending on the results of the on-going evaluation of expected cash flows of the loan portfolio acquired in the FDIC-assisted acquisition.

Banking service revenue, which consists primarily of fees generated by deposit accounts, electronic banking services, and customer services, slightly decreased 1.0% to $10.1 million, from $10.2 million for the same period in 2015. The decrease is mainly due to a decrease in electronic banking fees of $242 thousand, partially offset by an increase of $195 thousand for prepayment penalty fees.

Income generated from mortgage banking activities decreased 54.1% to $855 thousand, compared to $1.9 million for the same period in 2015. The decrease in mortgage banking activities was mostly due to foregone gains on sales as a result of the Company retaining securitized GNMA pools. During the first quarter of 2016, the Company retained securitized GNMA pools totaling $23.0 million, amortized cost, from its own originations. The net FDIC shared-loss expense decreased to $4.0 million as compared to $13.1 million for the first quarter of 2015, primarily from the expiration of the FDIC commercial loss-share coverage.

Non-interest expense of $48.3 million decreased 2.1% when compared to the first quarter of 2015, primarily reflecting a decrease in foreclosure, repossession and other real estate expenses of 48.5% to $2.8 million, as compared to $5.4 million in the same period for the previous year. The first quarter of 2015 included a loss of $2.1 million on the sale of repossessed assets, contrasting with the first quarter of 2016 which included a gain of $723 thousand due to efforts to sell units at a gain.

94

Wealth Management

Wealth management revenue, which consists of commissions and fees from fiduciary, securities brokerage and insurance activities decreased to $1.3 million, compared to $1.8 million in the first quarter of 2015. Such decrease reflects a reduction in some security brokerage activities and the cancellation of various retirement plans. Client trading volumes in our broker-dealer subsidiary continued to fall due to the general investor uncertainty in the Puerto Rico market.

Treasury

Treasury revenue, which consists of the Company's asset/liability management activities, such as purchase and sale of investment securities, interest rate risk management, derivatives, and borrowings, increased to a loss of $733 thousand, compared to a loss of $539 thousand in the first quarter of 2015. Such increase reflects a gain of $2.6 million from the sale of $37.7 million in FNMA and FHLMC certificates during the first quarter of 2015, partially offset by an increase of $1.0 million in net interest income and intersegment revenue of $1.1 million from the previous year.

During the first quarter of 2016, the Company capitalized on favorable market conditions to partially unwind a high-rate repurchase agreement amounting to $268.0 million, at a cost of $12.0 million, and sell $272.1 million in mortgage backed securities and $11.1 million in Puerto Rico government bonds, at a net gain on sale of securities of $12.0 million.

95

ANALYSIS OF FINANCIAL CONDITION

Assets Owned

At March 31, 2016, the Company’s total assets amounted to $6.875 billion representing a decrease of 3.2% when compared to $7.099 billion at December 31, 2015. This reduction is mainly due to a decrease in the investment and loan portfolios. The investment portfolio decreased $288.5 million from $1.616 billion at December 31, 2015 to $1.327 billion, which included the sale of $272.1 million in mortgage backed securities and $11.1 million in Puerto Rico government bonds during the first quarter of 2016. As a result, at March 31, 2016, loans represented 77% of total interest-earning assets while investments represented 23%, compared to 73% and 27%, respectively, at December 31, 2015.

The Company’s loan portfolio is comprised of residential mortgage loans, commercial loans collateralized by mortgages on real estate located in Puerto Rico, other commercial and industrial loans, consumer loans, and auto loans. At March 31, 2016, the Company’s loan portfolio decreased by 1.7% to $4.360 billion compared to $4.434 billion at December 31, 2015, primarily due to lower acquired loan balances. Our loan portfolio is transitioning as originated loans grow at a slower pace than acquired loans decrease, due to repayments and maturities. At March 31, 2016, the originated loan portfolio increased $4.6 million, or 0.2%, the acquired BBVAPR loan portfolio decreased $78.4 million, or 6.2%, and the acquired Eurobank loan portfolio decreased $3.9 million, or 2.7% from December 31, 2015.

Investments principally consist of U.S. government and agency bonds, mortgage-backed securities, and Puerto Rico government and agency bonds. At March 31, 2016, the investment portfolio decreased 17.9% to $1.327 billion from $1.616 billion at December 31, 2015. During the first quarter of 2016 the Company sold $272.1 million in mortgage backed securities and $11.1 million in Puerto Rico government bonds and reduced some interest rate sensitivity and Puerto Rico government exposure. Recent purchases of investment securities were categorized as held-to-maturity. The Company’s management will determine the category of upcoming investment securities purchases based on the Company’s expectations at such time.

Financial Assets Managed

The Company’s financial assets include those managed by the Company’s trust division, retirement plan administration subsidiary, and assets gathered by its broker-dealer subsidiary. The Company’s trust division offers various types of IRAs and manages 401(k) and Keogh retirement plans and custodian and corporate trust accounts, while the retirement plan administration subsidiary, OPC, manages private retirement plans. At March 31, 2016, total assets managed by the Company’s trust division and OPC amounted to $2.758 billion, compared to $2.691 billion at December 31, 2015. Oriental Financial Services offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At March 31, 2016, total assets gathered by Oriental Financial Services from its customer investment accounts decreased to $2.352 billion, compared to $2.375 billion at December 31, 2015. Changes in trust and broker-dealer related assets primarily reflect a decrease in portfolio balances and differences in market values.

96

Goodwill

Goodwill recorded in connection with the BBVAPR Acquisition and the FDIC-assisted Eurobank acquisition is not amortized to expense, but is tested at least annually for impairment. A quantitative annual impairment test is not required if, based on a qualitative analysis, the Company determines that the existence of events and circumstances indicate that it is more likely than not that goodwill is not impaired. The Company completes its annual goodwill impairment test as of October 31 of each year.  The Company tests for impairment by first allocating its goodwill and other assets and liabilities, as necessary, to defined reporting units. A fair value is then determined for each reporting unit. If the fair values of the reporting units exceed their book values, no write-down of the recorded goodwill is necessary. If the fair values are less than the book values, an additional valuation procedure is necessary to assess the proper carrying value of the goodwill.

Reporting unit valuation is inherently subjective, with a number of factors based on assumptions and management judgments or estimates. Actual values may differ significantly from such estimates. Among these are future growth rates for the reporting units, selection of comparable market transactions, discount rates and earnings capitalization rates. Changes in assumptions and results due to economic conditions, industry factors, and reporting unit performance and cash flow projections could result in different assessments of the fair values of reporting units and could result in impairment charges. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, an interim impairment test is required.   

Relevant events and circumstances for evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount may include macroeconomic conditions (such as a further deterioration of the Puerto Rico economy or the liquidity for Puerto Rico securities or loans secured by assets in Puerto Rico), adverse changes in legal factors or in the business climate, adverse actions by a regulator, unanticipated competition, the loss of key employees, or similar events. The Company’s loan portfolio, which is the largest component of its interest-earning assets, is concentrated in Puerto Rico and is directly affected by adverse local economic and fiscal conditions. Such conditions have generally affected the market demand for non-conforming loans secured by assets in Puerto Rico and, therefore, affect the valuation of the Company’s assets. 

As of March 31, 2016, the Company had $86.1 million of goodwill allocated as follows: $84.1 million to the Banking unit and $2.0 to the Wealth Management unit. During the last quarter of 2015, based on its annual goodwill impairment test, the Company determined that the Banking unit failed step one of the two-step impairment test and that Wealth Management unit passed such step. As a result of step one, the Banking unit’s adjusted net book value exceed its fair value by approximately $263.1 million, or 29.6%. Accordingly, the Company proceeded to perform step two of the analysis. Based on the results of step two, the Company determined that the carrying value of the goodwill allocated to the Banking unit was not impaired as of the valuation date. During the first quarter of 2016, the Company performed an assessment of events or circumstances that could trigger reductions in the book value of the goodwill. Based on this assessment, no events were identified that triggered changes in the book value of Goodwill at March 31, 2016.

97

TABLE 4 - ASSETS SUMMARY AND COMPOSITION
	March 31,		December 31,		Variance
	2016		2015		%
	(Dollars in thousands)
Investments:
FNMA and FHLMC certificates	$	1,056,869	$	1,354,802	-22.0%
Obligations of US government-sponsored agencies		4,835		5,093	-5.1%
US Treasury securities		25,024		25,032	0.0%
CMOs issued by US government-sponsored agencies		128,583		135,073	-4.8%
GNMA certificates		82,697		58,495	41.4%
Puerto Rico government and public instrumentalities		5,847		13,731	-57.4%
FHLB stock		20,761		20,783	-0.1%
Other debt securities		2,466		2,572	-4.1%
Other investments		317		291	8.9%
Total investments		1,327,399		1,615,872	-17.9%
Loans		4,360,129		4,434,213	-1.7%
Total securities and loans		5,687,528		6,050,085	-6.0%
Other assets:
Cash and due from banks (including restricted cash)		675,301		535,359	26.1%
Money market investments		5,897		4,699	25.5%
FDIC indemnification asset		20,923		22,599	-7.4%
Foreclosed real estate		56,777		58,176	-2.4%
Accrued interest receivable		18,392		20,637	-10.9%
Deferred tax asset, net		145,518		145,901	-0.3%
Premises and equipment, net		73,975		74,590	-0.8%
Servicing assets		7,819		7,455	4.9%
Derivative assets		2,662		3,025	-12.0%
Goodwill		86,069		86,069	0.0%
Other assets and customers' liability on acceptances		93,711		90,554	3.5%
Total other assets		1,187,044		1,049,064	13.2%
Total assets	$	6,874,572	$	7,099,149	-3.2%
Investments portfolio composition:
FNMA and FHLMC certificates		79.6%		83.9%
Obligations of US government-sponsored agencies		0.4%		0.3%
US Treasury securities		1.9%		1.5%
CMOs issued by US government-sponsored agencies		9.7%		8.4%
GNMA certificates		6.2%		3.6%
Puerto Rico government and public instrumentalities		0.4%		0.8%
FHLB stock		1.6%		1.3%
Other debt securities and other investments		0.2%		0.2%
		100.0%		100.0%

98

TABLE 5 — LOANS RECEIVABLE COMPOSITION
		March 31,		December 31,	Variance
	2016		2015		%
	(In thousands)
Originated and other loans and leases held for investment:
Mortgage	$	751,819	$	757,828	-0.8%
Commercial		1,425,385		1,441,649	-1.1%
Consumer		252,327		242,950	3.9%
Auto and leasing		687,159		669,163	2.7%
		3,116,690		3,111,590	0.2%
Allowance for loan and lease losses on originated and other loans and leases		(113,238)		(112,626)	-0.5%
		3,003,452		2,998,964	0.1%
Deferred loan costs, net		4,350		4,203	3.5%
Total originated and other loans loans held for investment, net		3,007,802		3,003,167	0.2%
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		6,558		7,457	-12.1%
Consumer		36,346		38,385	-5.3%
Auto		91,406		106,911	-14.5%
		134,310		152,753	-12.1%
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20		(4,993)		(5,542)	9.9%
		129,317		147,211	-12.2%
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		600,901		608,294	-1.2%
Commercial		267,931		287,311	-6.7%
Construction		77,858		88,180	-11.7%
Consumer		9,345		11,843	-21.1%
Auto		134,669		153,592	-12.3%
		1,090,704		1,149,220	-5.1%
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30		(27,747)		(25,785)	-7.6%
		1,062,957		1,123,435	-5.4%
Total acquired BBVAPR loans, net		1,192,274		1,270,646	-6.2%
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		91,113		92,273	-1.3%
Commercial and construction		142,298		142,377	-0.1%
Consumer		1,770		2,314	-23.5%
		235,181		236,964	-0.8%
Allowance for loan and lease losses on Eurobank loans		(92,293)		(90,178)	-2.3%
Total acquired Eurobank loans, net		142,888		146,786	-2.7%
Total acquired loans, net		1,335,162		1,417,432	-5.8%
Total held for investment, net		4,342,964		4,420,599	-1.8%
Mortgage loans held for sale		17,165		13,614	26.1%
Total loans, net	$	4,360,129	$	4,434,213	-1.7%

99

The Company’s loan portfolio is composed of two segments, loans initially accounted for under the amortized cost method (referred as "originated and other" loans) and loans acquired (referred as "acquired" loans). Acquired loans are further segregated between acquired BBVAPR loans and acquired Eurobank loans. Acquired Eurobank loans were purchased subject to loss-sharing agreements with the FDIC. The FDIC loss-sharing coverage, related to acquired Eurobank commercial loans expired on June 30, 2015. Notwithstanding the expiration of loss-share coverage of commercial loans, on July 2, 2015, the Company entered into an agreement with the FDIC pursuant to which the FDIC concurred with a potential sale of a pool of loss-share assets covered under the commercial loss-share agreement. Pursuant to such agreement, the FDIC agreed to pay up to $20 million in loss-share coverage with respect to the aggregate loss resulting from any portfolio sale within 120 days of the agreement. This sale was completed on September 28, 2015. The coverage for the single-family residential loans will expire on June 30, 2020. At March 31, 2016, the remaining covered loans amounting to $57.1 million, net carrying amount, are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties". At December 31, 2015, covered loans amounted to $59.6 million, net carrying amount, and also included under the name "loans secured by 1-4 family residential properties". Covered loans are no longer a material amount. Therefore, the Company changed its loan disclosures during 2015.

As shown in Table 5 above, total loans, net, amounted to $4.360 billion at March 31, 2016 and $4.434 billion at December 31, 2015. The Company’s originated and other loans held-for-investment portfolio composition and trends were as follows:

·Mortgage loan portfolio amounted to $751.8 million (24.1% of the gross originated loan portfolio) compared to $757.8 million (24.4% of the gross originated loan portfolio) at December 31, 2015. Mortgage loan production totaled $48.3 million for the first quarter of 2016, which represents a decrease of 21.7% from $61.7 million in the first quarter of the previous year. Mortgage loans included delinquent loans in the GNMA buy-back option program amounting to $7.7 million and $7.9 million at March 31, 2016 and December 31, 2015, respectively. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

·Commercial loan portfolio amounted to $1.425 billion (45.7% of the gross originated loan portfolio) compared to $1.442 billion (46.3% of the gross originated loan portfolio) at December 31, 2015. Commercial loan production decreased 7.5% to $79.3 million for the first quarter of 2016 from $85.7 million for the same period in 2015.

·Consumer loan portfolio amounted to $252.3 million (8.1% of the gross originated loan portfolio) compared to $243.0 million (7.8% of the gross originated loan portfolio) at December 31, 2015. Consumer loan production increased 31.0% to $34.3 million for the first quarter of 2016 from $26.2 million for the same period in 2015.

·Auto and leasing portfolio amounted to $687.2 million (22.1% of the gross originated loan portfolio) compared to $669.2 million (21.5% of the gross originated loan portfolio) at December 31, 2015. Auto and leasing production decreased by 2.5% to $64.3 million for the first quarter of 2016, compared to $65.9 million for the same period in 2015.

100

TABLE 6 — HIGHER RISK RESIDENTIAL MORTGAGE LOANS
	March 31, 2016
	Higher-Risk Residential Mortgage Loans*
											High Loan-to-Value Ratio Mortgages
	Junior Lien Mortgages					Interest Only Loans					LTV 90% and over
	Carrying					Carrying					Carrying
	Value		Allowance		Coverage	Value		Allowance		Coverage	Value		Allowance		Coverage
	(In thousands)
Delinquency:
0 - 89 days	$	11,388	$	259	2.27%	$	13,852	$	798	5.76%	$	89,456	$	1,936	2.16%
90 - 119 days		91		1	1.10%		128		9	7.03%		1,317		48	3.64%
120 - 179 days		-		-	0.00%		640		56	8.75%		1,703		82	4.82%
180 - 364 days		268		2	0.75%		1,481		130	8.78%		2,450		165	6.73%
365+ days		388		76	19.59%		1,010		272	26.93%		10,452		748	7.16%
Total	$	12,135	$	338	2.79%	$	17,111	$	1,265	7.39%	$	105,378	$	2,979	2.83%
Percentage of total loans excluding     acquired loans accounted for under ASC 310-30		0.37%					0.53%					3.24%
Refinanced or Modified Loans:
Amount	$	2,084	$	211	10.12%	$	195	$	18	9.23%	$	21,247	$	1,546	7.28%
Percentage of Higher-Risk Loan     Category		17.17%					1.14%					20.16%
Loan-to-Value Ratio:
Under 70%	$	7,651	$	226	2.95%	$	1,491	$	102	6.84%	$	-	$	-	-
70% - 79%		2,438		73	2.99%		2,679		156	5.82%		-		-	-
80% - 89%		127		14	11.02%		4,741		397	8.37%		-		-	-
90% and over		1,919		25	1.30%		8,200		610	7.44%		105,378		2,979	2.83%
	$	12,135	$	338	2.79%	$	17,111	$	1,265	7.39%	$	105,378	$	2,979	2.83%
* Loans may be included in more than one higher-risk loan category and excludes acquired residential mortgage loans.

101

The following table includes the Company's lending and investment exposure to the Puerto Rico government, including its agencies, instrumentalities, municipalities and public corporations:
TABLE 7 - PUERTO RICO GOVERNMENT RELATED LOANS AND SECURITIES
March 31, 2016
						Maturity
Loans and Securities:		Carrying Value		Less than 1 Year		1 to 3 Years		More than 3 Years	Comments
	(In thousands)
Central government	$	10,980	$	-	$	-	$	10,980		Repayment sources include all available revenues of the Commonwealth
Public corporations		187,186		187,186		-		-		Includes $186.7 million PREPA loan, which has $53.3 million allowance for loan and lease losses
Municipalities		203,617		187		48,159		155,271		Repayment from property taxes
Investment securities		6,720		-		6,720		-		Remaining position is PRHTA security issued for P3 Project Teodoro Moscoso Bridge operated by private companies that have the payment obligation
Total	$	408,503	$	187,373	$	54,879	$	166,251

Some highlights follow regarding the data included above:

·Loans to municipalities are backed by their unlimited taxing power or real and personal property taxes.

·46% of loans and securities balances mature in 12-months or less.

·Deposits from municipalities, central government and other government entities totaled $220.5 million at March 31, 2016. However, this amount could decline as a result of local legislation intended to improve the liquidity of the Government Development Bank for Puerto Rico (“GDB”) by requiring the Commonwealth’s agencies, instrumentalities and public corporations to maintain certain deposits at GDB.

·Oriental Bank, is part of a four bank syndicate providing a $550 million dollar revolving line of credit to finance the purchase of fuel for the day-to-day power generation activities of PREPA. The Bank’s participation in the line of credit has an unpaid principal balance of $186.7 million as of March 31, 2016. During the first quarter of 2015, the Bank placed its participation in such line of credit on non-accrual status. After the first quarter of 2015, interest payments received were applied to principal. As of March 31, 2016, the specific reserve was at $53.3 million.

102

Credit Risk Management

Allowance for Loan and Lease Losses

The Company maintains an allowance for loan and lease losses at a level that management considers adequate to provide for probable losses based upon an evaluation of known and inherent risks. The Company’s allowance for loan and lease losses policy provides for a detailed quarterly analysis of probable losses. At March 31, 2016, the Company’s allowance for loan and lease losses amounted to $238.3 million, an increase from $234.1 million at December 31, 2015. Tables 8 through 12 set forth an analysis of activity in the allowance for loan and lease losses and present selected loan loss statistics. In addition, Table 5 sets forth the composition of the loan portfolio.

At March 31, 2016, $113.2 million of the allowance corresponded to originated and other loans held for investment, or 3.63% of total originated and other loans held for investment, compared to $112.6 million or 3.62% of total originated and other loans held for investment at December 31, 2015. The allowance increased as a result of a $10.7 million provision for loan and lease losses and $3.3 million of recoveries, which were partially offset by charge-offs of $13.4 million during the first quarter of 2016. The allowance for residential mortgage loans increased by 2.4% (or $432 thousand), when compared with the balances recorded at December 31, 2015. The allowance for consumer loans and auto and leases increased by 1.9% (or $217 thousand) and 2.5% (or $455 thousand), respectively, when compared with the balances recorded at December 31, 2015. The allowance for commercial loans slightly decreased 0.9% (or 585 thousand), when compared with the balances recorded at December 31, 2015.

Allowance for loan and lease losses recorded for acquired BBVAPR loans accounted for under the provisions of ASC 310-20 at March 31, 2016 was $5.0 million compared to $5.5 million at December 31, 2015, a 9.9% decrease. The allowance decreased as a result of $1.6 million in charge-offs, which were partially offset by a $296 thousand provision for loan and lease losses and $711 thousand of recoveries during the first quarter of 2016. The allowance for commercial loans decreased by 11.5% (or $3 thousand), when compared with the balance recorded at December 31, 2015. The allowance for consumer loans decreased by 5.4% (or $186 thousand) and auto loans decreased by 17.2% (or $360 thousand), respectively, when compared with the balances recorded at December 31, 2015, due to the normal amortization of credit discount of these acquired loans.

Allowance for loan and lease losses recorded for acquired BBVAPR loans accounted for under ASC-310-30 at March 31, 2016 was $27.7 million as compared to $25.8 million at December 31, 2015. The allowance increased as a result of a $2.0 million provision for loan and lease losses, partially offset by $66 thousand in loan pools fully charged-off during the first quarter of 2016. Under this accounting guidance, the allowance for loan and lease losses on these loans is evaluated at each financial reporting period based on forecasted cash flows. Credit-related decreases in expected cash flows, compared to those previously forecasted, are recognized by recording a provision for credit losses on these loans when it is probable that all cash flows expected at acquisition will not be collected.

Allowance for loan and lease losses recorded for acquired Eurobank loans at March 31, 2016 was $92.3 million as compared to $90.2 million at December 31, 2015. The allowance increased as a result of a $805 thousand provision for loan and lease losses and $1.4 million for FDIC shared-loss portion of provision for covered loan and lease losses, partially offset by $134 thousand in loan pools fully charged-off. The allowance for loan and lease losses on acquired Eurobank loans is accounted for under the provisions of ASC 310-30. Under this accounting guidance, the allowance for loan and lease losses on covered loans is evaluated at each financial reporting period based on forecasted cash flows. Credit-related decreases in expected cash flows, compared to those previously forecasted, are recognized by recording a provision for credit losses on covered loans when it is probable that all cash flows expected at acquisition will not be collected. The portion of the loss on covered loans reimbursable from the FDIC is recorded as an offset to the provision for credit losses and increases the FDIC indemnification asset.

Please refer to the “Provision for Loan and Lease Losses” section in this MD&A for a more detailed analysis of provisions for loan and lease losses.

103

Non-performing Assets

The Company’s non-performing assets include non-performing loans and foreclosed real estate (see Tables 11 and 12). At March 31, 2016 and December 31, 2015, the Company had $293.6 million and $300.1 million, respectively, of non-accrual loans, including acquired BBVAPR loans accounted for under ASC 310-20 (loans with revolving feature and/or acquired at a premium). During the first quarter of 2015, the Company placed its $200.0 million participation in the PREPA line of credit, which was previously classified as troubled-debt restructuring, on non-accrual status. At March 31, 2016 and December 31, 2015, loans whose terms have been extended and which are classified as troubled-debt restructuring that are not included in non-performing assets amounted to $96.5 million and $93.6 million, respectively.

Oriental Bank is part of a four bank syndicate providing a $550 million revolving line of credit to finance the purchase of fuel for PREPA’s day-to-day power generation activities.  Our participation in the line of credit has an unpaid principal balance of $186.7 million as of March 31, 2016. As part of the bank syndicate, the Bank entered into a forbearance agreement with PREPA, which was extended several times until the execution of a Restructuring Support Agreement on November 5, 2015 with PREPA and certain other creditors. The Restructuring Support Agreement provides for the restructuring of the fuel line of credit subject to the accomplishment of several milestones, including some milestones that depend on the actions of third parties to the agreement, such as the negotiation of agreements with other creditors and legislative action. The Company has classified the credit facility to PREPA as substandard and on non-accrual status. The Company conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under various scenarios and its capacity to service its financial obligations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite the Company’s analysis showing PREPA’s capacity to repay the line of credit, the Company placed its participation in non-accrual during the first quarter of 2015. Since April 1, 2015, interest payments have been applied to principal.

Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due, but are not placed in non-accrual status until they become 18 months or more past due, since they are insured loans. Therefore, these loans are included as non-performing loans but excluded from non-accrual loans.

Acquired loans with credit deterioration are considered to be performing due to the application of the accretion method under ASC 310-30, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Credit related decreases in expected cash flows, compared to those previously forecasted are recognized by recording a provision for credit losses on these loans when it is probable that all cash flows expected at acquisition will not be collected.

At March 31, 2016, the Company’s non-performing assets decreased by 2.3% to $359.4 million (6.34% of total assets, excluding covered assets and acquired loans with deteriorated credit quality) from $367.8 million (6.31% of total assets, excluding covered assets and acquired loans with deteriorated credit quality) at December 31, 2015. The Company does not expect non-performing loans to result in significantly higher losses. At March 31, 2016, the allowance for originated loan and lease losses to non-performing loans coverage ratio was 37.94% (37.15% at December 31, 2015).

The Company follows a conservative residential mortgage lending policy, with more than 90% of its residential mortgage portfolio consisting of fixed-rate, fully amortizing, fully documented loans that do not have the level of risk associated with subprime loans offered by certain major U.S. mortgage loan originators. Furthermore, the Company has never been active in negative amortization loans or adjustable rate mortgage loans, including those with teaser rates.

104

The following items comprise non-performing assets:

·Originated and other loans held for investment:

Mortgage loans — are placed on non-accrual status when they become 90 days or more past due and are written-down, if necessary, based on the specific evaluation of the collateral underlying the loan, except for FHA and VA insured mortgage loans which are placed in non-accrual when they become 18 months or more past due. At March 31, 2016, the Company’s originated non-performing mortgage loans totaled $76.2 million (25.3% of the Company’s non-performing loans), a 2.1% decrease from $77.9 million (25.5% of the Company’s non-performing loans) at December 31, 2015. Non-performing loans in this category are residential mortgage loans.

Commercial loans — are placed on non-accrual status when they become 90 days or more past due and are written-down, if necessary, based on the specific evaluation of the underlying collateral, if any. At March 31, 2016, the Company’s originated non-performing commercial loans amounted to $212.3 million (70.6% of the Company’s non-performing loans), a 1.4% decrease from $215.3 million at December 31, 2015 (70.5% of the Company’s non-performing loans). Most of this portfolio is collateralized by commercial real estate properties. During the first quarter of 2015, the Company placed its $200.0 million participation in the PREPA line of credit, which was previously classified as troubled-debt-restructuring, on non-accrual status. At March 31, 2016, the PREPA line of credit had an outstanding principal balance of $186.7 million.

Consumer loans — are placed on non-accrual status when they become 90 days past due and written-off when payments are delinquent 120 days in personal loans and 180 days in credit cards and personal lines of credit. At March 31, 2016, the Company’s originated non-performing consumer loans totaled $2.0 million (0.7% of the Company’s non-performing loans), a 25.0% increase from $1.6 million (0.5% of the Company’s non-performing loans) at December 31, 2015.

Auto loans and leases — are placed on non-accrual status when they become 90 days past due, partially written-off to collateral value when payments are delinquent 120 days, and fully written-off when payments are delinquent 180 days. At March 31, 2016, the Company’s originated non-performing auto loans and leases amounted to $7.9 million (2.6% of the Company’s total non-performing loans), a decrease of 6.5% from $8.4 million at December 31, 2015 (2.8% of the Company’s total non-performing loans).

·Acquired BBVAPR loans accounted for under ASC 310-20 (loans with revolving features and/or acquired at premium):

Commercial revolving lines of credit and credit cards — are placed on non-accrual status when they become 90 days or more past due and are written-down, if necessary, based on the specific evaluation of the underlying collateral, if any. At March 31, 2016, the Company’s acquired non-performing commercial lines of credit accounted for under ASC 310-20 amounted to $854 thousand (0.3% of the Company’s non-performing loans), a 3.0% decrease from $880 thousand at December 31, 2015 (0.3% of the Company’s non-performing loans).

Consumer revolving lines of credit and credit cards — are placed on non-accrual status when they become 90 days past due and written-off when payments are delinquent 180 days. At March 31, 2016, the Company’s acquired non-performing consumer lines of credit and credit cards accounted for under ASC 310-20 totaled $788 thousand (0.3% of the Company’s non-performing loans), a 47.3% increase from $535 thousand at December 31, 2015 (0.2% of the Company’s non-performing loans).

Auto loans acquired at premium - are placed on non-accrual status when they become 90 days past due, partially written-off to collateral value when payments are delinquent 120 days, and fully written-off when payments are delinquent 180 days. At March 31, 2016, the Company’s acquired non-performing auto loans accounted for under ASC 310-20 totaled $572 thousand (0.2% of the Company’s non-performing loans), a 31.2% decrease from $831 thousand at December 31, 2015 (0.2% of the Company’s non-performing loans).

105

The Company has two mortgage loan modification programs. These are the Loss Mitigation Program and the Non-traditional Mortgage Loan Program. Both programs are intended to help responsible homeowners to remain in their homes and avoid foreclosure, while also reducing the Company’s losses on non-performing mortgage loans.

The Loss Mitigation Program helps mortgage borrowers who are or will become financially unable to meet the current or scheduled mortgage payments. Loans that qualify under this program are those guaranteed by FHA, VA, PRHFA, (“Puerto Rico Housing Finance Authority”), conventional loans guaranteed by Mortgage Guaranty Insurance Corporation (MGIC), conventional loans sold to FNMA and FHLMC, and conventional loans retained by the Company. The program offers diversified alternatives such as regular or reduced payment plans, payment moratorium, mortgage loan modification, partial claims (only FHA), short sale, and payment in lieu of foreclosure.

The Non-traditional Mortgage Loan Program is for non-traditional mortgages, including balloon payment, interest only/interest first, variable interest rate, adjustable interest rate and other qualified loans. Non-traditional mortgage loan portfolios are segregated into the following categories: performing loans that meet secondary market requirement and are refinanced under the credit underwriting guidelines of FHA/VA/FNMA/ FHLMC, and performing loans not meeting secondary market guidelines processed by the Company’s current credit and underwriting guidelines. The Company achieved an affordable and sustainable monthly payment by taking specific, sequential, and necessary steps such as reducing the interest rate, extending the loan term, capitalizing arrearages, deferring the payment of principal or, if the borrower qualifies, refinancing the loan.

In order to apply for any of the loan modification programs, if the borrower is active in Chapter 13 bankruptcy, they must request an authorization from the bankruptcy trustee to allow for the loan modification.  Borrowers with discharged Chapter 7 bankruptcies may also apply. Loans in these programs are evaluated by designated underwriters for troubled-debt restructuring classification if the Company grants a concession for legal or economic reasons due to the debtor’s financial difficulties.

106

TABLE 8 — ALLOWANCE FOR LOAN AND LEASE LOSSES BREAKDOWN
		March 31,		December 31,
		2016	2015		Variance %
	(Dollars in thousands)
Originated and other loans held for investment
Allowance balance:
Mortgage	$	18,784	$	18,352	2.4%
Commercial		64,206		64,791	-0.9%
Consumer		11,414		11,197	1.9%
Auto and leasing		18,716		18,261	2.5%
Unallocated allowance		118		25	372.0%
Total allowance balance	$	113,238	$	112,626	0.5%
Allowance composition:
Mortgage		16.59%		16.29%	1.8%
Commercial		56.70%		57.53%	-1.4%
Consumer		10.08%		9.94%	1.4%
Auto and leasing		16.53%		16.21%	2.0%
Unallocated allowance		0.10%		0.02%	100.0%
		100.00%		100.00%
Allowance coverage ratio at end of period applicable to:
Mortgage		2.50%		2.42%	3.3%
Commercial		4.50%		4.49%	0.2%
Consumer		4.52%		4.61%	-2.0%
Auto and leasing		2.72%		2.73%	-0.4%
Total allowance to total originated loans		3.63%		3.62%	0.3%
Allowance coverage ratio to non-performing loans:
Mortgage		24.65%		23.57%	4.6%
Commercial		30.24%		30.10%	0.5%
Consumer		559.78%		686.51%	-18.5%
Auto and leasing		237.72%		216.93%	9.6%
Total		37.94%		37.15%	2.1%
Acquired BBVAPR loans accounted for under ASC 310-20
Allowance balance:
Commercial	$	23	$	26	-11.5%
Consumer		3,243		3,429	-5.4%
Auto		1,727		2,087	-17.2%
Total allowance balance	$	4,993	$	5,542	-9.9%
Allowance composition:
Commercial		0.46%		0.47%	-2.1%
Consumer		64.95%		61.87%	5.0%
Auto		34.59%		37.66%	-8.2%
		100.00%		100.00%
Allowance coverage ratio at end of period applicable to:
Commercial		0.35%		0.35%	0.0%
Consumer		8.92%		8.93%	-0.1%
Auto		1.89%		1.95%	-3.1%
Total allowance to total acquired loans		3.72%		3.63%	2.5%
Allowance coverage ratio to non-performing loans:
Commercial		2.69%		2.95%	-8.8%
Consumer		411.55%		640.93%	-35.8%
Auto		301.92%		251.14%	20.2%
Total		225.52%		246.75%	-8.6%

107

TABLE 8 — ALLOWANCE FOR LOAN AND LEASE LOSSES BREAKDOWN (CONTINUED)
		March 31,		December 31,
		2016	2015		Variance %
	(Dollars in thousands)
Acquired BBVAPR loans accounted for under ASC 310-30
Allowance balance:
Mortgage	$	1,762	$	1,762	0.0%
Commercial		20,430		21,161	-3.5%
Auto		5,555		2,862	94.1%
Total allowance balance	$	27,747	$	25,785	7.6%
Allowance composition:
Mortgage		6.35%		6.83%	-7.0%
Commercial		73.63%		82.07%	-10.3%
Auto		20.02%		11.10%	80.4%
		100.00%		99.99%
Acquired Eurobank loans accounted for under ASC 310-30
Allowance balance:
Mortgage	$	23,961	$	22,570	6.2%
Commercial		68,089		67,365	1.1%
Consumer		243		243	0.0%
Total allowance balance	$	92,293	$	90,178	2.3%
Allowance composition:
Mortgage		25.96%		25.03%	3.7%
Commercial		73.76%		74.70%	-1.3%
Consumer		0.26%		0.27%	-3.7%
		100.0%		100.0%

108

TABLE 9 — ALLOWANCE FOR LOAN AND LEASE LOSSES SUMMARY
	Quarter Ended  March 31,
					Variance
	2016		2015		%
	(Dollars in thousands)
Originated and other loans:
Balance at beginning of period	$	112,626	$	51,439	119.0%
Provision for loan and lease losses		10,660		33,912	-68.6%
Charge-offs		(13,362)		(12,218)	9.4%
Recoveries		3,314		3,626	-8.6%
Balance at end of period	$	113,238	$	76,759	47.5%
Acquired loans:
BBVAPR loans
Acquired loans accounted for    under ASC 310-20:
Balance at beginning of period	$	5,542	$	4,597	20.6%
Provision for loan and lease losses		296		2,787	-89.4%
Charge-offs		(1,556)		(2,647)	-41.2%
Recoveries		711		713	-0.3%
Balance at end of period	$	4,993	$	5,450	-8.4%
Acquired loans accounted for    under ASC 310-30:
Balance at beginning of period	$	25,785	$	13,481	91.3%
Provision for loan and lease losses		2,028		685	196.1%
Loan pools fully charged off		(66)		-	-100.0%
Balance at end of period	$	27,747	$	14,166	95.9%
Eurobank loans
Balance at beginning of period	$	90,178	$	64,245	40.4%
Provision for loan and lease losses		805		4,809	-83.3%
Loan pools fully charged off		(134)		-	-100.0%
FDIC shared-loss portion on        (provision for) recapture of loan        and lease losses		1,444		1,597	-9.6%
Balance at end of period	$	92,293	$	70,651	30.6%
Allowance for loans and lease losses on originated       and other loans to:
Total originated loans		3.63%		2.64%	37.5%
Non-performing originated loans		37.94%		24.80%	53.0%
Allowance for loans and lease losses on acquired        loans accounted for under       ASC 310-20 to:
Total acquired loans accounted         for under ASC 310-20		3.72%		2.54%	46.5%
Non-performing acquired loans         accounted for under ASC 310-20		225.52%		152.83%	47.6%

109

TABLE 10 — NET CREDIT LOSSES STATISTICS ON LOAN AND LEASES, EXCLUDING LOANS ACCOUNTED FOR UNDER ASC 310-30
	Quarter Ended March 31,
					Variance
	2016		2015		%
	(Dollar in thousands)
Originated and other loans and leases:
Mortgage
Charge-offs	$	(1,662)	$	(1,414)	17.5%
Recoveries		145		-	100.0%
Total		(1,517)		(1,414)	7.3%
Commercial
Charge-offs		(1,011)		(992)	1.9%
Recoveries		88		89	-1.1%
Total		(923)		(903)	2.2%
Consumer
Charge-offs		(2,327)		(1,676)	38.8%
Recoveries		102		153	-33.3%
Total		(2,225)		(1,523)	46.1%
Auto
Charge-offs		(8,362)		(8,136)	2.8%
Recoveries		2,979		3,384	-12.0%
Total		(5,383)		(4,752)	13.3%
Net credit losses
Total charge-offs		(13,362)		(12,218)	9.4%
Total recoveries		3,314		3,626	-8.6%
Total	$	(10,048)	$	(8,592)	16.9%
Net credit losses to average     loans outstanding:
Mortgage		0.80%		0.72%	11.1%
Commercial		0.26%		0.28%	-7.1%
Consumer		3.80%		3.36%	13.1%
Auto		3.15%		3.20%	-1.6%
Total		1.30%		1.21%	7.4%
Recoveries to charge-offs		24.80%		29.68%	-16.4%
Average originated loans:
Mortgage	$	756,291	$	787,330	-3.9%
Commercial		1,425,332		1,269,104	12.3%
Consumer		234,499		181,464	29.2%
Auto		684,035		594,760	15.0%
Total	$	3,100,157	$	2,832,658	9.4%

110

TABLE 10 — NET CREDIT LOSSES STATISTICS ON LOAN AND LEASES, EXCLUDING LOANS ACCOUNTED FOR UNDER ASC 310-30 (CONTINUED)
		Quarter Ended March 31,
					Variance
	2016		2015		%
	(Dollars in thousands)
Acquired loans accounted for under ASC 310-20:
Commercial
Charge-offs	$	(7)	$	-	100.0%
Recoveries		32		9	255.6%
Total		25		9	177.8%
Consumer
Charge-offs		(812)		(1,380)	-41.2%
Recoveries		81		134	-39.6%
Total		(731)		(1,246)	-41.3%
Auto
Charge-offs		(737)		(1,267)	-41.8%
Recoveries		598		570	4.9%
Total		(139)		(697)	-80.1%
Net credit losses
Total charge-offs		(1,556)		(2,647)	-41.2%
Total recoveries		711		713	-0.3%
Total	$	(845)	$	(1,934)	-56.3%
Net credit losses to average     loans outstanding:
Commercial		-16.67%		-0.55%	2930.9%
Consumer		4.84%		7.85%	-38.3%
Auto		0.60%		1.62%	-62.6%
Total		2.21%		3.20%	-30.7%
Recoveries to charge-offs		45.69%		26.94%	69.6%
Average loans accounted for under ASC 310-20:
Commercial	$	600	$	6,583	-90.9%
Consumer		60,389		63,479	-4.9%
Auto		92,026		172,046	-46.5%
Total	$	153,015	$	242,108	-36.8%

111

TABLE 11 — NON-PERFORMING ASSETS
		March 31,		December 31,	Variance
	2016		2015		(%)
	(Dollars in thousands)
Non-performing assets:
Non-accruing loans
Troubled-Debt Restructuring loans	$	213,450	$	217,691	-1.9%
Other loans		80,148		82,429	-2.8%
Accruing loans
Troubled-Debt Restructuring loans		5,884		4,240	38.8%
Other loans		1,207		1,091	10.6%
Total non-performing loans	$	300,689	$	305,451	-1.6%
Foreclosed real estate not covered under the         shared-loss agreements with the FDIC		54,332		56,304	-3.5%
Other repossessed assets		4,368		6,034	-27.6%
	$	359,389	$	367,789	-2.3%
Non-performing assets to total assets, excluding covered assets and acquired loans with deteriorated credit quality (including those by analogy)		6.34%		6.31%	0.5%
Non-performing assets to total capital		39.76%		41.00%	-3.0%

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Interest that would have been recorded in the period if the     loans had not been classified as non-accruing loans	$	1,093	$	833

112

TABLE 12 — NON-PERFORMING LOANS
		March 31,		December 31,	Variance
	2016		2015		%
	(Dollars in thousands)
Non-performing loans:
Originated and other loans held for investment
Mortgage	$	76,218	$	77,875	-2.1%
Commercial		212,345		215,281	-1.4%
Consumer		2,039		1,631	25.0%
Auto and leasing		7,873		8,418	-6.5%
		298,475		303,205	-1.6%
Acquired loans accounted for under ASC 310-20 (Loans with         revolving feature and/or acquired at a premium)
Commercial		854		880	-3.0%
Consumer		788		535	47.3%
Auto		572		831	-31.2%
		2,214		2,246	-1.4%
Total	$	300,689	$	305,451	-1.6%
Non-performing loans composition percentages:
Originated loans
Mortgage		25.3%		25.5%
Commercial		70.6%		70.5%
Consumer		0.7%		0.5%
Auto and leasing		2.6%		2.8%
Acquired loans accounted for under ASC 310-20 (Loans with         revolving feature and/or acquired at a premium)
Commercial		0.3%		0.3%
Consumer		0.3%		0.2%
Auto		0.2%		0.2%
Total		100.0%		100.0%
Non-performing loans to:
Total loans, excluding loans accounted for         under ASC 310-30 (including those by analogy)		9.25%		9.36%	-1.2%
Total assets, excluding loans accounted for         under ASC 310-30 (including those by analogy)		5.31%		5.24%	1.3%
Total capital		33.27%		34.05%	-2.3%
Non-performing loans with partial charge-offs to:
Total loans, excluding loans accounted for         under ASC 310-30 (including those by analogy)		1.19%		1.15%	3.48%
Non-performing loans		12.87%		12.25%	5.1%
Other non-performing loans ratios:
Charge-off rate on non-performing loans to non-performing loans         on which charge-offs have been taken		62.97%		61.15%	3.0%
Allowance for loan and lease losses to non-performing         loans on which no charge-offs have been taken		45.13%		44.09%	2.4%

113

FDIC Indemnification Asset

The Company recorded the FDIC indemnification asset, measured separately from the covered loans, as part of the Eurobank FDIC-assisted transaction. Based on the accounting guidance in ASC Topic 805, at each reporting date subsequent to the initial recording of the indemnification asset, the Company measures the indemnification asset on the same basis as the covered loans and assesses its collectability. The amount to be ultimately collected for the indemnification asset is dependent upon the performance of the underlying covered assets, the passage of time, claims submitted to the FDIC and the Corporation’s compliance with the terms of the loss sharing agreements. Refer to Note 6 to the unaudited consolidated financial statements for additional information on the FDIC loss share agreements.

The FDIC loss share coverage for the commercial loans and other non-single family loans was in effect until June 30, 2015. The coverage for the single family residential loans will expire on June 30, 2020. Accordingly, the Company amortized the remaining portion of the FDIC indemnification asset attributable to non-single family loans at the close of the second quarter of 2015. At March 31, 2016, the FDIC indemnification asset only reflects the balance for single family residential mortgage loans.

TABLE 13 - ACTIVITY OF FDIC INDEMNIFICATION ASSET
	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset:
Balance at beginning of period	$	22,599	$	97,378
Shared-loss agreements reimbursements from the FDIC		(406)		(17,172)
Increase (decrease) in expected credit losses to be       covered under shared-loss agreements, net		1,444		1,597
FDIC indemnification asset expense		(2,865)		(12,221)
Incurred expenses to be reimbursed under shared-loss agreements		151		5,639
Balance at end of period	$	20,923	$	75,221

TABLE 14 - ACTIVITY IN THE REMAINING FDIC INDEMNIFICATION ASSET DISCOUNT
	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at beginning of period	$	4,814	$	21,682
Amortization of negative discount		(2,865)		(12,221)
Impact of lower projected losses		8,077		(4,705)
Balance at end of period	$	10,026	$	4,756

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TABLE 15 - LIABILITIES SUMMARY AND COMPOSITION
		March 31,		December 31,
	2016		2015		Variance %
	(Dollars in thousands)
Deposits:
Non-interest bearing deposits	$	816,887	$	762,009	7.2%
NOW accounts		1,201,437		1,100,541	9.2%
Savings and money market accounts		1,180,935		1,179,229	0.1%
Certificates of deposit		1,578,759		1,674,431	-5.7%
Total deposits		4,778,018		4,716,210	1.3%
Accrued interest payable		1,675		1,541	8.7%
Total deposits and accrued interest payable		4,779,693		4,717,751	1.3%
Borrowings:
Securities sold under agreements to repurchase		636,172		934,691	-31.9%
Advances from FHLB		331,980		332,476	-0.1%
Subordinated capital notes		102,808		102,633	0.2%
Other term notes		1,756		1,734	1.3%
Total borrowings		1,072,716		1,371,534	-21.8%
Total deposits and borrowings		5,852,409		6,089,285	-3.9%
Other Liabilities:
Derivative liabilities		6,220		6,162	0.9%
Acceptances outstanding		19,381		14,582	32.9%
Other liabilities		92,761		92,043	0.8%
Total liabilities	$	5,970,771	$	6,202,072	-3.7%
Deposits portfolio composition percentages:
Non-interest bearing deposits		17.1%		16.2%
NOW accounts		25.2%		23.3%
Savings and money market accounts		24.7%		25.0%
Certificates of deposit		33.0%		35.5%
		100.0%		100.0%
Borrowings portfolio composition percentages:
Securities sold under agreements to repurchase		59.3%		68.2%
Advances from FHLB		30.9%		24.2%
Other term notes		0.2%		0.1%
Subordinated capital notes		9.6%		7.5%
		100.0%		100.0%
Securities sold under agreements to repurchase (excluding accrued interest)
Amount outstanding at period-end	$	634,500	$	932,500
Daily average outstanding balance	$	799,613	$	1,012,756
Maximum outstanding balance at any month-end	$	902,500	$	1,158,945

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Liabilities and Funding Sources

As shown in Table 15 above, at March 31, 2016, the Company’s total liabilities were $5.971 billion, 3.7% less than the $6.202 billion reported at December 31, 2015. Deposits and borrowings, the Company’s funding sources, amounted to $5.852 billion at March 31, 2016 versus $6.089 billion at December 31, 2015, a 3.9% decrease.

At March 31, 2016, deposits represented 82% and borrowings represented 18% of interest-bearing liabilities. At March 31, 2016, deposits, the largest category of the Company’s interest-bearing liabilities, were $4.780 billion, an increase of 1.3% from $4.718 billion at December 31, 2015. Demand and savings deposits increased 5.3% to $3.129 billion, time deposits, excluding brokered deposits, declined 0.2% to $962.8 million, and brokered deposits decreased 12.1% to $688.1 million, as part of our efforts to reduce the cost of deposits, which averaged 0.60% at March 31, 2016 compared to 0.59% at December 31, 2015.

Borrowings consist mainly of repurchase agreements, FHLB-NY advances and subordinated capital notes. At March 31, 2016, borrowings amounted to $1.073 billion, representing a decrease of 21.8% when compared with the $1.372 billion reported at December 31, 2015. Repurchase agreements at March 31, 2016 decreased $298.5 million to $636.2 billion from $934.7 million at December 31, 2015, as the Company partially unwound $268.0 million in repurchase agreements at a cost of $12.0 million.

As a member of the FHLB-NY, the Bank can obtain advances from the FHLB-NY secured by the FHLB-NY stock owned by the Bank as well as by certain of the Bank’s mortgage loans and investment securities. Advances from the FHLB-NY amounted to $332.0 million at March 31, 2016 and $332.5 million at December 31, 2015. These advances mature from April 2016 through 2020.

Stockholders’ Equity

At March 31, 2016, the Company’s total stockholders’ equity was $903.8 million, a 0.7% increase when compared to $897.1 million at December 31, 2015. This increase in stockholders’ equity reflects increases in retained earnings of $6.6 million and legal surplus of $1.4 million, partially offset by a decrease in accumulated comprehensive income of $1.7 million, which in turn reflects the realized gains on available-for-sale securities for the first quarter of 2016. Book value per share was $16.80 at March 31, 2016 compared to $16.67 at December 31, 2015.

From December 31, 2015 to March 31, 2016, tangible common equity to total assets increased to 9.37% from 8.98%, Tier 1 Leverage capital ratio increased to 11.38% from 11.18%, Common Equity Tier 1 capital ratio increased to 12.33% from $12.14%, Tier 1 Risk-Based capital ratio increased to 16.36% from 15.99%, and Total Risk-Based capital ratio increased to 17.67% from 17.29%.

New Capital Rules to Implement Basel III Capital Requirements

In July 2013, the Board of Governors of the Federal Reserve System (the “Board”), the Office of the Comptroller of the Currency (the “OCC”) and the FDIC (together with the Board and the OCC, the “Agencies”) approved new rules (“New Capital Rules”) to establish a revised comprehensive regulatory capital framework for all U.S. banking organizations. The New Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The New Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the Company and the Bank, as compared to the previous U.S. general risk-based capital rules. The New Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The New Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach, which was derived from the Basel Committee’s 1988 “Basel I” capital accords, with a more risk-sensitive approach based, in part, on the “standardized approach” in the Basel Committee’s 2004 “Basel II” capital accords. In addition, the New Capital Rules implement certain provisions of Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules. The New Capital Rules became effective for the Company and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions. Among other matters, the New Capital Rules: (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to existing regulations. Under the New Capital Rules, for most banking organizations, including the Company, the most common form of Additional Tier 1 capital is noncumulative perpetual preferred stock and the most common

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form of Tier 2 capital is subordinated notes and a portion of the allocation for loan and lease losses, in each case, subject to the New Capital Rules’ specific requirements.

Pursuant to the New Capital Rules, the minimum capital ratios as of January 1, 2015 are as follows:

•4.5% CET1 to risk-weighted assets;

•6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

•8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

•4% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).

The New Capital Rules also introduce a new 2.5% “capital conservation buffer”, composed entirely of CET1, on top of the three minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. Thus, when fully phased-in on January 1, 2019, the Company and the Bank will be required to maintain an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%.

The New Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing rights, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1.

In addition (as noted above), under the previous general risk-based capital rules, the effects of AOCI items included in shareholders’ equity (for example, mark-to-market adjustments to the value of securities held in the available for sale portfolio) under U.S. GAAP are reversed for the purposes of determining regulatory capital ratios. Pursuant to the New Capital Rules, the effects of certain AOCI items are not excluded; however, non-advanced approach banking organizations may make a one-time permanent election to continue to exclude these items. The Company and the Bank made the election to continue to exclude these items in order to avoid significant variations in the level of capital depending upon the impact of interest rate fluctuations on the fair value of their securities portfolio, concurrently with the first filing of the Company’s and Oriental Bank’s periodic regulatory reports in the beginning of 2015. The New Capital Rules also preclude certain hybrid securities, such as trust preferred securities, from inclusion in bank holding companies’ Tier 1 capital, subject to phase-out, in the case of bank holding companies that had $15 billion or more in total consolidated assets as of December 31, 2009. Therefore, the Company is permitted to continue to include its existing trust preferred securities as Tier 1 capital.

Implementation of the deductions and other adjustments to CET1 began on January 1, 2015 and will be phased-in over a 4-year period (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019.

With respect to the Bank, the New Capital Rules revise the “prompt corrective action” (“PCA”) regulations adopted pursuant to Section 38 of the Federal Deposit Insurance Act by: (i) introducing a CET1 ratio requirement at each PCA category (other than critically undercapitalized), with the required CET1 ratio being 6.5% for well-capitalized status; (ii) increasing the minimum Tier 1 capital ratio requirement for each category, with the minimum Tier 1 capital ratio for well-capitalized status being 8% (as compared to the current 6%); and (iii) eliminating the current provision that provides that a bank with a composite supervisory rating of 1 may have a 3% leverage ratio and still be adequately capitalized. The New Capital Rules do not change the total risk-based capital requirement for any PCA category.

The New Capital Rules prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current four Basel I-derived categories (0%, 20%, 50% and 100%) to a larger and more risk-sensitive number of categories, depending on the nature of the assets, and resulting in higher risk weights for a variety of asset classes.

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The following are the consolidated capital ratios of the Company under the New Capital Rules at March 31, 2016 and December 31, 2015:

TABLE 16 — CAPITAL, DIVIDENDS AND STOCK DATA
		March 31,		December 31,
					Variance
	2016		2015		%
	(Dollars in thousands, except per share data)
Capital data:
Stockholders’ equity	$	903,801	$	897,077	0.7%
Regulatory Capital Ratios data:
Common equity tier 1 capital ratio		12.33%		12.14%	1.6%
Minimum common equity tier 1 capital ratio required		4.50%		4.50%	0.0%
Actual common equity tier 1 capital	$	585,144	$	594,482	-1.6%
Minimum common equity tier 1 capital required	$	213,508	$	220,344	-3.1%
Excess over regulatory requirement	$	371,636	$	374,138	-0.7%
Risk-weighted assets	$	4,744,630	$	4,896,539	-3.1%
Tier 1 risk-based capital ratio		16.36%		15.99%	2.3%
Minimum tier 1 risk-based capital ratio required		0.00%		6.00%
Actual tier 1 risk-based capital	$	776,181	$	782,912	-0.9%
Minimum tier 1 risk-based capital required	$	284,678	$	293,792	-3.1%
Excess over regulatory requirement	$	491,503	$	489,120	0.5%
Risk-weighted assets	$	4,744,630	$	4,896,539	-3.1%
Total risk-based capital ratio		17.67%		17.29%	2.2%
Minimum total risk-based capital ratio required		8.00%		8.00%
Actual total risk-based capital	$	838,284	$	846,748	-1.0%
Minimum total risk-based capital required	$	379,570	$	391,723	-3.1%
Excess over regulatory requirement	$	458,714	$	455,025	0.8%
Risk-weighted assets	$	4,744,630	$	4,896,539	-3.1%
Leverage capital ratio		11.38%		11.18%	1.8%
Actual tier 1 capital	$	776,181	$	782,912	-0.9%
Minimum tier 1 capital required	$	272,797	$	280,009	-2.6%
Excess over regulatory requirement	$	503,384	$	502,903	0.1%
Tangible common equity to total assets		9.37%		8.98%	4.3%
Tangible common equity to risk-weighted assets		13.58%		13.02%	4.3%
Total equity to total assets		13.15%		12.64%	4.0%
Total equity to risk-weighted assets		19.05%		18.32%	4.0%
Stock data:
Outstanding common shares		43,913,719		43,867,909	0.1%
Book value per common share	$	16.80	$	16.67	0.8%
Tangible book value per common share	$	14.68	$	14.53	1.0%
Market price at end of period	$	6.99	$	7.32	-4.5%
Market capitalization at end of period	$	306,957	$	321,113	-4.4%

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The following table presents a reconciliation of the Company’s total stockholders’ equity to tangible common equity and total assets to tangible assets at March 31, 2016 and December 31, 2015:

		March 31,		December 31,
	2016		2015
	(In thousands, except share or per share information)
Total stockholders' equity	$	903,801	$	897,077
Preferred stock		(176,000)		(176,000)
Preferred stock issuance costs		10,130		10,130
Goodwill		(86,069)		(86,069)
Core deposit intangible		(5,035)		(5,294)
Customer relationship intangible		(2,383)		(2,544)
Total tangible common equity	$	644,444	$	637,300
Total assets		6,874,572		7,099,149
Goodwill		(86,069)		(86,069)
Core deposit intangible		(5,035)		(5,294)
Customer relationship intangible		(2,383)		(2,544)
Total tangible assets	$	6,781,085	$	7,005,242
Tangible common equity to tangible assets		9.50%		9.10%
Common shares outstanding at end of period		43,913,719		43,867,909
Tangible book value per common share	$	14.68	$	14.53

The tangible common equity ratio and tangible book value per common share are non-GAAP measures and, unlike Tier 1 capital and Common Equity Tier 1 capital, are not codified in the federal banking regulations. Management and many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations. Neither tangible common equity nor tangible assets or related measures should be considered in isolation or as a substitute for stockholders’ equity, total assets or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Company calculates its tangible common equity, tangible assets and any other related measures may differ from that of other companies reporting measures with similar names.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, the Company has procedures in place to calculate these measures using the appropriate GAAP or regulatory components. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

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The following table presents the Company’s capital adequacy information under the New Capital Rules:

	March 31		December 31,
	2016		2015
	(Dollars in thousands)
Risk-based capital:
Common equity tier 1 capital	$	585,144		594,482
Additional tier 1 capital		191,036		188,430
Tier 1 capital		776,180	$	782,912
Additional Tier 2 capital		62,104		63,836
Total risk-based capital	$	838,284	$	846,748
Risk-weighted assets:
Balance sheet items	$	4,591,587	$	4,742,113
Off-balance sheet items		153,043		154,426
Total risk-weighted assets	$	4,744,630	$	4,896,539
Ratios:
Common equity tier 1 capital (minimum required - 4.5%)		12.33%		12.14%
Tier 1 capital (minimum required - 6%)		16.36%		15.99%
Total capital (minimum required - 8%)		17.67%		17.29%
Leverage ratio		11.38%		11.18%
Equity to assets		13.15%		12.64%
Tangible common equity to assets		9.37%		8.98%

The Bank is considered “well capitalized” under the regulatory framework for prompt corrective action. The table below shows the Bank’s regulatory capital ratios at March 31, 2016 and December 31, 2015:

	March 31,		December 31,		Variance
	2016		2015		%
	(Dollars in thousands)
Oriental Bank Regulatory Capital Ratios:
Common Equity Tier 1 Capital to Risk-Weighted Assets		15.99%		15.40%	3.8%
Actual common equity tier 1 capital	$	757,828	$	751,886	0.8%
Minimum capital requirement (4.5%)	$	213,323	$	219,762	-2.9%
Minimum to be well capitalized (6.5%)	$	308,134	$	317,434	-2.9%
Tier 1 Capital to Risk-Weighted Assets		15.99%		15.40%	3.8%
Actual tier 1 risk-based capital	$	757,828	$	751,886	0.8%
Minimum capital requirement (6%)	$	284,431	$	293,016	-2.9%
Minimum to be well capitalized (8%)	$	379,242	$	390,688	-2.9%
Total Capital to Risk-Weighted Assets		17.29%		16.70%	3.5%
Actual total risk-based capital	$	819,731	$	815,458	0.5%
Minimum capital requirement (8%)	$	379,242	$	390,688	-2.9%
Minimum to be well capitalized (10%)	$	474,052	$	488,360	-2.9%
Total Tier 1 Capital to Average Total Assets		11.16%		10.80%	3.3%
Actual tier 1 capital	$	757,828	$	751,886	0.8%
Minimum capital requirement (4%)	$	271,538	$	278,399	-2.5%
Minimum to be well capitalized (5%)	$	339,423	$	347,999	-2.5%

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The Company’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “OFG.” At March 31, 2016 and December 31, 2015, the Company’s market capitalization for its outstanding common stock was $307.0 million ($6.99 per share) and $321.1 million ($7.32 per share), respectively.

The following table provides the high and low prices and dividends per share of the Company’s common stock for each quarter of the last two calendar years:

					Cash
	Price				Dividend
	High		Low		Per share
2016
March 31, 2016	$	7.32	$	4.77	$	0.06
2015
December 31, 2015	$	10.52	$	6.39	$	0.06
September 30, 2015	$	10.20	$	6.63	$	0.10
June 30, 2015	$	17.04	$	10.67	$	0.10
March 31, 2015	$	17.70	$	14.88	$	0.10
2014
December 31, 2014	$	16.76	$	14.35	$	0.10
September 30, 2014	$	18.89	$	14.92	$	0.08
June 30, 2014	$	18.88	$	16.38	$	0.08
March 31, 2014	$	17.54	$	14.30	$	0.08

Under the Company’s current stock repurchase program it is authorized to purchase in the open market up to $70 million of its outstanding shares of common stock, of which approximately $7.7 million of authority remains. The shares of common stock repurchased are to be held by the Company as treasury shares. There were no repurchases during the first quarters of 2016 and 2015. The number of shares that may yet be purchased under the $70 million program is estimated at 1,105,988 and was calculated by dividing the remaining balance of $7.7 million by $6.99 (closing price of the Company common stock at March 31, 2016). 

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Background

The Company’s risk management policies are established by its Board of Directors (the “Board”) and implemented by management through the adoption of a risk management program, which is overseen and monitored by the Chief Risk Officer and the Risk Management and Compliance Committee. The Company has continued to refine and enhance its risk management program by strengthening policies, processes and procedures necessary to maintain effective risk management.

All aspects of the Company’s business activities are susceptible to risk. Consequently, risk identification and monitoring are essential to risk management. As more fully discussed below, the Company’s primary risk exposures include, market, interest rate, credit, liquidity, operational and concentration risks.

Market Risk

Market risk is the risk to earnings or capital arising from adverse movements in market rates or prices, such as interest rates or prices. The Company evaluates market risk together with interest rate risk. The Company’s financial results and capital levels are constantly exposed to market risk. The Board and management are primarily responsible for ensuring that the market risk assumed by the Company complies with the guidelines established by policies approved by the Board. The Board has delegated the management of this risk to the Asset/Liability Management Committee (“ALCO”) which is composed of certain executive officers from the business, treasury and finance areas. One of ALCO’s primary goals is to ensure that the market risk assumed by the Company is within the parameters established in such policies.

Interest Rate Risk

Interest rate risk is the exposure of the Company’s earnings or capital to adverse movements in interest rates. It is a predominant market risk in terms of its potential impact on earnings. The Company manages its asset/liability position in order to limit the effects of changes in interest rates on net interest income. ALCO oversees interest rate risk, liquidity management and other related matters.

In executing its responsibilities, ALCO examines current and expected conditions in global financial markets, competition and prevailing rates in the local deposit market, liquidity, unrealized gains and losses in securities, recent or proposed changes to the investment portfolio, alternative funding sources and their costs, hedging and the possible purchase of derivatives such as swaps, and any tax or regulatory issues which may be pertinent to these areas.

On a quarterly basis, the Company performs a net interest income simulation analysis on a consolidated basis to estimate the potential change in future earnings from projected changes in interest rates. These simulations are carried out over a five-year time horizon, assuming certain gradual upward and downward interest rate movements, achieved during a twelve-month period. Instantaneous interest rate movements are also modeled. Simulations are carried out in two ways:

(i)using a static balance sheet as the Company had on the simulation date, and

(ii)using a dynamic balance sheet based on recent growth patterns and business strategies.

The balance sheet is divided into groups of assets and liabilities detailed by maturity or re-pricing and their corresponding interest yields and costs. As interest rates rise or fall, these simulations incorporate expected future lending rates, current and expected future funding sources and costs, the possible exercise of options, changes in prepayment rates, deposits decay and other factors which may be important in projecting the future growth of net interest income.

The Company uses a software application to project future movements in the Company’s balance sheet and income statement. The starting point of the projections generally corresponds to the actual values of the balance sheet on the date of the simulations.

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These simulations are complex, and use many assumptions that are intended to reflect the general behavior of the Company over the period in question. There can be no assurance that actual events will match these assumptions in all cases. For this reason, the results of these simulations are only approximations of the true sensitivity of net interest income to changes in market interest rates. The following table presents the results of the simulations at March 31, 2016 for the most likely scenario, assuming a one-year time horizon:

	Net Interest Income Risk (one year projection)
	Static Balance Sheet			Growing Simulation
	Amount		Percent	Amount		Percent
	Change		Change	Change		Change
Change in interest rate	(Dollars in thousands)
+ 200 Basis points	$	7,973	3.06%	$	882	0.34%
+ 100 Basis points	$	4,239	1.63%	$	707	0.27%
- 50 Basis points	$	(1,624)	-0.62%	$	(98)	-0.04%

The impact of -100 and -200 basis point reductions in interest rates is not presented in view of current level of the federal funds rate and other short-term interest rates.

Future net interest income could be affected by the Company’s investments in callable securities, prepayment risk related to mortgage loans and mortgage-backed securities, and any structured repurchase agreements and advances from the FHLB-NY in which it may enter into from time to time. As part of the strategy to limit the interest rate risk and reduce the re-pricing gaps of the Company’s assets and liabilities, the Company has executed certain transactions which include extending the maturity and the re-pricing frequency of the liabilities to longer terms reducing the amounts of its structured repurchase agreements and entering into hedge-designated swaps to hedge the variability of future interest cash flows of forecasted wholesale borrowings that only consist of advances from the FHLB-NY as of March 31, 2016.

The Company maintains an overall interest rate risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. The Company’s goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain balance sheet assets and liabilities so that the net interest margin is not, on a material basis, adversely affected by movements in interest rates. As a result of interest rate fluctuations, hedged fixed-rate assets and liabilities will appreciate or depreciate in market value. Also, for some fixed-rate assets or liabilities, the effect of this variability in earnings is expected to be substantially offset by the Company’s gains and losses on the derivative instruments that are linked to the forecasted cash flows of these hedged assets and liabilities. The Company considers its strategic use of derivatives to be a prudent method of managing interest-rate sensitivity as it reduces the exposure of earnings and the market value of its equity to undue risk posed by changes in interest rates. The effect of this unrealized appreciation or depreciation is expected to be substantially offset by the Company’s gains or losses on the derivative instruments that are linked to these hedged assets and liabilities. Another result of interest rate fluctuations is that the contractual interest income and interest expense of hedged variable-rate assets and liabilities, respectively, will increase or decrease.

Derivative instruments that are used as part of the Company’s interest risk management strategy include interest rate swaps, forward-settlement swaps, futures contracts, and option contracts that have indices related to the pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable-rate interest payments between two parties based on a common notional principal amount and maturity date. Interest rate futures generally involve exchanged-traded contracts to buy or sell U.S. Treasury bonds and notes in the future at specified prices. Interest rate options represent contracts that allow the holder of the option to (i) receive cash or (ii) purchase, sell, or enter into a financial instrument at a specified price within a specified period. Some purchased option contracts give the Company the right to enter into interest rate swaps and cap and floor agreements with the writer of the option. In addition, the Company enters into certain transactions that contain embedded derivatives. When the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, it is bifurcated and carried at fair value. Please refer to Note 8 to the accompanying unaudited consolidated financial statements for further information concerning the Company’s derivative activities.

123

Following is a summary of certain strategies, including derivative activities, currently used by the Company to manage interest rate risk:

Interest rate swaps — The Company entered into hedge-designated swaps to hedge the variability of future interest cash flows of forecasted wholesale borrowings attributable to changes in the one-month LIBOR rate. Once the forecasted wholesaleborrowings transactions occurred, the interest rate swap effectively fixes the Company’s interest payments on an amount of forecasted interest expense attributable to the one-month LIBOR rate corresponding to the swap notional stated rate. A derivative liability of $4.3 million (notional amount of $262.6 million) was recognized at March 31, 2016 related to the valuation of these swaps.

In addition, the Company has certain derivative contracts, including interest rate swaps not designated as hedging instruments, which are utilized to convert certain variable rate loans to fixed-rate loans, and the mirror-images of these interest rate swaps in which the Company enters into to minimize its interest rate risk exposure that results from offering the derivatives to clients. These interest rate swaps are marked to market through earnings. At March 31, 2016, interest rate swaps offered to clients not designated as hedging instruments represented a derivative asset of $1.8 million (notional amounts of $16.2 million), and the mirror-image interest rate swaps in which the Company entered into represented a derivative liability of $1.8 million (notional amounts of $16.2 million).

S&P options — The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P 500 Index. At the end of five years, the depositor receives a minimum return or a specified percentage of the average increase of the month-end value of the S&P 500 Index. The Company uses option agreements with major money center banks and major broker-dealer companies to manage its exposure to changes in that index. Under the terms of the option agreements, the Company receives the average increase in the month-end value of the S&P 500 Index in exchange for a fixed premium. The changes in fair value of the options purchased and the options embedded in the certificates of deposit are recorded in earnings.

At March 31, 2016, the fair value of the purchased options used to manage the exposure to the S&P 500 Index on stock-indexed certificates of deposit represented an asset of $772 thousand (notional amounts of $2.2 million) and the options sold to customers embedded in the certificates of deposit represented a liability of $746 thousand (notional amount of $2.1 million).

Wholesale borrowings — The Company uses interest rate swaps to hedge the variability of interest cash flows of certain advances from the FHLB-NY that are tied to a variable rate index. The interest rate swaps effectively fix the Company’s interest payments on these borrowings. As of March 31, 2016, the Company had $262.6 million in interest rate swaps at an average rate of 2.6% designated as cash flow hedges for $262.6 million in advances from the FHLB-NY that reprice or are being rolled over on a monthly basis.

Credit Risk

Credit risk is the possibility of loss arising from a borrower or counterparty in a credit-related contract failing to perform in accordance with its terms. The principal source of credit risk for the Company is its lending activities. In Puerto Rico, the Company’s principal market, economic conditions are challenging, as they have been for the last ten years, due to a shrinking population, a protracted economic recession, a housing sector that remains under pressure, the Puerto Rico government’s fiscal and liquidity crisis, and the recent credit or payment default on certain Puerto Rico government bonds, with additional defaults expected if the Puerto Rico government is unable to restructure its debts and/or access the capital markets to place new debt or refinance its upcoming maturities.  Also, the Company’s banking subsidiary has an outstanding $186.7 million credit facility to PREPA that is classified as substandard and on non-accrual status, which now stands at $133.4 million, net of allowances. The Company recorded a $53.3 million loss provision for such credit facility in 2015.

The Company manages its credit risk through a comprehensive credit policy which establishes sound underwriting standards by monitoring and evaluating loan portfolio quality, and by the constant assessment of reserves and loan concentrations. The Company also employs proactive collection and loss mitigation practices.

The Company may also encounter risk of default in relation to its securities portfolio. The securities held by the Company are principally agency mortgage-backed securities. Thus, a substantial portion of these instruments are guaranteed by mortgages, a U.S. government-sponsored entity, or the full faith and credit of the U.S. government.

124

The Company’s Executive Credit Committee, composed of its Chief Executive Officer, Chief Credit Risk Officer and other senior executives, has primary responsibility for setting strategies to achieve the Company’s credit risk goals and objectives. Those goals and objectives are set forth in the Company’s Credit Policy as approved by the Board.

Liquidity Risk

Liquidity risk is the risk of the Company not being able to generate sufficient cash from either assets or liabilities to meet obligations as they become due without incurring substantial losses. The Board has established a policy tomanage this risk. The Company’s cash requirements principally consist of deposit withdrawals, contractual loan funding, repayment of borrowings as these mature, and funding of new and existing investments as required.

The Company’s business requires continuous access to various funding sources. While the Company is able to fund its operations through deposits as well as through advances from the FHLB-NY and other alternative sources, the Company’s business is dependent upon other external wholesale funding sources. Although the Company has selectively reduced its use of wholesale funding sources, such as repurchase agreements and brokered deposits, it is still dependent on wholesale funding sources. As of March 31, 2016, the Company had $634.5 million in repurchase agreements, excluding accrued interests, and $668.1 million in brokered deposits.

Brokered deposits are typically offered through an intermediary to small retail investors. The Company’s ability to continue to attract brokered deposits is subject to variability based upon a number of factors, including volume and volatility in the global securities markets, the Company’s credit rating, and the relative interest rates that it is prepared to pay for these liabilities. Brokered deposits are generally considered a less stable source of funding than core deposits obtained through retail bank branches. Investors in brokered deposits are generally more sensitive to interest rates and will generally move funds from one depository institution to another based on small differences in interest rates offered on deposits.

Although the Company expects to have continued access to credit from the foregoing sources of funds, there can be no assurance that such financing sources will continue to be available or will be available on favorable terms. In a period of financial disruption or if negative developments occur with respect to the Company, the availability and cost of the Company’s funding sources could be adversely affected. In that event, the Company’s cost of funds may increase, thereby reducing its net interest income, or the Company may need to dispose of a portion of its investment portfolio, which depending upon market conditions, could result in realizing a loss or experiencing other adverse accounting consequences upon any such dispositions. The Company’s efforts to monitor and manage liquidity risk may not be successful to deal with dramatic or unanticipated changes in the global securities markets or other reductions in liquidity driven by the Company or market-related events. In the event that such sources of funds are reduced or eliminated and the Company is not able to replace these on a cost-effective basis, the Company may be forced to curtail or cease its loan origination business and treasury activities, which would have a material adverse effect on its operations and financial condition.

As of March 31, 2016, the Company had approximately $677.8 million in unrestricted cash and cash equivalents, $530.8 million in investment securities that are not pledged as collateral, and $875.3 million in borrowing capacity at the FHLB-NY available to cover liquidity needs.

     Operational Risk

Operational risk is the risk of loss from inadequate or failed internal processes, personnel and systems or from external events. All functions, products and services of the Company are susceptible to operational risk.

The Company faces ongoing and emerging risk and regulatory pressure related to the activities that surround the delivery of banking and financial products and services. Coupled with external influences such as market conditions, security risks, and legal risk, the potential for operational and reputational loss has increased. In order to mitigate and control operational risk, the Company has developed, and continues to enhance, specific internal controls, policies and procedures that are designed to identify and manage operational risk at appropriate levels throughout the organization. The purpose of these policies and procedures is to provide reasonable assurance that the Company’s business operations are functioning within established limits.

125

The Company classifies operational risk into two major categories: business specific and corporate-wide affecting all business lines. For business specific risks, a risk assessment group works with the various business units to ensure consistency in policies, processes and assessments. With respect to corporate-wide risks, such as information security, business recovery, legal and compliance, the Company has specialized groups, such as Information Security, Enterprise Risk Management, Corporate Compliance, Information Technology, Legal and Operations. These groups assist the lines of business in the development and implementation of risk management practices specific to the needs of the business groups. All these matters are reviewed and discussed in the Information Technology Steering Committee, and the Executive Risk and Compliance Committee.

The Company is subject to extensive United States federal and Puerto Rico regulations, and this regulatory scrutiny has been significantly increasing over the last several years. The Company has established and continues to enhance procedures based on legal and regulatory requirements that are reasonably designed to ensure compliance with all applicable statutory and regulatory requirements. The Company has a corporate compliance function headed by a Regulatory Compliance Director who reports to the Deputy General Counsel and the BSA Officer who reports to the Chief Risk Officer. The Regulatory Compliance Director is responsible for the oversight of regulatory compliance and implementation of a company-wide compliance program, except for the Bank Secrecy Act/Anti-Money Laundering compliance program, which is overseen and implemented by the BSA Officer.

Concentration Risk

Substantially all of the Company’s business activities and a significant portion of its credit exposure are concentrated in Puerto Rico. As a consequence, the Company’s profitability and financial condition may be adversely affected by an extended economic slowdown, adverse political or economic developments in Puerto Rico or the effects of a natural disaster, all of which could result in a reduction in loan originations, an increase in non-performing assets, an increase in foreclosure losses on mortgage loans, and a reduction in the value of its loans and loan servicing portfolio.

ITEM 4.   CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based upon such evaluation, the CEO and the CFO have concluded that, as of the end of such period, the Company’s disclosure controls and procedures provided reasonable assurance of effectiveness in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports.

Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2016, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

126

PART - II OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The Company and its subsidiaries are defendants in a number of legal proceedings incidental to their business. The Company is vigorously contesting such claims. Based upon a review by legal counsel and the development of these matters to date, management is of the opinion that the ultimate aggregate liability, if any, resulting from these claims will not have a material adverse effect on the Company’s financial condition or results of operations.

ITEM 1A.   RISK FACTORS

There have been no material changes to the risk factors previously disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2015. In addition to other information set forth in this report, you should carefully consider the risk factors included in the Company’s annual report on Form 10-K, as updated by this report or other filings the Company makes with the SEC under the Exchange Act. Additional risks and uncertainties not presently known to the Company at this time or that the Company currently deems immaterial may also adversely affect the Company’s business, financial condition or results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITES AND USE OF PROCEEDS

None

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.     MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.     OTHER INFORMATION

None.

127

ITEM 6.     EXHIBITS 

Exhibit No.Description of Document:

31.1    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101     The following materials from OFG Bancorp’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Unaudited Consolidated Statements of Financial Condition, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Unaudited Consolidated Financial Statements.

128

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

OFG Bancorp

(Registrant)

By:	/s/ José Rafael Fernández	Date: May 6, 2016
	José Rafael Fernández
	President and Chief Executive Officer
By:	/s/ Ganesh Kumar	Date: May 6, 2016
	Ganesh Kumar
	Executive Vice President and Chief Financial Officer
By:	/s/ Maritza Arizmendi	Date: May 6, 2016
	Maritza Arizmendi
	Senior Vice President and Chief Accounting Officer

129

EX-31.1

 

EXHIBIT 31.1

MANAGEMENT CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, José Rafael Fernández, President and Chief Executive Officer of OFG Bancorp, certify that:

1.      I have reviewed this quarterly report on Form 10-Q of OFG Bancorp;

2.      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f ) and 15d-15(f )) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U. S. generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2016

By:        /s/ José Rafael Fernández

José Rafael Fernández

President and Chief Executive Officer

EX-31.2

 

EXHIBIT 31.2

MANAGEMENT CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ganesh Kumar, Executive Vice President and Chief Financial Officer of OFG Bancorp, certify that:

1        I have reviewed this quarterly report on Form 10-Q of OFG Bancorp;

2        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 .      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.       The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f ) and 15d-15(f )) for the registrant and have:

a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)       Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

c)       Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)       Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.       The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2016

By:        /s/ Ganesh Kumar

              Ganesh Kumar

Executive Vice President and Chief Financial Officer

EX-32.1

 

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. §1350)

In connection with OFG Bancorp’s quarterly report on Form 10-Q for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, José Rafael Fernández, President and Chief Executive Officer of OFG Bancorp, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of OFG Bancorp.

In witness whereof, I execute this certification in San Juan, Puerto Rico, this 6th day of May, 2016.

                                                                                                                      By:      /s/ José Rafael Fernández

                                                                                                                                  José Rafael Fernández

                                                                                                                                  President and Chief Executive Officer

EX-32.2

 

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. §1350)

In connection with OFG Bancorp’s quarterly report on Form 10-Q for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ganesh Kumar, Executive Vice President and Chief Financial Officer of OFG Bancorp, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of OFG Bancorp.

In witness whereof, I execute this certification in San Juan, Puerto Rico, this 6th day of May, 2016.

By:         /s/ Ganesh Kumar

               Ganesh Kumar

Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	OFG BANCORP
Entity Central Index Key	0001030469
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,913,719

XML

Consolidated Statements of Financial Condition (UnaAudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Cash and cash equivalents
Cash and Due from Banks	$ 671,952,000	$ 532,010,000
Money market investments	5,897,000	4,699,000
Total cash and cash equivalents	677,849,000	536,709,000
Restricted Cash	3,349,000	3,349,000
Investments:
Trading Securities, held to maturity	314,000	288,000
Investment securities available-for-sale, at fair value	669,285,000	974,609,000
Investment securities held-to-maturity, at amortized cost	637,036,000	620,189,000
Federal Home Loan Bank (FHLB) stock, at cost	20,761,000	20,783,000
Other investments	3,000	3,000
Total investments	1,327,399,000	1,615,872,000
Loans:
Mortgage loans held-for-sale	17,165,000	13,614,000
Loans held for investment, net	4,342,964,000	4,420,599,000
Total loans, net	4,360,129,000	4,434,213,000
Other asset
FDIC indemnification asset	20,923,000	22,599,000
Foreclosed real estate	56,777,000	58,176,000
Accrued interest receivable	18,392,000	20,637,000
Deferred tax asset, net	145,518,000	145,901,000
Premises and equipment, net	73,975,000	74,590,000
Customers' liability on acceptances	19,381,000	14,582,000
Servicing Assets	7,819,000	7,455,000
Derivative assets	2,662,000	3,025,000
Goodwill	86,069,000	86,069,000
Other assets	74,330,000	75,972,000
Total assets	6,874,572,000	7,099,149,000
Deposits:
Demand deposits	2,018,346,000	1,862,572,000
Savings accounts	1,180,936,000	1,179,229,000
Tme Deposits	1,580,411,000	1,675,950,000
Total deposits	4,779,693,000	4,717,751,000
Borrowings:
Securities Sold under Agreements to Repurchase	636,172,000	934,691,000
Advances from FHLB	331,980,000	332,476,000
Subordinated capital notes	102,808,000	102,633,000
Other borrowings	1,756,000	1,734,000
Total borrowings	1,072,716,000	1,371,534,000
Derivative liabilities	6,220,000	6,162,000
Acceptances executed and outstanding	19,381,000	14,582,000
Accrued expenses and other liabilities	92,761,000	92,043,000
Total liabilities	5,970,771,000	6,202,072,000
Stockholders' equity:
Preferred Stock	92,000,000	92,000,000
Convertible Preferred Stock	84,000,000	84,000,000
Common stock	52,626,000	52,626,000
Additional paid-in capital	540,371,000	540,512,000
Legal surplus	71,865,000	70,435,000
Retained earnings	155,529,000	148,886,000
Treasury stock, at cost	(104,874,000)	(105,379,000)
Accumulated other comprehensive income, net of tax, Total	12,284,000	13,997,000
Total stockholders' equity	903,801,000	897,077,000
Total liabilities and stockholders' equity	$ 6,874,572,000	$ 7,099,149,000

XML

Consolidated Statements of Financial Condition (unaudited) (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Amortized cost of trading securities	$ 667,000	$ 667,000
Amortized cost of investment securities available-for-sale	653,673,000	955,646,000
Fair value of held to maturity securities	641,346,000	614,679,000
Allowance for loan and lease losses	$ 238,271,000	$ 234,131,000
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	52,625,869	52,625,869
Common stock, shares outstanding	43,913,719	43,867,909
Treasury stock, at cost, shares	8,712,150	8,757,960
Tax effect on accumulated other comprehensive income (loss)	$ 177,000	$ 1,182,000
Series A Preferred Stock
Preferred stock, shares issued	1,340,000	1,340,000
Preferred stock, liquidation value	$ 25	$ 25
Series B Preferred Stock
Preferred stock, shares issued	1,380,000	1,380,000
Preferred stock, liquidation value	$ 25	$ 25
Series C Convertible Preferred Stock
Preferred stock, shares issued	84,000	84,000
Preferred stock, liquidation value	$ 1,000	$ 1,000
Series D Preferred Stock Member
Preferred stock, shares issued	960,000	960,000
Preferred stock, liquidation value	$ 25	$ 25

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest income:
Total interest income from loans	$ 81,152	$ 97,483
Mortgage-backed securities	8,997	8,590
Investment Securities	1,157	928
Total interest income	91,306	107,001
Interest expense:
Deposits	7,124	7,104
Securities sold under agreements to repurchase	6,099	7,164
Advances from FHLB and other borrowings	2,240	2,235
Subordinated capital notes	868	863
Total interest expense	16,331	17,366
Net interest income	74,975	89,635
Provision for Loan, Lease, and Other Losses	13,789	42,193
Net interest income after provision for loan and lease losses	61,186	47,442
Non-interest income:
Banking service revenues	10,118	10,205
Wealth management revenue	6,152	7,155
Mortgage banking activities	855	1,863
Total Banking and Financial Service Revenues	17,125	19,223
FDIC shared-loss expense, net [Abstract]
FDIC shared-loss expense, net	(4,029)	(13,084)
Net gain (loss) on:
Sale of securities	11,996	2,572
Derivatives	(3)	(90)
Early extinguishment of debt	(12,000)	0
Other non-interest (loss) income	414	(1,740)
Total non-interest income, net	13,503	6,881
Non-interest expense:
Compensation and employee benefits	20,284	20,180
Professional and service fees	3,626	4,181
Occupancy and equipment	7,822	8,636
Insurance	3,150	1,953
Electronic banking charges	5,589	5,367
Information technology related expenses	1,657	1,454
Advertising, business promotion, and strategic initiatives	1,443	1,629
Foreclosure, repossession and other real estate expenses	2,806	5,447
Loan servicing and clearing expenses	2,081	2,353
Taxes, other than payroll and income taxes	2,671	1,479
Communication	819	691
Printing, postage, stationary and supplies	725	637
Director and investors relations	278	294
Other	1,906	2,031
Total non-interest expense	54,857	56,332
Income before income taxes	19,832	(2,009)
Income tax (benefit) expense	5,661	979
Net (loss) income	14,171	(2,988)
Dividends on preferred stock	(3,465)	(3,465)
(Loss) Income available to common shareholders	$ 10,706	$ (6,453)
(Loss) Earnings per common share:
Basic	$ 0.24	$ (0.14)
Diluted	$ 0.24	$ (0.14)
Average common shares outstanding and equivalents	51,064	51,977
Cash dividends per share of common stock	$ 0.06	$ 0.1

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net (loss) income	$ 14,171	$ (2,988)
Other comprehensive income (loss) before tax:
Unrealized gain (loss) on securities available-for-sale	8,643	7,375
Realized gain on investment securities included in net income	(11,996)	(2,572)
Unrealized gain (loss) on cash flow hedges	(11)	55
Other comprehensive income (loss) before taxes	(3,364)	4,858
Income tax effect	1,651	(245)
Other Comprehensive Income (Loss) After taxes	(1,713)	4,613
Comprehensive income	$ 12,458	$ 1,625

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Legal Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2014		$ 176,000	$ 52,626	$ 539,311	$ 70,467	$ 181,152	$ (97,070)	$ 19,711
Stock-based compensation expense				347
Lapsed restricted stock units				(436)			575
Transfer from retained earnings/transfer to legal surplus					(370)	370
Net (loss) income	$ (2,988)					(2,988)
Cash dividends declared on common stock						(4,464)
Cash dividends declared on preferred stock						(3,465)
Other comprehensive loss, net of tax	4,613							4,613
Ending Balance at Mar. 31, 2015	936,379	176,000		539,222	70,097	170,605	(96,495)	24,324
Beginning Balance at Dec. 31, 2015	897,077	176,000	52,626	540,512	70,435	148,886	(105,379)	13,997
Stock-based compensation expense				364
Lapsed restricted stock units				(505)			505
Transfer from retained earnings/transfer to legal surplus					1,430	(1,430)
Net (loss) income	14,171					14,171
Cash dividends declared on common stock						(2,633)
Cash dividends declared on preferred stock						(3,465)
Other comprehensive loss, net of tax	(1,713)							(1,713)
Ending Balance at Mar. 31, 2016	$ 903,801	$ 176,000	$ 52,626	$ 540,371	$ 71,865	$ 155,529	$ (104,874)	$ 12,284

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Consolidated Statements of Cash Flows (Unudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net (loss) income	$ 14,171,000	$ (2,988,000)
Adjustments to reconcile net income to net cash provied by (used in) operating activities [Abstract]
Amortization of deferred loan origination fees, net of costs	888,000	860,000
Amortization of discount to fair value of acquired loan	39,000	2,295,000
Amortization of investment securities premiums, net of accretion of discounts	2,129,000	2,500,000
Amortization of core deposit and customer relationship intangibles	419,000	476,000
Amortization of fair value premium of acquired deposits	97,000	346,000
FDIC Loss Share (Expense) Income	4,029,000	13,084,000
Depreciation and amortization of premises and equipment	2,487,000	2,714,000
Deferred income taxes, net	2,033,000	(613,000)
Provision for loan and lease losses, net	13,789,000	42,193,000
Stock-based compensation	364,000	347,000
(Gain) loss on:
Sale of securities	(11,996,000)	(2,572,000)
Sale of mortgage loans held for sale	(344,000)	(1,258,000)
Gain on sale of derivatives	61,000	(18,000)
Early extinguishment of debt	12,000,000	0
Foreclosed real estate	2,483,000	(567,000)
Sale of other repossessed asset	(723,000)	2,148,000
Sale of premises and equipment	14,000	4,000
Originations of loans held-for-sale	(39,513,000)	(54,615,000)
Proceeds from sale of loans held-for-sale	13,303,000	22,613,000
Net (increase) decrease in:
Trading securities	(26,000)	630,000
Accrued interest receivable	2,245,000	1,751,000
Servicing Assets	(364,000)	1,828,000
Other assets	(949,000)	(801,000)
Net increase (decrease) in:
Accrued interest on deposits and borrowings	(397,000)	(765,000)
Net increase (decrease) in accrued expenses and other liabilities	7,239,000	4,573,000
Net cash provided by (used in) operating activities	23,478,000	34,165,000
Purchases of:
Investment securities available-for-sale	(107,000)	(948,000)
Investment securities held-to-maturity	(32,552,000)	(14,221,000)
Maturities and Redemptions of [Abstract]
Maturities and redemptions of investment securities available-for-sale	40,778,000	55,605,000
Investments securities held-to-maturity	14,704,000	3,925,000
FHLB Stock	22,000	21,000
Proceeds from sale of:
Investment securities available for sale	295,172,000	67,075,000
Foreclosed real estate and other repossessed assets	12,248,000	15,635,000
Proceeds From Sale Of Loans Held For Investment	478,000	0
Premises and equipment	36,000	0
Origination and purchase of loans, excluding loans held-for-sale	(186,640,000)	(184,834,000)
Principal repayment of loans, including covered loans	236,787,000	228,993,000
Reimbursements from the FDIC on shared-loss agreements	(406,000)	(15,462,000)
Additions to premises and equipment	(1,922,000)	(864,000)
Net change in restricted cash	0	6,999,000
Net cash provided by investing activities	379,410,000	178,850,000
Net increase (decrease) in:
Deposits	54,635,000	(44,468,000)
Securities sold under agreements to repurchase	(310,000,000)	(52,816,000)
FHLB advances, federal funds purchased, and other borrowings	(460,000)	(2,728,000)
Subordinated capital notes	175,000	262,000
Proceeds from (payments to) exercise of stock options and lapsed restricted units, net	0	139,000
Dividends paid on preferred stock	(3,465,000)	(3,465,000)
Dividends paid on common stock	(2,633,000)	(4,464,000)
Net cash used in financing activities	(261,748,000)	(107,540,000)
Net change in cash and cash equivalents	141,140,000	105,475,000
Cash and cash equivalents at beginning of period	536,709,000	573,427,000
Cash and cash equivalents at end of period	677,849,000	678,902,000
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities:
Interest paid	16,310,000	17,893,000
Income Taxes Paid	3,642,000	0
Mortgage loans securitized into mortgage-backed securities	23,003,000	25,820,000
Transfer from loans to foreclosed real estate and other repossessed assets	11,629,000	13,618,000
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio	0	1,485,000
Reclassification of loans held-for-sale portfolio to investment portfolio	$ 0	$ 0

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Organization, Consolidation and Basis of Presentation

3 Months Ended

Mar. 31, 2016

Nature of Operations and Summary of Significanrt Accounting Policies

Nature Of Operations

NOTE 1 –ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION

Nature of Operations

OFG Bancorp (the “Company”) is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. The Company operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer, Oriental Financial Services Corp. (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”) and a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”). Through these subsidiaries and their respective divisions, the Company provides a wide range of banking and financial services such as commercial, consumer and mortgage lending, auto loans, financial planning, insurance sales, money management and investment banking and brokerage services, as well as corporate and individual trust services.

On April 30, 2010, the Bank acquired certain assets and assumed certain deposits and other liabilities of Eurobank, a Puerto Rico commercial bank, in an FDIC-assisted acquisition. On December 18, 2012, the Company acquired a group of Puerto Rico-based entities that included Banco Bilbao VizcayaArgentaria Puerto Rico (“BBVAPR”), a Puerto Rico commercial bank, as well as a securities broker-dealer and an insurance agency, which is referred to herein as the “BBVAPR Acquisition.” The businesses acquired in these acquisitions have been integrated with the Company’s existing business.

Significant Accounting Policies

Recent Accounting Developments

Adoption of New Accounting Standards

In December 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update ("ASU") that required a company that issues or invests in a hybrid financial instrument (e.g., a preferred share with a redemption feature, a conversion feature, or both) to determine the nature of the host contract by considering the economic characteristics of the entire instrument, includingthe embedded derivative feature that is being evaluated for separate accounting.Concluding the host contract is debt-like (versus equity-like) may result in substantiallydifferent answers about whether certain features must be accounted for separately.The guidance provides a modified retrospective transition for all existing hybrid financialinstruments in the form of a share, with the option for full retrospective application. For public business entities, the amendments of this update are effective for interim and annual periods beginning after December 15, 2015. This update did not have a material impact on the Company’s financial position, results of operations or cash flows.

Recently Issued but not yet Effective Accounting Standards

ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting - In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies and improves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date of ASU 2016-09 is for interim and annual reporting periods beginning after December 15, 2016. The ASU has not yet been adopted; however, it is not expected to have a material impact on theCompany's consolidated financial position, cash flows or results of operations.

ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting - In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU 2016-07 eliminates the requirement to retroactively adjust an investment, results of operations, and retained earnings once an investment qualifies for use of the equity method. It requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting without retroactive adjustment. The effective date of ASU 2016-07 is for interim and annual reporting periods beginning after December 15, 2016. The ASU has not yet been adopted; however, it is not expected to have a material impact on theCompany's consolidated financial position, cash flows or results of operations.

ASU 2016-02, Leases (Topic 842) - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous Generally Accepted Accounting Principles ("GAAP"). The effective date of ASU 2016-02 is for interim and annual reporting periods beginning after December 15, 2018. The ASU has not yet been adopted. The Company is currently evaluating the impact on our Company’s consolidated financial position, cash flows and results of operations.

ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities - In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The effective date of ASU 2016-01 is for interim and annual reporting periods beginning after December 15, 2017. The ASU has not yet been adopted; however, it is not expected to have a material impact on theCompany's consolidated financial position, cash flows or results of operations.

ASU 2014-09, Revenue from Contracts with Customers - In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. The main provisions of the update require the identification of performance obligations within a contract and require the recognition of revenue based on a stand-alone allocation of contract revenue to each performance obligation. Performance obligations may be satisfied and revenue recognized over a period of time if: (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs, or (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. After a recent one-year deferral of the effective date, the amendments of the update are to be effective for public entities beginning with interim and annual reporting periods beginning after December 15, 2017. Management does not expect the requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows.

Other than the accounting pronouncement disclosed above, there are no other new accounting pronouncements issued during the first quarter of 2016 that could have a material impact on the Company’s financial position, operating results or financials statement disclosures.

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Resticted Cash

3 Months Ended

Mar. 31, 2016

Restricted Cash And Investments Abstract

Resticted Cash Disclosure

NOTE 2–RESTRICTED CASH

The following table includes the composition of the Company’s restricted cash:

	March 31,		December 31,
	2016		2015
	(In thousands)
Cash pledged as collateral to other financial institutions to secure:
Derivatives	$	1,980	$	1,980
Obligations under agreement of loans sold with recourse		1,369		1,369
	$	3,349	$	3,349

At March 31, 2016 and December 31, 2015, the Bank’s international banking entities, Oriental International Bank Inc. (“OIB”) and Oriental Overseas, a division of the Bank, each held unencumbered certificates of deposit in the amount of $300 thousand as the legal reserve required for international banking entities under Puerto Rico law. Each certificate of deposit cannot be withdrawn by OIB or Oriental Overseas without prior written approval of the Office of the Commissioner of Financial Institutions of Puerto Rico.

As part of its derivative activities, the Company has entered into collateral agreements with certain financial counterparties. At March 31, 2016 and December 31, 2015, the Company had delivered $2.0 million of cash as collateral for such derivatives activities.

As part of the BBVA Acquisition, the Company assumed a contract with FNMA which required collateral to guarantee the repurchase, if necessary, of loans sold with recourse. AtMarch 31, 2016 and December 31, 2015, the Company delivered as collateral cash amounting to $1.4 million for both periods.

The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits. The amount of those minimum average reserve balances for the week that covered March 31, 2016 was $152.8 million (December 31, 2015 - $148.9million). At March 31, 2016 and December 31, 2015, the Bank complied with such requirement. Cash and due from bank as well as other short-term, highly liquid securities are used to cover the required average reserve balances.

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Investment Securities

3 Months Ended

Mar. 31, 2016

Investments [Abstract]

Securities Purchased Under Agreements To Resell And Investments Securities

NOTE 3– INVESTMENT SECURITIES

Money Market Investments

The Company considers as cash equivalents all money market instruments that are not pledged and that havematurities of three months or less at the date of acquisition. At March 31, 2016 and December 31, 2015, money market instruments included as part of cash and cash equivalents amounted to $5.9 million and $4.7 million, respectively.

Investment Securities

The amortized cost, gross unrealized gains and losses, fair value, and weighted average yield of the securitiesowned by the Company at March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	431,411	$	13,445	$	-	$	444,856	2.63%
GNMA certificates		79,477		3,220		-		82,697	3.15%
CMOs issued by US government-sponsored agencies		128,957		353		728		128,583	1.86%
Total mortgage-backed securities		639,845		17,018		728		656,136	2.54%
Investment securities
Obligations of US government-sponsored agencies		4,785		51		-		4,837	1.36%
Obligations of Puerto Rico government and public instrumentalities		6,720		-		873		5,847	5.55%
Other debt securities		2,323		142		-		2,465	2.99%
Total investment securities		13,828		193		873		13,149	3.67%
Total securities available for sale	$	653,673	$	17,211	$	1,601	$	669,285	2.56%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates	$	612,012		4,402		81		616,333	2.23%
Investment securities
US Treasury securities		25,024		-		11		25,013	0.49%
Total securities held to maturity		637,036		4,402		92		641,346	2.17%
Total	$	1,290,709	$	21,613	$	1,693	$	1,310,631	2.37%

	December 31, 2015
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	735,363	$	25,791	$	1,509	$	759,645	2.97%
GNMA certificates		57,129		1,366		-		58,495	3.19%
CMOs issued by US government-sponsored agencies		137,787		27		2,741		135,073	1.85%
Total mortgage-backed securities		930,279		27,184		4,250		953,213	2.82%
Investment securities
Obligations of US government-sponsored agencies		5,122		-		29		5,093	1.36%
Obligations of Puerto Rico government and public instrumentalities		17,801		-		4,070		13,731	6.24%
Other debt securities		2,444		128		-		2,572	2.98%
Total investment securities		25,367		128		4,099		21,396	4.94%
Total securities available-for-sale	$	955,646	$	27,312	$	8,349	$	974,609	2.87%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		595,157		426		5,865		589,718	2.24%
Investment securities
US Treasury securities		25,032		-		71		24,961	0.49%
Total securities held to maturity		620,189		426		5,936		614,679	2.17%
Total	$	1,575,835	$	27,738	$	14,285	$	1,589,288	2.60%

The amortized cost and fair value of the Company’s investment securities at March 31, 2016, by contractual maturity, are shown in the next table. Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2016
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)				(In thousands)
Mortgage-backed securities
Due from 5 to 10 years
FNMA and FHLMC certificates	$	13,936	$	14,250	$	-	$	-
Total due from 5 to 10 years		13,936		14,250		-		-
Due after 10 years
FNMA and FHLMC certificates		417,475		430,606		612,012		616,333
GNMA certificates		79,477		82,697		-		-
CMOs issued by US government-sponsored agencies		128,957		128,583		-		-
Total due after 10 years		625,909		641,886		612,012		616,333
Total mortgage-backed securities		639,845		656,136		612,012		616,333
Investment securities
Due from 1 to 5 years
US Treasury securities		-		-		25,024		25,013
Obligations of Puerto Rico government and public instrumentalities		6,720		5,847		-		-
Total due from 1 to 5 years		6,720		5,847		25,024		25,013
Due from 5 to 10 years
Obligations of US government and sponsored agencies		4,785		4,837		-		-
Other debt securities		2,323		2,465		-		-
Total due from 5 to 10 years		7,108		7,302		-		-
Total investment securities		13,828		13,149		25,024		25,013
Total securities available-for-sale and held-to-maturity	$	653,673	$	669,285	$	637,036	$	641,346

The Company, as part of its asset/liability management, may purchase U.S. Treasury securities and U.S. government-sponsored agency discount notes close to their maturities as alternatives to cash deposits at correspondent banks or as a short term vehicle to reinvest the proceeds of sale transactions until investment securities with attractive yields can be purchased. During the first quarter ended March 31, 2016, the Company retained securitized Government National Mortgage Association ("GNMA") pools totaling $23.0million amortized cost, at a yield of 3.06% from its own originations. Previously, the Company was selling all securitized GNMA pools. The GNMA pools were sold until June 2015. During the first quarter of 2015, the Company sold $26.8 million of available-for-sale GNMA certificates as part of its recurring mortgage loan origination and securitization activities. These sales did not realize any gains or losses during such period.

During the first quarter of 2016, the Company sold $272.1 million of mortgage-backed securities and $11.1 million of Puerto Rico government bonds, and recorded a net gain on sale of securities of $12.0 million. Among the 2016 sales, the Company sold all but one of the Puerto Rico government bonds it held. The Company had book other-than-temporary impairment charges on such securities sold totaling $1.5 million during the previous two quarters. During thefirst quarter of 2015,the Company sold $37.7 million of mortgage-backed securities and recorded a net gain on sale of securities of $2.6 million. The table below presents the gross realized gains and gross realized losses by category for such periods.

	Quarter Ended March 31, 2016
			Book Value
Description	Sale Price		at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of securities available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	288,194	$	272,081	$	16,113	$	-
Investment securities
Obligations of Puerto Rico government and public instrumentalities		6,978		11,095		-		4,117
Total	$	295,172	$	283,176	$	16,113	$	4,117

	Quarter Ended March 31, 2015
			Book Value
Description	Sale Price		at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of securities available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	40,307	$	37,735	$	2,572	$	-
GNMA certificates		26,768		26,768		-		-
Total	$	67,075	$	64,503	$	2,572	$	-

The following tables show the Company’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015:

	March 31, 2016
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies	$	83,400	$	728	$	82,672
Obligations of Puerto Rico government and public instrumentalities		6,720		873		5,847
		90,120		1,601		88,519
Securities held to maturity
FNMA and FHLMC certificates		30,309	$	46	$	30,263
	$	120,429	$	1,647	$	118,782
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities held-to-maturity
FNMA and FHLMC certificates		58,589		35		58,554
US Treausury Securities		25,024		11		25,013
	$	83,613	$	46	$	83,567
	Total
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies	$	83,400	$	728	$	82,672
Obligations of Puerto Rico government and public instrumentalities		6,720		873		5,847
		90,120		1,601		88,519
Securities held-to-maturity
FNMA and FHLMC certificates		88,898		81		88,817
US Treasury Securities		25,024		11		25,013
	$	204,042	$	1,693	$	202,349

	December 31, 2015
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
Obligations of Puerto Rico Government and public instrumentalities	$	17,801	$	4,070	$	13,731
CMOs issued by US government-sponsored agencies		103,340		2,410		100,930
	$	121,141	$	6,480	$	114,661
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies		25,736		331		25,405
FNMA and FHLMC certificates		149,480		1,509		147,971
Obligations of US government and sponsored agencies		5,122		29		5,093
Securities held to maturity
FNMA and FHLMC certificates		468,487		5,865		462,622
US Treausury Securities		25,032		71		24,961
	$	673,857	$	7,805	$	666,052
	Total
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies		129,076		2,741		126,335
FNMA and FHLMC certificates		149,480		1,509		147,971
Obligations of Puerto Rico Government and public instrumentalities		17,801		4,070		13,731
Obligations of US government and sponsored agencies		5,122		29		5,093
	$	301,479	$	8,349	$	293,130
Securities held to maturity
FNMA and FHLMC certificates		468,487		5,865		462,622
US Treasury Securities		25,032		71		24,961
	$	794,998	$	14,285	$	780,713

The Company performs valuations of the investment securities on a monthly basis. Moreover, the Company conducts quarterly reviews to identify and evaluate each investment in an unrealized loss position for other-than-temporary impairment. Any portion of a decline in value associated with credit loss is recognized in the statements of operations with the remaining noncredit-related component recognized in other comprehensive income (loss). A credit loss is determined by assessing whether the amortized cost basis of the security will be recovered by comparing the present value of cash flows expected to be collected from the security, discounted at the rate equal to the yield used to accrete current and prospective beneficial interest for the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is considered to be the “credit loss.” Other-than-temporary impairment analysis is based on estimates that depend on market conditions and are subject to further change over time. In addition, while the Company believes that the methodology used to value these exposures is reasonable, the methodology is subject to continuing refinement, including those made as a result of market developments. Consequently, it is reasonably possible that changes in estimates or conditions could result in the need to recognize additional other-than-temporary impairment charges in the future.

Most of the investments ($197.3million, amortized cost, or 97%) with an unrealized loss position at March 31, 2016 consist of securities issued or guaranteed by the U.S. Treasury or U.S. government-sponsored agencies, all of which are highly liquid securities that have a large and efficient secondary market. Their aggregate losses and their variability from period to period are the result of changes in market conditions, and not due to the repayment capacity or creditworthiness of the issuers or guarantors of such securities.

The remaining investments ($6.7 million, amortized cost, or 3%) with an unrealized loss position at March 31, 2016 consist of obligations issued or guaranteed by the government of Puerto Rico and its instrumentalities. The decline in the market value of these securities is mainly attributed to an increase in volatility as a result of changes in market conditions that reflect the significant economic and fiscal challenges that Puerto Rico is facing, including the government's credit default, a protracted economic recession, sizable government debt-service obligations and structural budget deficits, high unemployment and a shrinking population.

As of March 31, 2016, the Company applied a discounted cash flow analysis to the Puerto Rico government bonds to calculate the cash flows expected to be collected and determine if any portion of the decline in market value of these investments was considered an other-than-temporary impairment. The analysis derives an estimate of value based on the present value of risk-adjusted future cash flows of the underlying investments, and included the following components:

• The contractual future cash flows of the bonds are projected based on the key terms as set forth in the official statements for each investment. Such key terms include among others the interest rate, amortization schedule, if any, and maturity date.
• The risk-adjusted cash flows are calculated based on a monthly default probability and recovery rate assumptions based on the credit rating of each investment. Constant monthly default rates are assumed throughout the life of the bonds which are based on the respective security’s credit rating as of the date of the analysis.
• The adjusted future cash flows are then discounted at the original effective yield of each investment based on the purchase price and expected risk-adjusted future cash flows as of the purchase date of each investment.

The only obligation issued or guaranteed by the government of Puerto Rico and its instrumentalities held at the end of the first quarter of 2016 by the Company was the Puerto Rico Highwaysand Transportation Authority (“PRHTA”) – TeodoroMoscoso Bridge revenue bond.The pledge income sources of this bond comes from gross revenues from TeodoroMoscoso Bridge operations. Although PRHTA is included in the Puerto Rico Governor's executive order of November 30, 2015 ordering the '"clawback" of certain government revenues the toll bridge revenues for the repayment of such bonds were not subject to the “clawback”. All other securities were sold during the first quarter of 2016. The PRHTA bondin the principal amount of $6.7 million had an aggregate fair value of $5.8 million at March 31, 2016 (0.45% of the portfolio's total fair value). The discounted cash flow analysis for the investments showed a cumulative default probability at maturity of 8.81%, thus reflecting that it is more likely than not that the bond will not default during its remaining term. Based on this analysis, the Company determined that it is more likely than not that it will recover all interest and principal invested in this Puerto Rico government bond and is, therefore, not required to recognize a credit loss as of March 31, 2016. Also, the Company’s conclusion is based on the assessment of the specific source of repayment of the outstanding bond, which continues to perform. PRHTA started principal repayments on July 1, 2014. All scheduled principal and interest payments to date have been collected.As a result of the aforementioned analysis, no other-than-temporary losses were recorded during the quarter ended March 31, 2016 and 2015.

The following table presents a rollforward of credit-related impairment losses recognized in earnings for the quarters ended March 31, 2016 and 2015 on available-for-sale securities:.

	Quarter Ended March 31,
	2016		2015
Balance at beginning of period	$	1,490	$	-
Reductions for securities sold during the period (realized)		(1,490)		-
Balance at end of period	$	-	$	-

XML

Loans Receivable

3 Months Ended

Mar. 31, 2016

Loans Receivable [Abstract]

LOANS RECEIVABLE

NOTE 4- LOANS

The Company’s loan portfolio is composed of two segments, loans initially accounted for under the amortized cost method (referred to as "originated and other" loans) and loans acquired (referred to as "acquired" loans). Acquired loans are further segregated between acquired BBVAPR loans and acquired Eurobank loans. Acquired Eurobank loans were purchased subject to loss-sharing agreements with the FDIC. The FDIC loss-share coverage related to commercial and other-non single family acquired Eurobank loans expiredon June 30, 2015.Notwithstanding the expiration of loss share coverage of commercial loans, on July 2, 2015, the Company entered into an agreement with the FDIC pursuant to which the FDIC concurred with a potential sale of a pool of loss-share assets covered under the commercial loss-sharing agreement. Pursuant to such agreement, and as further discussed below, the FDIC agreed to and paid $20 million in loss share coverage with respect to the aggregate loss resulting from any portfolio sale within 120 days of the agreement. This sale was completed on September 28, 2015. The coverage for the single family residential loans will expire on June 30, 2020. At March 31, 2016, the remaining covered loans amounting to $69.7 million, net carrying amount, are included as part of acquired Eurobank loans under the name "loans secured y 1-4 family residential properties". At December 31, 2015, covered loans amounted to $67.2 million, net carrying amount. Covered loans are no longer a material amount. Therefore, the Company changed its loan disclosures during 2015.

The coverage for the single family residential loans will expire on June 30, 2020. At March 31, 2016, the remaining covered loans amounting to $69.7 million, net carrying amount ($91.1 million gross amount), are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties". At December 31, 2015, covered loans amounted to $67.2million, net carrying amount ($92.3million gross amount).Interest income recognized for covered loans during March 31, 2016 and 2015 was $2.2 million and $15.5 million, respectively. The decrease in interest income recognized for covered loans is due to the expiration of the FDIC loss-share coverage related to commercial and other-non single family acquired Eurobankon June 30, 2015.

The composition of the Company’s loan portfolio at March 31, 2016 and December 31, 2015was as follows

		March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment:
Mortgage	$	751,819	$	757,828
Commercial		1,425,385		1,441,649
Consumer		252,327		242,950
Auto and leasing		687,159		669,163
		3,116,690		3,111,590
Allowance for loan and lease losses on originated and other loans and leases		(113,238)		(112,626)
		3,003,452		2,998,964
Deferred loan costs, net		4,350		4,203
Total originated and other loans loans held for investment, net		3,007,802		3,003,167
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		6,558		7,457
Consumer		36,346		38,385
Auto		91,406		106,911
		134,310		152,753
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20		(4,993)		(5,542)
		129,317		147,211
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		600,901		608,294
Commercial		267,931		287,311
Construction		77,858		88,180
Consumer		9,345		11,843
Auto		134,669		153,592
		1,090,704		1,149,220
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30		(27,747)		(25,785)
		1,062,957		1,123,435
Total acquired BBVAPR loans, net		1,192,274		1,270,646
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		91,113		92,273
Commercial and construction		142,298		142,377
Consumer		1,770		2,314
Total acquired Eurobank loans		235,181		236,964
Allowance for loan and lease losses on Eurobank loans		(92,293)		(90,178)
Total acquired Eurobank loans, net		142,888		146,786
Total acquired loans, net		1,335,162		1,417,432
Total held for investment, net		4,342,964		4,420,599
Mortgage loans held-for-sale		17,165		13,614
Total loans, net	$	4,360,129	$	4,434,213

Originated and Other Loans and Leases Held for Investment

The Company’s originated and other loans held for investment areencompassed within four portfolio segments: mortgage, commercial, consumer, and auto and leasing.

The following tables present the aging of the recorded investment in gross originated and other loans held for investment as of March 31, 2016 and December 31, 2015 by class ofloans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	82	$	1,218	$	3,208	$	4,508	$	40	$	51,085	$	55,633	$	268
Years 2003 and 2004		388		3,579		5,844		9,811		20		87,458		97,289		-
Year 2005		313		1,893		3,864		6,070		-		47,421		53,491		-
Year 2006		634		1,238		7,212		9,084		233		66,753		76,070		-
Years 2007, 2008 and 2009		282		1,417		14,128		15,827		-		72,650		88,477		705
Years 2010, 2011, 2012, 2013		511		2,015		9,017		11,543		-		136,702		148,245		271
Years 2014, 2015 and 2016		-		444		1,099		1,543		63		91,213		92,819		-
		2,210		11,804		44,372		58,386		356		553,282		612,024		1,244
Non-traditional		-		395		5,014		5,409		12		22,286		27,707		-
Loss mitigation program		10,679		6,537		16,411		33,627		4,580		65,804		104,011		3,422
		12,889		18,736		65,797		97,422		4,948		641,372		743,742		4,666
Home equity secured personal loans		-		-		-		-		-		393		393		-
GNMA's buy-back option program		-		-		7,684		7,684		-		-		7,684		-
Total mortgage		12,889		18,736		73,481		105,106		4,948		641,765		751,819		4,666
Commercial
Commercial secured by real estate:
Corporate		-		-		-		-		-		228,782		228,782		-
Institutional		-		-		-		-		-		27,584		27,584		-
Middle market		-		-		9,498		9,498		2,515		196,890		208,903		-
Retail		644		455		7,088		8,187		2,659		233,174		244,020		-
Floor plan		-		-		-		-		-		2,859		2,859		-
Real estate		-		-		-		-		-		16,372		16,372		-
		644		455		16,586		17,685		5,174		705,661		728,520		-
Other commercial and industrial:
Corporate		-		-		-		-		-		120,881		120,881		-
Institutional		-		-		-		-		186,675		176,580		363,255		-
Middle market		-		-		-		-		1,493		102,295		103,788		-
Retail		260		948		706		1,914		21		72,689		74,624		-
Floor plan		28		18		41		87		-		34,230		34,317		-
		288		966		747		2,001		188,189		506,675		696,865		-
Total commercial		932		1,421		17,333		19,686		193,363		1,212,336		1,425,385		-

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Consumer
Credit cards		387		159		422		968		-		22,397		23,365		-
Overdrafts		17		-		-		17		-		203		220		-
Personal lines of credit		51		49		53		153		3		2,194		2,350		-
Personal loans		2,518		927		1,104		4,549		434		205,240		210,223		-
Cash collateral personal loans		214		19		14		247		-		15,922		16,169		-
Total consumer		3,187		1,154		1,593		5,934		437		245,956		252,327		-
Auto and leasing		53,801		17,203		7,742		78,746		57		608,356		687,159		-
Total	$	70,809	$	38,514	$	100,149	$	209,472	$	198,805	$	2,708,413	$	3,116,690	$	4,666

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	80	$	2,217	$	3,889	$	6,186	$	41	$	51,562	$	57,789	$	144
Years 2003 and 2004		251		5,036		5,536		10,823		-		88,623		99,446		-
Year 2005		79		2,553		3,549		6,181		-		48,040		54,221		-
Year 2006		551		2,878		7,934		11,363		176		66,864		78,403		-
Years 2007, 2008 and 2009		170		2,053		14,733		16,956		-		74,590		91,546		526
Years 2010, 2011, 2012, 2013		662		1,673		10,519		12,854		141		137,749		150,744		72
Years 2014 and 2015		-		65		663		728		-		85,128		85,856		-
		1,793		16,475		46,823		65,091		358		552,556		618,005		742
Non-traditional		-		977		5,079		6,056		13		23,483		29,552		-
Loss mitigation program		9,958		6,887		14,930		31,775		5,593		64,548		101,916		3,083
		11,751		24,339		66,832		102,922		5,964		640,587		749,473		3,825
Home equity secured personal loans		-		-		64		64		-		346		410		-
GNMA's buy-back option program		-		-		7,945		7,945		-		-		7,945		-
Total mortgage		11,751		24,339		74,841		110,931		5,964		640,933		757,828		3,825
Commercial
Commercial secured by real estate:
Corporate		-		-		-		-		-		227,557		227,557		-
Institutional		213		-		-		213		-		33,594		33,807		-
Middle market		1,174		712		9,113		10,999		1,730		194,219		206,948		-
Retail		686		466		6,921		8,073		1,177		231,840		241,090		-
Floor plan		-		-		-		-		-		2,892		2,892		-
Real estate		-		-		-		-		-		16,662		16,662		-
		2,073		1,178		16,034		19,285		2,907		706,764		728,956		-
Other commercial and industrial:
Corporate		-		-		-		-		-		108,582		108,582		-
Institutional		-		-		-		-		190,290		190,695		380,985		-
Middle market		-		-		-		-		1,565		105,748		107,313		-
Retail		282		639		604		1,525		783		75,489		77,797		-
Floor plan		238		51		39		328		-		37,688		38,016		-
		520		690		643		1,853		192,638		518,202		712,693		-
Total commercial		2,593		1,868		16,677		21,138		195,545		1,224,966		1,441,649		-

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Consumer
Credit cards		449		182		369		1,000		-		21,766		22,766		-
Overdrafts		24		-		-		24		-		166		190		-
Personal lines of credit		74		-		45		119		19		2,106		2,244		-
Personal loans		2,078		1,179		627		3,884		414		196,858		201,156		-
Cash collateral personal loans		125		17		2		144		-		16,450		16,594		-
Total consumer		2,750		1,378		1,043		5,171		433		237,346		242,950		-
Auto and leasing		53,566		16,898		8,293		78,757		49		590,357		669,163		-
Total	$	70,660	$	44,483	$	100,854	$	215,997	$	201,991	$	2,693,602	$	3,111,590	$	3,825

During 2015, the Company changed its early delinquency reporting on mortgage loans from one scheduled payment due to two scheduled payments due in order to comply with regulatory reporting instructions and be comparable with local peers, except for troubled-debt restructured loans which continue using one scheduled payment due for delinquency reporting.

At March 31, 2016 and December 31, 2015, the Company had a carrying balances of $330.8 million and $334.6million, respectively, in loans granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities as part of the institutional commercial loan segment. All loans granted to the Puerto Rico government were current at March 31, 2016 and December 31, 2015. We, as part of a bank syndicate, have granted various extensions to the Puerto Rico Electric Power Authority (“PREPA”) and on November 5, 2015 entered into a Restructuring Support Agreement with a view towards restructuring the debt on terms that provide for full repayment of the debt to the Bank. After the first extension in the third quarter of 2014, the Company classified the credit as substandard and a troubled-debt restructuring. The Company conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under various scenarios and its capacity to service its financial obligations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite the Company’s analysis showing PREPA’s capacity to repay the line of credit, the Company placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015. During the fourth quarter of 2015, the Company recorded an additional $29.3 million provision for loan and lease losses on PREPA. Since it was placed in non-accrual, interest payments have been applied to principal. At March 31, 2016, and December 31, 2015, the allowance for loan and lease losses to PREPA was $53.3 million.

Acquired Loans

Acquired loans were initially measured at fair value and subsequently accounted for under either ASC 310-30 (Loans and Debt Securities Acquired with Deteriorated Credit Quality) or ASC 310-20 (Non-refundable fees and Other Costs). We have acquired loans in two bank acquisitions, BBVAPR and Eurobank.

Acquired BBVAPR Loans

Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

Credit cards, retail and commercial revolving lines of credits, floor plans and performing auto loans with FICO scores over 660 acquired at a premium, excluding the acquired Eurobank loan portfolio, are accounted for under the guidance of ASC 310-20, which requires that any contractually required loan payment receivable in excess of the Company’s initial investment in the loans be accreted into interest income on a level-yield basis over the life of the loan. Loans accounted for under ASC 310-20 are placed on non-accrual status when past due in accordance with the Company’s non-accrual policy, and any accretion of discount or amortization of premium is discontinued. Acquired BBVAPR loans that were accounted for under the provisions of ASC 310-20 are removed from the acquired loan categoryat the end of the reporting period upon refinancing, renewal or normal re-underwriting.

The following tables present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as March 31, 2016 and December 31, 2015,by class ofloans:

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate
Retail	$	-	$	-	$	214	$	214	$	-	$	-	$	214	$	-
Floor plan		-		-		457		457		-		2,363		2,820		-
		-		-		671		671		-		2,363		3,034		-
Other commercial and industrial
Retail		68		8		177		253		-		3,264		3,517		-
Floor plan		-		-		7		7		-		-		7		-
		68		8		184		260		-		3,264		3,524		-
		68		8		855		931		-		5,627		6,558		-
Consumer
Credit cards		650		328		779		1,757		-		31,631		33,388		-
Personal loans		37		9		9		55		-		2,903		2,958		-
		687		337		788		1,812		-		34,534		36,346		-
Auto		6,895		2,108		553		9,556		-		81,850		91,406		-
Total	$	7,650	$	2,453	$	2,196	$	12,299	$	-	$	122,011	$	134,310	$	-

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate
Retail	$	-	$	-	$	228	$	228	$	-	$	-	$	228	$	-
Floor plan		-		-		467		467		-		2,422		2,889		-
		-		-		695		695		-		2,422		3,117		-
Other commercial and industrial
Retail		186		29		178		393		-		3,331		3,724		-
Floor plan		-		-		7		7		-		609		616		-
		186		29		185		400		-		3,940		4,340		-
		186		29		880		1,095		-		6,362		7,457		-
Consumer
Credit cards		930		384		489		1,803		-		33,414		35,217		-
Personal loans		14		29		46		89		-		3,079		3,168		-
		944		413		535		1,892		-		36,493		38,385		-
Auto		7,553		2,279		831		10,663		-		96,248		106,911		-
Total	$	8,683	$	2,721	$	2,246	$	13,650	$	-	$	139,103	$	152,753	$	-

Acquired BBVAPR Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

Acquired BBVAPR loans, except for credit cards, retail and commercial revolving lines of credits, floor plans and performing auto loans with FICO scores over 660 acquired at a premium, are accounted for by the Company in accordance with ASC 310-30.

The carrying amount corresponding to acquired BBVAPR loans with deteriorated credit quality, including those accounted under ASC 310-30 by analogy, in the statements of financial condition at March 31, 2016 and December 31, 2015 is as follows:

	March 31,	December 31,
	2016	2015
	(In thousands)
Contractual required payments receivable	$1,860,343	$1,945,098
Less: Non-accretable discount	$428,976	$434,190
Cash expected to be collected	1,431,367	1,510,908
Less: Accretable yield	340,663	361,688
Carrying amount, gross	1,090,704	1,149,220
Less: allowance for loan and lease losses	27,747	25,785
Carrying amount, net	$1,062,957	$1,123,435

At March 31, 2016 and December 31, 2015, the Company had $71.0million and $80.9 million, respectively, in loans granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities as part of its acquired BBVAPR loans accounted for under ASC 310-30. This entire amount was current at March 31, 2016 and December 31, 2015.

The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Construction		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	268,794	$	45,411	$	19,615	$	21,578	$	6,290	$	361,688
Accretion		(8,307)		(5,839)		(1,869)		(4,211)		(938)		(21,164)
Change in expected cash flows		-		128		200		1		-		329
Transfer from (to) non-accretable discount		70		402		(790)		219		(91)		(190)
Balance at end of period	$	260,557	$	40,102	$	17,156	$	17,587	$	5,261	$	340,663
Non-Accretable Discount Activity:
Balance at beginning of period	$	374,772	$	11,781	$	6,764	$	22,039	$	18,834	$	434,190
Change in actual and expected cash flows		(4,547)		(663)		(122)		118		(190)		(5,404)
Transfer (to) from accretable yield		(70)		(402)		790		(219)		91		190
Balance at end of period	$	370,155	$	10,716	$	7,432	$	21,938	$	18,735	$	428,976

	Quarter Ended March 31, 2015
	Mortgage		Commercial		Construction		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	298,364	$	61,196	$	25,829	$	53,998	$	6,559	$	445,946
Accretion		(8,987)		(10,759)		(3,810)		(6,988)		(926)		(31,470)
Transfer (to) from non-accretable discount		(4,765)		6,893		(2,629)		87		(32)		(446)
Balance at end of period	$	284,612	$	57,330	$	19,390	$	47,097	$	5,601	$	414,030
Non-Accretable Discount Activity:
Balance at beginning of period	$	389,839	$	23,069	$	3,486	$	16,215	$	24,018	$	456,627
Change in actual and expected cash flows		(1,995)		(350)		(2,158)		(1,585)		(474)		(6,562)
Transfer from (to) accretable yield		4,765		(6,893)		2,629		(87)		32		446
Balance at end of period	$	392,609	$	15,826	$	3,957	$	14,543	$	23,576	$	450,511

Acquired Eurobank Loans

The carrying amount of acquired Eurobank loans at March 31, 2016 and December 31, 2015 is as follows:

		March 31		December 31
	2016		2015
	(In thousands)
Contractual required payments receivable	$	334,111	$	342,511
Less: Non-accretable discount		12,703		21,156
Cash expected to be collected		321,408		321,355
Less: Accretable yield		86,227		84,391
Carrying amount, gross		235,181		236,964
Less: Allowance for loan and lease losses		92,293		90,178
Carrying amount, net	$	142,888	$	146,786

The following tables describe the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Loans Secured by 1-4 Family Residential Properties		Commercial and Other Construction		Construction & Development Secured by 1-4 Family Residential Properties		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	51,954	$	26,970	$	2,255	$	3,213	$	84,392
Accretion		(2,266)		(4,095)		(14)		(1,185)		(7,560)
Change in expected cash flows		984		11,093		(23)		(2,028)		10,026
Transfer from (to) non-accretable discount		115		(765)		19		-		(631)
Balance at end of period	$	50,787	$	33,203	$	2,237	$	-	$	86,227
Non-Accretable Discount Activity:
Balance at beginning of period	$	12,869	$	-	$	-	$	8,287	$	21,156
Change in actual and expected cash flows		(51)		(765)		19		(8,287)		(9,084)
Transfer (to) from accretable yield		(115)		765		(19)		-		631
Balance at end of period	$	12,703	$	-	$	-	$	-	$	12,703

	Quarter Ended March 31, 2015
	Loans Secured by 1-4 Family Residential Properties		Commercial and Other Construction		Construction & Development Secured by 1-4 Family Residential Properties		Leasing		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	47,636	$	37,919	$	20,753	$	2,479	$	1,072	$	109,859
Accretion		(3,518)		(9,855)		(619)		(1,392)		(120)		(15,504)
Transfer from non-accretable discount		14,214		5,417		672		578		1,052		21,933
Balance at end of period	$	58,332	$	33,481	$	20,806	$	1,665	$	2,004	$	116,288
Non-Accretable Discount Activity:
Balance at beginning of period	$	27,348	$	24,464	$	-	$	-	$	10,598	$	62,410
Change in actual and expected cash flows		(577)		(8,554)		672		578		116		(7,765)
Transfer to accretable yield		(14,214)		(5,417)		(672)		(578)		(1,052)		(21,933)
Balance at end of period	$	12,557	$	10,493	$	-	$	-	$	9,662	$	32,712

Non-accrual Loans

The following table presents the recorded investment in loans in non-accrual status by class ofloans as of March 31, 2016 and December 31, 2015:

	March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year):
Up to the year 2002	$	3,051	$	3,786
Years 2003 and 2004		5,958		5,737
Year 2005		3,941		3,627
Year 2006		7,532		8,189
Years 2007, 2008 and 2009		13,742		14,625
Years 2010, 2011, 2012, 2013		9,056		10,588
Years 2014, 2015 and 2016		1,162		663
		44,442		47,215
Non-traditional		5,055		5,092
Loss mitigation program		19,630		20,172
		69,127		72,479
Home equity loans, secured personal loans		-		64
		69,127		72,543
Commercial
Commercial secured by real estate
Middle market		12,012		12,729
Retail		10,597		8,726
		22,609		21,455
Other commercial and industrial
Institutional		186,675		190,290
Middle market		1,493		1,565
Retail		1,527		1,932
Floor plan		41		39
		189,736		193,826
		212,345		215,281
Consumer
Credit cards		422		369
Personal lines of credit		64		100
Personal loans		1,539		1,146
Cash collateral personal loans		14		16
		2,039		1,631
Auto and leasing		7,873		8,418
Total non-accrual originated loans	$	291,384	$	297,873

	March 31,		December 31,
	2016		2015
	(In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20
Commercial
Commercial secured by real estate
Retail	$	214	$	228
Floor plan		456		467
		670		695
Other commercial and industrial
Retail		177		178
Floor plan		7		7
		184		185
		854		880
Consumer
Credit cards		779		489
Personal loans		9		46
		788		535
Auto		572		831
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20		2,214		2,246
Total non-accrual loans	$	293,598	$	300,119

Loans accounted for under ASC 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses or are accounted under the cost recovery method.

Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due, but are not placed in non-accrual status until they become 18 months or more past due, since they are insured loans. Therefore, these loans are included as non-performing loans but excluded from non-accrual loans.

During the first quarter of 2015, the revolving line of credit to PREPA was classified as non-accrual. At March 31, 2016, this line of credit had an unpaid principal balance of $186.7million. Since the second quarter of 2015, interest payments are applied to principal. As ofMarch 31, 2016, the specific reserve for the PREPA line of credit is $53.3 million.

AtMarch 31, 2016 and December 31, 2015, loans whose terms have been extended and which are classified as troubled-debt restructurings that are not included in non-accrual loans amounted to $96.5 million and $93.6 million, respectively, as they are performing under their new terms.

Impaired Loans

The Company evaluates all loans, some individually and others as homogeneous groups, for purposes of determining impairment. The total investment in impaired commercial loans was $227.1 million and $235.8 million at March 31, 2016 and December 31, 2015, respectively. Impaired commercial loans at March 31, 2016 and December 31, 2015 included the PREPA line of credit with an unpaid principal balance of $186.7 million and $190.3million, respectively. The impaired commercial loans were measured based on the fair value of collateral or the present value of cash flows, including those identified as troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to $56.6 million at March 31, 2016 and $55.9 million at December 31, 2015. The valuation allowance for impaired commercial loans at March 31, 2016 and December 31, 2015 included $53.3 million of specific allowance for PREPA. The total investment in impaired mortgage loans was $90.8 million and $90.0 million at March 31, 2016 and December 15, 2015, respectively. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The valuation allowance for impaired mortgage loans amounted to $9.1 million at March 31, 2016 and $9.2 million at December 31, 2015.

Originated and Other Loans and Leases Held for Investment

The Company’s recorded investment in commercial and mortgage loans categorized as originated and other loans and leases held for investment that were individually evaluated for impairment and the related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	211,543	$	196,997	$	56,580	29%
Residential impaired and troubled-debt restructuring		98,610		90,772		9,135	10%
Impaired loans with no specific allowance:
Commercial		37,034		29,656		-	0%
Total investment in impaired loans	$	347,187	$	317,425	$	65,715	21%

	December 31, 2015
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	210,718	$	199,366	$	55,947	29%
Residential impaired and troubled-debt restructuring		97,424		89,973		9,233	10%
Impaired loans with no specific allowance
Commercial		42,110		35,928		-	0%
Total investment in impaired loans	$	350,252	$	325,267	$	65,180	21%

Acquired BBVAPR Loans

Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

The Company’s recorded investment inacquired BBVAPR commercial loans accounted for under ASC 310-20 that were individually evaluated for impairment and the related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with no specific allowance
Commercial	$	478	$	464	$	-	0%
Total investment in impaired loans	$	478	$	464	$	-	0%
	December 31, 2015
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with no specific allowance
Commercial	$	486	$	474	$	-	0%
Total investment in impaired loans	$	486	$	474	$	-	0%

Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

The Company’s recorded investment in acquired BBVAPR loan pools accounted for under ASC 310-30 that have recorded impairments and their related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	600,901	$	600,901	$	1,762	0%
Commercial		267,931		164,913		15,668	10%
Construction		77,619		77,619		4,762	6%
Auto		134,669		134,669		5,555	4%
Total investment in impaired loan pools	$	1,081,120	$	978,102	$	27,747	3%

	December 31 , 2015
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	608,294	$	608,294	$	1,762	0%
Commercial		287,311		168,107		15,454	9%
Construction		88,180		87,983		5,707	6%
Auto		153,592		153,592		2,862	2%
Total investment in impaired loan pools	$	1,137,377	$	1,017,976	$	25,785	3%

The tables above only present information with respect to acquired BBVAPR loans and pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses.

Acquired Eurobank Loans

The Company’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their related allowance for loan and lease losses as ofMarch 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Loans secured by 1-4 family residential properties	$	96,028	$	91,113	$	23,961	26%
Commercial and construction		130,042		142,298		68,089	48%
Consumer		1,708		1,770		243	14%
Total investment in impaired loan pools	$	227,778	$	235,181	$	92,293	39%

	December 31, 2015
							Coverage
	Unpaid		Recorded		Specific		to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	101,444	$	92,273	$	22,570	24%
Commercial and construction		133,148		142,377		67,365	47%
Consumer		6,713		2,314		243	11%
Total investment in impaired loan pools	$	241,305	$	236,964	$	90,178	38%

The tables above only present information with respect to acquired Eurobank loans and loan pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses.

The following table presents the interest recognized in commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30 for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016				2015
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
	(In thousands)
Originated and other loans held for investment:
Impaired loans with specific allowance
Commercial	$	71	$	196,795	$	3,695	$	79,873
Residential troubled-debt restructuring		798		90,292		733		93,391
Impaired loans with no specific allowance
Commercial		270		33,626		241		161,568
		1,139		320,713		4,669		334,832
Acquired loans accounted for under ASC 310-20:
Impaired loans with no specific allowance
Commercial		-		467		12		2,401
Total interest income from impaired loans	$	1,139	$	321,180	$	4,681	$	337,233

Modifications

The following tables present the troubled-debt restructurings during the

	Quarter Ended March 31, 2016
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	33	$	3,957	6.03%	361	$	4,854	4.83%	493
Commercial	2		655	6.81%	41		656	6.71%	36
Consumer	21		192	14.28%	75		231	11.15%	72
	Quarter Ended March 31, 2015
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	51	$	6,182	4.00%	356	$	6,054	4.02%	357
Commercial	3		4,505	6.83%	80		4,505	7.00%	141
Consumer	11		146	14.67%	75		182	14.80%	66

The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month periods ended March 31, 2016 and 2015:

	Twelve Month Period Ended March 31,
	2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Mortgage	31	$	3,732	60	$	6,963
Consumer	3	$	77	6	$	81
Auto	1	$	17	-	$	-

Credit Quality Indicators

The Company categorizes originated and other loans and acquired loans accounted for under ASC 310-20 into risk categories based on relevant information about the ability of borrowers to service their debt, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans.

The Company uses the following definitions for risk ratings:

Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards.

Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of gross originated and other loans and BBVAPR acquired loans accounted for under ASC 310-20 subject to risk rating by class of loans is as follows:

	March 31, 2016
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate:
Corporate	$	228,782	$	213,714	$	15,068	$	-	$	-	$	-
Institutional		27,584		25,779		-		-		-		1,805
Middle market		208,903		180,248		14,078		189		-		14,388
Retail		244,020		219,150		7,592		5,069		-		12,209
Floor plan		2,859		2,859		-		-		-		-
Real estate		16,372		16,372		-		-		-		-
		728,520		658,122		36,738		5,258		-		28,402
Other commercial and industrial:
Corporate		120,881		113,235		-		-		-		7,646
Institutional		363,255		176,580		-		-		-		186,675
Middle market		103,788		92,896		8,787		218		-		1,887
Retail		74,624		69,644		1,749		1,227		-		2,004
Floor plan		34,317		34,195		-		83		-		39
		696,865		486,550		10,536		1,528		-		198,251
Total		1,425,385		1,144,672		47,274		6,786		-		226,653
Commercial - acquired loans (under ASC 310-20)
Commercial secured by real estate:
Retail		214		-		-		214		-		-
Floor plan		2,820		574		1,789		-		-		457
		3,034		574		1,789		214		-		457
Other commercial and industrial:
Retail		3,517		3,444		-		73		-		-
Floor plan		7		-		-		-		-		7
		3,524		3,444		-		73		-		7
Total		6,558		4,018		1,789		287		-		464
Total	$	1,431,943	$	1,148,690	$	49,063	$	7,073	$	-	$	227,117

	December 31, 2015
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate:
Corporate	$	227,557	$	212,410	$	15,147	$	-	$	-	$	-
Institutional		33,807		25,907		-		-		-		7,900
Middle market		206,948		181,916		9,697		-		-		15,335
Retail		241,090		217,836		7,936		5,097		-		10,221
Floor plan		2,892		2,892		-		-		-		-
Real estate		16,662		16,662		-		-		-		-
		728,956		657,623		32,780		5,097		-		33,456
Other commercial and industrial:
Corporate		108,582		100,826		-		-		-		7,756
Institutional		380,985		190,695		-		-		-		190,290
Middle market		107,313		97,288		8,052		-		-		1,973
Retail		77,797		73,757		1,076		1,184		-		1,780
Floor plan		38,016		35,862		2,115		-		-		39
		712,693		498,428		11,243		1,184		-		201,838
Total		1,441,649		1,156,051		44,023		6,281		-		235,294
Commercial - acquired loans (under ASC 310-20)
Commercial secured by real estate:
Retail		228		-		-		228		-		-
Floor plan		2,889		602		1,820		-		-		467
		3,117		602		1,820		228		-		467
Other commercial and industrial:
Retail		3,724		3,637		-		87		-		-
Floor plan		616		609		-		-		-		7
		4,340		4,246		-		87		-		7
Total		7,457		4,848		1,820		315		-		474
Total	$	1,449,106	$	1,160,899	$	45,843	$	6,596	$	-	$	235,768

At March 31, 2016 and 2015, the Companyhad outstanding credit facilities of approximately $401.8million and $415.4million, respectively, granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, included within portfolio of originated and other loans and acquired BBVAPR loans accounted for under ASC 310-30. A substantial portion of the Company’s credit exposure to Puerto Rico’s government consists of collateralized loans or obligations that have a specific source of income or revenues identified for their repayment. Approximately $204 million of these loans are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations.

At March 31, 2016, we had approximately $198.2 million of credit facilities to central government and public corporations of the Commonwealth, including:

• PREPA with an outstanding balance of $186.7 million; and
• The PRHFA with an outstanding balance of $11.0 million to be repaid from abandoned or unclaimed funds at financial institutions that revert to the government under a Puerto Rico escheat law.

The outstanding balance of credit facilities to public corporations decreased to $10.0 during the first quarter of 2016 as a result of partial repayment by PRHFA.

Oriental Bank is part of a four bank syndicate providing a $550 million revolving line of credit to finance the purchase of fuel for PREPA’s day-to-day power generation activities. Our participation in the line of credit has an unpaid principal balance of $186.7 million as ofMarch 31, 2016. As part of the bank syndicate, the Bank entered into a forbearance agreement with PREPA, which was extended several times during 2015 until the execution of a Restructuring Support Agreement on November 5, 2015 with PREPA and certain other creditors. The Restructuring Support Agreement provides for the restructuring of the fuel line of credit subject to the accomplishment of several milestones, including some milestones that depend on the actions of third parties to the agreement, such as the negotiation of agreements with other creditors and legislative action. The Company has classified the credit facility to PREPA as doubtful and on non-accrual status. The Company conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under various scenarios and its capacity to service its financial obligations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite the Company’s analysis showing PREPA’s capacity to repay the line of credit, the Company placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015. During the fourth quarter of 2015, the Company recorded an additional $29.3 million provision for loan and lease losses for PREPA as a result of the increased level of uncertainty as to the closing of the restructuring agreement, which is expected by the second half of 2016. Since April 1, 2015, interest payments have been applied to principal.

The PREPA Revitalization Act was recently signed into law by the Governor of Puerto Rico. It provides for a major debt restructuring of PREPA’s outstanding debt and sets forth a legal framework for PREPA to execute on the agreements reached with its creditors. Among other things, it (i) enhances PREPA’s governance processes; (ii) adjusts PREPA’s practices for hiring and managing personnel; (iii) changes PREPA’s processes for collecting outstanding bills from public and private entities; (iv) improves transparency of PREPA’s billing practices; (v) implements a competitive bidding process for soliciting third party investment in PREPA’s infrastructure; (vi) allows for the refinancing of existing PREPA bonds through a securitization that would reduce PREPA’s indebtedness and cost of borrowing; and (vii) sets forth a process for the Energy Commission to address PREPA’s proposal for a new rate structure that consistent with its recovery plan.

PREPA’s enabling act provides for local receivership upon request to any Puerto Rico court of competent jurisdiction in the event of a default in debt-service payments or other obligations in connection with PREPA’s bonds.  The receiver so appointed would be empowered, directly or through its agents and attorneys, to take possession of the undertakings, income and revenues pledged to the payment of the bonds in default; to have, hold, use, operate, manage and control the same; and to exercise all of PREPA’s rights and powers with respect to such undertakings.  However, any such receiver would not have the power to sell, assign, mortgage or otherwise dispose of PREPA’s assets, and its powers would be limited to the operation and maintenance of such undertakings and the collection and application of the income and revenues therefrom. Although the Puerto Rico government is actively seeking the right to bankruptcy relief for some of its public instrumentalities, including PREPA, both through an amendment to the federal bankruptcy code and the enactment of a local debt restructuring law, such efforts have thus far been unsuccessful.

For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of gross originated and other loans and acquiredBBVAPR loans accounted for under ASC 310-20 not subject to risk rating by class of loans is as follows:

	March 31, 2016
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year)
Up to the year 2002	$	55,633	$	50,439	$	82	$	1,219	$	629	$	1,352	$	1,229	$	683
Years 2003 and 2004		97,289		85,896		388		3,580		1,681		1,552		2,444		1,748
Year 2005		53,491		46,578		314		1,893		315		1,412		2,140		839
Year 2006		76,070		63,614		402		1,238		816		1,620		4,775		3,605
Years 2007, 2008 and 2009		88,477		69,491		282		1,420		997		2,909		9,617		3,761
Years 2010, 2011, 2012 2013		148,245		134,179		452		1,819		69		1,777		5,866		4,083
Years 2014, 2015 and 2016		92,819		91,277		-		444		639		225		234		-
		612,024		541,474		1,920		11,613		5,146		10,847		26,305		14,719
Non-traditional		27,707		22,299		-		395		128		2,337		2,548		-
Loss mitigation program		104,011		17,800		2,890		1,953		669		1,498		3,148		76,053
		743,742		581,573		4,810		13,961		5,943		14,682		32,001		90,772
Home equity secured personal loans		393		393		-		-		-		-		-		-
GNMA's buy-back option program		7,684		-		-		-		805		3,730		3,149		-
		751,819		581,966		4,810		13,961		6,748		18,412		35,150		90,772
Consumer
Credit cards		23,365		22,403		387		153		192		230		-		-
Overdrafts		220		203		17		-		-		-		-		-
Unsecured personal lines of credit		2,350		2,197		51		49		22		31		-		-
Unsecured personal loans		210,223		205,756		2,458		920		1,082		7		-		-
Cash collateral personal loans		16,169		15,922		214		19		14		-		-		-
		252,327		246,481		3,127		1,141		1,310		268		-		-
Auto and Leasing		687,159		608,442		53,801		17,203		5,572		2,141		-		-
		1,691,305		1,436,889		61,738		32,305		13,630		20,821		35,150		90,772
Acquired loans (accounted for under ASC 310-20)
Consumer
Credit cards		33,388		31,631		650		328		287		492		-		-
Personal loans		2,959		2,903		37		9		-		10		-		-
		36,346		34,534		687		337		287		502		-		-
Auto		91,406		81,849		6,895		2,108		342		212		-		-
		127,752		116,383		7,582		2,445		629		714		-		-
Total	$	1,819,057	$	1,553,272	$	69,320	$	34,750	$	14,259	$	21,535	$	35,150	$	90,772

	December 31, 2015
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year)
Up to the year 2002	$	57,789	$	50,912	$	82	$	2,218	$	530	$	1,504	$	1,858	$	685
Years 2003 and 2004		99,446		87,060		251		4,867		1,261		1,353		2,921		1,733
Year 2005		54,221		47,197		79		2,553		292		1,068		2,189		843
Year 2006		78,403		63,659		318		2,878		1,168		1,895		4,871		3,614
Years 2007, 2008 and 2009		91,546		71,439		170		1,665		685		2,972		10,725		3,890
Years 2010, 2011, 2012 2013		150,744		134,945		569		1,611		434		1,982		6,737		4,466
Year 2014 and 2015		85,856		85,128		-		65		148		281		234		-
		618,005		540,340		1,469		15,857		4,518		11,055		29,535		15,231
Non-traditional		29,552		23,497		-		977		552		2,621		1,905		-
Loss mitigation program		101,916		16,031		4,173		1,977		727		1,728		2,538		74,742
		749,473		579,868		5,642		18,811		5,797		15,404		33,978		89,973
Home equity secured personal loans		410		346		-		-		-		64		-		-
GNMA's buy-back option program		7,945		-		-		-		1,593		3,578		2,774		-
		757,828		580,214		5,642		18,811		7,390		19,046		36,752		89,973
Consumer
Credit cards		22,766		21,766		449		182		179		190		-		-
Overdrafts		190		166		24		-		-		-		-		-
Unsecured personal lines of credit		2,244		2,125		74		-		17		28		-		-
Unsecured personal loans		201,156		197,339		2,083		1,107		621		6		-		-
Cash collateral personal loans		16,594		16,450		125		17		2		-		-		-
		242,950		237,846		2,755		1,306		819		224		-		-
Auto and Leasing		669,163		590,482		53,549		16,839		5,708		2,585		-		-
		1,669,941		1,408,542		61,946		36,956		13,917		21,855		36,752		89,973
Acquired loans (accounted for under ASC 310-20)
Consumer
Credit cards		35,217		33,414		930		384		186		303		-		-
Personal loans		3,168		3,079		14		29		1		45		-		-
		38,385		36,493		944		413		187		348		-		-
Auto		106,911		96,247		7,553		2,279		623		209		-		-
		145,296		132,740		8,497		2,692		810		557		-		-
Total	$	1,815,237	$	1,541,282	$	70,443	$	39,648	$	14,727	$	22,412	$	36,752	$	89,973

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Allowance for Loan and Lease Losses

3 Months Ended

Mar. 31, 2016

Loans Receivable [Abstract]

Allowance For Credit Losses Text Block

NOTE 5 – ALLOWANCE FOR LOAN AND LEASE LOSSES

The composition of the Company’s allowance for loan and lease losses at March 31, 2016 and December 31, 2015was as follows:

	March 31,		December 31,
	2016		2015
	(In thousands)
Allowance for loans and lease losses on non-acquired loans:
Originated and other loans and leases held for investment:
Mortgage	$	18,784	$	18,352
Commercial		64,206		64,791
Consumer		11,414		11,197
Auto and leasing		18,716		18,261
Unallocated		118		25
Total allowance for originated and other loans and lease losses		113,238		112,626
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		23		26
Consumer		3,243		3,429
Auto		1,727		2,087
		4,993		5,542
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		1,762		1,762
Commercial		20,430		21,161
Auto		5,555		2,862
		27,747		25,785
Total allowance for acquired BBVAPR loans and lease losses		145,978		143,953
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		34,014		32,624
Commercial and other construction		58,043		57,187
Consumer		236		367
Total allowance for acquired Eurobank loan and lease losses		92,293		90,178
Total allowance for loan and lease losses	$	238,271	$	234,131

The Company maintains an allowance for loan and lease losses at a level that management considers adequate to provide for probable losses based upon an evaluation of known and inherent risks. The Company’s allowance for loan and lease losses policy provides for a detailed quarterly analysis of probable losses. The analysis includes a review of historical loan loss experience, value of underlying collateral, current economic conditions, financial condition of borrowers and other pertinent factors. While management uses available information in estimating probable loan losses, future additions to the allowance may be required based on factors beyond the Company’s control. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition, and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition.

Allowance for Originated and Other Loan and Lease Losses Held for Investment

The following tables presents the activity in our allowance for loan and lease losses and the related recorded investment of the originated and other loans held for investment portfolio by segment for the periods indicated:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for originated and other loans:
Balance at beginning of period	$	18,352	$	64,791	$	11,197	$	18,261	$	25	$	112,626
Charge-offs		(1,662)		(1,011)		(2,327)		(8,362)		-		(13,362)
Recoveries		145		88		102		2,979		-		3,314
Provision for originated and other loans and lease losses		1,949		338		2,442		5,838		93		10,660
Balance at end of period	$	18,784	$	64,206	$	11,414	$	18,716	$	118	$	113,238

	March 31, 2016
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses on originated and other loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,135	$	56,580	$	-	$	-	$	-	$	65,715
Collectively evaluated for impairment		9,649		7,626		11,414		18,716		118		47,523
Total ending allowance balance	$	18,784	$	64,206	$	11,414	$	18,716	$	118	$	113,238
Loans:
Individually evaluated for impairment	$	90,772	$	226,653	$	-	$	-	$	-	$	317,425
Collectively evaluated for impairment		661,047		1,198,732		252,327		687,159		-		2,799,265
Total ending loan balance	$	751,819	$	1,425,385	$	252,327	$	687,159	$	-	$	3,116,690

	Quarter Ended March 31, 2015
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for originated and other loans:
Balance at beginning of period	$	19,679	$	8,432	$	9,072	$	14,255	$	1	$	51,439
Charge-offs		(1,414)		(992)		(1,676)		(8,136)		-		(12,218)
Recoveries		-		89		153		3,384		-		3,626
Provision (recapture) for originated and other loans and lease losses		(179)		25,594		1,856		6,259		382		33,912
Balance at end of period	$	18,086	$	33,123	$	9,405	$	15,762	$	383	$	76,759

	December 31, 2015
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses on originated and other loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,233	$	55,947	$	-	$	-	$	-	$	65,180
Collectively evaluated for impairment		9,119		8,844		11,197		18,261		25		47,446
Total ending allowance balance	$	18,352	$	64,791	$	11,197	$	18,261	$	25	$	112,626
Loans:
Individually evaluated for impairment	$	89,973	$	235,294	$	-	$	-	$	-	$	325,267
Collectively evaluated for impairment		667,855		1,206,355		242,950		669,163		-		2,786,323
Total ending loan balance	$	757,828	$	1,441,649	$	242,950	$	669,163	$	-	$	3,111,590

Allowance for BBVAPR Acquired Loan Losses

Loans accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

The following tables present the activity in our allowance for loan losses and related recorded investment of the associated loans in our BBVAPR acquired loan portfolio, excluding loans accounted for under ASC 310-30, for the periods indicated:

	Quarter Ended March 31, 2016
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Balance at beginning of period	$	26	$	3,429	$	2,087	$	-	$	5,542
Charge-offs		(7)		(812)		(737)		-		(1,556)
Recoveries		32		81		598		-		711
Provision (recapture) for acquired BBVAPR loan and lease losses accounted for under ASC 310-20		(28)		545		(221)		-		296
Balance at end of period	$	23	$	3,243	$	1,727	$	-	$	4,993

	March 31, 2016
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	$	23	$	3,243	$	1,727	$	-	$	4,993
Total ending allowance balance	$	23	$	3,243	$	1,727	$	-	$	4,993
Loans:
Individually evaluated for impairment	$	464	$	-	$	-	$	-	$	464
Collectively evaluated for impairment		6,094		36,346		91,406		-		133,846
Total ending loan balance	$	6,558	$	36,346	$	91,406	$	-	$	134,310

	Quarter Ended March 31, 2015
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Balance at beginning of period	$	65	$	1,211	$	3,321	$	-	$	4,597
Charge-offs		-		(1,380)		(1,267)		-		(2,647)
Recoveries		9		134		570		-		713
Provision (recapture) for acquired loan and lease losses accounted for under ASC 310-20		(25)		1,920		892		-		2,787
Balance at end of period	$	49	$	1,885	$	3,516	$	-	$	5,450

	December 31, 2015
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	$	26	$	3,429	$	2,087	$	-	$	5,542
Total ending allowance balance	$	26	$	3,429	$	2,087	$	-	$	5,542
Loans:
Individually evaluated for impairment	$	474	$	-	$	-	$	-	$	474
Collectively evaluated for impairment		6,983		38,385		106,911		-		152,279
Total ending loan balance	$	7,457	$	38,385	$	106,911	$	-	$	152,753

Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

The following tables present the activity in our allowance for loan losses and related recorded investment of the acquired BBVAPR loan portfolio accounted for under ASC 310-30, for the periods indicated:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Consumer		Auto		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-30:
Balance at beginning of period	$	1,678	$	21,245	$	-	$	2,862	$	25,785
Provision (recapture) for BBVAPR loans and lease losses accounted for under ASC 310-30		84		(749)		-		2,693		2,028
Loan pools fully charged-off		-		(66)		-		-		(66)
Balance at end of period	$	1,762	$	20,430	$	-	$	5,555	$	27,747
	Quarter Ended March 31, 2015
	Mortgage		Commercial		Consumer		Auto		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-30:
Balance at beginning of period	$	-	$	13,476	$	-	$	5	$	13,481
Provision for BBVAPR loans and lease losses accounted for under ASC 310-30		-		211		-		474		685
Balance at end of period	$	-	$	13,687	$	-	$	479	$	14,166

Allowance for Acquired Eurobank Loan Losses

For loans accounted for under ASC 310-30, as part of the evaluation of actual versus expected cash flows, the Company assesses on a quarterly basis the credit quality of these loans based on delinquency, severity factors and risk ratings, among other assumptions. Migration and credit quality trends are assessed at the pool level, by comparing information from the latest evaluation period through the end of the reporting period.

The changes in the allowance for loan and lease losses on acquired Eurobank loansfor the quarters ended March 31, 2016 and 2015 were as follows:

	Quarter Ended March 31, 2016
	Loans Secured by 1-4 Family Residential Properties		Commercial and Construction		Consumer		Leasing		Total
	(In thousands)
Allowance for loan and lease losses for acquired Eurobank loans:
Balance at beginning of period	$	22,570	$	67,365	$	243	$	-	$	90,178
Provision (recapture) for acquired Eurobank loans and lease losses, net		(53)		858		-		-		805
Loan pools fully charged-off		-		(134)		-		-		(134)
FDIC shared-loss portion of provision for covered loan and lease losses, net		1,444		-		-		-		1,444
Balance at end of period	$	23,961	$	68,089	$	243	$	-	$	92,293

	Quarter Ended March 31, 2015
	Mortgage		Commercial and Construction		Consumer		Leasing		Total
	(In thousands)
Allowance for loan and lease losses for acquired Eurobank loans:
Balance at beginning of period	$	15,522	$	48,334	$	389	$	-	$	64,245
Provision for covered loan and lease losses, net		1,818		2,991		-		-		4,809
FDIC shared-loss portion of provision for covered loan and lease losses, net		-		1,597		-		-		1,597
Balance at end of period	$	17,340	$	52,922	$	389	$	-	$	70,651

The FDIC shared-loss portion of provision for acquired Eurobank loans and lease losses, net, represents the credit impairment losses to be covered under the FDIC loss-share agreement which is increasing the FDIC loss-share indemnification asset.

The FDIC loss sharing obligation, related to commercial and other-non single family acquired Eurobank loans expired on June 30, 2015. The coverage for the single family residential loans will expire on June 30, 2020. The remaining covered loans are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties." At March 31, 2016 and December 31, 2015, allowance for loan losses on loans covered by the FDIC shared-loss agreement amounted to $24.0million and $22.6million, respectively. The provision for covered loan and lease losses for the quarters ended March 31, 2016 and 2015was $54thousand and $4.8million, respectively.

XML

FDIC Indemnification Asset True-up Payment Obligation And FDIC Shared Loss Expense

3 Months Ended

Mar. 31, 2016

Banking and Thrift [Abstract]

FDIC Indemnification Asset and True-up Payment Obligation [Text Block]

NOTE 6- FDIC INDEMNIFICATION ASSET, TRUE-UP PAYMENT OBLIGATION, AND FDIC SHARED-LOSS EXPENSE

In connection with the FDIC-assisted acquisition, the Bank and the FDIC entered into shared-loss agreements pursuant to which the FDIC covers a substantial portion of any losses on loans (and related unfunded loan commitments), foreclosed real estate and other repossessed properties covered by the agreements.

The acquired loans, foreclosed real estate, and other repossessed properties subject to the shared-loss agreements are collectively referred to as “covered assets.” Under the terms of the shared-loss agreements, the FDIC absorbs 80% of losses and shares in 80% of loss recoveries on covered assets. The term of the shared-loss agreement covering single family residential mortgage loans is ten years with respect to losses and loss recoveries, while the term of the shared-loss agreement covering commercial loans is five years with respect to losses and eight years with respect to loss recoveries, from the April 30, 2010 acquisition date. The coverage under the commercial shared-loss agreement expired on June 30, 2015. The shared-loss agreements also provide for certain costs directly related to the collection and preservation of covered assets to be reimbursed at an 80% level. The FDIC indemnification asset represents the portion of estimated losses covered by the shared-loss agreements between the Bank and the FDIC.

The following table presents the activity in the FDIC indemnification asset and true-up payment obligation for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset:
Balance at beginning of period	$	22,599	$	97,378
Shared-loss agreements reimbursements from the FDIC		(406)		(17,172)
Increase in expected credit losses to be covered under shared-loss agreements, net		1,444		1,597
FDIC indemnification asset expense		(2,865)		(12,221)
Incurred expenses to be reimbursed under shared-loss agreements		151		5,639
Balance at end of period	$	20,923	$	75,221
True-up payment obligation:
Balance at beginning of period	$	24,658	$	21,981
Change in true-up payment obligation		577		863
Balance at end of period	$	25,235	$	22,844

The FDIC shared-loss expense bears an inverse relationship with a change in the yield of covered loan pools in accordance with ASC 310-30. ASC 310-30 dictates that such pools should be subject to increases in their yield when the present value of the expected cash flows is higher than the pool’s carrying balance. When the increases in cash flow expectations are driven by reductions in the expected credit losses, the Bank recognizes that such losses are no longer expected to be collected from the FDIC. Accordingly, the Bank reduces the FDIC indemnification asset by amortizing the reduction in expected collections throughout the remaining life of the underlying pools. This amortization is recognized in the FDIC shared-loss expense account.

The underlying factors that caused an increase in the expected cash flows and resulting reduction in projected losses are derived from the pool-level cash flow forecasts. Credit loss assumptions used to develop each pool-level cash flow forecast are based on the behavior of defaults, recoveries and losses of the corresponding pool of covered loans.

The FDIC loss-share coverage for the commercial loans was in effect until June 30, 2015. Accordingly, the Company amortized the remaining portion of the FDIC indemnification asset attributable to non-single family loans at the close of the second quarter of 2015. At March 31, 2016 and December 31, 2015, the FDIC indemnification asset reflects only the balance for single family residential mortgage loans.

The Company has owed payments to the FDIC for the recovery of prior claims for commercial loans. At March 31, 2016, the liability for these payments amounted to $587 thousand and is recorded in other liabilities in the consolidated statements of financial condition until cash is paid to the FDIC. There was no liability at March 31, 2015.

The FDIC indemnification asset expense decreased to $2.9 million for the quarter ended March 31, 2016 when comparedto $12.2 million for the same period in 2015. The decrease during the period was principally driven by the expiration of the FDIC loss-share coverage for commercial loans and other non-single family loans.

Also in connection with the FDIC-assisted acquisition, the Bank agreed to make a true-up payment, also known as clawback liability or clawback provision, to the FDIC on the date that is 45 days following the last day (such day, the “True-Up Measurement Date”) of the final shared-loss month, or upon the final disposition of all covered assets under the shared-loss agreements in the event losses thereunder fail to reach expected levels. Under the shared-loss agreements, the Bank will pay to the FDIC 50% of the excess, if any, of: (i) 20% of the Intrinsic Loss Estimate of $906.0 million (or $181.2 million) (as determined by the FDIC) less (ii) the sum of: (A) 25% of the asset discount (per bid) (or $227.5 million); plus (B) 25% of the cumulative shared-loss payments (defined as the aggregate of all of the payments made or payable to the Bank minus the aggregate of all of the payments made or payable to the FDIC); plus (C) the sum of the period servicing amounts for every consecutive twelve-month period prior to and ending on the True-Up Measurement Date in respect of each of the shared-loss agreements during which the shared-loss provisions of the applicable shared-loss agreement is in effect (defined as the product of the simple average of the principal amount of shared-loss loans and shared-loss assets at the beginning and end of such period times 1%). The estimated liability is included within accrued expenses and other liabilities in the unaudited consolidated statements of financial condition.

This true-up payment obligation may increase if actual and expected losses decline. The Company measures the true-up payment obligation at fair value. The changes in fair value are included as a change in true-up payment obligation within the FDIC shared-loss expense, net, in the unaudited consolidated statements of operations.

The following table provides the fair value and the undiscounted amount of the true-up payment obligation at March 31, 2016 and December 31, 2015:

The FDIC loss-share coverage for the commercial loans was in effect until June 30, 2015. Accordingly, the Company amortized the remaining portion of the FDIC indemnification asset attributable to non-single family loans at the close of the second quarter of 2015. At March 31, 2016 and December 31, 2015, the FDIC indemnification asset reflects only the balance for single family residential mortgage loans.

		March 31,		December 31,
	2016		2015
	(In thousands)
Carrying amount (fair value)	$	25,235	$	24,658
Undiscounted amount	$	34,966	$	34,956

In connection with the FDIC-assisted acquisition, the Company recognized an FDIC shared-loss expense, net, in the unaudited consolidated statements of operations, which consists of the following for the quarters ended March 31, 2016 and December 31, 2015:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset expense	$	2,865	$	12,221
Change in true-up payment obligation		577		863
Reimbursement to FDIC for recoveries		587		-
Total FDIC shared-loss expense, net	$	4,029	$	13,084

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Servicing Assets

3 Months Ended

Mar. 31, 2016

TransfersAndServicingAbstract

TransfersAndServicingOfFinancialAssetsTextBlock

NOTE 7- SERVICING ASSETS

The Company periodically sells or securitizes mortgage loans while retaining the obligation to perform the servicingof such loans. In addition, the Company may purchase or assume the right to service mortgage loans originated byothers. Whenever the Company undertakes an obligation to service a loan, management assesses whether a servicingasset and/or liability should be recognized. A servicing asset is recognized whenever the compensation forservicing is expected to more than adequately compensate the Company for servicing the loans and leases. Likewise,a servicing liability would be recognized in the event that servicing fees to be received are not expected toadequately compensate the Company for its expected cost.

All separately recognized servicing assets are recognized at fair value using the fair value measurement method.Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur,and includes these changes, if any, with mortgage banking activities in the consolidated statements of operations.The fair value of servicing rights is subject to fluctuations as a result of changes in estimated and actualprepayment speeds and default rates and losses.

The fair value of servicing rights is estimated by using a cash flow valuation model which calculates the presentvalue of estimated future net servicing cash flows, takinginto consideration actual and expected loan prepaymentrates, discount rates, servicing costs, and other economic factors, which are determined based on current marketconditions.

At March 31, 2016, the servicing asset amounted to $7.8 million ($7.5 million —December 31, 2015) related to mortgage servicing rights.

The following table presents the changes in servicing rights measured using the fair value method for the quarters ended March 31, 2016 and 2015:

		Quarter Ended March 31,
		2016	2015
		(In thousands)
Fair value at beginning of period	$	7,455	$	13,992
Servicing from mortgage securitizations or asset transfers		557		531
Changes due to payments on loans		(104)		(418)
Changes in fair value due to changes in valuation model inputs or assumptions		(89)		(59)
Changes in fair value due to changes sales price of mortgage servicing rights held-for-sale inputs or assumptions		-		(1,882)
Fair value at end of period	$	7,819	$	12,164

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016	2015
Constant prepayment rate	4.43% - 12.17%	4.51% - 11.39%
Discount rate	10.00% - 12.00%	10.00% - 12.00%

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adversechanges in the above key assumptions were as follows:

	March 31, 2016
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	7,819
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(197)
Decrease in fair value due to 20% adverse change	$	(385)
Discount rate
Decrease in fair value due to 10% adverse change	$	(22)
Decrease in fair value due to 20% adverse change	$	(43)

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair valuebased on a 10 percent variation in assumptions generally cannot be extrapolated because the relationship of thechange in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation ina particular assumption on the fair value of the retained interest is calculated without changing any otherassumption.

Changes in one factor may result in changes in another (for example, increases in market interest ratesmay result in lower prepayments), which may magnify or offset the sensitivities.Mortgage banking activities, a component of total banking and financial servicerevenue in the consolidatedstatements of operations, include the changes from period to period in the fair value of the mortgage loanservicing rights, which may result from changes in the valuation model inputs or assumptions (principallyreflecting changes in discount rates and prepayment speed assumptions) and other changes, including changesdue to collection/realization of expected cash flows.

Servicing fee income is based on a contractual percentage of the outstanding principal balance and is recorded as income when earned. Servicing fees on mortgage loans for the quarters ended March 31, 2016 and 2015, totaled $876 thousand and $1.8 million, respectively

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Derivative Activities

3 Months Ended

Mar. 31, 2016

Derivative Activities [Abstract]

Derivative Acitivities

NOTE 8— DERIVATIVES

The following table presents the Company’s derivative assets and liabilities at March 31, 2016 and December 31, 2015:

	March 31,		December 31,
	2016		2015
	(In thousands)
Derivative assets:
Options tied to S&P 500 Index	$	772	$	1,170
Interest rate swaps not designated as hedges		1,829		1,819
Interest rate caps		61		32
Other		-		4
	$	2,662	$	3,025
Derivative liabilities:
Interest rate swaps designated as cash flow hedges		4,318		4,307
Interest rate swaps not designated as hedges		1,829		1,819
Interest rate caps		61		32
Other		12		4
	$	6,220	$	6,162

Interest Rate Swaps

The Company enters into interest rate swap contracts to hedge the variability of future interest cash flows of forecasted wholesale borrowings attributable to changes in a predetermined variable index rate. The interest rate swaps effectively fix the Company’s interest payments on an amount of forecasted interest expense attributable to the variable index rate corresponding to the swap notional stated rate. These swaps are designated as cash flow hedges for the forecasted wholesale borrowing transactions, are properly documented as such, and therefore, qualify for cash flow hedge accounting. Any gain or loss associated with the effective portion of the cash flow hedges is recognized in other comprehensive income (loss) and is subsequently reclassified into operations in the period during which the hedged forecasted transactions affect earnings. Changes in the fair value of these derivatives are recorded in accumulated other comprehensive income to the extent there is no significant ineffectiveness in the cash flow hedging relationships. Currently, the Company does not expect to reclassify any amount included in other comprehensive income (loss) related to these interest rate swaps to operations in the next twelve months.

.

The following table shows a summary of these swaps and their terms at March 31, 2016:

	Notional		Fixed	Variable	Trade	Settlement	Maturity
Type	Amount		Rate	Rate Index	Date	Date	Date
	(In thousands)
Interest Rate Swaps	$	25,000	2.4365%	1-Month LIBOR	05/05/11	05/04/12	05/04/16
		25,000	2.6200%	1-Month LIBOR	05/05/11	07/24/12	07/24/16
		25,000	2.6350%	1-Month LIBOR	05/05/11	07/30/12	07/30/16
		50,000	2.6590%	1-Month LIBOR	05/05/11	08/10/12	08/10/16
		100,000	2.6750%	1-Month LIBOR	05/05/11	08/16/12	08/16/16
		37,638	2.4210%	1-Month LIBOR	07/03/13	07/03/13	08/01/23
	$	262,638

An accumulated unrealized loss of $4.3 million was recognized in accumulated other comprehensive income (loss) related to the valuation of these swaps at March 31, 2016 and at December 31, 2015, and the related liability is being reflected in the accompanying unaudited consolidated statements of financial condition.

For both March 31, 2016 and at December 31, 2015, interest rate swaps not designated as hedging instruments that were offered to clients represented an asset of $1.8 million, and were included as part of derivative assets in the unaudited consolidated statements of financial position. The credit risk to these clients stemming from these derivatives, if any, is not material. At both, March 31, 2016 and December 31, 2015, interest rate swaps not designated as hedging instruments that are the mirror-images of the derivatives offered to clients represented a liability of $1.8 million, and were included as part of derivative liabilities in the unaudited consolidated statements of financial condition.

The following table shows a summary of these interest rate swaps not designated as hedging instruments and their terms at March 31, 2016:

	Notional		Fixed	Variable	Settlement	Maturity
Type	Amount		Rate	Rate Index	Date	Date
	(In thousands)
Interest Rate Swaps - Derivatives Offered to Clients	$	3,728	5.1300%	1-Month LIBOR	07/03/06	07/03/16
		12,500	5.5050%	1-Month LIBOR	04/11/09	04/11/19
	$	16,228
Interest Rate Swaps - Mirror Image Derivatives	$	3,728	5.1300%	1-Month LIBOR	07/03/06	07/03/16
		12,500	5.5050%	1-Month LIBOR	04/11/09	04/11/19
	$	16,228

Options Tied to Standard & Poor’s 500 Stock Market Index

The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P 500 Index. The Company uses option agreements with major broker-dealers to manage its exposure to changes in this index. Under the terms of the option agreements, the Company receives the average increase in the month-end value of the index in exchange for a fixed premium. The changes in fair value of the option agreements used to manage the exposure in the stock market in the certificates of deposit are recorded in earnings. At March 31, 2016 and December 31, 2015, the purchased options used to manage exposure to the S&P 500 Index on stock indexed deposits represented an asset of $772 thousand (notional amount of $2.2 million) and $1.2 million (notional amount of $3.4million), respectively, and the options sold to customers embedded in the certificates of deposit and recorded as deposits in the unaudited consolidated statements of financial condition, represented a liability of $746thousand (notional amount of $2.1 million) and $1.1million (notional amount of $3.2 million), respectively.

Interest Rate Caps

The Company has entered into interest rate cap transactions with various clients with floating-rate debt who wish to protect their financial results against increases in interest rates. In these cases, the Company simultaneously enters into mirror-image interest rate cap transactions with financial counterparties. None of these cap transactions qualify for hedge accounting, and therefore, they are marked to market through earnings. As of March 31, 2016 and December 31, 2015, the outstanding total notional amount of interest rate caps was $124.6million and $109.8million, respectively. At March 31, 2016 and December 31, 2015, the interest rate caps sold to clients represented a liability of $61 thousand and $32 thousand, respectively, and were included as part of derivative liabilities in the unaudited consolidated statements of financial condition. At March 31, 2016 and December 31, 2015, the interest rate caps purchased as mirror-images represented an asset of $61 thousand and $32 thousand, respectively, and were included as part of derivative assets in the unaudited consolidated statements of financial condition.

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Accrued Interest Receivable and Other Assets

3 Months Ended

Mar. 31, 2016

Accrued Interest Receivable And Other Assets [Abstract]

Other Assets Disclosure [Text Block]

NOTE 9—ACCRUED INTEREST RECEIVABLE ANDOTHER ASSETS

Accrued interest receivable at March 31, 2016 and December 31, 2015 consists of the following:

	March 31,		December 31,
	2016		2015
	(In thousands)
Loans, excluding acquired loans	$	14,829	$	16,020
Investments		3,563		4,617
	$	18,392	$	20,637

Other assets atMarch 31, 2016 and December 31, 2015 consist of the following:

	March 31,		December 31,
	2016		2015
	(In thousands)
Prepaid expenses		10,363		11,762
Other repossessed assets		4,408		6,226
Core deposit and customer relationship intangibles		7,418		7,838
Mortgage tax credits		6,277		6,277
Investment in Statutory Trust		1,083		1,083
Accounts receivable and other assets		44,781		42,786
	$	74,330	$	75,972

Prepaid expenses amounting to $10.4 million and $11.8 million atMarch 31, 2016 and December 31, 2015, respectively, include prepaid municipal, property and income taxes aggregating to $5.7million and $7.0 million, respectively.

In connection with the FDIC-assisted acquisition and the BBVAPR Acquisition, the Company recorded a core deposit intangible representing the value of checking and savings deposits acquired. At March 31, 2016 and December 31, 2015 this core deposit intangible amounted to $5.0million and $5.3million, respectively. In addition, the Company recorded a customer relationship intangible representing the value of customer relationships acquired with the acquisition of the securities broker-dealer and insurance agency in the BBVAPR Acquisition. At March 31, 2016 and December 31, 2015 this customer relationship intangible amounted to $2.4million and $2.5million, respectively.

Other repossessed assets totaled $4.4 million at March 31, 2016 and $6.2 million at December 31, 2015, include repossessed automobiles amounting to $4.2million and $5.5million, respectively, which are recorded at their net realizable value.

At March 31, 2016 and December 31, 2015,mortgage tax credits for the Companytotaled $6.3 million for both periods.These tax credits do not have an expiration date.

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Deposits and Related Interest

3 Months Ended

Mar. 31, 2016

Deposits and Related Interest [Abstract]

Deposit and Related Interest

NOTE 10— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of March 31, 2016 and December 31, 2015 consist of the following:

		March 31,		December 31,
	2016		2015
	(In thousands)
Non-interest bearing demand deposits	$	816,887	$	762,009
Interest-bearing savings and demand deposits		2,311,926		2,208,180
Individual retirement accounts		266,161		268,799
Retail certificates of deposit		491,072		441,998
Institutional certificates of deposit		205,541		253,791
Total core deposits		4,091,587		3,934,777
Brokered deposits		688,106		782,974
Total deposits	$	4,779,693	$	4,717,751

Brokered deposits include $617.6 million in certificates of deposits and $70.5million in money market accounts at March 31, 2016, and $711.4million in certificates of deposits and $71.6million in money market accounts at December 31, 2015.

The weighted average interest rate of the Company’s deposits was 0.60% and 0.56% at March 31, 2016 and December 31, 2015, respectively.Interest expense for the quarters ended March 31, 2016 and 2015 was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Demand and savings deposits	$	2,842	$	3,382
Certificates of deposit		4,282		3,722
	$	7,124	$	7,104

At March 31, 2016 and December 31, 2015, demand and interest-bearing deposits and certificates of deposit included deposits of the Puerto Rico Cash & Money Market Fund, Inc., which amounted to $103.0 million and $103.7 million, respectively, with a weighted average rate of 0.77% for both periods, and were collateralized with investment securities with a fair value of $78.8 million and $81.6 million, respectively.

At March 31, 2016 and December 31, 2015, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $591.0million and $597.6 million, respectively. Such amounts include public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $5.4 million and $7.7 millionat a weighted average rate of 0.47% and0.49% at March 31, 2016 and December 31, 2015, respectively.

At March 31, 2016 and December 31, 2015, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporationsamounted to $220.5million and $99.0million, respectively. These public funds were collateralized with commercial loans amounting to $410.9 million at March 31, 2016 and at December 31, 2015.

Excluding equity indexed options in the amount of $746thousand, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.7million and unamortized deposit discount in the amount of $234 thousand, the scheduled maturities of certificates of deposit at March 31, 2016 and December 31, 2015are as follows:

	March 31, 2016		December 31, 205
	(In thousands)
Within one year:
Three (3) months or less	$	342,072	$	474,051
Over 3 months through 1 year		451,919		501,551
		793,991		975,602
Over 1 through 2 years		489,143		454,906
Over 2 through 3 years		222,568		176,406
Over 3 through 4 years		36,253		32,396
Over 4 through 5 years		35,824		33,715
	$	1,577,779	$	1,673,025

The table of scheduled maturities of certificates of depositsabove includes brokered-deposits and individual retirement accounts.

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $565thousandas of March 31, 2016 and $1.5 million as of December 31, 2015.

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Borrowings

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Borrowings

NOTE 11— BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At March 31, 2016, securities underlying agreements to repurchase were delivered to, and are being held by, the counterparties with whom the repurchase agreements were transacted. The counterparties have agreed to resell to the Company the same or similar securities at the maturity of these agreements.

At March 31, 2016 and December 31, 2015, securities sold under agreements to repurchase (classified by counterparty), excluding accrued interest in the amount of $1.7million and $2.2million,respectively,were as follows:

	March 31,				December 31,
	2016				2015
			Fair Value of				Fair Value of
	Borrowing		Underlying		Borrowing		Underlying
	Balance		Collateral		Balance		Collateral
	(In thousands)
JP Morgan Chase Bank NA		232,500		252,402		262,500		283,483
Credit Suisse Securities (USA) LLC		402,000		439,538		670,000		737,887
Total	$	634,500	$	691,940	$	932,500	$	1,021,370

The following table shows a summary of the Company’s repurchase agreements and their terms, excluding accrued interest in the amount of $1.7 million, at March 31, 2016:

			Weighted-
	Borrowing		Average		Maturity
Year of Maturity	Balance		Coupon	Settlement Date	Date
	(In thousands)
2016		170,000	1.500%	12/6/2012	12/8/2016
2017		232,000	4.780%	3/2/2007	3/2/2017
2018		232,500	1.420%	12/10/2012	4/29/2018
	$	634,500	2.670%

The Company's repurchase agreement in the original amount of $500 million with an original term of ten years, maturing on March 2, 2017, was modified in February 2016 to terminate before maturity $268.0 million of this repurchase agreement at a cost of $12.0 million, included as a loss on early extinguishment of debt in the unaudited statements of operations. The remaining balance of this repurchase agreement was $232.0 million at March 31, 2016.

The following table presents the repurchase liability associated with the repurchase agreement transactions (excluding accrued interest) by maturity. Also, it includes the carrying value and approximate market value of collateral (excluding accrued interest) at March 31, 2016 and December 31, 2015. There was no cash collateral at March 31, 2016 and at December 31, 2015.

	March 31, 2016
					Market Value of Underlying Collateral
			Weighted		FNMA and					US Treasury
	Repurchase		Average		FHLMC		GNMA			Treasury
	Liability		Rate		Certificates		Certificates			Notes	Total
	(Dollars in thousands)
Over 90 days		634,500		2.67%		665,206		1,721		25,013		691,940
Total	$	634,500		2.67%	$	665,206	$	1,721	$	25,013	$	691,940
	December 31, 2015
					Market Value of Underlying Collateral
			Weighted		FNMA and					US Treasury
	Repurchase		Average		FHLMC		GNMA			Treasury
	Liability		Rate		Certificates		Certificates			Notes	Total
	(Dollars in thousands)
Less than 90 days		30,000		0.70%		31,961		-		-		31,961
Over 90 days		902,500		3.18%		974,698		2,131		12,580		989,409
Total	$	932,500		3.10%	$	1,006,659	$	2,131	$	12,580	$	1,021,370

Advances from the Federal Home Loan Bank of New York

Advances are received from the Federal Home Loan Bank of New York (the “FHLB-NY”) under an agreement whereby the Company is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At March 31, 2016 and December 31, 2015, these advances were secured by mortgage and commercial loans amounting to $1.5billion and $1.3billion, respectively. Also, at March 31, 2016 and December 31, 2015, the Company had an additional borrowing capacity with the FHLB-NY of $875.3million and $770.6million, respectively. At March 31, 2016 and December 31, 2015, the weighted average remaining maturity of FHLB’s advances was5.6 months and 6.3 months, respectively. The original terms of these advances ranges between one month and seven years, and the FHLB-NY does not have the right to exercise put options at par on any advances outstanding as of March 31, 2016.

The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $348thousand, at March 31, 2016:

			Weighted-
		Borrowing	Average		Maturity
Year of Maturity		Balance	Coupon	Settlement Date	Date
		(In thousands)
2016	$	25,000	0.59%	3/4/2016	4/4/2016
		50,000	0.60%	3/10/2016	4/11/2016
		100,000	0.58%	3/16/2016	4/18/2016
		25,000	0.58%	3/24/2016	4/25/2016
		25,000	0.52%	3/30/2016	4/29/2016
		37,638	0.60%	3/1/2016	4/1/2016
		262,638
2017		4,209	1.24%	4/3/2012	4/3/2017
2018		30,000	2.19%	1/16/2013	1/16/2018
		25,000	2.18%	1/16/2013	1/16/2018
		55,000
2020		9,785	2.59%	7/19/2013	7/20/2020
	$	331,632	0.92%

All of the advances referred to above with maturity dates up to the date of this report were renewed as one-month short-term advances.

Subordinated Capital Notes

Subordinated capital notes amounted to $102.8 million and $102.6 million at March 31, 2016 and December 31, 2015, respectively.

Under the requirements of Puerto Rico Banking Act, the Bank must establish a redemption fund for the subordinated capital notes, which will mature in September 29, 2016, by transferring from undivided profits pre-established amounts as follows:

	Redemption fund
	(In thousands)
Redemption fund at March 31, 2016	$	64,488
2016		2,512
	$	67,000

Other borrowings

Other borrowings, presented in the unaudited consolidated statements of financial condition amounted to $1.8 million at March 31, 2016 and $1.7 million at December 31, 2015 which mainly consists of unsecured fixed-rate borrowings.

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Offset of Assets/Liabilities

3 Months Ended

Mar. 31, 2016

Offsetting [Abstract]

Balance sheet Offsetting [Text Block]

NOTE 12 – OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

The Company’s derivatives are subject to agreements which allow a right of set-off with each respective counterparty. In addition, the Company’s securities purchased under agreements to resell and securities sold under agreements to repurchase have a right of set-off with the respective counterparty under the supplemental terms of the master repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the related agreements and any other amount or obligation owed in respect of any other agreement or transaction between them. Security collateral posted to open and maintain a master netting agreement with a counterparty, in the form of cash and securities, may from time to time be segregated in an account at a third-party custodian pursuant to a an account control agreement.

The following table presents the potential effect of rights of set-off associated with the Company’s recognized financial assets and liabilities at March 31, 2016 and December 31, 2015:

March 31, 2016

Gross Amounts Not Offset in the Statement of Financial Condition

Gross Amounts

Net Amount of

Offset in the

Assets Presented

Gross Amount

Statement of

in Statement

Cash

of Recognized

Financial

of Financial

Financial

Collateral

Net

Assets

Condition

Condition

Instruments

Received

Amount

(In thousands)

Derivatives

$

2,662

$

-

$

2,662

$

2,007

$

-

$

655

December 31, 2015

Gross Amounts Not Offset in the Statement of Financial Condition

Gross Amounts

Net amount of

Offset in the

Assets Presented

Gross Amount

Statement of

in Statement

Cash

of Recognized

Financial

of Financial

Financial

Collateral

Net

Assets

Condition

Condition

Instruments

Received

Amount

(In thousands)

Derivatives

$

3,025

$

-

$

3,025

$

2,000

$

-

$

1,025

March 31, 2016
							Gross Amounts Not Offset in the Statement of Financial Condition
					Net Amount of
			Gross Amounts		Liabilities
			Offset in the		Presented
	Gross Amount		Statement of		in Statement				Cash
	of Recognized		Financial		of Financial		Financial		Collateral		Net
	Liabilities		Condition		Condition		Instruments		Provided		Amount
					(In thousands)
Derivatives	$	6,966	$	-	$	6,966	$	-	$	1,980	$	4,986
Securities sold under agreements to repurchase		634,500		-		634,500		691,940		-		(57,440)
Total	$	641,466	$	-	$	641,466	$	691,940	$	1,980	$	(52,454)
December 31, 2015
							Gross Amounts Not Offset in the Statement of Financial Condition
					Net Amount of
			Gross Amounts		Liabilities
			Offset in the		Presented
	Gross Amount		Statement of		in Statement				Cash
	of Recognized		Financial		of Financial		Financial		Collateral		Net
	Liabilities		Condition		Condition		Instruments		Provided		Amount
	(In thousands)
Derivatives	$	7,257	$	-	$	7,257	$	-	$	1,980	$	5,277
Securities sold under agreements to repurchase		932,500		-		932,500		1,021,370		-		(88,870)
Total	$	939,757	$	-	$	939,757	$	1,021,370	$	1,980	$	(83,593)

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Related Party Transactions

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 13—RELATED PARTY TRANSACTIONS

The Bank grants loans to its directors, executive officers and certain related individuals or organizations in the ordinary course of business. These loans are offered at the same terms as loans to unrelated third parties.The activity and balance of these loans for the quarters endedMarch 31, 2016 and 2015was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at the beginning of year	$	31,475	$	27,011
New loans and disbursements		233		3,855
Repayments		(574)		(3,358)
Balance at the end of period	$	31,134	$	27,508

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Taxes [Abstract]

Income Taxes

NOTE 14 — INCOME TAXES

On May 29, 2015 the Governor signed Act No. 72 of 2015. The main purpose of this Act is to increase government collections in order to alleviate the structural deficit. The most relevant provisions of the Act, as applicable to the Company, for taxable years beginning after December 31, 2014, are as follows: (1) establishes a new definition of “large taxpayers,” which require them to file its tax return following a special procedure established by the Secretary of the Treasury, (2) net operating losses carried forward may be deducted up to 70% of the alternative minimum net income for purposes of computing the alternative minimum tax, and (3) net operating losses carried forward may be deducted up to 80% of the net income for purposes of computing the regular corporate income tax.

Other relevant provisions under Act 72 of 2015 are the enacted Value Added Tax (VAT) of 10.5%, which is expected to go into effect on June 1, 2016, along with a Municipal SUT of 1% on certain taxable items.

At March 31, 2016 and December 31, 2015, the Company’s net deferred tax asset amounted to $145.5 million and $145.9 million, respectively. In assessing the realizability of the deferred tax asset, management considers whether it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.  Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax asset are deductible, management believes it is more likely than not that the Company will realize the deferred tax asset, net of the existing valuation allowances recorded at March 31, 2016 and December 31, 2015. The amount of the deferred tax asset that is considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

The Company classifies unrecognized tax benefits in income taxes payable. These gross unrecognized tax benefits would affect the effective tax rate if realized. The balance of unrecognized tax benefits was $2.2million at March 31, 2016 and at December 31, 2015. The Company had accrued $40 thousand atMarch 31, 2016 and $175 thousand at December 31, 2015 for the payment of interest and penalties relating to unrecognized tax benefits.

For the quarter ended March 31, 2016, income tax expense was $5.7 million compared to $979 thousand for the same period in 2015.

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Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2016

Regulatory Capital Requirements Abstract

Regulatory Capital Requirements Under Banking Regulations Text Block

NOTE 15— REGULATORY CAPITAL REQUIREMENTS

Regulatory Capital Requirements

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Pursuant to the Dodd-Frank Act, federal banking regulators have adopted new capital rules that became effective January 1, 2015 for the Company and the Bank (subject to certain phase-in periods through January 1, 2019) and that replaced their general risk-based capital rules, advanced approaches rule, market risk rule, and leverage rules. Among other matters, the new capital rules: (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to prior regulations. The new capital rules prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current four Basel I-derived categories (0%, 20%, 50% and 100%) to a larger and more risk-sensitive number of categories, depending on the nature of the assets, and resulting in higher risk weights for a variety of asset classes.

Pursuant to the new capital rules, the minimum capital ratios requirements as of January 1, 2015 are as follows:

4.5% CET1 to risk-weighted assets;

6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known

as the “leverage ratio”).

As of March 31, 2016 and December 31, 2015, the Company and the Bank met all capital adequacy requirements to which they are subject. As of March 31, 2016 and December 31, 2015, the Bank is “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the tables presented below.

The New Capital Rules also introduce a new 2.5% “capital conservation buffer”, composed entirely of CET1, on top of the three minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. Thus, when fully phased-in on January 1, 2019, the Company and the Bank will be required to maintain such an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019. At March 31, 2016 the Company and the Bank met the capital buffer requirement.

The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2016 and December 31, 2015are as follows:

				Minimum Capital			Minimum to be Well
	Actual			Requirement			Capitalized
	Amount		Ratio	Amount		Ratio		Amount	Ratio
	(Dollars in thousands)
Company Ratios
As of March 31, 2016
Total capital to risk-weighted assets	$	838,284	17.67%	$	379,570	8.00%	$	474,463	10.00%
Tier 1 capital to risk-weighted assets	$	776,181	16.36%	$	284,678	6.00%	$	379,570	8.00%
Common equity tier 1 capital to risk-weighted assets	$	585,144	12.33%	$	213,508	4.50%	$	308,401	6.50%
Tier 1 capital to average total assets	$	776,181	11.38%	$	272,797	4.00%	$	340,996	5.00%
As of December 31, 2015
Total capital to risk-weighted assets	$	846,748	17.29%	$	391,723	8.00%	$	489,654	10.00%
Tier 1 capital to risk-weighted assets	$	782,912	15.99%	$	293,792	6.00%	$	391,723	8.00%
Common equity tier 1 capital to risk-weighted assets	$	594,482	12.14%	$	220,344	4.50%	$	318,275	6.50%
Tier 1 capital to average total assets	$	782,912	11.18%	$	280,009	4.00%	$	350,011	5.00%

				Minimum Capital			Minimum to be Well
	Actual			Requirement			Capitalized
	Amount		Ratio	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of March 31, 2016
Total capital to risk-weighted assets	$	819,731	17.29%	$	379,242	8.00%	$	474,502	10.00%
Tier 1 capital to risk-weighted assets	$	757,828	15.99%	$	284,431	6.00%	$	379,242	8.00%
Common equity tier 1 capital to risk-weighted assets	$	757,828	15.99%	$	213,323	4.50%	$	3,308,134	6.50%
Tier 1 capital to average total assets	$	757,828	11.16%	$	271,538	4.00%	$	339,423	5.00%
As of December 31, 2015
Total capital to risk-weighted assets	$	815,458	16.70%	$	390,688	8.00%	$	488,360	10.00%
Tier 1 capital to risk-weighted assets	$	751,886	15.40%	$	293,016	6.00%	$	390,688	8.00%
Common equity tier 1 capital to risk-weighted assets	$	751,886	15.40%	$	219,762	4.50%	$	317,434	6.50%
Tier 1 capital to average total assets	$	751,886	10.80%	$	278,399	4.00%	$	347,999	5.00%

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Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Stockholders' Equity [Abstract]

Stockholders' equity

NOTE 16 – STOCKHOLDERS’ EQUITY

Additional Paid-in Capital

Additional paid-in capital represents contributed capital in excess of par value of common and preferred stock net of the costs of issuance. As of March 31, 2016 and December 31, 2015 accumulated issuance costs charged against additional paid-in capital amounted to $13.6million and $10.1million for preferred and common stock, respectively.

Legal Surplus

The Puerto Rico Banking Act requires that a minimum of 10% of the Bank’s net incomefor the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid-in capital on common and preferred stock. At March 31, 2016 and December 31, 2015, the Bank’s legal surplus amounted to $71.9 million and $70.4 million, respectively. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

Under the Company’s current stock repurchase program it is authorized to purchase in the open market up to $70 million of its outstanding shares of common stock, of which approximately $7.7 million of authority remains. The shares of common stock repurchased are to be held by the Company as treasury shares. There were no repurchases during the quarters ended March 31, 2016 or 2015.

The number of shares that may yet be purchased under the $70 million program is estimated at 1,105,988 and was calculated by dividing the remaining balance of $7.7 million by $6.99 (closing price of the Company common stock at March 31, 2016). The Company did not purchase any shares of its common stock during the quarter ended March 31, 2016 or 2015.

The activity in connection with common shares held in treasury by the Company for the quarters ended March 31, 2016 and 2015 is set forth below:

	Quarter Ended March 31,
	2016			2015
		Dollar			Dollar
	Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of period	8,757,960	$	105,379	8,012,254	$	97,070
Common shares used upon lapse of restricted stock units	(45,810)		(505)	(51,078)		(575)
End of period	8,712,150	$	104,874	7,961,176	$	96,495

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2016

Disclosure Text Block Abstract

Comprehensive Income Note Text Block

NOTE 17-ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income, net of income tax, as of March 31, 2016 and December 31, 2015 consistedof:

	March 31,		December 31,
	2016		2015
	(In thousands)
Unrealized gain on securities available-for-sale which are not other-than-temporarily impaired	$	15,496	$	22,044
Unrealized loss on securities available-for-sale which are other-than-temporarily impaired		-		(3,196)
Income tax effect of unrealized gain on securities available-for-sale		(407)		(1,924)
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		15,089		16,924
Unrealized loss on cash flow hedges		(4,318)		(4,307)
Income tax effect of unrealized loss on cash flow hedges		1,513		1,380
Net unrealized loss on cash flow hedges		(2,805)		(2,927)
Accumulated other comprehensive income, net of taxes	$	12,284	$	13,997

The following table presents changes in accumulated other comprehensive income by component, net of taxes, for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		income
	(In thousands)
Beginning balance	$	16,924	$	(2,927)	$	13,997
Other comprehensive income (loss) before reclassifications		(4,326)		(1,457)		(5,783)
Amounts reclassified out of accumulated other comprehensive income (loss)		2,491		1,579		4,070
Other comprehensive income (loss)		(1,835)		122		(1,713)
Ending balance	$	15,089	$	(2,805)	$	12,284
	Quarter Ended March 31,
	2015
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		income
	(In thousands)
Beginning balance	$	25,764	$	(6,053)	$	19,711
Other comprehensive income (loss) before reclassifications		4,311		(1,369)		2,942
Amounts reclassified out of accumulated other comprehensive income (loss)		139		1,532		1,671
Other comprehensive income		4,450		163		4,613
Ending balance	$	30,214	$	(5,890)	$	24,324

The following table presents reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2016 and 2015:

	Amount reclassified out of accumulated
	other comprehensive income				Affected Line Item in
	Quarter Ended March 31,				Consolidated Statement
		2016		2015	of Operations
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	1,450	$	1,606	Net interest expense
Tax effect from increase in capital gains tax rate		129		(74)	Income tax expense
Available-for-sale securities:
Residual tax effect from OIB's change in applicable tax rate		8		10	Income tax expense
Other-than-temporary impairment losses on available for sale securities realized during the period		2,557		-
Tax effect from increase in capital gains tax rate		(74)		129	Income tax expense
	$	4,070	$	1,671

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share Text Block

NOTE 18 –EARNINGS (LOSS) PER COMMON SHARE

The calculation of earnings (loss) per common share for the quarters ended March 31, 2016 and 2015 is as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands, except per share data)
Net income (loss)	$	14,171	$	(2,988)
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(1,627)		(1,628)
Convertible preferred stock (Series C)		(1,838)		(1,837)
Income (loss) available to common shareholders	$	10,706	$	(6,453)
Effect of assumed conversion of the convertible preferred stock		1,838		1,837
Income (loss) available to common shareholders assuming conversion	$	12,544	$	(4,616)
Weighted average common shares and share equivalents:
Average common shares outstanding		43,898		44,634
Effect of dilutive securities:
Average potential common shares-options		28		188
Average potential common shares-assuming conversion of convertible preferred stock		7,138		7,155
Total weighted average common shares outstanding and equivalents		51,064		51,977
Earnings (loss) per common share - basic	$	0.24	$	(0.14)
Earnings (loss) per common share - diluted	$	0.24	$	(0.14)

In computing diluted earnings (loss) per common share, the 84,000 shares of convertible preferred stock, which remain outstanding at March 31, 2016, with a conversion rate, subject to certain conditions, of 86.4225 shares of common stock per share, were included as average potential common shares from the date they were issued and outstanding. Moreover, in computing diluted earnings (loss) per common share, the dividends declared during the quarters ended March 31, 2016 and 2015 on the convertible preferred stock were added back as income available to common shareholders.

For the quarters ended March 31, 2016 and 2015, weighted-average stock options with an anti-dilutive effect on (loss) earnings per share not included in the calculation amounted to977,823 and 390,078, respectively

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Guarantees

3 Months Ended

Mar. 31, 2016

Guarantees [Abstract]

Guarantees [Text Block]

NOTE 19 – GUARANTEES

At March 31, 2016, the unamortized balance of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $4.7 million (December 31, 2015 - $14.7 million).

As a result of the BBVAPR Acquisition, the Company assumed a liability for residential mortgage loans sold subject to credit recourse pursuant to FNMA’s residential mortgage loan sales and securitization programs. At March 31, 2016 and December 31, 2015, the unpaid principal balance of residential mortgage loans sold subject to credit recourse was $22.0million and $22.4million, respectively.

The following table shows the changes in the Company’s liability for estimated losses from these credit recourse agreements, included in the unaudited consolidated statements of financial condition during the quarters ended March 31, 2016 and 2015.

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at beginning of period	$	439	$	927
Net (charge-offs/terminations) recoveries		(258)		(440)
Balance at end of period	$	181	$	487

The estimated losses to be absorbed under the credit recourse arrangements were recorded as a liability when the credit recourse was assumed, and are updated on a quarterly basis. The expected loss, which represents the amount expected to be lost on a given loan, considers the probability of default and loss severity. The probability of default represents the probability that a loan in good standing would become 120 days delinquent, in which case the Company is obligated to repurchase the loan. The recourse obligation will be fully extinguished before the end of 2017.

If a borrower defaults, pursuant to the credit recourse provided, the Company is required to repurchase the loan or reimburse the third party investor for the incurred loss. The maximum potential amount of future payments that the Company would be required to make under the recourse arrangements is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarters ended March 31, 2016 and2015, the Company repurchased approximately$209 thousand and $2.1 million, respectively of unpaid principal balance in mortgage loans subject to the credit recourse provisions.If a borrower defaults, the Company has rights to the underlying collateral securing the mortgage loan. The Company suffers losses on these mortgage loans when the proceeds from a foreclosure sale of the collateral property are less than the outstanding principal balance of the loan, any uncollected interest advanced, and the costs of holding and disposing the related property. At March 31, 2016, the Company’s liability for estimated credit losses related to loans sold with credit recourse amounted to $181 thousand (December 31, 2015– $439 thousand).

When the Company sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. The Company's mortgage operations division groups conforming mortgage loans into pools which are exchanged for FNMA and GNMA mortgage-backed securitiesthat are generally sold to private investors, or are sold directly to FNMA or other private investors for cash. As required under such mortgage backed securities programs, quality review procedures are performed by the Company to ensure that asset guideline qualifications are met. To the extent the loans do not meet specified characteristics, the Company may be required to repurchase such loans or indemnify for losses and bear any subsequent loss related to the loans. During the quarter ended March 31, 2016, the Company’s representation and warranty arrangements, excluding mortgage loans subject to credit recourse provisions referred to above, approximated $1.5 million in unpaid principal balance (March 31, 2015 – $9.0 million).

During the quarter ended March 31, 2016, the Company recognized $19thousand in losses from the repurchase of residential mortgage loans sold subject to credit recourse, and $501 thousand in losses from the repurchase of residential mortgage loans as a result of breaches of the customary representations and warranties. During the quarter ended March 31, 2015, the Company recognized $39 thousand in losses from the repurchase of residential mortgage loans sold subject to credit recourse, and $832 thousand in losses from the repurchase of residential mortgage loans as a result of breaches of the customary representations and warranties

Servicing agreements relating to the mortgage-backed securities programs of FNMA and GNMA, and to mortgage loans sold or serviced to certain other investors, including the Federal Home Loan Mortgage Corporation (“FHLMC”), require the Company to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. At March 31, 2016, the Company serviced $690.0 million in mortgage loans for third-parties. The Company generally recovers funds advanced pursuant to these arrangements from the mortgage owner, from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and VA insurance and guarantees programs. However, in the meantime, the Company must absorb the cost of the funds it advances during the time the advance is outstanding. The Company must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and the Company would not receive any future servicing income with respect to that loan. At March 31, 2016, the outstanding balance of funds advanced by the Company under such mortgage loan servicing agreements was approximately $333 thousand (December 31, 2015 - $301 thousand). To the extent the mortgage loans underlying the Company's servicing portfolio experience increased delinquencies, the Company would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies [Abstract]

Commitments

NOTE 20—COMMITMENTS AND CONTINGENCIES

Loan Commitments

In the normal course of business, the Company becomes a party to credit-related financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby and commercial letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated statements of financial condition. The contract or notional amount of those instruments reflects the extent of the Company’s involvement in particular types of financial instruments.

The Company’s exposure to credit losses in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit, including commitments under credit card arrangements, and commercial letters of credit is represented by the contractual notional amounts of those instruments, which do not necessarily represent the amounts potentially subject to risk. In addition, the measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are identified. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Credit-related financial instruments at March 31, 2016 and December 31, 2015 were as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Commitments to extend credit	$	498,249	$	456,720
Commercial letters of credit		2,619		1,508

Commitments to extend credit represent agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the counterparty.

At March 31, 2016 and December 31, 2015, commitments to extend credit consisted mainly of undisbursed available amounts on commercial lines of credit, construction loans, and revolving credit card arrangements. Since many of the unused commitments are expected to expire unused or be only partially used, the total amount of these unused commitments does not necessarily represent future cash requirements. These lines of credit had a reserve of $667 thousand at both periods, March 31, 2016and December 31, 2015.

Commercial letters of credit are issued or confirmed to guarantee payment of customers’ payables or receivables in short-term international trade transactions. Generally, drafts will be drawn when the underlying transaction is consummated as intended. However, the short-term nature of this instrument serves to mitigate the risk associated with these contracts.

The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at March 31, 2016 and December 31, 2015, is as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Standby letters of credit and financial guarantees	$	4,656	$	14,656
Loans sold with recourse		21,957		22,374
Commitments to sell or securitize mortgage loans		11,886		34,888

Standby letters of credit and financial guarantees are written conditional commitments issued by the Company to guarantee the payment and/or performance of a customer to a third party (“beneficiary”). If the customer fails to comply with the agreement, the beneficiary may draw on the standby letter of credit or financial guarantee as a remedy. The amount of credit risk involved in issuing letters of credit in the event of nonperformance is the face amount of the letter of credit or financial guarantee. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer.

Lease Commitments

The Company has entered into various operating lease agreements for branch facilities and administrative offices. Rent expense for the quarters ended March 31, 2016 and 2015, amounted to $2.1million and $2.4 million, respectively, and is included in the “occupancy and equipment” caption in the unaudited consolidated statements of operations.Future rental commitments under leases in effect atMarch 31, 2016 exclusive of taxes, insurance, and maintenance expenses payable by the Company, are summarized as follows:

	Minimum Rent
Year Ending December 31,	(In thousands)
2016	$	6,519
2017		7,308
2018		6,278
2019		6,182
2020		5,455
Thereafter		12,397
	$	44,139

Contingencies

Contingencies

The Company and its subsidiaries are defendants in a number of legal proceedings incidental to their business. In the ordinary course of business, the Company and its subsidiaries are also subject to governmental and regulatory examinations. Certain subsidiaries of the Company, including the Bank (and its subsidiary OIB), Oriental Financial Services, and Oriental Insurance, are subject to regulation by various U.S., Puerto Rico and other regulators.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests allegations of liability or wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

Subject to the accounting and disclosure framework under the provisions of ASC 450, it is the opinion of the Company’s management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of all matters would not be likely to have a material adverse effect on the consolidated statements of financial condition of the Company. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on the Company’s consolidated results of operations or cash flows in particular quarterly or annual periods. The Company has evaluated all litigation and regulatory matters where the likelihood of a potential loss is deemed reasonably possible. The Company has determined that the estimate of the reasonably possible loss is not significant.

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Fair Value

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value

NOTE 21- FAIR VALUEOF FINANCIAL INSTRUMENTS

The Company follows the fair value measurement framework under GAAP.

Fair Value Measurement

The fair value measurement framework defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This framework also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Money market investments

The fair value of money market investments is based on the carrying amounts reflected in the unaudited consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

Investment securities

The fair value of investment securities is based on quoted market prices, when available, or market prices provided by Interactive Data Corporation (“IDC”), an independent, well-recognized pricing company. Such securities are classified as Level 1 or Level 2 depending on the basis for determining fair value. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument, and such securities are classified as Level 3. At March 31, 2016 and December 31, 2015, the Company did not have investment securities classified as Level 3.

Derivative instruments

The fair value of the interest rate swaps is largely a function of the financial market’s expectations regarding the future direction of interest rates. Accordingly, current market values are not necessarily indicative of the future impact of derivative instruments on earnings. This will depend, for the most part, on the shape of the yield curve, the level of interest rates, as well as the expectations for rates in the future. The fair value of most of these derivative instruments is based on observable market parameters, which include discounting the instruments’ cash flows using the U.S. dollar LIBOR-based discount rates, and also applying yield curves that account for the industry sector and the credit rating of the counterparty and/or the Company.

Certain other derivative instruments with limited market activity are valued using externally developed models that consider unobservable market parameters. Based on their valuation methodology, derivative instruments are classified as Level 2 or Level 3. The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P Index and uses equity indexed option agreements with major broker-dealers to manage its exposure to changes in this index. Their fair value is obtained through the use of an external based valuation that was thoroughly evaluated and adopted by management as its measurement tool for these options. The payoff of these options is linked to the average value of the S&P Index on a specific set of dates during the life of the option. The methodology uses an average rate option or a cash-settled option whose payoff is based on the difference between the expected average value of the S&P Index during the remaining life of the option and the strike price at inception. The assumptions, which are uncertain and require a degree of judgment, include primarily S&P Index volatility, forward interest rate projections, estimated index dividend payout, and leverage.

Servicing assets

Servicing assets do not trade in an active market with readily observable prices. Servicing assets are priced using a discounted cash flow model. The valuation model considers servicing fees, portfolio characteristics, prepayment assumptions, delinquency rates, late charges, other ancillary revenues, cost to service and other economic factors. Due to the unobservable nature of certain valuation inputs, the servicing rights are classified as Level 3.

Impaired Loans

Impaired loans are carried at the present value of expected future cash flows using the loan’s existing rate in a discounted cash flow calculation, or the fair value of the collateral if the loan is collateral-dependent. Expected cash flows are based on internal inputs reflecting expected default rates on contractual cash flows. This method of estimating fair value does not incorporate the exit-price concept of fair value described in Accounting Standards Codification (“ASC”) 820-10 and would generally result in a higher value than the exit-price approach. For loans measured using the estimated fair value of collateral less costs to sell, fair value is generally determined based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations, in accordance with the provisions of ASC 310-10-35 less disposition costs. Currently, the associated loans considered impaired are classified as Level 3.

Foreclosed real estate

Foreclosed real estate includes real estate properties securing residential mortgage and commercial loans. The fair value of foreclosed real estate may be determined using an external appraisal, broker price option or an internal valuation. These foreclosed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

Other repossessed assets

Other repossessed assets include repossessed automobile loans and leases. The fair value of the repossessed automobiles may be determined using internal valuation and an external appraisal. These repossessed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

	March 31, 2016
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	669,285	$	-	$	669,285
Trading securities		-		314		-		314
Money market investments		5,897		-		-		5,897
Derivative assets		-		1,890		772		2,662
Servicing assets		-		-		7,819		7,819
Derivative liabilities		-		(6,220)		(746)		(6,966)
	$	5,897	$	665,269	$	7,845	$	679,011
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	227,117	$	227,117
Foreclosed real estate		-		-		56,777		56,777
Other repossessed assets		-		-		4,408		4,408
	$	-	$	-	$	288,302	$	288,302

	December 31, 2015
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	974,609	$	-	$	974,609
Trading securities		-		288		-		288
Money market investments		4,699		-		-		4,699
Derivative assets		-		1,854		1,171		3,025
Servicing assets		-		-		7,455		7,455
Derivative liabilities		-		(6,162)		(1,095)		(7,257)
	$	4,699	$	970,589	$	7,531	$	982,819
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	235,767	$	235,767
Foreclosed real estate		-		-		58,176		58,176
Other repossessed assets		-		-		6,226		6,226
	$	-	$	-	$	300,169	$	300,169

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Derivative				Derivative
	asset				liability
	(S&P				(S&P
	Purchased			Servicing	Embedded
Level 3 Instruments Only	Options)			assets	Options)		Total
Balance at beginning of period	$	1,171	$	7,455	$	(1,095)	$	7,531
Gains (losses) included in earnings		(399)		-		330		(69)
New instruments acquired		-		557		-		557
Principal repayments		-		(104)		-		(104)
Amortization		-		-		19		19
Changes in fair value of servicing assets		-		(89)		-		(89)
Balance at end of period	$	772	$	7,819	$	(746)	$	7,845
	Quarter Ended March 31, 2015
	Derivative					Derivative
	asset					liability
	(S&P					(S&P
	Purchased			Servicing		Embedded
Level 3 Instruments Only	Options)			assets		Options)		Total
Balance at beginning of period	$	5,555	$	13,992	$	(5,477)	$	14,070
(Losses) gains included in earnings		(1,821)		-		1,782		(39)
New instruments acquired		-		531		-		531
Principal repayments		-		(418)		-		(418)
Amortization		-		-		78		78
Changes in fair value of servicing assets				(59)		-		(59)
Changes in fair value due to sales price of mortgage servicing rights held-for-sale		-		(1,882)		-		(1,882)
Balance at end of period	$	3,734	$	12,164	$	(3,617)	$	12,281

During the quarters ended March 31, 2016 and 2015, there were purchases and sales of assets and liabilities measured at fair value on a recurring basis. There were no transfers into or out of Level 1 and Level 2 fair value measurements during such periods.

The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at March 31, 2016:

	March 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range
	(In thousands)
Derivative assets (S&P Purchased Options)	$	772	Option pricing model	Implied option volatility	35.32% -38.69%
				Counterparty credit risk (based on 5-year credit default swap ("CDS") spread)	79.96%-89.03%
Servicing assets	$	7,819	Cash flow valuation	Constant prepayment rate	4.43%-12.17%
				Discount rate	10.00% - 12.00%
Derivative liability (S&P Embedded Options)	$	(746)	Option pricing model	Implied option volatility	35.32% -38.69%
				Counterparty credit risk (based on 5-year CDS spread)	79.96%-89.03
Collateral dependant impaired loans	$	25,252	Fair value of property or collateral	Appraised value less disposition costs	30.20%-42.40%
Puerto Rico Electric Power Authority line of credit, net	$	186,675	Cash flow valuation	Discount rate	7.25%
Other non-collateral dependant impaired loans	$	15,190	Cash flow valuation	Discount rate	4.25%-16.95%
Foreclosed real estate	$	56,777	Fair value of property or collateral	Appraised value less disposition costs	30.20%-42.20%
Other repossessed assets	$	4,408	Fair value of property or collateral	Appraised value less disposition costs	30.20%-42.20%

Information about Sensitivity to Changes in Significant Unobservable Inputs

Other debt securities – The significant unobservable inputs used in the fair value measurement of one of the Company’s other debt securities are indicative comparable pricing, option adjusted spread (“OAS”), yield to maturity, and spread to maturity. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. Generally, a change in the assumption used for indicative comparable pricing is accompanied by a directionally opposite change in the assumption used for OAS and a directionally, although not equally proportional, opposite change in the assumptions used for yield to maturity and spread to maturity.

Derivative asset (S&P Purchased Options) – The significant unobservable inputs used in the fair value measurement of the Company’s derivative assets related to S&P purchased options are implied option volatility and counterparty credit risk. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. Generally, a change in the assumption used for implied option volatility is not necessarily accompanied by directionally similar or opposite changes in the assumption used for counterparty credit risk.

Servicing assets – The significant unobservable inputs used in the fair value measurement of the Company’s servicing assets are constant prepayment rates and discount rates. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Derivative liability (S&P Embedded Options) – The significant unobservable inputs used in the fair value measurement of the Company’s derivative liability related to S&P purchased options are implied option volatility and counterparty credit risk. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. Generally, a change in the assumption used for implied option volatility is not necessarily accompanied by directionally similar or opposite changes in the assumption used for counterparty credit risk.

Fair Value of Financial Instruments

The information about the estimated fair value of financial instruments required by GAAP is presented hereunder. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Company.

The estimated fair value is subjective in nature, involves uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could affect these fair value estimates. The fair value estimates do not take into consideration the value of future business and the value of assets and liabilities that are not financial instruments. Other significant tangible and intangible assets that are not considered financial instruments are the value of long-term customer relationships of retail deposits, and premises and equipment.

The estimated fair value and carrying value of the Company’s financial instruments atMarch 31, 2016 and December 31, 2015is as follows:

	March 31,				December 31,
	2016				2015
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	677,849	$	677,849	$	536,710	$	536,710
Restricted cash		3,349	$	3,349	$	3,349	$	3,349
Level 2
Financial Assets:
Trading securities		314	$	314	$	288	$	288
Investment securities available-for-sale		669,285	$	669,285	$	974,609	$	974,609
Investment securities held-to-maturity		641,346	$	637,036	$	614,679	$	620,189
Federal Home Loan Bank (FHLB) stock		20,761	$	20,761	$	20,783	$	20,783
Other investments		3	$	3	$	3	$	3
Derivative assets		1,890	$	1,890	$	1,855	$	1,855
Financial Liabilities:
Derivative liabilities		6,220	$	6,220	$	6,162	$	6,162
Level 3
Financial Assets:
Total loans (including loans held-for-sale)		4,088,158		4,360,129		4,101,219		4,434,213
Derivative assets		772		772		1,170		1,170
FDIC indemnification asset		10,897		20,923		17,786		22,599
Accrued interest receivable		18,392		18,392		20,637		20,637
Servicing assets		7,819		7,819		7,455		7,455
Accounts receivable and other assets		44,781		44,781		42,786		42,786
Financial Liabilities:
Deposits		4,772,507		4,778,947		4,705,878		4,715,764
Securities sold under agreements to repurchase		645,098		636,172		955,859		934,691
Advances from FHLB		334,782		331,980		335,812		332,476
Other borrowings		2,661		1,756		2,593		1,734
Subordinated capital notes		97,330		102,808		94,940		102,633
Accrued expenses and other liabilities		92,761		92,761		92,935		92,935
Derivative liabilities embedded in deposits		746		746		1,095		1,095

The following methods and assumptions were used to estimate the fair values of significant financial instruments at March 31, 2016 and December 31, 2015:

•Cash and cash equivalents (including money market investments and time deposits with other banks), restricted cash, accrued interest receivable, accounts receivable and other assets and accrued expenses and other liabilities have been valued at the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

•Investments in FHLB-NY stock are valued at their redemption value.

•The fair value of investment securities, including trading securities and other investments, is based on quoted market prices, when available or prices provided from contracted pricing providers, or market prices provided by recognized broker-dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument.

•The fair value of the FDIC indemnification asset represents the present value of the net estimated cash payments expected to be received from the FDIC for future losses on covered assets based on the credit assumptions on estimated cash flows for each covered asset and the loss sharing percentages. The ultimate collectability of the FDIC indemnification asset is dependent upon the performance of the underlying covered loans, the passage of time and claims paid by the FDIC which are impacted by the Bank’s adherence to certain guidelines established by the FDIC.

•The fair value of servicing asset is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

•The fair values of the derivative instruments are provided by valuation experts and counterparties. Certain derivatives with limited market activity are valued using externally developed models that consider unobservable market parameters. The Company has offered its customers certificates of deposit with an option tied to the performance of the S&P Index, and uses equity indexed option agreements with major broker-dealers to manage its exposure to changes in this index. Their fair value is obtained through the use of an external based valuation that was thoroughly evaluated and adopted by management as its measurement tool for these options. The payoff of these options is linked to the average value of the S&P Index on a specific set of dates during the life of the option. The methodology uses an average rate option or a cash-settled option whose payoff is based on the difference between the expected average value of the S&P Index during the remaining life of the option and the strike price at inception. The assumptions, which are uncertain and require a degree of judgment, include primarily S&P Index volatility, forward interest rate projections, estimated index dividend payout, and leverage.

•Fair value of derivative liabilities, which include interest rate swaps and forward-settlement swaps, are based on the net discounted value of the contractual projected cash flows of both the pay-fixed receive-variable legs of the contracts. The projected cash flows are based on the forward yield curve, and discounted using current estimated market rates.

•The fair value of the loan portfolio (including loans held-for-sale) is estimated by segregating by type, such as mortgage, commercial, consumer, auto and leasing. Each loan segment is further segmented into fixed and adjustable interest rates and by performing and non-performing categories. The fair value of performing loans is calculated by discounting contractual cash flows, adjusted for prepayment estimates (voluntary and involuntary), if any, using estimated current market discount rates that reflect the credit and interest rate risk inherent in the loan. This fair value is not currently an indication of an exit price as that type of assumption could result in a different fair value estimate.Non-performing loans have been valued at the carrying amounts.

•The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is based on the discounted value of the contractual cash flows, using estimated current market discount rates for deposits of similar remaining maturities.

•The fair value of long-term borrowings, which include securities sold under agreements to repurchase, advances from FHLB-NY, other borrowings, and subordinated capital notes, is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates.

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Business Segment

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

NOTE 22– BUSINESSSEGMENTS

The Company segregates its businesses into the following major reportable segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Company’s organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. The Company measures the performance of these reportable segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. The Company’s methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodical basis and may change if the conditions warrant.

Banking includes the Bank’s branches and traditional banking products such as deposits and commercial, consumer and mortgage loans. Mortgage banking activities are carried out by the Bank’s mortgage banking division, whose principal activity is to originate mortgage loans for the Company’s own portfolio. As part of its mortgage banking activities, the Company may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities.

Wealth Management is comprised of the Bank’s trust division, Oriental Financial Services, Oriental Insurance, and OPC. The core operations of this segment are financial planning, money management and investment banking, brokerage services, insurance sales activity, corporate and individual trust and retirement services, as well as retirement plan administration services.

The Treasury segment encompasses all of the Company’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices.

Following are the results of operations and the selected financial information by operating segment for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	81,152	$	18	$	10,136	$	91,306	$	-	$	91,306
Interest expense		(6,807)		-		(9,524)		(16,331)		-		(16,331)
Net interest income		74,345		18		612		74,975		-		74,975
Provision for loan and lease losses		(13,789)		-		-		(13,789)		-		(13,789)
Non-interest income (loss)		7,795		6,020		(312)		13,503		-		13,503
Non-interest expenses		(48,249)		(4,484)		(2,124)		(54,857)		-		(54,857)
Intersegment revenue		399		-		100		499		(499)		-
Intersegment expenses		(101)		(291)		(107)		(499)		499		-
Income (loss) before income taxes	$	20,400	$	1,263	$	(1,831)	$	19,832	$	-	$	19,832
Total assets	$	5,814,279	$	23,369	$	1,970,264	$	7,807,912	$	(933,340)	$	6,874,572
	Quarter Ended March 31, 2015
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	97,482	$	23	$	9,496	$	107,001	$	-	$	107,001
Interest expense		(7,454)		-		(9,912)		(17,366)		-		(17,366)
Net interest income		90,028		23		(416)		89,635		-		89,635
Provision for loan and lease losses		(42,193)		-		-		(42,193)		-		(42,193)
Non-interest (loss) income		(2,249)		7,010		2,120		6,881		-		6,881
Non-interest expenses		(49,313)		(4,790)		(2,229)		(56,332)		-		(56,332)
Intersegment revenue		544		-		98		642		(642)		-
Intersegment expenses		(98)		(432)		(112)		(642)		642		-
(Loss) income before income taxes	$	(3,281)	$	1,811	$	(539)	$	(2,009)	$	-	$	(2,009)
Total assets	$	6,302,044	$	21,995	$	1,965,342	$	8,289,381	$	(925,225)	$	7,364,156

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Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

ORGANIZATION, CONSOLIDATION AND BASIS OF PRESENTATION

Nature of Operations

OFG Bancorp (the “Company”) is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. The Company operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer, Oriental Financial Services Corp. (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”) and a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”). Through these subsidiaries and their respective divisions, the Company provides a wide range of banking and financial services such as commercial, consumer and mortgage lending, auto loans, financial planning, insurance sales, money management and investment banking and brokerage services, as well as corporate and individual trust services.

On April 30, 2010, the Bank acquired certain assets and assumed certain deposits and other liabilities of Eurobank, a Puerto Rico commercial bank, in an FDIC-assisted acquisition. On December 18, 2012, the Company acquired a group of Puerto Rico-based entities that included Banco Bilbao VizcayaArgentaria Puerto Rico (“BBVAPR”), a Puerto Rico commercial bank, as well as a securities broker-dealer and an insurance agency, which is referred to herein as the “BBVAPR Acquisition.” The businesses acquired in these acquisitions have been integrated with the Company’s existing business.

		March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment:
Mortgage	$	751,819	$	757,828
Commercial		1,425,385		1,441,649
Consumer		252,327		242,950
Auto and leasing		687,159		669,163
		3,116,690		3,111,590
Allowance for loan and lease losses on originated and other loans and leases		(113,238)		(112,626)
		3,003,452		2,998,964
Deferred loan costs, net		4,350		4,203
Total originated and other loans loans held for investment, net		3,007,802		3,003,167
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		6,558		7,457
Consumer		36,346		38,385
Auto		91,406		106,911
		134,310		152,753
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20		(4,993)		(5,542)
		129,317		147,211
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		600,901		608,294
Commercial		267,931		287,311
Construction		77,858		88,180
Consumer		9,345		11,843
Auto		134,669		153,592
		1,090,704		1,149,220
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30		(27,747)		(25,785)
		1,062,957		1,123,435
Total acquired BBVAPR loans, net		1,192,274		1,270,646
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		91,113		92,273
Commercial and construction		142,298		142,377
Consumer		1,770		2,314
Total acquired Eurobank loans		235,181		236,964
Allowance for loan and lease losses on Eurobank loans		(92,293)		(90,178)
Total acquired Eurobank loans, net		142,888		146,786
Total acquired loans, net		1,335,162		1,417,432
Total held for investment, net		4,342,964		4,420,599
Mortgage loans held-for-sale		17,165		13,614
Total loans, net	$	4,360,129	$	4,434,213

New Accounting Pronouncements Policy [Policy Text Block]

Recent Accounting Developments

Adoption of New Accounting Standards

In December 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update ("ASU") that required a company that issues or invests in a hybrid financial instrument (e.g., a preferred share with a redemption feature, a conversion feature, or both) to determine the nature of the host contract by considering the economic characteristics of the entire instrument, includingthe embedded derivative feature that is being evaluated for separate accounting.Concluding the host contract is debt-like (versus equity-like) may result in substantiallydifferent answers about whether certain features must be accounted for separately.The guidance provides a modified retrospective transition for all existing hybrid financialinstruments in the form of a share, with the option for full retrospective application. For public business entities, the amendments of this update are effective for interim and annual periods beginning after December 15, 2015. This update did not have a material impact on the Company’s financial position, results of operations or cash flows.

Recently Issued but not yet Effective Accounting Standards

ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting - In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies and improves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date of ASU 2016-09 is for interim and annual reporting periods beginning after December 15, 2016. The ASU has not yet been adopted; however, it is not expected to have a material impact on theCompany's consolidated financial position, cash flows or results of operations.

ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting - In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU 2016-07 eliminates the requirement to retroactively adjust an investment, results of operations, and retained earnings once an investment qualifies for use of the equity method. It requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting without retroactive adjustment. The effective date of ASU 2016-07 is for interim and annual reporting periods beginning after December 15, 2016. The ASU has not yet been adopted; however, it is not expected to have a material impact on theCompany's consolidated financial position, cash flows or results of operations.

ASU 2016-02, Leases (Topic 842) - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous Generally Accepted Accounting Principles ("GAAP"). The effective date of ASU 2016-02 is for interim and annual reporting periods beginning after December 15, 2018. The ASU has not yet been adopted. The Company is currently evaluating the impact on our Company’s consolidated financial position, cash flows and results of operations.

ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities - In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The effective date of ASU 2016-01 is for interim and annual reporting periods beginning after December 15, 2017. The ASU has not yet been adopted; however, it is not expected to have a material impact on theCompany's consolidated financial position, cash flows or results of operations.

ASU 2014-09, Revenue from Contracts with Customers - In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. The main provisions of the update require the identification of performance obligations within a contract and require the recognition of revenue based on a stand-alone allocation of contract revenue to each performance obligation. Performance obligations may be satisfied and revenue recognized over a period of time if: (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs, or (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. After a recent one-year deferral of the effective date, the amendments of the update are to be effective for public entities beginning with interim and annual reporting periods beginning after December 15, 2017. Management does not expect the requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows.

Other than the accounting pronouncement disclosed above, there are no other new accounting pronouncements issued during the first quarter of 2016 that could have a material impact on the Company’s financial position, operating results or financials statement disclosures.

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Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2016

Restricted Cash And Investments Abstract

Restricted Cash Components and Its Secured Investments

The following table includes the composition of the Company’s restricted cash

	March 31,		December 31,
	2016		2015
	(In thousands)
Cash pledged as collateral to other financial institutions to secure:
Derivatives	$	1,980	$	1,980
Obligations under agreement of loans sold with recourse		1,369		1,369
	$	3,349	$	3,349

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Investments Securities (Tables)

3 Months Ended

Mar. 31, 2016

Investments [Abstract]

Investment Table Text Block

The amortized cost, gross unrealized gains and losses, fair value, and weighted average yield of the securitiesowned by the Company at March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	431,411	$	13,445	$	-	$	444,856	2.63%
GNMA certificates		79,477		3,220		-		82,697	3.15%
CMOs issued by US government-sponsored agencies		128,957		353		728		128,583	1.86%
Total mortgage-backed securities		639,845		17,018		728		656,136	2.54%
Investment securities
Obligations of US government-sponsored agencies		4,785		51		-		4,837	1.36%
Obligations of Puerto Rico government and public instrumentalities		6,720		-		873		5,847	5.55%
Other debt securities		2,323		142		-		2,465	2.99%
Total investment securities		13,828		193		873		13,149	3.67%
Total securities available for sale	$	653,673	$	17,211	$	1,601	$	669,285	2.56%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates	$	612,012		4,402		81		616,333	2.23%
Investment securities
US Treasury securities		25,024		-		11		25,013	0.49%
Total securities held to maturity		637,036		4,402		92		641,346	2.17%
Total	$	1,290,709	$	21,613	$	1,693	$	1,310,631	2.37%

	December 31, 2015
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	735,363	$	25,791	$	1,509	$	759,645	2.97%
GNMA certificates		57,129		1,366		-		58,495	3.19%
CMOs issued by US government-sponsored agencies		137,787		27		2,741		135,073	1.85%
Total mortgage-backed securities		930,279		27,184		4,250		953,213	2.82%
Investment securities
Obligations of US government-sponsored agencies		5,122		-		29		5,093	1.36%
Obligations of Puerto Rico government and public instrumentalities		17,801		-		4,070		13,731	6.24%
Other debt securities		2,444		128		-		2,572	2.98%
Total investment securities		25,367		128		4,099		21,396	4.94%
Total securities available-for-sale	$	955,646	$	27,312	$	8,349	$	974,609	2.87%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		595,157		426		5,865		589,718	2.24%
Investment securities
US Treasury securities		25,032		-		71		24,961	0.49%
Total securities held to maturity		620,189		426		5,936		614,679	2.17%
Total	$	1,575,835	$	27,738	$	14,285	$	1,589,288	2.60%

The amortized cost and fair value of the Company’s investment securities at March 31, 2016, by contractual maturity, are shown in the next table.

	March 31, 2016
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)				(In thousands)
Mortgage-backed securities
Due from 5 to 10 years
FNMA and FHLMC certificates	$	13,936	$	14,250	$	-	$	-
Total due from 5 to 10 years		13,936		14,250		-		-
Due after 10 years
FNMA and FHLMC certificates		417,475		430,606		612,012		616,333
GNMA certificates		79,477		82,697		-		-
CMOs issued by US government-sponsored agencies		128,957		128,583		-		-
Total due after 10 years		625,909		641,886		612,012		616,333
Total mortgage-backed securities		639,845		656,136		612,012		616,333
Investment securities
Due from 1 to 5 years
US Treasury securities		-		-		25,024		25,013
Obligations of Puerto Rico government and public instrumentalities		6,720		5,847		-		-
Total due from 1 to 5 years		6,720		5,847		25,024		25,013
Due from 5 to 10 years
Obligations of US government and sponsored agencies		4,785		4,837		-		-
Other debt securities		2,323		2,465		-		-
Total due from 5 to 10 years		7,108		7,302		-		-
Total investment securities		13,828		13,149		25,024		25,013
Total securities available-for-sale and held-to-maturity	$	653,673	$	669,285	$	637,036	$	641,346

Realized Gain Loss On Investments Table Text Block

	Quarter Ended March 31, 2016
			Book Value
Description	Sale Price		at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of securities available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	288,194	$	272,081	$	16,113	$	-
Investment securities
Obligations of Puerto Rico government and public instrumentalities		6,978		11,095		-		4,117
Total	$	295,172	$	283,176	$	16,113	$	4,117

	Quarter Ended March 31, 2015
			Book Value
Description	Sale Price		at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of securities available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	40,307	$	37,735	$	2,572	$	-
GNMA certificates		26,768		26,768		-		-
Total	$	67,075	$	64,503	$	2,572	$	-

Unrealized Gain Loss On Investments Table Text Block

The following tables show the Company’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position at

	March 31, 2016
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies	$	83,400	$	728	$	82,672
Obligations of Puerto Rico government and public instrumentalities		6,720		873		5,847
		90,120		1,601		88,519
Securities held to maturity
FNMA and FHLMC certificates		30,309	$	46	$	30,263
	$	120,429	$	1,647	$	118,782
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities held-to-maturity
FNMA and FHLMC certificates		58,589		35		58,554
US Treausury Securities		25,024		11		25,013
	$	83,613	$	46	$	83,567
	Total
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies	$	83,400	$	728	$	82,672
Obligations of Puerto Rico government and public instrumentalities		6,720		873		5,847
		90,120		1,601		88,519
Securities held-to-maturity
FNMA and FHLMC certificates		88,898		81		88,817
US Treasury Securities		25,024		11		25,013
	$	204,042	$	1,693	$	202,349

	December 31, 2015
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
Obligations of Puerto Rico Government and public instrumentalities	$	17,801	$	4,070	$	13,731
CMOs issued by US government-sponsored agencies		103,340		2,410		100,930
	$	121,141	$	6,480	$	114,661
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies		25,736		331		25,405
FNMA and FHLMC certificates		149,480		1,509		147,971
Obligations of US government and sponsored agencies		5,122		29		5,093
Securities held to maturity
FNMA and FHLMC certificates		468,487		5,865		462,622
US Treausury Securities		25,032		71		24,961
	$	673,857	$	7,805	$	666,052
	Total
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities available-for-sale
CMOs issued by US government-sponsored agencies		129,076		2,741		126,335
FNMA and FHLMC certificates		149,480		1,509		147,971
Obligations of Puerto Rico Government and public instrumentalities		17,801		4,070		13,731
Obligations of US government and sponsored agencies		5,122		29		5,093
	$	301,479	$	8,349	$	293,130
Securities held to maturity
FNMA and FHLMC certificates		468,487		5,865		462,622
US Treasury Securities		25,032		71		24,961
	$	794,998	$	14,285	$	780,713

Other Than Temporary Impairment Credit Losses Recognized In Earnings

	Quarter Ended March 31,
	2016		2015
Balance at beginning of period	$	1,490	$	-
Reductions for securities sold during the period (realized)		(1,490)		-
Balance at end of period	$	-	$	-

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Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2016

Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]

Schedule Of Accounts Notes Loans And Financing Receivable Text Block

		March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment:
Mortgage	$	751,819	$	757,828
Commercial		1,425,385		1,441,649
Consumer		252,327		242,950
Auto and leasing		687,159		669,163
		3,116,690		3,111,590
Allowance for loan and lease losses on originated and other loans and leases		(113,238)		(112,626)
		3,003,452		2,998,964
Deferred loan costs, net		4,350		4,203
Total originated and other loans loans held for investment, net		3,007,802		3,003,167
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		6,558		7,457
Consumer		36,346		38,385
Auto		91,406		106,911
		134,310		152,753
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20		(4,993)		(5,542)
		129,317		147,211
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		600,901		608,294
Commercial		267,931		287,311
Construction		77,858		88,180
Consumer		9,345		11,843
Auto		134,669		153,592
		1,090,704		1,149,220
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30		(27,747)		(25,785)
		1,062,957		1,123,435
Total acquired BBVAPR loans, net		1,192,274		1,270,646
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		91,113		92,273
Commercial and construction		142,298		142,377
Consumer		1,770		2,314
Total acquired Eurobank loans		235,181		236,964
Allowance for loan and lease losses on Eurobank loans		(92,293)		(90,178)
Total acquired Eurobank loans, net		142,888		146,786
Total acquired loans, net		1,335,162		1,417,432
Total held for investment, net		4,342,964		4,420,599
Mortgage loans held-for-sale		17,165		13,614
Total loans, net	$	4,360,129	$	4,434,213

Past Due Financing Receivables [Table Text Block]

The following tables present the aging of the recorded investment in gross originated and other loans held for investment as of March 31, 2016 and December 31, 2015 by class ofloans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	82	$	1,218	$	3,208	$	4,508	$	40	$	51,085	$	55,633	$	268
Years 2003 and 2004		388		3,579		5,844		9,811		20		87,458		97,289		-
Year 2005		313		1,893		3,864		6,070		-		47,421		53,491		-
Year 2006		634		1,238		7,212		9,084		233		66,753		76,070		-
Years 2007, 2008 and 2009		282		1,417		14,128		15,827		-		72,650		88,477		705
Years 2010, 2011, 2012, 2013		511		2,015		9,017		11,543		-		136,702		148,245		271
Years 2014, 2015 and 2016		-		444		1,099		1,543		63		91,213		92,819		-
		2,210		11,804		44,372		58,386		356		553,282		612,024		1,244
Non-traditional		-		395		5,014		5,409		12		22,286		27,707		-
Loss mitigation program		10,679		6,537		16,411		33,627		4,580		65,804		104,011		3,422
		12,889		18,736		65,797		97,422		4,948		641,372		743,742		4,666
Home equity secured personal loans		-		-		-		-		-		393		393		-
GNMA's buy-back option program		-		-		7,684		7,684		-		-		7,684		-
Total mortgage		12,889		18,736		73,481		105,106		4,948		641,765		751,819		4,666
Commercial
Commercial secured by real estate:
Corporate		-		-		-		-		-		228,782		228,782		-
Institutional		-		-		-		-		-		27,584		27,584		-
Middle market		-		-		9,498		9,498		2,515		196,890		208,903		-
Retail		644		455		7,088		8,187		2,659		233,174		244,020		-
Floor plan		-		-		-		-		-		2,859		2,859		-
Real estate		-		-		-		-		-		16,372		16,372		-
		644		455		16,586		17,685		5,174		705,661		728,520		-
Other commercial and industrial:
Corporate		-		-		-		-		-		120,881		120,881		-
Institutional		-		-		-		-		186,675		176,580		363,255		-
Middle market		-		-		-		-		1,493		102,295		103,788		-
Retail		260		948		706		1,914		21		72,689		74,624		-
Floor plan		28		18		41		87		-		34,230		34,317		-
		288		966		747		2,001		188,189		506,675		696,865		-
Total commercial		932		1,421		17,333		19,686		193,363		1,212,336		1,425,385		-

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Consumer
Credit cards		387		159		422		968		-		22,397		23,365		-
Overdrafts		17		-		-		17		-		203		220		-
Personal lines of credit		51		49		53		153		3		2,194		2,350		-
Personal loans		2,518		927		1,104		4,549		434		205,240		210,223		-
Cash collateral personal loans		214		19		14		247		-		15,922		16,169		-
Total consumer		3,187		1,154		1,593		5,934		437		245,956		252,327		-
Auto and leasing		53,801		17,203		7,742		78,746		57		608,356		687,159		-
Total	$	70,809	$	38,514	$	100,149	$	209,472	$	198,805	$	2,708,413	$	3,116,690	$	4,666

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	80	$	2,217	$	3,889	$	6,186	$	41	$	51,562	$	57,789	$	144
Years 2003 and 2004		251		5,036		5,536		10,823		-		88,623		99,446		-
Year 2005		79		2,553		3,549		6,181		-		48,040		54,221		-
Year 2006		551		2,878		7,934		11,363		176		66,864		78,403		-
Years 2007, 2008 and 2009		170		2,053		14,733		16,956		-		74,590		91,546		526
Years 2010, 2011, 2012, 2013		662		1,673		10,519		12,854		141		137,749		150,744		72
Years 2014 and 2015		-		65		663		728		-		85,128		85,856		-
		1,793		16,475		46,823		65,091		358		552,556		618,005		742
Non-traditional		-		977		5,079		6,056		13		23,483		29,552		-
Loss mitigation program		9,958		6,887		14,930		31,775		5,593		64,548		101,916		3,083
		11,751		24,339		66,832		102,922		5,964		640,587		749,473		3,825
Home equity secured personal loans		-		-		64		64		-		346		410		-
GNMA's buy-back option program		-		-		7,945		7,945		-		-		7,945		-
Total mortgage		11,751		24,339		74,841		110,931		5,964		640,933		757,828		3,825
Commercial
Commercial secured by real estate:
Corporate		-		-		-		-		-		227,557		227,557		-
Institutional		213		-		-		213		-		33,594		33,807		-
Middle market		1,174		712		9,113		10,999		1,730		194,219		206,948		-
Retail		686		466		6,921		8,073		1,177		231,840		241,090		-
Floor plan		-		-		-		-		-		2,892		2,892		-
Real estate		-		-		-		-		-		16,662		16,662		-
		2,073		1,178		16,034		19,285		2,907		706,764		728,956		-
Other commercial and industrial:
Corporate		-		-		-		-		-		108,582		108,582		-
Institutional		-		-		-		-		190,290		190,695		380,985		-
Middle market		-		-		-		-		1,565		105,748		107,313		-
Retail		282		639		604		1,525		783		75,489		77,797		-
Floor plan		238		51		39		328		-		37,688		38,016		-
		520		690		643		1,853		192,638		518,202		712,693		-
Total commercial		2,593		1,868		16,677		21,138		195,545		1,224,966		1,441,649		-

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Consumer
Credit cards		449		182		369		1,000		-		21,766		22,766		-
Overdrafts		24		-		-		24		-		166		190		-
Personal lines of credit		74		-		45		119		19		2,106		2,244		-
Personal loans		2,078		1,179		627		3,884		414		196,858		201,156		-
Cash collateral personal loans		125		17		2		144		-		16,450		16,594		-
Total consumer		2,750		1,378		1,043		5,171		433		237,346		242,950		-
Auto and leasing		53,566		16,898		8,293		78,757		49		590,357		669,163		-
Total	$	70,660	$	44,483	$	100,854	$	215,997	$	201,991	$	2,693,602	$	3,111,590	$	3,825

The following tables present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as March 31, 2016 and December 31, 2015,by class ofloans:

	March 31, 2016
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate
Retail	$	-	$	-	$	214	$	214	$	-	$	-	$	214	$	-
Floor plan		-		-		457		457		-		2,363		2,820		-
		-		-		671		671		-		2,363		3,034		-
Other commercial and industrial
Retail		68		8		177		253		-		3,264		3,517		-
Floor plan		-		-		7		7		-		-		7		-
		68		8		184		260		-		3,264		3,524		-
		68		8		855		931		-		5,627		6,558		-
Consumer
Credit cards		650		328		779		1,757		-		31,631		33,388		-
Personal loans		37		9		9		55		-		2,903		2,958		-
		687		337		788		1,812		-		34,534		36,346		-
Auto		6,895		2,108		553		9,556		-		81,850		91,406		-
Total	$	7,650	$	2,453	$	2,196	$	12,299	$	-	$	122,011	$	134,310	$	-

	December 31, 2015
															Loans 90+
															Days Past
									Current						Due and
	30-59 Days		60-89 Days		90+ Days		Total Past		in Non-		Current				Still
	Past Due		Past Due		Past Due		Due		Accrual		Accruing		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate
Retail	$	-	$	-	$	228	$	228	$	-	$	-	$	228	$	-
Floor plan		-		-		467		467		-		2,422		2,889		-
		-		-		695		695		-		2,422		3,117		-
Other commercial and industrial
Retail		186		29		178		393		-		3,331		3,724		-
Floor plan		-		-		7		7		-		609		616		-
		186		29		185		400		-		3,940		4,340		-
		186		29		880		1,095		-		6,362		7,457		-
Consumer
Credit cards		930		384		489		1,803		-		33,414		35,217		-
Personal loans		14		29		46		89		-		3,079		3,168		-
		944		413		535		1,892		-		36,493		38,385		-
Auto		7,553		2,279		831		10,663		-		96,248		106,911		-
Total	$	8,683	$	2,721	$	2,246	$	13,650	$	-	$	139,103	$	152,753	$	-

Carrying Amounts Of Acquired Loans Tabular Disclosure [Table Text Block]

The carrying amount corresponding to acquired BBVAPR loans with deteriorated credit quality, including those accounted under ASC 310-30 by analogy, in the statements of financial condition at March 31, 2016 and December 31, 2015 is as follows:

	March 31,	December 31,
	2016	2015
	(In thousands)
Contractual required payments receivable	$1,860,343	$1,945,098
Less: Non-accretable discount	$428,976	$434,190
Cash expected to be collected	1,431,367	1,510,908
Less: Accretable yield	340,663	361,688
Carrying amount, gross	1,090,704	1,149,220
Less: allowance for loan and lease losses	27,747	25,785
Carrying amount, net	$1,062,957	$1,123,435

Accretable Yield for Acquired Loans [Table Text Block]

The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Construction		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	268,794	$	45,411	$	19,615	$	21,578	$	6,290	$	361,688
Accretion		(8,307)		(5,839)		(1,869)		(4,211)		(938)		(21,164)
Change in expected cash flows		-		128		200		1		-		329
Transfer from (to) non-accretable discount		70		402		(790)		219		(91)		(190)
Balance at end of period	$	260,557	$	40,102	$	17,156	$	17,587	$	5,261	$	340,663
Non-Accretable Discount Activity:
Balance at beginning of period	$	374,772	$	11,781	$	6,764	$	22,039	$	18,834	$	434,190
Change in actual and expected cash flows		(4,547)		(663)		(122)		118		(190)		(5,404)
Transfer (to) from accretable yield		(70)		(402)		790		(219)		91		190
Balance at end of period	$	370,155	$	10,716	$	7,432	$	21,938	$	18,735	$	428,976

	Quarter Ended March 31, 2015
	Mortgage		Commercial		Construction		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	298,364	$	61,196	$	25,829	$	53,998	$	6,559	$	445,946
Accretion		(8,987)		(10,759)		(3,810)		(6,988)		(926)		(31,470)
Transfer (to) from non-accretable discount		(4,765)		6,893		(2,629)		87		(32)		(446)
Balance at end of period	$	284,612	$	57,330	$	19,390	$	47,097	$	5,601	$	414,030
Non-Accretable Discount Activity:
Balance at beginning of period	$	389,839	$	23,069	$	3,486	$	16,215	$	24,018	$	456,627
Change in actual and expected cash flows		(1,995)		(350)		(2,158)		(1,585)		(474)		(6,562)
Transfer from (to) accretable yield		4,765		(6,893)		2,629		(87)		32		446
Balance at end of period	$	392,609	$	15,826	$	3,957	$	14,543	$	23,576	$	450,511

Eurobank loans carrying amount [Table Text Block]

Acquired Eurobank Loans

The carrying amount of acquired Eurobank loans at March 31, 2016 and December 31, 2015 is as follows:

		March 31		December 31
	2016		2015
	(In thousands)
Contractual required payments receivable	$	334,111	$	342,511
Less: Non-accretable discount		12,703		21,156
Cash expected to be collected		321,408		321,355
Less: Accretable yield		86,227		84,391
Carrying amount, gross		235,181		236,964
Less: Allowance for loan and lease losses		92,293		90,178
Carrying amount, net	$	142,888	$	146,786

Accretable Yield for Acquired Eurobank Loans [Table Text Block]

The following tables describe the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Loans Secured by 1-4 Family Residential Properties		Commercial and Other Construction		Construction & Development Secured by 1-4 Family Residential Properties		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	51,954	$	26,970	$	2,255	$	3,213	$	84,392
Accretion		(2,266)		(4,095)		(14)		(1,185)		(7,560)
Change in expected cash flows		984		11,093		(23)		(2,028)		10,026
Transfer from (to) non-accretable discount		115		(765)		19		-		(631)
Balance at end of period	$	50,787	$	33,203	$	2,237	$	-	$	86,227
Non-Accretable Discount Activity:
Balance at beginning of period	$	12,869	$	-	$	-	$	8,287	$	21,156
Change in actual and expected cash flows		(51)		(765)		19		(8,287)		(9,084)
Transfer (to) from accretable yield		(115)		765		(19)		-		631
Balance at end of period	$	12,703	$	-	$	-	$	-	$	12,703

	Quarter Ended March 31, 2015
	Loans Secured by 1-4 Family Residential Properties		Commercial and Other Construction		Construction & Development Secured by 1-4 Family Residential Properties		Leasing		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	47,636	$	37,919	$	20,753	$	2,479	$	1,072	$	109,859
Accretion		(3,518)		(9,855)		(619)		(1,392)		(120)		(15,504)
Transfer from non-accretable discount		14,214		5,417		672		578		1,052		21,933
Balance at end of period	$	58,332	$	33,481	$	20,806	$	1,665	$	2,004	$	116,288
Non-Accretable Discount Activity:
Balance at beginning of period	$	27,348	$	24,464	$	-	$	-	$	10,598	$	62,410
Change in actual and expected cash flows		(577)		(8,554)		672		578		116		(7,765)
Transfer to accretable yield		(14,214)		(5,417)		(672)		(578)		(1,052)		(21,933)
Balance at end of period	$	12,557	$	10,493	$	-	$	-	$	9,662	$	32,712

Financing Receivable Recorded Investment Nonaccrual Status By Class Of Loans [Table Text Block]

Non-accrual Loans

The following table presents the recorded investment in loans in non-accrual status by class ofloans as of March 31, 2016 and December 31, 2015:

	March 31,		December 31,
	2016		2015
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year):
Up to the year 2002	$	3,051	$	3,786
Years 2003 and 2004		5,958		5,737
Year 2005		3,941		3,627
Year 2006		7,532		8,189
Years 2007, 2008 and 2009		13,742		14,625
Years 2010, 2011, 2012, 2013		9,056		10,588
Years 2014, 2015 and 2016		1,162		663
		44,442		47,215
Non-traditional		5,055		5,092
Loss mitigation program		19,630		20,172
		69,127		72,479
Home equity loans, secured personal loans		-		64
		69,127		72,543
Commercial
Commercial secured by real estate
Middle market		12,012		12,729
Retail		10,597		8,726
		22,609		21,455
Other commercial and industrial
Institutional		186,675		190,290
Middle market		1,493		1,565
Retail		1,527		1,932
Floor plan		41		39
		189,736		193,826
		212,345		215,281
Consumer
Credit cards		422		369
Personal lines of credit		64		100
Personal loans		1,539		1,146
Cash collateral personal loans		14		16
		2,039		1,631
Auto and leasing		7,873		8,418
Total non-accrual originated loans	$	291,384	$	297,873

	March 31,		December 31,
	2016		2015
	(In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20
Commercial
Commercial secured by real estate
Retail	$	214	$	228
Floor plan		456		467
		670		695
Other commercial and industrial
Retail		177		178
Floor plan		7		7
		184		185
		854		880
Consumer
Credit cards		779		489
Personal loans		9		46
		788		535
Auto		572		831
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20		2,214		2,246
Total non-accrual loans	$	293,598	$	300,119

Impaired Financing Receivables [Table Text Block]

Originated and Other Loans and Leases Held for Investment

The Company’s recorded investment in commercial and mortgage loans categorized as originated and other loans and leases held for investment that were individually evaluated for impairment and the related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	211,543	$	196,997	$	56,580	29%
Residential impaired and troubled-debt restructuring		98,610		90,772		9,135	10%
Impaired loans with no specific allowance:
Commercial		37,034		29,656		-	0%
Total investment in impaired loans	$	347,187	$	317,425	$	65,715	21%

	December 31, 2015
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	210,718	$	199,366	$	55,947	29%
Residential impaired and troubled-debt restructuring		97,424		89,973		9,233	10%
Impaired loans with no specific allowance
Commercial		42,110		35,928		-	0%
Total investment in impaired loans	$	350,252	$	325,267	$	65,180	21%

Acquired BBVAPR Loans

Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

The Company’s recorded investment inacquired BBVAPR commercial loans accounted for under ASC 310-20 that were individually evaluated for impairment and the related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with no specific allowance
Commercial	$	478	$	464	$	-	0%
Total investment in impaired loans	$	478	$	464	$	-	0%
	December 31, 2015
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with no specific allowance
Commercial	$	486	$	474	$	-	0%
Total investment in impaired loans	$	486	$	474	$	-	0%

Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

The Company’s recorded investment in acquired BBVAPR loan pools accounted for under ASC 310-30 that have recorded impairments and their related allowance for loan and lease losses at March 31, 2016 and December 31, 2015 are as follows

	March 31, 2016
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	600,901	$	600,901	$	1,762	0%
Commercial		267,931		164,913		15,668	10%
Construction		77,619		77,619		4,762	6%
Auto		134,669		134,669		5,555	4%
Total investment in impaired loan pools	$	1,081,120	$	978,102	$	27,747	3%

	December 31 , 2015
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	608,294	$	608,294	$	1,762	0%
Commercial		287,311		168,107		15,454	9%
Construction		88,180		87,983		5,707	6%
Auto		153,592		153,592		2,862	2%
Total investment in impaired loan pools	$	1,137,377	$	1,017,976	$	25,785	3%

Acquired Eurobank Loans

The Company’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their related allowance for loan and lease losses as ofMarch 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Loans secured by 1-4 family residential properties	$	96,028	$	91,113	$	23,961	26%
Commercial and construction		130,042		142,298		68,089	48%
Consumer		1,708		1,770		243	14%
Total investment in impaired loan pools	$	227,778	$	235,181	$	92,293	39%

	December 31, 2015
							Coverage
	Unpaid		Recorded		Specific		to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	101,444	$	92,273	$	22,570	24%
Commercial and construction		133,148		142,377		67,365	47%
Consumer		6,713		2,314		243	11%
Total investment in impaired loan pools	$	241,305	$	236,964	$	90,178	38%

Impaired Financing Receivables Loans, excluding ASC 310-30 [Table Text Block]

The tables above only present information with respect to acquired Eurobank loans and loan pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses.

The following table presents the interest recognized in commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30 for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016				2015
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
	(In thousands)
Originated and other loans held for investment:
Impaired loans with specific allowance
Commercial	$	71	$	196,795	$	3,695	$	79,873
Residential troubled-debt restructuring		798		90,292		733		93,391
Impaired loans with no specific allowance
Commercial		270		33,626		241		161,568
		1,139		320,713		4,669		334,832
Acquired loans accounted for under ASC 310-20:
Impaired loans with no specific allowance
Commercial		-		467		12		2,401
Total interest income from impaired loans	$	1,139	$	321,180	$	4,681	$	337,233

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

Modifications

The following tables present the troubled-debt restructurings during the

	Quarter Ended March 31, 2016
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	33	$	3,957	6.03%	361	$	4,854	4.83%	493
Commercial	2		655	6.81%	41		656	6.71%	36
Consumer	21		192	14.28%	75		231	11.15%	72
	Quarter Ended March 31, 2015
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	51	$	6,182	4.00%	356	$	6,054	4.02%	357
Commercial	3		4,505	6.83%	80		4,505	7.00%	141
Consumer	11		146	14.67%	75		182	14.80%	66

The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month periods ended March 31, 2016 and 2015:

	Twelve Month Period Ended March 31,
	2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Mortgage	31	$	3,732	60	$	6,963
Consumer	3	$	77	6	$	81
Auto	1	$	17	-	$	-

Financing Receivable Credit Quality Indicators [Table Text Block]

As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of gross originated and other loans and BBVAPR acquired loans accounted for under ASC 310-20 subject to risk rating by class of loans is as follows:

	March 31, 2016
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate:
Corporate	$	228,782	$	213,714	$	15,068	$	-	$	-	$	-
Institutional		27,584		25,779		-		-		-		1,805
Middle market		208,903		180,248		14,078		189		-		14,388
Retail		244,020		219,150		7,592		5,069		-		12,209
Floor plan		2,859		2,859		-		-		-		-
Real estate		16,372		16,372		-		-		-		-
		728,520		658,122		36,738		5,258		-		28,402
Other commercial and industrial:
Corporate		120,881		113,235		-		-		-		7,646
Institutional		363,255		176,580		-		-		-		186,675
Middle market		103,788		92,896		8,787		218		-		1,887
Retail		74,624		69,644		1,749		1,227		-		2,004
Floor plan		34,317		34,195		-		83		-		39
		696,865		486,550		10,536		1,528		-		198,251
Total		1,425,385		1,144,672		47,274		6,786		-		226,653
Commercial - acquired loans (under ASC 310-20)
Commercial secured by real estate:
Retail		214		-		-		214		-		-
Floor plan		2,820		574		1,789		-		-		457
		3,034		574		1,789		214		-		457
Other commercial and industrial:
Retail		3,517		3,444		-		73		-		-
Floor plan		7		-		-		-		-		7
		3,524		3,444		-		73		-		7
Total		6,558		4,018		1,789		287		-		464
Total	$	1,431,943	$	1,148,690	$	49,063	$	7,073	$	-	$	227,117

	December 31, 2015
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate:
Corporate	$	227,557	$	212,410	$	15,147	$	-	$	-	$	-
Institutional		33,807		25,907		-		-		-		7,900
Middle market		206,948		181,916		9,697		-		-		15,335
Retail		241,090		217,836		7,936		5,097		-		10,221
Floor plan		2,892		2,892		-		-		-		-
Real estate		16,662		16,662		-		-		-		-
		728,956		657,623		32,780		5,097		-		33,456
Other commercial and industrial:
Corporate		108,582		100,826		-		-		-		7,756
Institutional		380,985		190,695		-		-		-		190,290
Middle market		107,313		97,288		8,052		-		-		1,973
Retail		77,797		73,757		1,076		1,184		-		1,780
Floor plan		38,016		35,862		2,115		-		-		39
		712,693		498,428		11,243		1,184		-		201,838
Total		1,441,649		1,156,051		44,023		6,281		-		235,294
Commercial - acquired loans (under ASC 310-20)
Commercial secured by real estate:
Retail		228		-		-		228		-		-
Floor plan		2,889		602		1,820		-		-		467
		3,117		602		1,820		228		-		467
Other commercial and industrial:
Retail		3,724		3,637		-		87		-		-
Floor plan		616		609		-		-		-		7
		4,340		4,246		-		87		-		7
Total		7,457		4,848		1,820		315		-		474
Total	$	1,449,106	$	1,160,899	$	45,843	$	6,596	$	-	$	235,768

For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of gross originated and other loans and acquiredBBVAPR loans accounted for under ASC 310-20 not subject to risk rating by class of loans is as follows:

	March 31, 2016
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year)
Up to the year 2002	$	55,633	$	50,439	$	82	$	1,219	$	629	$	1,352	$	1,229	$	683
Years 2003 and 2004		97,289		85,896		388		3,580		1,681		1,552		2,444		1,748
Year 2005		53,491		46,578		314		1,893		315		1,412		2,140		839
Year 2006		76,070		63,614		402		1,238		816		1,620		4,775		3,605
Years 2007, 2008 and 2009		88,477		69,491		282		1,420		997		2,909		9,617		3,761
Years 2010, 2011, 2012 2013		148,245		134,179		452		1,819		69		1,777		5,866		4,083
Years 2014, 2015 and 2016		92,819		91,277		-		444		639		225		234		-
		612,024		541,474		1,920		11,613		5,146		10,847		26,305		14,719
Non-traditional		27,707		22,299		-		395		128		2,337		2,548		-
Loss mitigation program		104,011		17,800		2,890		1,953		669		1,498		3,148		76,053
		743,742		581,573		4,810		13,961		5,943		14,682		32,001		90,772
Home equity secured personal loans		393		393		-		-		-		-		-		-
GNMA's buy-back option program		7,684		-		-		-		805		3,730		3,149		-
		751,819		581,966		4,810		13,961		6,748		18,412		35,150		90,772
Consumer
Credit cards		23,365		22,403		387		153		192		230		-		-
Overdrafts		220		203		17		-		-		-		-		-
Unsecured personal lines of credit		2,350		2,197		51		49		22		31		-		-
Unsecured personal loans		210,223		205,756		2,458		920		1,082		7		-		-
Cash collateral personal loans		16,169		15,922		214		19		14		-		-		-
		252,327		246,481		3,127		1,141		1,310		268		-		-
Auto and Leasing		687,159		608,442		53,801		17,203		5,572		2,141		-		-
		1,691,305		1,436,889		61,738		32,305		13,630		20,821		35,150		90,772
Acquired loans (accounted for under ASC 310-20)
Consumer
Credit cards		33,388		31,631		650		328		287		492		-		-
Personal loans		2,959		2,903		37		9		-		10		-		-
		36,346		34,534		687		337		287		502		-		-
Auto		91,406		81,849		6,895		2,108		342		212		-		-
		127,752		116,383		7,582		2,445		629		714		-		-
Total	$	1,819,057	$	1,553,272	$	69,320	$	34,750	$	14,259	$	21,535	$	35,150	$	90,772

	December 31, 2015
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Originated and other loans and leases held for investment
Mortgage
Traditional (by origination year)
Up to the year 2002	$	57,789	$	50,912	$	82	$	2,218	$	530	$	1,504	$	1,858	$	685
Years 2003 and 2004		99,446		87,060		251		4,867		1,261		1,353		2,921		1,733
Year 2005		54,221		47,197		79		2,553		292		1,068		2,189		843
Year 2006		78,403		63,659		318		2,878		1,168		1,895		4,871		3,614
Years 2007, 2008 and 2009		91,546		71,439		170		1,665		685		2,972		10,725		3,890
Years 2010, 2011, 2012 2013		150,744		134,945		569		1,611		434		1,982		6,737		4,466
Year 2014 and 2015		85,856		85,128		-		65		148		281		234		-
		618,005		540,340		1,469		15,857		4,518		11,055		29,535		15,231
Non-traditional		29,552		23,497		-		977		552		2,621		1,905		-
Loss mitigation program		101,916		16,031		4,173		1,977		727		1,728		2,538		74,742
		749,473		579,868		5,642		18,811		5,797		15,404		33,978		89,973
Home equity secured personal loans		410		346		-		-		-		64		-		-
GNMA's buy-back option program		7,945		-		-		-		1,593		3,578		2,774		-
		757,828		580,214		5,642		18,811		7,390		19,046		36,752		89,973
Consumer
Credit cards		22,766		21,766		449		182		179		190		-		-
Overdrafts		190		166		24		-		-		-		-		-
Unsecured personal lines of credit		2,244		2,125		74		-		17		28		-		-
Unsecured personal loans		201,156		197,339		2,083		1,107		621		6		-		-
Cash collateral personal loans		16,594		16,450		125		17		2		-		-		-
		242,950		237,846		2,755		1,306		819		224		-		-
Auto and Leasing		669,163		590,482		53,549		16,839		5,708		2,585		-		-
		1,669,941		1,408,542		61,946		36,956		13,917		21,855		36,752		89,973
Acquired loans (accounted for under ASC 310-20)
Consumer
Credit cards		35,217		33,414		930		384		186		303		-		-
Personal loans		3,168		3,079		14		29		1		45		-		-
		38,385		36,493		944		413		187		348		-		-
Auto		106,911		96,247		7,553		2,279		623		209		-		-
		145,296		132,740		8,497		2,692		810		557		-		-
Total	$	1,815,237	$	1,541,282	$	70,443	$	39,648	$	14,727	$	22,412	$	36,752	$	89,973

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Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2016

Loans Receivable [Abstract]

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The composition of the Company’s allowance for loan and lease losses at March 31, 2016 and December 31, 2015was as follows:

	March 31,		December 31,
	2016		2015
	(In thousands)
Allowance for loans and lease losses on non-acquired loans:
Originated and other loans and leases held for investment:
Mortgage	$	18,784	$	18,352
Commercial		64,206		64,791
Consumer		11,414		11,197
Auto and leasing		18,716		18,261
Unallocated		118		25
Total allowance for originated and other loans and lease losses		113,238		112,626
Acquired loans:
Acquired BBVAPR loans:
Accounted for under ASC 310-20 (Loans with revolving feature and/or
acquired at a premium)
Commercial		23		26
Consumer		3,243		3,429
Auto		1,727		2,087
		4,993		5,542
Accounted for under ASC 310-30 (Loans acquired with deteriorated
credit quality, including those by analogy)
Mortgage		1,762		1,762
Commercial		20,430		21,161
Auto		5,555		2,862
		27,747		25,785
Total allowance for acquired BBVAPR loans and lease losses		145,978		143,953
Acquired Eurobank loans:
Loans secured by 1-4 family residential properties		34,014		32,624
Commercial and other construction		58,043		57,187
Consumer		236		367
Total allowance for acquired Eurobank loan and lease losses		92,293		90,178
Total allowance for loan and lease losses	$	238,271	$	234,131

Allowance for Originated and Other Loan and Lease Losses Held for Investment

The following tables presents the activity in our allowance for loan and lease losses and the related recorded investment of the originated and other loans held for investment portfolio by segment for the periods indicated:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for originated and other loans:
Balance at beginning of period	$	18,352	$	64,791	$	11,197	$	18,261	$	25	$	112,626
Charge-offs		(1,662)		(1,011)		(2,327)		(8,362)		-		(13,362)
Recoveries		145		88		102		2,979		-		3,314
Provision for originated and other loans and lease losses		1,949		338		2,442		5,838		93		10,660
Balance at end of period	$	18,784	$	64,206	$	11,414	$	18,716	$	118	$	113,238

	March 31, 2016
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses on originated and other loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,135	$	56,580	$	-	$	-	$	-	$	65,715
Collectively evaluated for impairment		9,649		7,626		11,414		18,716		118		47,523
Total ending allowance balance	$	18,784	$	64,206	$	11,414	$	18,716	$	118	$	113,238
Loans:
Individually evaluated for impairment	$	90,772	$	226,653	$	-	$	-	$	-	$	317,425
Collectively evaluated for impairment		661,047		1,198,732		252,327		687,159		-		2,799,265
Total ending loan balance	$	751,819	$	1,425,385	$	252,327	$	687,159	$	-	$	3,116,690

	Quarter Ended March 31, 2015
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for originated and other loans:
Balance at beginning of period	$	19,679	$	8,432	$	9,072	$	14,255	$	1	$	51,439
Charge-offs		(1,414)		(992)		(1,676)		(8,136)		-		(12,218)
Recoveries		-		89		153		3,384		-		3,626
Provision (recapture) for originated and other loans and lease losses		(179)		25,594		1,856		6,259		382		33,912
Balance at end of period	$	18,086	$	33,123	$	9,405	$	15,762	$	383	$	76,759

	December 31, 2015
	Mortgage		Commercial		Consumer		Auto and Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses on originated and other loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,233	$	55,947	$	-	$	-	$	-	$	65,180
Collectively evaluated for impairment		9,119		8,844		11,197		18,261		25		47,446
Total ending allowance balance	$	18,352	$	64,791	$	11,197	$	18,261	$	25	$	112,626
Loans:
Individually evaluated for impairment	$	89,973	$	235,294	$	-	$	-	$	-	$	325,267
Collectively evaluated for impairment		667,855		1,206,355		242,950		669,163		-		2,786,323
Total ending loan balance	$	757,828	$	1,441,649	$	242,950	$	669,163	$	-	$	3,111,590

Allowance for BBVAPR Acquired Loan Losses

Loans accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

The following tables present the activity in our allowance for loan losses and related recorded investment of the associated loans in our BBVAPR acquired loan portfolio, excluding loans accounted for under ASC 310-30, for the periods indicated

	Quarter Ended March 31, 2016
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Balance at beginning of period	$	26	$	3,429	$	2,087	$	-	$	5,542
Charge-offs		(7)		(812)		(737)		-		(1,556)
Recoveries		32		81		598		-		711
Provision (recapture) for acquired BBVAPR loan and lease losses accounted for under ASC 310-20		(28)		545		(221)		-		296
Balance at end of period	$	23	$	3,243	$	1,727	$	-	$	4,993

	March 31, 2016
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	$	23	$	3,243	$	1,727	$	-	$	4,993
Total ending allowance balance	$	23	$	3,243	$	1,727	$	-	$	4,993
Loans:
Individually evaluated for impairment	$	464	$	-	$	-	$	-	$	464
Collectively evaluated for impairment		6,094		36,346		91,406		-		133,846
Total ending loan balance	$	6,558	$	36,346	$	91,406	$	-	$	134,310

	Quarter Ended March 31, 2015
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Balance at beginning of period	$	65	$	1,211	$	3,321	$	-	$	4,597
Charge-offs		-		(1,380)		(1,267)		-		(2,647)
Recoveries		9		134		570		-		713
Provision (recapture) for acquired loan and lease losses accounted for under ASC 310-20		(25)		1,920		892		-		2,787
Balance at end of period	$	49	$	1,885	$	3,516	$	-	$	5,450

	December 31, 2015
	Commercial		Consumer		Auto		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-20:
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	$	26	$	3,429	$	2,087	$	-	$	5,542
Total ending allowance balance	$	26	$	3,429	$	2,087	$	-	$	5,542
Loans:
Individually evaluated for impairment	$	474	$	-	$	-	$	-	$	474
Collectively evaluated for impairment		6,983		38,385		106,911		-		152,279
Total ending loan balance	$	7,457	$	38,385	$	106,911	$	-	$	152,753

The following tables present the activity in our allowance for loan losses and related recorded investment of the acquired BBVAPR loan portfolio accounted for under ASC 310-30, for the periods indicated:

	Quarter Ended March 31, 2016
	Mortgage		Commercial		Consumer		Auto		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-30:
Balance at beginning of period	$	1,678	$	21,245	$	-	$	2,862	$	25,785
Provision (recapture) for BBVAPR loans and lease losses accounted for under ASC 310-30		84		(749)		-		2,693		2,028
Loan pools fully charged-off		-		(66)		-		-		(66)
Balance at end of period	$	1,762	$	20,430	$	-	$	5,555	$	27,747
	Quarter Ended March 31, 2015
	Mortgage		Commercial		Consumer		Auto		Total
	(In thousands)
Allowance for loan and lease losses for acquired BBVAPR loans accounted for under ASC 310-30:
Balance at beginning of period	$	-	$	13,476	$	-	$	5	$	13,481
Provision for BBVAPR loans and lease losses accounted for under ASC 310-30		-		211		-		474		685
Balance at end of period	$	-	$	13,687	$	-	$	479	$	14,166

The changes in the allowance for loan and lease losses on acquired Eurobank loansfor the quarters ended March 31, 2016 and 2015 were as follows:

	Quarter Ended March 31, 2016
	Loans Secured by 1-4 Family Residential Properties		Commercial and Construction		Consumer		Leasing		Total
	(In thousands)
Allowance for loan and lease losses for acquired Eurobank loans:
Balance at beginning of period	$	22,570	$	67,365	$	243	$	-	$	90,178
Provision (recapture) for acquired Eurobank loans and lease losses, net		(53)		858		-		-		805
Loan pools fully charged-off		-		(134)		-		-		(134)
FDIC shared-loss portion of provision for covered loan and lease losses, net		1,444		-		-		-		1,444
Balance at end of period	$	23,961	$	68,089	$	243	$	-	$	92,293

	Quarter Ended March 31, 2015
	Mortgage		Commercial and Construction		Consumer		Leasing		Total
	(In thousands)
Allowance for loan and lease losses for acquired Eurobank loans:
Balance at beginning of period	$	15,522	$	48,334	$	389	$	-	$	64,245
Provision for covered loan and lease losses, net		1,818		2,991		-		-		4,809
FDIC shared-loss portion of provision for covered loan and lease losses, net		-		1,597		-		-		1,597
Balance at end of period	$	17,340	$	52,922	$	389	$	-	$	70,651

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FDIC Indemnification, True-up Payment Obligation and FDIC shared-loss expense (Tables)

3 Months Ended

Mar. 31, 2016

Banking and Thrift [Abstract]

FDIC Indemnification Asset and True-Up Payment Obligation Roll Forward

The following table presents the activity in the FDIC indemnification asset and true-up payment obligation for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset:
Balance at beginning of period	$	22,599	$	97,378
Shared-loss agreements reimbursements from the FDIC		(406)		(17,172)
Increase in expected credit losses to be covered under shared-loss agreements, net		1,444		1,597
FDIC indemnification asset expense		(2,865)		(12,221)
Incurred expenses to be reimbursed under shared-loss agreements		151		5,639
Balance at end of period	$	20,923	$	75,221
True-up payment obligation:
Balance at beginning of period	$	24,658	$	21,981
Change in true-up payment obligation		577		863
Balance at end of period	$	25,235	$	22,844

Schedule Of Business Acquisitions By Acquisition Contingent Consideration Text Block

		March 31,		December 31,
	2016		2015
	(In thousands)
Carrying amount (fair value)	$	25,235	$	24,658
Undiscounted amount	$	34,966	$	34,956

	Quarter Ended March 31,
	2016		2015
	(In thousands)
FDIC indemnification asset expense	$	2,865	$	12,221
Change in true-up payment obligation		577		863
Reimbursement to FDIC for recoveries		587		-
Total FDIC shared-loss expense, net	$	4,029	$	13,084

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Servicing Assets (Tables)

3 Months Ended

Mar. 31, 2016

TransfersAndServicingOfFinancialAssetsAbstract

ScheduleOfServicingAssetsAtFairValueTextBlock

The following table presents the changes in servicing rights measured using the fair value method for the quarters ended March 31, 2016 and 2015:

		Quarter Ended March 31,
		2016	2015
		(In thousands)
Fair value at beginning of period	$	7,455	$	13,992
Servicing from mortgage securitizations or asset transfers		557		531
Changes due to payments on loans		(104)		(418)
Changes in fair value due to changes in valuation model inputs or assumptions		(89)		(59)
Changes in fair value due to changes sales price of mortgage servicing rights held-for-sale inputs or assumptions		-		(1,882)
Fair value at end of period	$	7,819	$	12,164

ScheduleOfAssumptionsForFairValueOnSecuritizationDateOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016	2015
Constant prepayment rate	4.43% - 12.17%	4.51% - 11.39%
Discount rate	10.00% - 12.00%	10.00% - 12.00%

ScheduleOfSensitivityAnalysisOfFairValueOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adversechanges in the above key assumptions were as follows:

	March 31, 2016
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	7,819
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(197)
Decrease in fair value due to 20% adverse change	$	(385)
Discount rate
Decrease in fair value due to 10% adverse change	$	(22)
Decrease in fair value due to 20% adverse change	$	(43)

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Derivative Activities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instrument Detail [Abstract]

Schedule Of Derivative Instruments Text Block

The following table presents the Company’s derivative assets and liabilities at March 31, 2016 and December 31, 2015:

	March 31,		December 31,
	2016		2015
	(In thousands)
Derivative assets:
Options tied to S&P 500 Index	$	772	$	1,170
Interest rate swaps not designated as hedges		1,829		1,819
Interest rate caps		61		32
Other		-		4
	$	2,662	$	3,025
Derivative liabilities:
Interest rate swaps designated as cash flow hedges		4,318		4,307
Interest rate swaps not designated as hedges		1,829		1,819
Interest rate caps		61		32
Other		12		4
	$	6,220	$	6,162

The following table shows a summary of these swaps and their terms at March 31, 2016:

	Notional		Fixed	Variable	Trade	Settlement	Maturity
Type	Amount		Rate	Rate Index	Date	Date	Date
	(In thousands)
Interest Rate Swaps	$	25,000	2.4365%	1-Month LIBOR	05/05/11	05/04/12	05/04/16
		25,000	2.6200%	1-Month LIBOR	05/05/11	07/24/12	07/24/16
		25,000	2.6350%	1-Month LIBOR	05/05/11	07/30/12	07/30/16
		50,000	2.6590%	1-Month LIBOR	05/05/11	08/10/12	08/10/16
		100,000	2.6750%	1-Month LIBOR	05/05/11	08/16/12	08/16/16
		37,638	2.4210%	1-Month LIBOR	07/03/13	07/03/13	08/01/23
	$	262,638

	Notional		Fixed	Variable	Settlement	Maturity
Type	Amount		Rate	Rate Index	Date	Date
	(In thousands)
Interest Rate Swaps - Derivatives Offered to Clients	$	3,728	5.1300%	1-Month LIBOR	07/03/06	07/03/16
		12,500	5.5050%	1-Month LIBOR	04/11/09	04/11/19
	$	16,228
Interest Rate Swaps - Mirror Image Derivatives	$	3,728	5.1300%	1-Month LIBOR	07/03/06	07/03/16
		12,500	5.5050%	1-Month LIBOR	04/11/09	04/11/19
	$	16,228

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2016

Other asset

Schedule of Accrued interest receivable [Table Text Block]

	March 31,		December 31,
	2016		2015
	(In thousands)
Loans, excluding acquired loans	$	14,829	$	16,020
Investments		3,563		4,617
	$	18,392	$	20,637

Schedule of Other Assets [Table Text Block]

Other assets atMarch 31, 2016 and December 31, 2015 consist of the following

	March 31,		December 31,
	2016		2015
	(In thousands)
Prepaid expenses		10,363		11,762
Other repossessed assets		4,408		6,226
Core deposit and customer relationship intangibles		7,418		7,838
Mortgage tax credits		6,277		6,277
Investment in Statutory Trust		1,083		1,083
Accounts receivable and other assets		44,781		42,786
	$	74,330	$	75,972

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Deposits and Related Interest (Tables)

3 Months Ended

Mar. 31, 2016

Deposits, by Component, Alternative [Abstract]

Deposits By Component [Table Text Block]

Total deposits, including related accrued interest payable, as of March 31, 2016 and December 31, 2015 consist of the following:

		March 31,		December 31,
	2016		2015
	(In thousands)
Non-interest bearing demand deposits	$	816,887	$	762,009
Interest-bearing savings and demand deposits		2,311,926		2,208,180
Individual retirement accounts		266,161		268,799
Retail certificates of deposit		491,072		441,998
Institutional certificates of deposit		205,541		253,791
Total core deposits		4,091,587		3,934,777
Brokered deposits		688,106		782,974
Total deposits	$	4,779,693	$	4,717,751

Interest Expense Domestic Deposit Liabilities [Table Text Block]

Interest expense for the quarters ended March 31, 2016 and 2015 was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Demand and savings deposits	$	2,842	$	3,382
Certificates of deposit		4,282		3,722
	$	7,124	$	7,104

Maturities Of Time Deposits [Table Text Block]

Excluding equity indexed options in the amount of $746thousand, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.7million and unamortized deposit discount in the amount of $234 thousand, the scheduled maturities of certificates of deposit at March 31, 2016 and December 31, 2015are as follows:

	March 31, 2016		December 31, 205
	(In thousands)
Within one year:
Three (3) months or less	$	342,072	$	474,051
Over 3 months through 1 year		451,919		501,551
		793,991		975,602
Over 1 through 2 years		489,143		454,906
Over 2 through 3 years		222,568		176,406
Over 3 through 4 years		36,253		32,396
Over 4 through 5 years		35,824		33,715
	$	1,577,779	$	1,673,025

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Borrowings (Tables)

3 Months Ended

Mar. 31, 2016

Debt Instruments [Abstract]

Schedule Of Repurchase Agreement Counterparty [Table Text Block]

At March 31, 2016 and December 31, 2015, securities sold under agreements to repurchase (classified by counterparty), excluding accrued interest in the amount of $1.7million and $2.2million,respectively,were as follows:

	March 31,				December 31,
	2016				2015
			Fair Value of				Fair Value of
	Borrowing		Underlying		Borrowing		Underlying
	Balance		Collateral		Balance		Collateral
	(In thousands)
JP Morgan Chase Bank NA		232,500		252,402		262,500		283,483
Credit Suisse Securities (USA) LLC		402,000		439,538		670,000		737,887
Total	$	634,500	$	691,940	$	932,500	$	1,021,370

Schedule of Repurchase Agreement by Maturity [Table text Block]

The following table shows a summary of the Company’s repurchase agreements and their terms, excluding accrued interest in the amount of $1.7 million, at March 31, 2016:

			Weighted-
	Borrowing		Average		Maturity
Year of Maturity	Balance		Coupon	Settlement Date	Date
	(In thousands)
2016		170,000	1.500%	12/6/2012	12/8/2016
2017		232,000	4.780%	3/2/2007	3/2/2017
2018		232,500	1.420%	12/10/2012	4/29/2018
	$	634,500	2.670%

Schedule of Repurchase Agreements [Table]

	March 31, 2016
					Market Value of Underlying Collateral
			Weighted		FNMA and					US Treasury
	Repurchase		Average		FHLMC		GNMA			Treasury
	Liability		Rate		Certificates		Certificates			Notes	Total
	(Dollars in thousands)
Over 90 days		634,500		2.67%		665,206		1,721		25,013		691,940
Total	$	634,500		2.67%	$	665,206	$	1,721	$	25,013	$	691,940
	December 31, 2015
					Market Value of Underlying Collateral
			Weighted		FNMA and					US Treasury
	Repurchase		Average		FHLMC		GNMA			Treasury
	Liability		Rate		Certificates		Certificates			Notes	Total
	(Dollars in thousands)
Less than 90 days		30,000		0.70%		31,961		-		-		31,961
Over 90 days		902,500		3.18%		974,698		2,131		12,580		989,409
Total	$	932,500		3.10%	$	1,006,659	$	2,131	$	12,580	$	1,021,370

Federal Home Loan Bank Advances Maturities Summary [Table Text Block]

The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $348thousand, at March 31, 2016:

			Weighted-
		Borrowing	Average		Maturity
Year of Maturity		Balance	Coupon	Settlement Date	Date
		(In thousands)
2016	$	25,000	0.59%	3/4/2016	4/4/2016
		50,000	0.60%	3/10/2016	4/11/2016
		100,000	0.58%	3/16/2016	4/18/2016
		25,000	0.58%	3/24/2016	4/25/2016
		25,000	0.52%	3/30/2016	4/29/2016
		37,638	0.60%	3/1/2016	4/1/2016
		262,638
2017		4,209	1.24%	4/3/2012	4/3/2017
2018		30,000	2.19%	1/16/2013	1/16/2018
		25,000	2.18%	1/16/2013	1/16/2018
		55,000
2020		9,785	2.59%	7/19/2013	7/20/2020
	$	331,632	0.92%

Redemtion Funds [Table Text Block]

	Redemption fund
	(In thousands)
Redemption fund at March 31, 2016	$	64,488
2016		2,512
	$	67,000

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Offset of Assets/Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Offsetting [Abstract]

Offsetting Assets [Table Text Block]

March 31, 2016

Gross Amounts Not Offset in the Statement of Financial Condition

Gross Amounts

Net Amount of

Offset in the

Assets Presented

Gross Amount

Statement of

in Statement

Cash

of Recognized

Financial

of Financial

Financial

Collateral

Net

Assets

Condition

Condition

Instruments

Received

Amount

(In thousands)

Derivatives

$

2,662

$

-

$

2,662

$

2,007

$

-

$

655

December 31, 2015

Gross Amounts Not Offset in the Statement of Financial Condition

Gross Amounts

Net amount of

Offset in the

Assets Presented

Gross Amount

Statement of

in Statement

Cash

of Recognized

Financial

of Financial

Financial

Collateral

Net

Assets

Condition

Condition

Instruments

Received

Amount

(In thousands)

Derivatives

$

3,025

$

-

$

3,025

$

2,000

$

-

$

1,025

Offsetting Liabilities [Table Text Block]

March 31, 2016
							Gross Amounts Not Offset in the Statement of Financial Condition
					Net Amount of
			Gross Amounts		Liabilities
			Offset in the		Presented
	Gross Amount		Statement of		in Statement				Cash
	of Recognized		Financial		of Financial		Financial		Collateral		Net
	Liabilities		Condition		Condition		Instruments		Provided		Amount
					(In thousands)
Derivatives	$	6,966	$	-	$	6,966	$	-	$	1,980	$	4,986
Securities sold under agreements to repurchase		634,500		-		634,500		691,940		-		(57,440)
Total	$	641,466	$	-	$	641,466	$	691,940	$	1,980	$	(52,454)
December 31, 2015
							Gross Amounts Not Offset in the Statement of Financial Condition
					Net Amount of
			Gross Amounts		Liabilities
			Offset in the		Presented
	Gross Amount		Statement of		in Statement				Cash
	of Recognized		Financial		of Financial		Financial		Collateral		Net
	Liabilities		Condition		Condition		Instruments		Provided		Amount
	(In thousands)
Derivatives	$	7,257	$	-	$	7,257	$	-	$	1,980	$	5,277
Securities sold under agreements to repurchase		932,500		-		932,500		1,021,370		-		(88,870)
Total	$	939,757	$	-	$	939,757	$	1,021,370	$	1,980	$	(83,593)

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The activity and balance of these loans for the quarters endedMarch 31, 2016 and 2015was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at the beginning of year	$	31,475	$	27,011
New loans and disbursements		233		3,855
Repayments		(574)		(3,358)
Balance at the end of period	$	31,134	$	27,508

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Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2016

Regulatory Capital Requirements Abstract

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2016 and December 31, 2015are as follows:

				Minimum Capital			Minimum to be Well
	Actual			Requirement			Capitalized
	Amount		Ratio	Amount		Ratio		Amount	Ratio
	(Dollars in thousands)
Company Ratios
As of March 31, 2016
Total capital to risk-weighted assets	$	838,284	17.67%	$	379,570	8.00%	$	474,463	10.00%
Tier 1 capital to risk-weighted assets	$	776,181	16.36%	$	284,678	6.00%	$	379,570	8.00%
Common equity tier 1 capital to risk-weighted assets	$	585,144	12.33%	$	213,508	4.50%	$	308,401	6.50%
Tier 1 capital to average total assets	$	776,181	11.38%	$	272,797	4.00%	$	340,996	5.00%
As of December 31, 2015
Total capital to risk-weighted assets	$	846,748	17.29%	$	391,723	8.00%	$	489,654	10.00%
Tier 1 capital to risk-weighted assets	$	782,912	15.99%	$	293,792	6.00%	$	391,723	8.00%
Common equity tier 1 capital to risk-weighted assets	$	594,482	12.14%	$	220,344	4.50%	$	318,275	6.50%
Tier 1 capital to average total assets	$	782,912	11.18%	$	280,009	4.00%	$	350,011	5.00%

				Minimum Capital			Minimum to be Well
	Actual			Requirement			Capitalized
	Amount		Ratio	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of March 31, 2016
Total capital to risk-weighted assets	$	819,731	17.29%	$	379,242	8.00%	$	474,502	10.00%
Tier 1 capital to risk-weighted assets	$	757,828	15.99%	$	284,431	6.00%	$	379,242	8.00%
Common equity tier 1 capital to risk-weighted assets	$	757,828	15.99%	$	213,323	4.50%	$	3,308,134	6.50%
Tier 1 capital to average total assets	$	757,828	11.16%	$	271,538	4.00%	$	339,423	5.00%
As of December 31, 2015
Total capital to risk-weighted assets	$	815,458	16.70%	$	390,688	8.00%	$	488,360	10.00%
Tier 1 capital to risk-weighted assets	$	751,886	15.40%	$	293,016	6.00%	$	390,688	8.00%
Common equity tier 1 capital to risk-weighted assets	$	751,886	15.40%	$	219,762	4.50%	$	317,434	6.50%
Tier 1 capital to average total assets	$	751,886	10.80%	$	278,399	4.00%	$	347,999	5.00%

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2016

Stockholders' Equity [Abstract]

Schedule of Treasury Stock by Class [Table Text Block]

The activity in connection with common shares held in treasury by the Company for the quarters ended March 31, 2016 and 2015 is set forth below

	Quarter Ended March 31,
	2016			2015
		Dollar			Dollar
	Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of period	8,757,960	$	105,379	8,012,254	$	97,070
Common shares used upon lapse of restricted stock units	(45,810)		(505)	(51,078)		(575)
End of period	8,712,150	$	104,874	7,961,176	$	96,495

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure Text Block Abstract

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income, net of income tax, as of March 31, 2016 and December 31, 2015 consistedof:

	March 31,		December 31,
	2016		2015
	(In thousands)
Unrealized gain on securities available-for-sale which are not other-than-temporarily impaired	$	15,496	$	22,044
Unrealized loss on securities available-for-sale which are other-than-temporarily impaired		-		(3,196)
Income tax effect of unrealized gain on securities available-for-sale		(407)		(1,924)
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		15,089		16,924
Unrealized loss on cash flow hedges		(4,318)		(4,307)
Income tax effect of unrealized loss on cash flow hedges		1,513		1,380
Net unrealized loss on cash flow hedges		(2,805)		(2,927)
Accumulated other comprehensive income, net of taxes	$	12,284	$	13,997

The following table presents changes in accumulated other comprehensive income by component, net of taxes, for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31,
	2016
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		income
	(In thousands)
Beginning balance	$	16,924	$	(2,927)	$	13,997
Other comprehensive income (loss) before reclassifications		(4,326)		(1,457)		(5,783)
Amounts reclassified out of accumulated other comprehensive income (loss)		2,491		1,579		4,070
Other comprehensive income (loss)		(1,835)		122		(1,713)
Ending balance	$	15,089	$	(2,805)	$	12,284
	Quarter Ended March 31,
	2015
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		income
	(In thousands)
Beginning balance	$	25,764	$	(6,053)	$	19,711
Other comprehensive income (loss) before reclassifications		4,311		(1,369)		2,942
Amounts reclassified out of accumulated other comprehensive income (loss)		139		1,532		1,671
Other comprehensive income		4,450		163		4,613
Ending balance	$	30,214	$	(5,890)	$	24,324

Reclassification out of Accumulated Other Comprehensive Income [Table text block]

The following table presents reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2016 and 2015:

	Amount reclassified out of accumulated
	other comprehensive income				Affected Line Item in
	Quarter Ended March 31,				Consolidated Statement
		2016		2015	of Operations
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	1,450	$	1,606	Net interest expense
Tax effect from increase in capital gains tax rate		129		(74)	Income tax expense
Available-for-sale securities:
Residual tax effect from OIB's change in applicable tax rate		8		10	Income tax expense
Other-than-temporary impairment losses on available for sale securities realized during the period		2,557		-
Tax effect from increase in capital gains tax rate		(74)		129	Income tax expense
	$	4,070	$	1,671

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Earning Per Common Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

NOTE 18 –EARNINGS (LOSS) PER COMMON SHARE

The calculation of earnings (loss) per common share for the quarters ended March 31, 2016 and 2015 is as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands, except per share data)
Net income (loss)	$	14,171	$	(2,988)
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(1,627)		(1,628)
Convertible preferred stock (Series C)		(1,838)		(1,837)
Income (loss) available to common shareholders	$	10,706	$	(6,453)
Effect of assumed conversion of the convertible preferred stock		1,838		1,837
Income (loss) available to common shareholders assuming conversion	$	12,544	$	(4,616)
Weighted average common shares and share equivalents:
Average common shares outstanding		43,898		44,634
Effect of dilutive securities:
Average potential common shares-options		28		188
Average potential common shares-assuming conversion of convertible preferred stock		7,138		7,155
Total weighted average common shares outstanding and equivalents		51,064		51,977
Earnings (loss) per common share - basic	$	0.24	$	(0.14)
Earnings (loss) per common share - diluted	$	0.24	$	(0.14)

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Guarantees (Tables)

3 Months Ended

Mar. 31, 2016

Guarantees [Abstract]

Schedule Of Guarantee Obligations Text Block

The following table shows the changes in the Company’s liability for estimated losses from these credit recourse agreements, included in the unaudited consolidated statements of financial condition during the quarters ended March 31, 2016 and 2015.

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Balance at beginning of period	$	439	$	927
Net (charge-offs/terminations) recoveries		(258)		(440)
Balance at end of period	$	181	$	487

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies [Abstract]

Schedule Of Line Of Credit Facilities Text Block

Credit-related financial instruments at March 31, 2016 and December 31, 2015 were as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Commitments to extend credit	$	498,249	$	456,720
Commercial letters of credit		2,619		1,508

The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at March 31, 2016 and December 31, 2015, is as follows:

		March 31,		December 31,
	2016		2015
	(In thousands)
Standby letters of credit and financial guarantees	$	4,656	$	14,656
Loans sold with recourse		21,957		22,374
Commitments to sell or securitize mortgage loans		11,886		34,888

Contractual Obligation Fiscal Year Maturity Schedule [Table Text Block]

	Minimum Rent
Year Ending December 31,	(In thousands)
2016	$	6,519
2017		7,308
2018		6,278
2019		6,182
2020		5,455
Thereafter		12,397
	$	44,139

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis 1 [Table Text Block]

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

	March 31, 2016
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	669,285	$	-	$	669,285
Trading securities		-		314		-		314
Money market investments		5,897		-		-		5,897
Derivative assets		-		1,890		772		2,662
Servicing assets		-		-		7,819		7,819
Derivative liabilities		-		(6,220)		(746)		(6,966)
	$	5,897	$	665,269	$	7,845	$	679,011
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	227,117	$	227,117
Foreclosed real estate		-		-		56,777		56,777
Other repossessed assets		-		-		4,408		4,408
	$	-	$	-	$	288,302	$	288,302

	December 31, 2015
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	974,609	$	-	$	974,609
Trading securities		-		288		-		288
Money market investments		4,699		-		-		4,699
Derivative assets		-		1,854		1,171		3,025
Servicing assets		-		-		7,455		7,455
Derivative liabilities		-		(6,162)		(1,095)		(7,257)
	$	4,699	$	970,589	$	7,531	$	982,819
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	235,767	$	235,767
Foreclosed real estate		-		-		58,176		58,176
Other repossessed assets		-		-		6,226		6,226
	$	-	$	-	$	300,169	$	300,169

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Derivative				Derivative
	asset				liability
	(S&P				(S&P
	Purchased			Servicing	Embedded
Level 3 Instruments Only	Options)			assets	Options)		Total
Balance at beginning of period	$	1,171	$	7,455	$	(1,095)	$	7,531
Gains (losses) included in earnings		(399)		-		330		(69)
New instruments acquired		-		557		-		557
Principal repayments		-		(104)		-		(104)
Amortization		-		-		19		19
Changes in fair value of servicing assets		-		(89)		-		(89)
Balance at end of period	$	772	$	7,819	$	(746)	$	7,845
	Quarter Ended March 31, 2015
	Derivative					Derivative
	asset					liability
	(S&P					(S&P
	Purchased			Servicing		Embedded
Level 3 Instruments Only	Options)			assets		Options)		Total
Balance at beginning of period	$	5,555	$	13,992	$	(5,477)	$	14,070
(Losses) gains included in earnings		(1,821)		-		1,782		(39)
New instruments acquired		-		531		-		531
Principal repayments		-		(418)		-		(418)
Amortization		-		-		78		78
Changes in fair value of servicing assets				(59)		-		(59)
Changes in fair value due to sales price of mortgage servicing rights held-for-sale		-		(1,882)		-		(1,882)
Balance at end of period	$	3,734	$	12,164	$	(3,617)	$	12,281

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Table Text Block]

The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at March 31, 2016:

	March 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range
	(In thousands)
Derivative assets (S&P Purchased Options)	$	772	Option pricing model	Implied option volatility	35.32% -38.69%
				Counterparty credit risk (based on 5-year credit default swap ("CDS") spread)	79.96%-89.03%
Servicing assets	$	7,819	Cash flow valuation	Constant prepayment rate	4.43%-12.17%
				Discount rate	10.00% - 12.00%
Derivative liability (S&P Embedded Options)	$	(746)	Option pricing model	Implied option volatility	35.32% -38.69%
				Counterparty credit risk (based on 5-year CDS spread)	79.96%-89.03
Collateral dependant impaired loans	$	25,252	Fair value of property or collateral	Appraised value less disposition costs	30.20%-42.40%
Puerto Rico Electric Power Authority line of credit, net	$	186,675	Cash flow valuation	Discount rate	7.25%
Other non-collateral dependant impaired loans	$	15,190	Cash flow valuation	Discount rate	4.25%-16.95%
Foreclosed real estate	$	56,777	Fair value of property or collateral	Appraised value less disposition costs	30.20%-42.20%
Other repossessed assets	$	4,408	Fair value of property or collateral	Appraised value less disposition costs	30.20%-42.20%

Fair Value By Balance Sheet Grouping [Text Block]

The estimated fair value and carrying value of the Company’s financial instruments atMarch 31, 2016 and December 31, 2015is as follows:

	March 31,				December 31,
	2016				2015
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	677,849	$	677,849	$	536,710	$	536,710
Restricted cash		3,349	$	3,349	$	3,349	$	3,349
Level 2
Financial Assets:
Trading securities		314	$	314	$	288	$	288
Investment securities available-for-sale		669,285	$	669,285	$	974,609	$	974,609
Investment securities held-to-maturity		641,346	$	637,036	$	614,679	$	620,189
Federal Home Loan Bank (FHLB) stock		20,761	$	20,761	$	20,783	$	20,783
Other investments		3	$	3	$	3	$	3
Derivative assets		1,890	$	1,890	$	1,855	$	1,855
Financial Liabilities:
Derivative liabilities		6,220	$	6,220	$	6,162	$	6,162
Level 3
Financial Assets:
Total loans (including loans held-for-sale)		4,088,158		4,360,129		4,101,219		4,434,213
Derivative assets		772		772		1,170		1,170
FDIC indemnification asset		10,897		20,923		17,786		22,599
Accrued interest receivable		18,392		18,392		20,637		20,637
Servicing assets		7,819		7,819		7,455		7,455
Accounts receivable and other assets		44,781		44,781		42,786		42,786
Financial Liabilities:
Deposits		4,772,507		4,778,947		4,705,878		4,715,764
Securities sold under agreements to repurchase		645,098		636,172		955,859		934,691
Advances from FHLB		334,782		331,980		335,812		332,476
Other borrowings		2,661		1,756		2,593		1,734
Subordinated capital notes		97,330		102,808		94,940		102,633
Accrued expenses and other liabilities		92,761		92,761		92,935		92,935
Derivative liabilities embedded in deposits		746		746		1,095		1,095

XML

Business Segments (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Following are the results of operations and the selected financial information by operating segment for the quarters ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	81,152	$	18	$	10,136	$	91,306	$	-	$	91,306
Interest expense		(6,807)		-		(9,524)		(16,331)		-		(16,331)
Net interest income		74,345		18		612		74,975		-		74,975
Provision for loan and lease losses		(13,789)		-		-		(13,789)		-		(13,789)
Non-interest income (loss)		7,795		6,020		(312)		13,503		-		13,503
Non-interest expenses		(48,249)		(4,484)		(2,124)		(54,857)		-		(54,857)
Intersegment revenue		399		-		100		499		(499)		-
Intersegment expenses		(101)		(291)		(107)		(499)		499		-
Income (loss) before income taxes	$	20,400	$	1,263	$	(1,831)	$	19,832	$	-	$	19,832
Total assets	$	5,814,279	$	23,369	$	1,970,264	$	7,807,912	$	(933,340)	$	6,874,572
	Quarter Ended March 31, 2015
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	97,482	$	23	$	9,496	$	107,001	$	-	$	107,001
Interest expense		(7,454)		-		(9,912)		(17,366)		-		(17,366)
Net interest income		90,028		23		(416)		89,635		-		89,635
Provision for loan and lease losses		(42,193)		-		-		(42,193)		-		(42,193)
Non-interest (loss) income		(2,249)		7,010		2,120		6,881		-		6,881
Non-interest expenses		(49,313)		(4,790)		(2,229)		(56,332)		-		(56,332)
Intersegment revenue		544		-		98		642		(642)		-
Intersegment expenses		(98)		(432)		(112)		(642)		642		-
(Loss) income before income taxes	$	(3,281)	$	1,811	$	(539)	$	(2,009)	$	-	$	(2,009)
Total assets	$	6,302,044	$	21,995	$	1,965,342	$	8,289,381	$	(925,225)	$	7,364,156

XML

Restricted Cash (Narrative) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Restricted Cash And Investments Abstract
Certificates Of Deposits Oriental International Banking and Oriental Overseas	$ 300,000	$ 300,000
Reserve required by local Goverment	$ 152,800,000	$ 148,900,000

XML

Restricted Cash (Composition) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Restricted Cash And Cash Equivalents Items Line Items
Deposit pledged as collateral	$ 3,349	$ 3,349
Derivatives
Restricted Cash And Cash Equivalents Items Line Items
Deposit pledged as collateral	1,980	1,980
Obligations under agreements of loans sold with recourse
Restricted Cash And Cash Equivalents Items Line Items
Deposit pledged as collateral	$ 1,369	$ 1,369

XML

Investment Securities (Narrative) (Details) $ in Millions	Mar. 31, 2016 USD ($)
Investments, Debt and Equity Securities [Abstract]
Investments Guaranteed by US Treasury and Sponsored Agencies in Unrealized Loss on Position	$ 197.3
Investments Guaranteed by Puerto Rico Government and its Political Subdivisions in Unrealized Loss On Position	$ 6.7
Investments Guaranteed By Us Treasury And Sponsored Agencies in Unrealized Loss Position Percentage To Total Investment in Unrealized Loss Position	97.00%
Investments Guaranteed By Puerto Rico Government and Its Political Subdivisions in Unrealized Loss Position Percentage To Total Investment in Unrealized Loss Position	3.00%
Minimum Government Bond Probability of Default	8.81%
Investments Guaranteed By Local Government And Its Political Subdivisions In Unrealized Loss On Position with Default Probability	$ 6.7
Securitized GNMA pools	$ 23.0
Securitized GNMA pool, yield	3.06%

XML

Investment Securities (Investment securities) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 653,673,000	$ 955,646,000
Available-for-sale Securities, Gross Unrealized Gains	17,211,000	27,312,000
Available-for-sale Securities, Gross Unrealized Losses	1,601,000	8,349,000
Available-for-sale Securities	$ 669,285,000	$ 974,609,000
Available for sale - Weighted Average Yield	2.56%	2.87%
Held-to-maturity, Amortized cost	$ 637,036,000	$ 620,189,000
Held to maturity Securities Unrecognized Gains	4,402,000	426,000
Held-to-maturity Securities, Unrecognized Loss	92,000	5,936,000
Held to maturity Fair Value	$ 641,346,000	$ 614,679,000
Held to maturity - Weighted Average Yield	2.17%	0.0217%
Total Securities - Amortized Cost	$ 1,290,709,000	$ 1,575,835,000
Total Securities Gross Unrealized Gains	21,613,000	27,738,000
Total Securities Gross Unrealized Losses	1,693,000	14,285,000
Total Securities Fair Value	$ 1,310,631,000	$ 1,589,288,000
Marketable Securities Weighted Average Yield	2.37%	2.60%
US Treasury Securities [Member]
Schedule of Investments [Line Items]
Held-to-maturity, Amortized cost		$ 25,032,000
Held to maturity Securities Unrecognized Gains		0
Held-to-maturity Securities, Unrecognized Loss		71,000
Held to maturity Fair Value		$ 24,961,000
Held to maturity - Weighted Average Yield		0.0049%
Obligation of US Government sponsored agencies at loss [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 4,785,000
Available-for-sale Securities, Gross Unrealized Gains	51,000
Available-for-sale Securities, Gross Unrealized Losses	0
Available-for-sale Securities	$ 4,837,000
Available for sale - Weighted Average Yield	0.0136%
Obligation of Puerto Rico Government and political subdivisions [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 6,720,000
Available-for-sale Securities, Gross Unrealized Gains	0
Available-for-sale Securities, Gross Unrealized Losses	873,000
Available-for-sale Securities	$ 5,847,000
Available for sale - Weighted Average Yield	0.0555%
Other Debt Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 2,323,000	$ 2,444,000
Available-for-sale Securities, Gross Unrealized Gains	142,000	128,000
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	$ 2,465,000	$ 2,572,000
Available for sale - Weighted Average Yield	0.0299%	0.0298%
Collateralized Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 639,845,000	$ 930,279,000
Available-for-sale Securities, Gross Unrealized Gains	17,018,000	27,184,000
Available-for-sale Securities, Gross Unrealized Losses	728,000	4,250,000
Available-for-sale Securities	$ 656,136,000	$ 953,213,000
Available for sale - Weighted Average Yield	2.54%	2.82%
Held-to-maturity, Amortized cost	$ 612,012,000	$ 595,157,000
Held to maturity Securities Unrecognized Gains	4,402,000	426,000
Held-to-maturity Securities, Unrecognized Loss	81,000	5,865,000
Held to maturity Fair Value	$ 616,333,000	$ 589,718,000
Held to maturity - Weighted Average Yield	2.23%	0.0224%
Collateralized Mortgage Backed Securities [Member] | FNMA and FHLMC [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 431,411,000	$ 735,363,000
Available-for-sale Securities, Gross Unrealized Gains	13,445,000	25,791,000
Available-for-sale Securities, Gross Unrealized Losses	0	1,509,000
Available-for-sale Securities	$ 444,856,000	$ 759,645,000
Available for sale - Weighted Average Yield	2.63%	2.97%
Held-to-maturity, Amortized cost	$ 612,012,000	$ 595,157,000
Held to maturity Securities Unrecognized Gains	4,402,000	426,000
Held-to-maturity Securities, Unrecognized Loss	81,000	5,865,000
Held to maturity Fair Value	$ 616,333,000	$ 589,718,000
Held to maturity - Weighted Average Yield	2.23%	2.24%
Collateralized Mortgage Backed Securities [Member] | GNMA [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 79,477,000	$ 57,129,000
Available-for-sale Securities, Gross Unrealized Gains	3,220,000	1,366,000
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	$ 82,697,000	$ 58,495,000
Available for sale - Weighted Average Yield	3.15%	3.19%
Collateralized Mortgage Backed Securities [Member] | CMO's [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 128,957,000	$ 137,787,000
Available-for-sale Securities, Gross Unrealized Gains	353,000	27,000
Available-for-sale Securities, Gross Unrealized Losses	728,000	2,741,000
Available-for-sale Securities	$ 128,583,000	$ 135,073,000
Available for sale - Weighted Average Yield	1.86%	1.85%
Securities Investment [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 13,828,000	$ 25,367,000
Available-for-sale Securities, Gross Unrealized Gains	193,000	128,000
Available-for-sale Securities, Gross Unrealized Losses	873,000	4,099,000
Available-for-sale Securities	$ 13,149,000	$ 21,396,000
Available for sale - Weighted Average Yield	3.67%	4.94%
Held-to-maturity, Amortized cost	$ 25,024,000	$ 25,032,000
Held to maturity Securities Unrecognized Gains	0	0
Held-to-maturity Securities, Unrecognized Loss	11,000	71,000
Held to maturity Fair Value	$ 25,013,000	$ 24,961,000
Held to maturity - Weighted Average Yield	0.49%	0.0049%
Securities Investment [Member] | US Treasury Securities [Member]
Schedule of Investments [Line Items]
Held-to-maturity, Amortized cost	$ 25,024,000	$ 25,032,000
Held to maturity Securities Unrecognized Gains	0	0
Held-to-maturity Securities, Unrecognized Loss	11,000	71,000
Held to maturity Fair Value	$ 25,013,000	$ 24,961,000
Held to maturity - Weighted Average Yield	0.49%	0.0049%
Securities Investment [Member] | Obligation of US Government sponsored agencies at loss [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 4,785,000	$ 5,122,000
Available-for-sale Securities, Gross Unrealized Gains	51,000	0
Available-for-sale Securities, Gross Unrealized Losses	0	29,000
Available-for-sale Securities	$ 4,837,000	$ 5,093,000
Available for sale - Weighted Average Yield	1.36%	1.36%
Securities Investment [Member] | Obligation of Puerto Rico Government and political subdivisions [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 6,720,000	$ 17,801,000
Available-for-sale Securities, Gross Unrealized Gains	0	0
Available-for-sale Securities, Gross Unrealized Losses	873,000	4,070,000
Available-for-sale Securities	$ 5,847,000	$ 13,731,000
Available for sale - Weighted Average Yield	5.55%	6.24%
Securities Investment [Member] | Other Debt Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 2,323,000	$ 2,444,000
Available-for-sale Securities, Gross Unrealized Gains	142,000	128,000
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	$ 2,465,000	$ 2,572,000
Available for sale - Weighted Average Yield	2.99%	2.98%

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Investment Securities (Investment securities by contractual maturity) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 653,673,000	$ 955,646,000
Available-for-sale Securities	669,285,000	974,609,000
Held-to-maturity, Amortized cost	637,036,000	620,189,000
Held to maturity Fair Value	641,346,000	614,679,000
US Treasury Securities [Member]
Schedule of Investments [Line Items]
Held-to-maturity, Amortized cost		25,032,000
Held to maturity Fair Value		24,961,000
Obligation of US Government sponsored agencies at loss [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	4,785,000
Available-for-sale Securities	4,837,000
Obligation of Puerto Rico Government and political subdivisions [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	6,720,000
Available-for-sale Securities	5,847,000
Other Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	2,323,000	2,444,000
Available-for-sale Securities	2,465,000	2,572,000
Maturities Due From One To Five Years [Member]
Schedule of Investments [Line Items]
Held-to-maturity, Amortized cost	25,024,000
Held to maturity Fair Value	25,013,000
Collateralized Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	639,845,000	930,279,000
Available-for-sale Securities	656,136,000	953,213,000
Held-to-maturity, Amortized cost	612,012,000	595,157,000
Held to maturity Fair Value	616,333,000	589,718,000
Collateralized Mortgage Backed Securities [Member] | FNMA and FHLMC [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	431,411,000	735,363,000
Available-for-sale Securities	444,856,000	759,645,000
Held-to-maturity, Amortized cost	612,012,000	595,157,000
Held to maturity Fair Value	616,333,000	589,718,000
Collateralized Mortgage Backed Securities [Member] | GNMA [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	79,477,000	57,129,000
Available-for-sale Securities	82,697,000	58,495,000
Collateralized Mortgage Backed Securities [Member] | CMO's [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	128,957,000	137,787,000
Available-for-sale Securities	128,583,000	135,073,000
Collateralized Mortgage Backed Securities [Member] | Maturities Due From Five To Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	13,936,000
Available-for-sale Securities	14,250,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	0
Collateralized Mortgage Backed Securities [Member] | Maturities Due From Five To Ten Years [Member] | FNMA and FHLMC [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	13,936,000
Available-for-sale Securities	14,250,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	0
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	625,909,000
Available-for-sale Securities	641,886,000
Held-to-maturity, Amortized cost	612,012,000
Held to maturity Fair Value	616,333,000
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member] | FNMA and FHLMC [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	417,475,000
Available-for-sale Securities	430,606,000
Held-to-maturity, Amortized cost	612,012,000
Held to maturity Fair Value	616,333,000
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member] | GNMA [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	79,477,000
Available-for-sale Securities	82,697,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	0
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member] | CMO's [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	128,957,000
Available-for-sale Securities	128,583,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	0
Investment Securities
Schedule of Investments [Line Items]
Available for sale Amortized Cost	13,828,000	25,367,000
Available-for-sale Securities	13,149,000	21,396,000
Held-to-maturity, Amortized cost	25,024,000	25,032,000
Held to maturity Fair Value	25,013,000	24,961,000
Investment Securities | US Treasury Securities [Member]
Schedule of Investments [Line Items]
Held-to-maturity, Amortized cost	25,024,000	25,032,000
Held to maturity Fair Value	25,013,000	24,961,000
Investment Securities | Obligation of US Government sponsored agencies at loss [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	4,785,000	5,122,000
Available-for-sale Securities	4,837,000	5,093,000
Investment Securities | Obligation of Puerto Rico Government and political subdivisions [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	6,720,000	17,801,000
Available-for-sale Securities	5,847,000	13,731,000
Investment Securities | Other Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	2,323,000	2,444,000
Available-for-sale Securities	2,465,000	$ 2,572,000
Investment Securities | Maturities Due From One To Five Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	6,720,000
Available-for-sale Securities	5,847,000
Held-to-maturity, Amortized cost	25,024,000
Held to maturity Fair Value	25,013,000
Investment Securities | Maturities Due From One To Five Years [Member] | US Treasury Securities [Member]
Schedule of Investments [Line Items]
Held-to-maturity, Amortized cost	25,024,000
Held to maturity Fair Value	25,013,000
Investment Securities | Maturities Due From One To Five Years [Member] | Obligation of Puerto Rico Government and political subdivisions [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	6,720,000
Available-for-sale Securities	5,847,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	0
Investment Securities | Maturities Due From Five To Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	7,108,000
Available-for-sale Securities	7,302,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	0
Investment Securities | Maturities Due From Five To Ten Years [Member] | Obligation of US Government sponsored agencies at loss [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	4,785,000
Available-for-sale Securities	4,837,000
Held-to-maturity, Amortized cost	0
Held to maturity Fair Value	$ 0

XML

Investment Securities (Gross realize gains and losses by category) (Details) - Collateralized Mortgage Backed Securities [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Sale Price	$ 295,172	$ 67,075
Book Value	283,176	64,503
Available-for-sale Securities, Gross Realized Gains	16,113	2,572
Available-for-sale Securities, Gross Realized Losses	4,117	0
FNMA and FHLMC [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	288,194	40,307
Book Value	272,081	37,735
Available-for-sale Securities, Gross Realized Gains	16,113	2,572
Available-for-sale Securities, Gross Realized Losses	0	0
GNMA [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	6,978	26,768
Book Value	11,095	26,768
Available-for-sale Securities, Gross Realized Gains	0	0
Available-for-sale Securities, Gross Realized Losses	$ 4,117	$ 0

XML

Investment Securities (Gains and losses by category) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available For Sale Securities Continuous Unrealized Loss Position Amortized Cost	$ 90,120,000	$ 301,479,000
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLosses	1,601,000	8,349,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	88,519,000	293,130,000
12 months or more
Available for sale - Amortized cost	90,120,000	121,141,000
Available for sale - Unrealized Loss	1,601,000	6,480,000
Available-for-sale, Fair Value	88,519,000	114,661,000
Less than 12 months
Available for sale - Amortized cost		180,338,000
Available for sale - Unrealized Loss		1,869,000
Available for sale - Fair Value		178,469,000
Held To Maturity Securities, Continuous Unrealized Loss Position Aggregate Losses [Abstract]
Held to Maturity Securities Continuous Unrealized Loss Position Amortized Cost	113,922,000	493,519,000
Held to Maturity Securities Continuous Unrealized Loss Position Aggregate Losses	92,000	5,936,000
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value	113,830,000	487,583,000
Less than 12 months
Held to Maturity - Amortized cost	83,613,000	493,519,000
Held to Maturity - Unrealized Loss	46,000	5,936,000
Held-to-Maturity - Fair Value	83,567,000	487,583,000
More than 12 month [Abstract]
Held to Maturity - Amortized cost	120,429,000
Held to Maturity - Unrealized Loss	1,647,000
Held-to-Maturity - Fair Value	118,782,000
Investment Securities, Continuous Unrealized Loss Position [Abstract]
Continuous Unrealized Loss on Investment, Amortized Cost	204,042,000	794,998,000
Continuous Unrealized Loss On Investment Secuirities Agragatte Losses	1,693,000	14,285,000
Investment Securities Continuous Unrealized Loss Position Fair Value	202,349,000	780,713,000
CMO's issued by us government sponsored agenciesat loss
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available For Sale Securities Continuous Unrealized Loss Position Amortized Cost	83,400,000	129,076,000
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLosses	728,000	2,741,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	82,672,000	126,335,000
12 months or more
Available for sale - Amortized cost	83,400,000	103,340,000
Available for sale - Unrealized Loss	728,000	2,410,000
Available-for-sale, Fair Value	82,672,000	100,930,000
Less than 12 months
Available for sale - Amortized cost		25,736,000
Available for sale - Unrealized Loss		331,000
Available for sale - Fair Value		25,405,000
Obligation of Puerto Rico Government and political subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available For Sale Securities Continuous Unrealized Loss Position Amortized Cost	6,720,000	17,801,000
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLosses	873,000	4,070,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	5,847,000	13,731,000
12 months or more
Available for sale - Amortized cost	6,720,000	17,801,000
Available for sale - Unrealized Loss	873,000	4,070,000
Available-for-sale, Fair Value	5,847,000	13,731,000
FNMA and FHLMC [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available For Sale Securities Continuous Unrealized Loss Position Amortized Cost		149,480,000
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLosses		1,509,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		147,971,000
Less than 12 months
Available for sale - Amortized cost		149,480,000
Available for sale - Unrealized Loss		1,509,000
Available for sale - Fair Value		147,971,000
Held To Maturity Securities, Continuous Unrealized Loss Position Aggregate Losses [Abstract]
Held to Maturity Securities Continuous Unrealized Loss Position Amortized Cost	88,898,000	468,487,000
Held to Maturity Securities Continuous Unrealized Loss Position Aggregate Losses	81,000	5,865,000
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value	88,817,000	462,622,000
Less than 12 months
Held to Maturity - Amortized cost	58,589,000	468,487,000
Held to Maturity - Unrealized Loss	35,000	5,865,000
Held-to-Maturity - Fair Value	58,554,000	462,622,000
More than 12 month [Abstract]
Held to Maturity - Amortized cost	30,309,000
Held to Maturity - Unrealized Loss	46,000
Held-to-Maturity - Fair Value	30,263,000
Obligation of US Government sponsored agencies at loss [Member]
Less than 12 months
Available for sale - Amortized cost		5,122,000
Available for sale - Unrealized Loss		29,000
Available for sale - Fair Value		5,093,000
US Treasury Securities [Member]
Held To Maturity Securities, Continuous Unrealized Loss Position Aggregate Losses [Abstract]
Held to Maturity Securities Continuous Unrealized Loss Position Amortized Cost	25,024,000	25,032,000
Held to Maturity Securities Continuous Unrealized Loss Position Aggregate Losses	11,000	71,000
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value	25,013,000	24,961,000
Less than 12 months
Held to Maturity - Amortized cost	25,024,000	25,032,000
Held to Maturity - Unrealized Loss	11,000	71,000
Held-to-Maturity - Fair Value	$ 25,013,000	$ 24,961,000

XML

Investment Securities (Other-than-temporarily Impaired Securities) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other Than Temporary Impairment Credit Losses Recognized In Earnings Roll Forward
Begging Balance	$ 1,490,000	$ 0
Reductions for securities sold during the period (ealized)	$ (1,490,000)	$ 0

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Loans Receivable (Narratives) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Accounts Notes And Loans Receivable Line Items
Financing Receivable Modifications Recorded Investment Not Included In Non Accrual	$ 96,500,000	$ 93,600,000
Originated Loans Granted To Puerto Rico Government	330,800,000	334,600,000
Acquired Loans Under ASC 310-30 granted to the Puerto Rico Government	71,000,000	80,900,000
Loans And Leases Receivable Gross Carrying Amount Covered	91,100,000	92,300,000
Loans And Leases Receivable Net Reported Amount Covered	69,700,000	67,200,000
Line Of Credit Facility Maximum Borrowing Capacity to Puerto Rico Government	401,800,000	415,400,000
Credit Facilities Granted to the Puerto Rico Public Corporation	198,200,000
Total four bank syndicate revolving line of credit granted to the Government of Puerto Rico	550,000,000
Unpaid principal balance of the revolving line of credit granted to the Government of Puerto Rico	186,700,000	190,300,000
Provision for Local Government Line of Credit		29,300,000	$ 24,000,000
Allowance for Local Government Line of Credit	53,300,000	53,300,000
General obligations debt of municipalities secured	204,000,000
Puerto Rico Housing Finance Authority credit facilities	11,000,000
Interest income for covered loans	2,200,000	$ 15,500,000
FDIC payment in loss-share coverage of loans sold	20,000,000
Provision for Loan Losses, Covered	$ 54,000		$ 4,800,000

XML

Loans Receivable (Composition of loan portfolio) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	$ 4,576,885	$ 4,650,527
Allowance for loan and lease losses	(238,271)	(234,131)
Loans, net of allowance for loan and lease losses, excluding loans held-for-sale.	4,338,614	4,416,396
Deferred loan cost (fees), net	4,350	4,203
Loans receivable net of deferred loan cost (fees)	4,342,964	4,420,599
Mortgage loans held-for-sale	17,165	13,614
Total loans, net	4,360,129	4,434,213
Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	134,310	152,753
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Commercial Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	6,558	7,457
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Consumer Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	36,346	38,385
Non-Acquired Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	3,116,690	3,111,590
Allowance for loan and lease losses	(113,238)	(112,626)
Loans, net of allowance for loan and lease losses, excluding loans held-for-sale.	3,003,452	2,998,964
Deferred loan cost (fees), net	4,350	4,203
Loans receivable net of deferred loan cost (fees)	3,007,802	3,003,167
Total loans, net	3,007,802	3,003,167
Non-Acquired Loan [Member] | Mortgage Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	751,819	757,828
Allowance for loan and lease losses	(18,784)	(18,352)
Non-Acquired Loan [Member] | Commercial Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	1,425,385	1,441,649
Allowance for loan and lease losses	(64,206)	(64,791)
Non-Acquired Loan [Member] | Consumer Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	252,327	242,950
Allowance for loan and lease losses	(11,414)	(11,197)
Non-Acquired Loan [Member] | Auto and Leasing [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	687,159	669,163
Allowance for loan and lease losses	(18,716)	(18,261)
Acquired loans [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	1,335,162	1,417,432
Allowance for loan and lease losses	(145,978)	(143,953)
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	134,310	152,753
Allowance for loan and lease losses	(4,993)	(5,542)
Loans, net of allowance for loan and lease losses, excluding loans held-for-sale.	129,317	147,211
Loans receivable net of deferred loan cost (fees)	129,317	147,211
Total loans, net	129,317	147,211
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Commercial Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	6,558	7,457
Allowance for loan and lease losses	(23)	(26)
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Consumer Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	36,346	38,385
Allowance for loan and lease losses	(3,243)	(3,429)
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Auto Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	91,406	106,911
Allowance for loan and lease losses	(1,727)	(2,087)
Acquired loans [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	1,090,704	1,149,220
Allowance for loan and lease losses	(27,747)	(25,785)
Loans, net of allowance for loan and lease losses, excluding loans held-for-sale.	1,062,957	1,123,435
Loans receivable net of deferred loan cost (fees)	1,062,957	1,123,435
Total loans, net	1,062,957	1,123,435
Acquired loans [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member] | Mortgage Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	600,901	608,294
Allowance for loan and lease losses	(1,762)	(1,762)
Acquired loans [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member] | Commercial Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	267,931	287,311
Allowance for loan and lease losses	(20,430)	(21,161)
Acquired loans [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member] | Consumer Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	9,345	11,843
Acquired loans [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member] | Auto Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	134,669	153,592
Allowance for loan and lease losses	(5,555)	(2,862)
Acquired loans [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member] | Construction Loans [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	77,858	88,180
Acquired loans [Member] | Eurobank Acquired Loans
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	235,181	236,964
Allowance for loan and lease losses	(92,293)	(90,178)
Loans, net of allowance for loan and lease losses, excluding loans held-for-sale.	142,888	146,786
Loans receivable net of deferred loan cost (fees)	142,888	146,786
Total loans, net	142,888	146,786
Acquired loans [Member] | Eurobank Acquired Loans | Commercial Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	142,298	142,377
Acquired loans [Member] | Eurobank Acquired Loans | Consumer Loan [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	1,770	2,314
Acquired loans [Member] | Eurobank Acquired Loans | Loans secured by 1-4 family residential properties, covered [Member]
Loans And Leases Receivable Net Reported Amount
Loans and Leases Receivable, Gross, Carrying Amount	$ 91,113	$ 92,273

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Loans Receivable (Aging of recorded investment in gross loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	$ 4,576,885	$ 4,650,527
Originated In Years 2014, 2015 and 2016 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due		0
60 - 89 Days Past Due		65
Total Loans		85,856
Non-Acquired Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	70,809	70,660
60 - 89 Days Past Due	38,514	44,483
90+ Days Past Due	100,149	100,854
Total Past Due	209,472	215,997
Current but Non-Accrual Loans	198,805	201,991
Current	2,708,413	2,693,602
Total Loans	3,116,690	3,111,590
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	4,666	3,825
Non-Acquired Loan [Member] | Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	12,889	11,751
60 - 89 Days Past Due	18,736	24,339
90+ Days Past Due	73,481	74,841
Total Past Due	105,106	110,931
Current but Non-Accrual Loans	4,948	5,964
Current	641,765	640,933
Total Loans	751,819	757,828
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	4,666	3,825
Non-Acquired Loan [Member] | Traditional loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	2,210	1,793
60 - 89 Days Past Due	11,804	16,475
90+ Days Past Due	44,372	46,823
Total Past Due	58,386	65,091
Current but Non-Accrual Loans	356	358
Current	553,282	552,556
Total Loans	612,024	618,005
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	1,244	742
Non-Acquired Loan [Member] | Originated Up To The Year 2002 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	82	80
60 - 89 Days Past Due	1,218	2,217
90+ Days Past Due	3,208	3,889
Total Past Due	4,508	6,186
Current but Non-Accrual Loans	40	41
Current	51,085	51,562
Total Loans	55,633	57,789
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	268	144
Non-Acquired Loan [Member] | Originated In The Years 2003 And 2004 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	388	251
60 - 89 Days Past Due	3,579	5,036
90+ Days Past Due	5,844	5,536
Total Past Due	9,811	10,823
Current but Non-Accrual Loans	20	0
Current	87,458	88,623
Total Loans	97,289	99,446
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Originated In The Year 2005 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	313	79
60 - 89 Days Past Due	1,893	2,553
90+ Days Past Due	3,864	3,549
Total Past Due	6,070	6,181
Current but Non-Accrual Loans	0	0
Current	47,421	48,040
Total Loans	53,491	54,221
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Originated In The Year 2006 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	634	551
60 - 89 Days Past Due	1,238	2,878
90+ Days Past Due	7,212	7,934
Total Past Due	9,084	11,363
Current but Non-Accrual Loans	233	176
Current	66,753	66,864
Total Loans	76,070	78,403
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Originated In The Years 2007 2008 And 2009 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	282	170
60 - 89 Days Past Due	1,417	2,053
90+ Days Past Due	14,128	14,733
Total Past Due	15,827	16,956
Current but Non-Accrual Loans	0	0
Current	72,650	74,590
Total Loans	88,477	91,546
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	705	526
Non-Acquired Loan [Member] | Originated In The Years 2010 2011 2012 2013 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	511	662
60 - 89 Days Past Due	2,015	1,673
90+ Days Past Due	9,017	10,519
Total Past Due	11,543	12,854
Current but Non-Accrual Loans	0	141
Current	136,702	137,749
Total Loans	148,245	150,744
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	271	72
Non-Acquired Loan [Member] | Originated In Years 2014, 2015 and 2016 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	444	65
90+ Days Past Due	1,099	663
Total Past Due	1,543	728
Current but Non-Accrual Loans	63	0
Current	91,213	85,128
Total Loans	92,819	85,856
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | NonTraditional Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	395	977
90+ Days Past Due	5,014	5,079
Total Past Due	5,409	6,056
Current but Non-Accrual Loans	12	13
Current	22,286	23,483
Total Loans	27,707	29,552
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Loss Mitigation Program [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	10,679	9,958
60 - 89 Days Past Due	6,537	6,887
90+ Days Past Due	16,411	14,930
Total Past Due	33,627	31,775
Current but Non-Accrual Loans	4,580	5,593
Current	65,804	64,548
Total Loans	104,011	101,916
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	3,422	3,083
Non-Acquired Loan [Member] | Home equity secured personal loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	64
Total Past Due	0	64
Current but Non-Accrual Loans	0	0
Current	393	346
Total Loans	393	410
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | GNMA's Buy Back Option related
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	7,684	7,945
Total Past Due	7,684	7,945
Current but Non-Accrual Loans	0	0
Current	0	0
Total Loans	7,684	7,945
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	932	2,593
60 - 89 Days Past Due	1,421	1,868
90+ Days Past Due	17,333	16,677
Total Past Due	19,686	21,138
Current but Non-Accrual Loans	193,363	195,545
Current	1,212,336	1,224,966
Total Loans	1,425,385	1,441,649
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	644	2,073
60 - 89 Days Past Due	455	1,178
90+ Days Past Due	16,586	16,034
Total Past Due	17,685	19,285
Current but Non-Accrual Loans	5,174	2,907
Current	705,661	706,764
Total Loans	728,520	728,956
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Corporate Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	0
Current but Non-Accrual Loans	0	0
Current	228,782	227,557
Total Loans	228,782	227,557
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Institutional Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	213
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	213
Current but Non-Accrual Loans	0	0
Current	27,584	33,594
Total Loans	27,584	33,807
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Middle Market Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	1,174
60 - 89 Days Past Due	0	712
90+ Days Past Due	9,498	9,113
Total Past Due	9,498	10,999
Current but Non-Accrual Loans	2,515	1,730
Current	196,890	194,219
Total Loans	208,903	206,948
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Retail Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	644	686
60 - 89 Days Past Due	455	466
90+ Days Past Due	7,088	6,921
Total Past Due	8,187	8,073
Current but Non-Accrual Loans	2,659	1,177
Current	233,174	231,840
Total Loans	244,020	241,090
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Floor Plan Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	0
Current but Non-Accrual Loans	0	0
Current	2,859	2,892
Total Loans	2,859	2,892
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Real Estate Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	0
Current but Non-Accrual Loans	0	0
Current	16,372	16,662
Total Loans	16,372	16,662
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Other Commercial and Industrial[Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	288	520
60 - 89 Days Past Due	966	690
90+ Days Past Due	747	643
Total Past Due	2,001	1,853
Current but Non-Accrual Loans	188,189	192,638
Current	506,675	518,202
Total Loans	696,865	712,693
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Corporate Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	0
Current but Non-Accrual Loans	0	0
Current	120,881	108,582
Total Loans	120,881	108,582
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Institutional Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	0
Current but Non-Accrual Loans	186,675	190,290
Current	176,580	190,695
Total Loans	363,255	380,985
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Middle Market Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	0	0
Current but Non-Accrual Loans	1,493	1,565
Current	102,295	105,748
Total Loans	103,788	107,313
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Retail Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	260	282
60 - 89 Days Past Due	948	639
90+ Days Past Due	706	604
Total Past Due	1,914	1,525
Current but Non-Accrual Loans	21	783
Current	72,689	75,489
Total Loans	74,624	77,797
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Floor Plan Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	28	238
60 - 89 Days Past Due	18	51
90+ Days Past Due	41	39
Total Past Due	87	328
Current but Non-Accrual Loans	0	0
Current	34,230	37,688
Total Loans	34,317	38,016
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	3,187	2,750
60 - 89 Days Past Due	1,154	1,378
90+ Days Past Due	1,593	1,043
Total Past Due	5,934	5,171
Current but Non-Accrual Loans	437	433
Current	245,956	237,346
Total Loans	252,327	242,950
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Credit Cards [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	387	449
60 - 89 Days Past Due	159	182
90+ Days Past Due	422	369
Total Past Due	968	1,000
Current but Non-Accrual Loans	0	0
Current	22,397	21,766
Total Loans	23,365	22,766
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Overdrafts [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	17	24
60 - 89 Days Past Due	0	0
90+ Days Past Due	0	0
Total Past Due	17	24
Current but Non-Accrual Loans	0	0
Current	203	166
Total Loans	220	190
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Unsecured personal lines of credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	51	74
60 - 89 Days Past Due	49	0
90+ Days Past Due	53	45
Total Past Due	153	119
Current but Non-Accrual Loans	3	19
Current	2,194	2,106
Total Loans	2,350	2,244
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Unsecured personal loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	2,518	2,078
60 - 89 Days Past Due	927	1,179
90+ Days Past Due	1,104	627
Total Past Due	4,549	3,884
Current but Non-Accrual Loans	434	414
Current	205,240	196,858
Total Loans	210,223	201,156
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Cash collateral personal loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	214	125
60 - 89 Days Past Due	19	17
90+ Days Past Due	14	2
Total Past Due	247	144
Current but Non-Accrual Loans	0	0
Current	15,922	16,450
Total Loans	16,169	16,594
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Non-Acquired Loan [Member] | Auto and Leasing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	53,801	53,566
60 - 89 Days Past Due	17,203	16,898
90+ Days Past Due	7,742	8,293
Total Past Due	78,746	78,757
Current but Non-Accrual Loans	57	49
Current	608,356	590,357
Total Loans	687,159	669,163
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	1,335,162	1,417,432
Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	7,650	8,683
60 - 89 Days Past Due	2,453	2,721
90+ Days Past Due	2,196	2,246
Total Past Due	12,299	13,650
Current but Non-Accrual Loans	0	0
Current	122,011	139,103
Total Loans	134,310	152,753
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	68	186
60 - 89 Days Past Due	8	29
90+ Days Past Due	855	880
Total Past Due	931	1,095
Current but Non-Accrual Loans	0	0
Current	5,627	6,362
Total Loans	6,558	7,457
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	671	695
Total Past Due	671	695
Current but Non-Accrual Loans	0	0
Current	2,363	2,422
Total Loans	3,034	3,117
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Retail Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	214	228
Total Past Due	214	228
Current but Non-Accrual Loans	0	0
Current	0	0
Total Loans	214	228
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Floor Plan Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	457	467
Total Past Due	457	467
Current but Non-Accrual Loans	0	0
Current	2,363	2,422
Total Loans	2,820	2,889
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Other Commercial and Industrial[Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	68	186
60 - 89 Days Past Due	8	29
90+ Days Past Due	184	185
Total Past Due	260	400
Current but Non-Accrual Loans	0	0
Current	3,264	3,940
Total Loans	3,524	4,340
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Retail Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	68	186
60 - 89 Days Past Due	8	29
90+ Days Past Due	177	178
Total Past Due	253	393
Current but Non-Accrual Loans	0	0
Current	3,264	3,331
Total Loans	3,517	3,724
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Floor Plan Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90+ Days Past Due	7	7
Total Past Due	7	7
Current but Non-Accrual Loans	0	0
Current	0	609
Total Loans	7	616
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	687	944
60 - 89 Days Past Due	337	413
90+ Days Past Due	788	535
Total Past Due	1,812	1,892
Current but Non-Accrual Loans	0	0
Current	34,534	36,493
Total Loans	36,346	38,385
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Credit Cards [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	650	930
60 - 89 Days Past Due	328	384
90+ Days Past Due	779	489
Total Past Due	1,757	1,803
Current but Non-Accrual Loans	0	0
Current	31,631	33,414
Total Loans	33,388	35,217
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Unsecured personal loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	37	14
60 - 89 Days Past Due	9	29
90+ Days Past Due	9	46
Total Past Due	55	89
Current but Non-Accrual Loans	0	0
Current	2,903	3,079
Total Loans	2,958	3,168
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	0	0
Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Auto Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	6,895	7,553
60 - 89 Days Past Due	2,108	2,279
90+ Days Past Due	553	831
Total Past Due	9,556	10,663
Current but Non-Accrual Loans	0	0
Current	81,850	96,248
Total Loans	91,406	106,911
Financing Receivable Recorded Investment 90 Days Past Due And Stil lAccruing	$ 0	$ 0

XML

Loans Receivable (BBVAPR Acquired Loan 310-30 carrying amounts) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable Line Items
Financing Receivable Acquired With Deteriorated Credit Quality	$ 1,860,343,000	$ 1,945,098,000
Non-acretable discount	428,976,000	434,190,000
Cash expected to be collected	1,431,367,000	1,510,908,000
Accretable Yield	340,663,000	361,688,000
Carrying amount, gross	1,090,704,000	1,149,220,000
Allowance for loan and lease losses	27,747,000	25,785,000
Carrying amount, net	$ 1,062,957,000	$ 1,123,435,000

XML

Loans Receivable (Accretable yield and non-accretable discount activity) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		$ 31,470,000
Transfer from (to) non-accretable discount		(446,000)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(6,562,000)
Transfer (to) from accretable yield		446,000
Mortgage Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		8,987,000
Transfer from (to) non-accretable discount		(4,765,000)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(1,995,000)
Transfer (to) from accretable yield		4,765,000
Commercial Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		10,759,000
Transfer from (to) non-accretable discount		6,893,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(350,000)
Transfer (to) from accretable yield		(6,893,000)
Construction Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		3,810,000
Transfer from (to) non-accretable discount		(2,629,000)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(2,158,000)
Transfer (to) from accretable yield		2,629,000
Auto Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		6,988,000
Transfer from (to) non-accretable discount		87,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(1,585,000)
Transfer (to) from accretable yield		(87,000)
Consumer Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		926,000
Transfer from (to) non-accretable discount		(32,000)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(474,000)
Transfer (to) from accretable yield		32,000
Acquired under ASC 310-30 Non-Covered Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 361,688,000	445,946,000
Accretion Accretable	21,164,000	31,470,000
Change in expected cash flow	329,000
Transfer from (to) non-accretable discount	(190,000)	(446,000)
Balance at end of period	340,663,000	414,030,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	434,190,000	456,627,000
Change in actual and expected losses	(5,404,000)	(6,562,000)
Transfer (to) from accretable yield	190,000	446,000
Balance at end of period	428,976,000	450,511,000
Acquired under ASC 310-30 Non-Covered Loans [Member] | Mortgage Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	268,794,000	298,364,000
Accretion Accretable	8,307,000	8,987,000
Change in expected cash flow	0
Transfer from (to) non-accretable discount	70,000	(4,765,000)
Balance at end of period	260,557,000	284,612,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	374,772,000	389,839,000
Change in actual and expected losses	(4,547,000)	(1,995,000)
Transfer (to) from accretable yield	(70,000)	4,765,000
Balance at end of period	370,155,000	392,609,000
Acquired under ASC 310-30 Non-Covered Loans [Member] | Commercial Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	45,411,000	61,196,000
Accretion Accretable	5,839,000	10,759,000
Change in expected cash flow	128,000
Transfer from (to) non-accretable discount	402,000	6,893,000
Balance at end of period	40,102,000	57,330,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	11,781,000	23,069,000
Change in actual and expected losses	(663,000)	(350,000)
Transfer (to) from accretable yield	(402,000)	(6,893,000)
Balance at end of period	10,716,000	15,826,000
Acquired under ASC 310-30 Non-Covered Loans [Member] | Construction Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	19,615,000	25,829,000
Accretion Accretable	1,869,000	3,810,000
Change in expected cash flow	200,000
Transfer from (to) non-accretable discount	(790,000)	(2,629,000)
Balance at end of period	17,156,000	19,390,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	6,764,000	3,486,000
Change in actual and expected losses	(122,000)	(2,158,000)
Transfer (to) from accretable yield	790,000	2,629,000
Balance at end of period	7,432,000	3,957,000
Acquired under ASC 310-30 Non-Covered Loans [Member] | Auto Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	21,578,000	53,998,000
Accretion Accretable	4,211,000	6,988,000
Change in expected cash flow	1,000
Transfer from (to) non-accretable discount	219,000	87,000
Balance at end of period	17,587,000	47,097,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	22,039,000	16,215,000
Change in actual and expected losses	118,000	(1,585,000)
Transfer (to) from accretable yield	(219,000)	(87,000)
Balance at end of period	21,938,000	14,543,000
Acquired under ASC 310-30 Non-Covered Loans [Member] | Consumer Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	6,290,000	6,559,000
Accretion Accretable	938,000	926,000
Change in expected cash flow	0
Transfer from (to) non-accretable discount	(91,000)	(32,000)
Balance at end of period	5,261,000	5,601,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	18,834,000	24,018,000
Change in actual and expected losses	(190,000)	(474,000)
Transfer (to) from accretable yield	91,000	32,000
Balance at end of period	$ 18,735,000	$ 23,576,000

XML

Loans Receivable (Eurobank Acquired Loan carrying amounts) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable Line Items
Financing Receivable Acquired With Deteriorated Credit Quality	$ 1,860,343,000	$ 1,945,098,000
Non-acretable discount	428,976,000	434,190,000
Cash expected to be collected	1,431,367,000	1,510,908,000
Accretable Yield	340,663,000	361,688,000
Carrying amount, gross	1,090,704,000	1,149,220,000
Carrying amount, net	1,062,957,000	1,123,435,000
Eurobank Acquired Loans
Accounts Notes And Loans Receivable Line Items
Financing Receivable Acquired With Deteriorated Credit Quality	334,111,000	342,511,000
Non-acretable discount	12,703,000	21,156,000
Cash expected to be collected	321,408,000	321,355,000
Accretable Yield	86,227,000	84,391,000
Carrying amount, gross	235,181,000	236,964,000
Financing Receivable, Allowance for Credit Losses	92,293,000	90,178,000
Carrying amount, net	$ 142,888,000	$ 146,786,000

XML

Loans Receivable (Accretable yield and non-accretable discount activity of covered loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		$ 31,470
Transfer from (to) non-accretable discount		(446)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(6,562)
Transfer (to) from accretable yield		446
Consumer Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion Accretable		926
Transfer from (to) non-accretable discount		(32)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Change in actual and expected losses		(474)
Transfer (to) from accretable yield		32
Acquired Loans In An F D I C Assisted Transaction [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 84,392	109,859
Accretion Accretable	7,560	15,504
Change in expected cash flow	10,026
Transfer from (to) non-accretable discount	(631)	21,933
Balance at end of period	86,227	116,288
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	21,156	62,410
Change in actual and expected losses	(9,084)	(7,765)
Transfer (to) from accretable yield	631	(21,933)
Balance at end of period	12,703	32,712
Acquired Loans In An F D I C Assisted Transaction [Member] | Loans Secured by 1-4 properties
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	51,954	47,636
Accretion Accretable	2,266	3,518
Change in expected cash flow	984
Transfer from (to) non-accretable discount	115	14,214
Balance at end of period	50,787	58,332
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	12,869	27,348
Change in actual and expected losses	(51)	(577)
Transfer (to) from accretable yield	(115)	(14,214)
Balance at end of period	12,703	12,557
Acquired Loans In An F D I C Assisted Transaction [Member] | Commercial and Other Construction Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	26,970	37,919
Accretion Accretable	4,095	9,855
Change in expected cash flow	11,093
Transfer from (to) non-accretable discount	(765)	5,417
Balance at end of period	33,203	33,481
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	0	24,464
Change in actual and expected losses	(765)	(8,554)
Transfer (to) from accretable yield	765	(5,417)
Balance at end of period	0	10,493
Acquired Loans In An F D I C Assisted Transaction [Member] | Construction and development secured by family properties [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	2,255	20,753
Accretion Accretable	14	619
Change in expected cash flow	(23)
Transfer from (to) non-accretable discount	19	672
Balance at end of period	2,237	20,806
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	0	0
Change in actual and expected losses	19	672
Transfer (to) from accretable yield	(19)	(672)
Balance at end of period	0	0
Acquired Loans In An F D I C Assisted Transaction [Member] | Auto and Leasing [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period		2,479
Accretion Accretable		1,392
Transfer from (to) non-accretable discount		578
Balance at end of period		1,665
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period		0
Change in actual and expected losses		578
Transfer (to) from accretable yield		(578)
Balance at end of period		0
Acquired Loans In An F D I C Assisted Transaction [Member] | Consumer Loan [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	3,213	1,072
Accretion Accretable	1,185	120
Change in expected cash flow	(2,028)
Transfer from (to) non-accretable discount	0	1,052
Balance at end of period	0	2,004
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	8,287	10,598
Change in actual and expected losses	(8,287)	116
Transfer (to) from accretable yield	0	(1,052)
Balance at end of period	$ 0	$ 9,662

XML

Loans Receivable (Investment in loans on non-accrual status) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 293,598	$ 300,119
Secured Non-Acquired Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	291,384	297,873
Secured Non-Acquired Loan [Member] | Mortgage Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	69,127	72,479
Secured Non-Acquired Loan [Member] | Traditional loan
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	44,442	47,215
Secured Non-Acquired Loan [Member] | Originated Up To The Year 2002 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	3,051	3,786
Secured Non-Acquired Loan [Member] | Originated In The Years 2003 And 2004 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	5,958	5,737
Secured Non-Acquired Loan [Member] | Originated In The Year 2005 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	3,941	3,627
Secured Non-Acquired Loan [Member] | Originated In The Year 2006 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	7,532	8,189
Secured Non-Acquired Loan [Member] | Originated In The Years 2007 2008 And 2009 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	13,742	14,625
Secured Non-Acquired Loan [Member] | Originated In The Years 2010 2011 2012 2013 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	9,056	10,588
Secured Non-Acquired Loan [Member] | Originated In Years 2014, 2015 and 2016 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,162	663
Secured Non-Acquired Loan [Member] | NonTraditional Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	5,055	5,092
Secured Non-Acquired Loan [Member] | Loss Mitigation Program [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	19,630	20,172
Secured Non-Acquired Loan [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	212,345	215,281
Secured Non-Acquired Loan [Member] | Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	22,609	21,455
Secured Non-Acquired Loan [Member] | Middle Market Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	12,012	12,729
Secured Non-Acquired Loan [Member] | Retail Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	10,597	8,726
Secured Non-Acquired Loan [Member] | Other Commercial and Industrial[Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	189,736	193,826
Secured Non-Acquired Loan [Member] | Institutional
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	186,675	190,290
Secured Non-Acquired Loan [Member] | Middle Market Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,493	1,565
Secured Non-Acquired Loan [Member] | Retail Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,527	1,932
Secured Non-Acquired Loan [Member] | Floor Plan Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	41	39
Secured Non-Acquired Loan [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,039	1,631
Secured Non-Acquired Loan [Member] | Credit Cards [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	422	369
Secured Non-Acquired Loan [Member] | Unsecured personal lines of credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	64	100
Secured Non-Acquired Loan [Member] | Unsecured personal loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,539	1,146
Secured Non-Acquired Loan [Member] | Cash collateral personal loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	14	16
Secured Non-Acquired Loan [Member] | Auto and Leasing [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	7,873	8,418
Most recent acquired loans accounted for under ASC 310-20 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,214	2,246
Most recent acquired loans accounted for under ASC 310-20 [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	854	880
Most recent acquired loans accounted for under ASC 310-20 [Member] | Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	670	695
Most recent acquired loans accounted for under ASC 310-20 [Member] | Retail Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	214	228
Most recent acquired loans accounted for under ASC 310-20 [Member] | Floor Plan Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	456	467
Most recent acquired loans accounted for under ASC 310-20 [Member] | Other Commercial and Industrial[Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	184	185
Most recent acquired loans accounted for under ASC 310-20 [Member] | Retail Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	177	178
Most recent acquired loans accounted for under ASC 310-20 [Member] | Floor Plan Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	7	7
Most recent acquired loans accounted for under ASC 310-20 [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	788	535
Most recent acquired loans accounted for under ASC 310-20 [Member] | Credit Cards [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	779	489
Most recent acquired loans accounted for under ASC 310-20 [Member] | Unsecured personal loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	9	46
Most recent acquired loans accounted for under ASC 310-20 [Member] | Auto Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 572	$ 831

XML

Loans Receivable (Recorded Investment in loans individually evaluated for impairment) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Allowance for loan and lease losses	$ 238,271	$ 234,131
Non-Acquired Loan [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	347,187	350,252
Recorded Investment	317,425	325,267
Allowance for loan and lease losses	$ 65,715	$ 65,180
Coverage	21.00%	21.00%
Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 478	$ 486
Recorded Investment	464	474
Acquired BBVAPR Accounted under ASC 310-30 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	1,081,120	1,137,377
Recorded Investment	978,102	1,017,976
Allowance for loan and lease losses	$ 27,747	$ 25,785
Coverage	3.00%	3.00%
Eurobank Acquired Loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 227,778	$ 241,305
Recorded Investment	235,181	236,964
Allowance for loan and lease losses	$ 92,293	$ 90,178
Coverage	39.00%	38.00%
Commercial impaired loans with specific allowance [Member] | Non-Acquired Loan [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 211,543	$ 210,718
Recorded Investment	196,997	199,366
Allowance for loan and lease losses	$ 56,580	$ 55,947
Coverage	29.00%	29.00%
Residential troubled-debt restructuring impaired loans with specific allowance [Member] | Non-Acquired Loan [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 98,610	$ 97,424
Recorded Investment	90,772	89,973
Allowance for loan and lease losses	$ 9,135	$ 9,233
Coverage	10.00%	10.00%
Commercial impaired loans with no specific allowance financing receivable | Non-Acquired Loan [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 37,034	$ 42,110
Recorded Investment	29,656	35,928
Commercial impaired loans with no specific allowance financing receivable | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	478	486
Recorded Investment	464	474
Mortgage impaired loan pool [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	600,901	287,311
Recorded Investment	600,901	168,107
Allowance for loan and lease losses	$ 1,762	$ 15,454
Coverage	0.00%	9.00%
Commercial impaired loan pool [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 267,931	$ 88,180
Recorded Investment	164,913	87,983
Allowance for loan and lease losses	$ 15,668	$ 5,707
Coverage	10.00%	6.00%
Construction impaired loan pool [Member] | Acquired BBVAPR Accounted under ASC 310-30 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 77,619
Recorded Investment	77,619
Allowance for loan and lease losses	$ 4,762
Coverage	6.00%
Auto impaired loan pool. | Acquired BBVAPR Accounted under ASC 310-30 [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 134,669	$ 153,592
Recorded Investment	134,669	153,592
Allowance for loan and lease losses	$ 5,555	$ 2,862
Coverage	4.00%	2.00%
Consumer impaired loan pool. | Eurobank Acquired Loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 1,708	$ 6,713
Recorded Investment	1,770	2,314
Allowance for loan and lease losses	$ 243	$ 243
Coverage	14.00%	11.00%
Loans secured by 1-4 family residential properties, covered [Member] | Eurobank Acquired Loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 96,028	$ 101,444
Recorded Investment	91,113	92,273
Allowance for loan and lease losses	$ 23,961	$ 22,570
Coverage	26.00%	24.00%
Commercial and Other Construction Loan [Member] | Eurobank Acquired Loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 130,042	$ 133,148
Recorded Investment	142,298	142,377
Allowance for loan and lease losses	$ 68,089	$ 67,365
Coverage	48.00%	47.00%

XML

Loans Receivable (Interest Income Recognized in loans individually evaluated for impairment) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Impaired Financing Receivable Interest Income Accrual Method [Abstract]
Total Interest Income	$ 1,139,000	$ 4,681,000
Impaired Financing Receivable Average Recorded Investment [Abstract]
Total Average Recorded Investment	321,180,000	337,233,000
Commercial Loan [Member] | Originated Loans [Member]
Impaired Financing Receivable Interest Income Accrual Method [Abstract]
Impaired Financing Receivable With Related Allowance Interest Income Accrual Method	71,000	3,695,000
Impaired Financing Receivable With No Related Allowance Interest Income Accrual Method	270,000	241,000
Impaired Financing Receivable Average Recorded Investment [Abstract]
Impaired Financing Receivable With Related Allowance Average Recorded Investment	196,795,000	79,873,000
Impaired Financing Receivable With No Related Allowance Average Recorded Investment	33,626,000	161,568,000
Commercial Loan [Member] | Most recent acquired loans accounted for under ASC 310-20 [Member]
Impaired Financing Receivable Interest Income Accrual Method [Abstract]
Impaired Financing Receivable With No Related Allowance Interest Income Accrual Method	0	12,000
Impaired Financing Receivable Average Recorded Investment [Abstract]
Impaired Financing Receivable With No Related Allowance Average Recorded Investment	467,000	2,401,000
Troubled Debt Restructuring [Member] | Originated Loans [Member]
Impaired Financing Receivable Interest Income Accrual Method [Abstract]
Impaired Financing Receivable With Related Allowance Interest Income Accrual Method	798,000	733,000
Impaired Financing Receivable Average Recorded Investment [Abstract]
Impaired Financing Receivable With Related Allowance Average Recorded Investment	$ 90,292,000	$ 93,391,000

XML

Loans Receivable (TDR Pre/Post Modifications) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) number	Mar. 31, 2015 USD ($) number
Mortgage Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | number	33	51
Financing Receivable Modifications Pre Modification Recorded Investment	$ 3,957	$ 6,182
Pre Modification Weighted Average Rate	6.03%	4.00%
Pre Modification Weighted Average Term	361 months	356 months
Financing Receivable Modifications Post Modification Recorded Investment	$ 4,854	$ 6,054
Post Modification Weighted Average Rate	4.83%	4.02%
Post Modification Weighted Average Term	493 months	357 months
Commercial Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | number	2	3
Financing Receivable Modifications Pre Modification Recorded Investment	$ 655	$ 4,505
Pre Modification Weighted Average Rate	6.81%	6.83%
Pre Modification Weighted Average Term	41 months	80 months
Financing Receivable Modifications Post Modification Recorded Investment	$ 656	$ 4,505
Post Modification Weighted Average Rate	6.71%	7.00%
Post Modification Weighted Average Term	36 months	141 months
Consumer Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | number	21	11
Financing Receivable Modifications Pre Modification Recorded Investment	$ 192	$ 146
Pre Modification Weighted Average Rate	14.28%	14.67%
Pre Modification Weighted Average Term	75 months	75 months
Financing Receivable Modifications Post Modification Recorded Investment	$ 231	$ 182
Post Modification Weighted Average Rate	11.15%	14.80%
Post Modification Weighted Average Term	72 months	66 months

XML

Loans Receivable (Troubled debt restructurings, Rolling Twelve Months) (Details) $ in Thousands	12 Months Ended
	Mar. 31, 2016 USD ($) number	Mar. 31, 2015 USD ($) number
Mortgage Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | number	31	60
Recored Investment | $	$ 3,732	$ 6,963
Consumer Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | number	3	6
Recored Investment | $	$ 77	$ 81
Auto Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | number		1
Recored Investment | $	$ 17	$ 0

XML

Loans Receivable (Credit Quality Indicator of loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	$ 4,576,885	$ 4,650,527
Financing Receivable, Individually Evaluated for Impairment	227,117	235,767
Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	3,116,690	3,111,590
Doubtful	0
Financing Receivable, Individually Evaluated for Impairment	317,425	325,267
Commercial Secured [Member] | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	728,520	728,956
Pass	658,122	657,623
Special Mention	36,738	32,780
Substandard	5,258	5,097
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	28,402	33,456
Commercial Secured [Member] | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	3,034	3,117
Pass	574	602
Special Mention	1,789	1,820
Substandard	214	228
Doubtful		0
Financing Receivable, Individually Evaluated for Impairment	457	467
Corporate | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	228,782	227,557
Pass	213,714	212,410
Special Mention	15,068	15,147
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Institutional | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	27,584	33,807
Pass	25,779	25,907
Special Mention	0	0
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	1,805	7,900
Middle Market | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	208,903	206,948
Pass	180,248	181,916
Special Mention	14,078	9,697
Substandard	189	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	14,388	15,335
Retail | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	244,020	241,090
Pass	219,150	217,836
Special Mention	7,592	7,936
Substandard	5,069	5,097
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	12,209	10,221
Retail | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	214	228
Pass	0	0
Special Mention	0	0
Substandard	214	228
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Floor Plan | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	2,859	2,892
Pass	2,859	2,892
Special Mention	0	0
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Floor Plan | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	2,820	2,889
Pass	574	602
Special Mention	1,789	1,820
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	457	467
Real Estate | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	16,372	16,662
Pass	16,372	16,662
Special Mention	0	0
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Other commercial and industrial [Member] | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	696,865	712,693
Pass	486,550	498,428
Special Mention	10,536	11,243
Substandard	1,528	1,184
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	198,251	201,838
Other commercial and industrial [Member] | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	3,524	4,340
Pass	3,444	4,246
Special Mention	0	0
Substandard	73	87
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	7	7
Institutional | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	120,881	108,582
Pass	113,235	100,826
Special Mention	0	0
Substandard	0	0
Doubtful		0
Financing Receivable, Individually Evaluated for Impairment	7,646	7,756
Institutional | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	363,255	380,985
Pass	176,580	190,695
Special Mention	0	0
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	186,675	190,290
Middle Market | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	103,788	107,313
Pass	92,896	97,288
Special Mention	8,787	8,052
Substandard	218	0
Doubtful		0
Financing Receivable, Individually Evaluated for Impairment	1,887	1,973
Retail | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	74,624	77,797
Pass	69,644	73,757
Special Mention	1,749	1,076
Substandard	1,227	1,184
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	2,004	1,780
Retail | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	3,517	3,724
Pass	3,444	3,637
Special Mention	0	0
Substandard	73	87
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Floor Plan | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	34,317	38,016
Pass	34,195	35,862
Special Mention	0	2,115
Substandard	83	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	39	39
Floor Plan | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	7	616
Pass	0	609
Special Mention	0	0
Substandard	0	0
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	7	7
Commercial and Industrial | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Doubtful	0
Total Commercial subject to risk rating [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	1,431,943	1,449,106
Pass	1,148,690	1,160,899
Special Mention	49,063	45,843
Substandard	7,073	6,596
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	227,117	235,768
Total Commercial subject to risk rating [Member] | Non-Acquired Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	1,425,385	1,441,649
Pass	1,144,672	1,156,051
Special Mention	47,274	44,023
Substandard	6,786	6,281
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	226,653	235,294
Total Commercial subject to risk rating [Member] | Commercial Acquired loans (under ASC 310-20) [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	6,558	7,457
Pass	4,018	4,848
Special Mention	1,789	1,820
Substandard	287	315
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	$ 464	$ 474

XML

Loans Receivable (Risk category of gross loans not subject to risk rating ) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	$ 4,576,885,000	$ 4,650,527,000
Financing Receivable, Individually Evaluated for Impairment	227,117,000	235,767,000
Originated In Years 2014, 2015 and 2016 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount		85,856,000
0 - 29 Days Past Due		85,128,000
30 - 59 Days Past Due		0
60 - 89 Days Past Due		65,000
90-119 Days Past Due		148,000
120 - 364 Days Past Due		281,000
365+ Days Past Due		234,000
Financing Receivable, Individually Evaluated for Impairment		0
Non Covered Loan, Not Subject To Risk Ratings [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	1,819,057,000	1,815,237,000
0 - 29 Days Past Due	1,553,272,000	1,541,282,000
30 - 59 Days Past Due	69,320,000	70,443,000
60 - 89 Days Past Due	34,750,000	39,648,000
90-119 Days Past Due	14,259,000	14,727,000
120 - 364 Days Past Due	21,535,000	22,412,000
365+ Days Past Due	35,150,000	36,752,000
Financing Receivable, Individually Evaluated for Impairment	90,772,000	89,973,000
Non Covered Loan, Not Subject To Risk Ratings [Member] | Originated In Years 2014, 2015 and 2016 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount		0
0 - 29 Days Past Due		85,856,000
30 - 59 Days Past Due		85,128,000
60 - 89 Days Past Due		0
90-119 Days Past Due		65,000
120 - 364 Days Past Due		148,000
365+ Days Past Due		281,000
Financing Receivable, Individually Evaluated for Impairment		234,000
Originated loans, not subject to risk rating [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	1,691,305,000	1,669,941,000
0 - 29 Days Past Due	1,436,889,000	1,408,542,000
30 - 59 Days Past Due	61,738,000	61,946,000
60 - 89 Days Past Due	32,305,000	36,956,000
90-119 Days Past Due	13,630,000	13,917,000
120 - 364 Days Past Due	20,821,000	21,855,000
365+ Days Past Due	35,150,000	36,752,000
Financing Receivable, Individually Evaluated for Impairment	90,772,000	89,973,000
Originated loans, not subject to risk rating [Member] | Mortgage Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	751,819,000	757,828,000
0 - 29 Days Past Due	581,966,000	580,214,000
30 - 59 Days Past Due	4,810,000	5,642,000
60 - 89 Days Past Due	13,961,000	18,811,000
90-119 Days Past Due	6,748,000	7,390,000
120 - 364 Days Past Due	18,412,000	19,046,000
365+ Days Past Due	35,150,000	36,752,000
Financing Receivable, Individually Evaluated for Impairment	90,772,000	89,973,000
Originated loans, not subject to risk rating [Member] | Conventional Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	612,024,000	618,005,000
0 - 29 Days Past Due	541,474,000	540,340,000
30 - 59 Days Past Due	1,920,000	1,469,000
60 - 89 Days Past Due	11,613,000	15,857,000
90-119 Days Past Due	5,146,000	4,518,000
120 - 364 Days Past Due	10,847,000	11,055,000
365+ Days Past Due	26,305,000	29,535,000
Financing Receivable, Individually Evaluated for Impairment	14,719,000	15,231,000
Originated loans, not subject to risk rating [Member] | Originated Up To The Year 2002 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	55,633,000	57,789,000
0 - 29 Days Past Due	50,439,000	50,912,000
30 - 59 Days Past Due	82,000	82,000
60 - 89 Days Past Due	1,219,000	2,218,000
90-119 Days Past Due	629,000	530,000
120 - 364 Days Past Due	1,352,000	1,504,000
365+ Days Past Due	1,229,000	1,858,000
Financing Receivable, Individually Evaluated for Impairment	683,000	685,000
Originated loans, not subject to risk rating [Member] | Originated In The Years 2003 And 2004 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	97,289,000	99,446,000
0 - 29 Days Past Due	85,896,000	87,060,000
30 - 59 Days Past Due	388,000	251,000
60 - 89 Days Past Due	3,580,000	4,867,000
90-119 Days Past Due	1,681,000	1,261,000
120 - 364 Days Past Due	1,552,000	1,353,000
365+ Days Past Due	2,444,000	2,921,000
Financing Receivable, Individually Evaluated for Impairment	1,748,000	1,733,000
Originated loans, not subject to risk rating [Member] | Originated In The Year 2005 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	53,491,000	54,221,000
0 - 29 Days Past Due	46,578,000	47,197,000
30 - 59 Days Past Due	314,000	79,000
60 - 89 Days Past Due	1,893,000	2,553,000
90-119 Days Past Due	315,000	292,000
120 - 364 Days Past Due	1,412,000	1,068,000
365+ Days Past Due	2,140,000	2,189,000
Financing Receivable, Individually Evaluated for Impairment	839,000	843,000
Originated loans, not subject to risk rating [Member] | Originated In The Year 2006 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	76,070,000	78,403,000
0 - 29 Days Past Due	63,614,000	63,659,000
30 - 59 Days Past Due	402,000	318,000
60 - 89 Days Past Due	1,238,000	2,878,000
90-119 Days Past Due	816,000	1,168,000
120 - 364 Days Past Due	1,620,000	1,895,000
365+ Days Past Due	4,775,000	4,871,000
Financing Receivable, Individually Evaluated for Impairment	3,605,000	3,614,000
Originated loans, not subject to risk rating [Member] | Originated In The Years 2007 2008 And 2009 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	88,477,000	91,546,000
0 - 29 Days Past Due	69,491,000	71,439,000
30 - 59 Days Past Due	282,000	170,000
60 - 89 Days Past Due	1,420,000	1,665,000
90-119 Days Past Due	997,000	685,000
120 - 364 Days Past Due	2,909,000	2,972,000
365+ Days Past Due	9,617,000	10,725,000
Financing Receivable, Individually Evaluated for Impairment	3,761,000	3,890,000
Originated loans, not subject to risk rating [Member] | Originated In The Years 2010 2011 2012 2013 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	148,245,000	150,744,000
0 - 29 Days Past Due	134,179,000	134,945,000
30 - 59 Days Past Due	452,000	569,000
60 - 89 Days Past Due	1,819,000	1,611,000
90-119 Days Past Due	69,000	434,000
120 - 364 Days Past Due	1,777,000	1,982,000
365+ Days Past Due	5,866,000	6,737,000
Financing Receivable, Individually Evaluated for Impairment	4,083,000	4,466,000
Originated loans, not subject to risk rating [Member] | Originated In Years 2014, 2015 and 2016 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	92,819,000
0 - 29 Days Past Due	91,277,000
30 - 59 Days Past Due	0
60 - 89 Days Past Due	444,000
90-119 Days Past Due	639,000
120 - 364 Days Past Due	225,000
365+ Days Past Due	234,000
Financing Receivable, Individually Evaluated for Impairment	0
Originated loans, not subject to risk rating [Member] | NonTraditional Mortgage [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	27,707,000	29,552,000
0 - 29 Days Past Due	22,299,000	23,497,000
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	395,000	977,000
90-119 Days Past Due	128,000	552,000
120 - 364 Days Past Due	2,337,000	2,621,000
365+ Days Past Due	2,548,000	1,905,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Loss Mitigation Program Loan Exclude Individually Impairment Measure [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	104,011,000	101,916,000
0 - 29 Days Past Due	17,800,000	16,031,000
30 - 59 Days Past Due	2,890,000	4,173,000
60 - 89 Days Past Due	1,953,000	1,977,000
90-119 Days Past Due	669,000	727,000
120 - 364 Days Past Due	1,498,000	1,728,000
365+ Days Past Due	3,148,000	2,538,000
Financing Receivable, Individually Evaluated for Impairment	76,053,000	74,742,000
Originated loans, not subject to risk rating [Member] | Home equity secured personal loans [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	393,000	410,000
0 - 29 Days Past Due	393,000	346,000
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90-119 Days Past Due	0	0
120 - 364 Days Past Due	0	64,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | GNMA's Buy Back Option related
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	7,684,000	7,945,000
0 - 29 Days Past Due	0	0
30 - 59 Days Past Due	0	0
60 - 89 Days Past Due	0	0
90-119 Days Past Due	805,000	1,593,000
120 - 364 Days Past Due	3,730,000	3,578,000
365+ Days Past Due	3,149,000	2,774,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Consumer Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	252,327,000	242,950,000
0 - 29 Days Past Due	246,481,000	237,846,000
30 - 59 Days Past Due	3,127,000	2,755,000
60 - 89 Days Past Due	1,141,000	1,306,000
90-119 Days Past Due	1,310,000	819,000
120 - 364 Days Past Due	268,000	224,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Credit Cards [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	23,365,000	22,766,000
0 - 29 Days Past Due	22,403,000	21,766,000
30 - 59 Days Past Due	387,000	449,000
60 - 89 Days Past Due	153,000	182,000
90-119 Days Past Due	192,000	179,000
120 - 364 Days Past Due	230,000	190,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Overdrafts [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	220,000	190,000
0 - 29 Days Past Due	203,000	166,000
30 - 59 Days Past Due	17,000	24,000
60 - 89 Days Past Due	0	0
90-119 Days Past Due	0	0
120 - 364 Days Past Due	0	0
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Unsecured personal lines of credit [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	2,350,000	2,244,000
0 - 29 Days Past Due	2,197,000	2,125,000
30 - 59 Days Past Due	51,000	74,000
60 - 89 Days Past Due	49,000	0
90-119 Days Past Due	22,000	17,000
120 - 364 Days Past Due	31,000	28,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Unsecured personal loans [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	210,223,000	201,156,000
0 - 29 Days Past Due	205,756,000	197,339,000
30 - 59 Days Past Due	2,458,000	2,083,000
60 - 89 Days Past Due	920,000	1,107,000
90-119 Days Past Due	1,082,000	621,000
120 - 364 Days Past Due	7,000	6,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Cash collateral personal loans [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	16,169,000	16,594,000
0 - 29 Days Past Due	15,922,000	16,450,000
30 - 59 Days Past Due	214,000	125,000
60 - 89 Days Past Due	19,000	17,000
90-119 Days Past Due	14,000	2,000
120 - 364 Days Past Due	0	0
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Originated loans, not subject to risk rating [Member] | Auto and Leasing [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	687,159,000	669,163,000
0 - 29 Days Past Due	608,442,000	590,482,000
30 - 59 Days Past Due	53,801,000	53,549,000
60 - 89 Days Past Due	17,203,000	16,839,000
90-119 Days Past Due	5,572,000	5,708,000
120 - 364 Days Past Due	2,141,000	2,585,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Accounted For Under ASC 310-20, not subject to risk rating [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	127,752,000	145,296,000
0 - 29 Days Past Due	116,383,000	132,740,000
30 - 59 Days Past Due	7,582,000	8,497,000
60 - 89 Days Past Due	2,445,000	2,692,000
90-119 Days Past Due	629,000	810,000
120 - 364 Days Past Due	714,000	557,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Accounted For Under ASC 310-20, not subject to risk rating [Member] | Consumer Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	36,346,000	38,385,000
0 - 29 Days Past Due	34,534,000	36,493,000
30 - 59 Days Past Due	687,000	944,000
60 - 89 Days Past Due	337,000	413,000
90-119 Days Past Due	287,000	187,000
120 - 364 Days Past Due	502,000	348,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Accounted For Under ASC 310-20, not subject to risk rating [Member] | Credit Cards [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	33,388,000	35,217,000
0 - 29 Days Past Due	31,631,000	33,414,000
30 - 59 Days Past Due	650,000	930,000
60 - 89 Days Past Due	328,000	384,000
90-119 Days Past Due	287,000	186,000
120 - 364 Days Past Due	492,000	303,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Accounted For Under ASC 310-20, not subject to risk rating [Member] | Unsecured personal loans [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	2,959,000	3,168,000
0 - 29 Days Past Due	2,903,000	3,079,000
30 - 59 Days Past Due	37,000	14,000
60 - 89 Days Past Due	9,000	29,000
90-119 Days Past Due	0	1,000
120 - 364 Days Past Due	10,000	45,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Accounted For Under ASC 310-20, not subject to risk rating [Member] | Auto Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	91,406,000	106,911,000
0 - 29 Days Past Due	81,849,000	96,247,000
30 - 59 Days Past Due	6,895,000	7,553,000
60 - 89 Days Past Due	2,108,000	2,279,000
90-119 Days Past Due	342,000	623,000
120 - 364 Days Past Due	212,000	209,000
365+ Days Past Due	0	0
Financing Receivable, Individually Evaluated for Impairment	$ 0	$ 0

XML

Allowance for Loan and Lease Losses (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans And Leases Receivable Allowance, Covered	$ 24,000,000		$ 22,600,000
Provision for Loan Losses, Covered	$ 54,000	$ 4,800,000

XML

Allowance for Loan and Lease Losses (Composition of the Company's allowance for loan and lease losses) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	$ 238,271,000	$ 234,131,000
Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	113,238,000	112,626,000
Non-Acquired Loan [Member] | Mortgage Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	18,784,000	18,352,000
Non-Acquired Loan [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	64,206,000	64,791,000
Non-Acquired Loan [Member] | Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	11,414,000	11,197,000
Non-Acquired Loan [Member] | Auto and Leasing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	18,716,000	18,261,000
Non-Acquired Loan [Member] | Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	118,000	25,000
Acquired loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	145,978,000	143,953,000
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	4,993,000	5,542,000
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	23,000	26,000
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	3,243,000	3,429,000
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member] | Auto Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	1,727,000	2,087,000
Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	27,747,000	25,785,000
Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member] | Mortgage Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	1,762,000	1,762,000
Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member] | Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	20,430,000	21,161,000
Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member] | Auto Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	5,555,000	2,862,000
Eurobank Acquired Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	92,293,000	90,178,000
Eurobank Acquired Loans | Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	243,000	243,000
Eurobank Acquired Loans | Loans secured by 1-4 family residential properties, covered [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	23,961,000	22,570,000
Eurobank Acquired Loans | Commercial and Other Construction Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	$ 68,089,000	$ 67,365,000

XML

Allowance for Loan and Lease Losses (Allowance for loan and lease losses) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	$ 5,542,000
Balance at end of period	4,993,000
Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period		$ 2,863,000
Balance at end of period	27,747,000	14,166,000
Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	112,626,000	51,439,000
Charge-offs	13,362,000	12,218,000
Recoveries	3,314,000	3,626,000
Provision For Loan And Lease Losses	10,660,000	33,912,000
Balance at end of period	113,238,000	76,759,000
Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	5,542,000	4,597,000
Charge-offs	1,556,000	(2,647,000)
Recoveries	711,000	713,000
Provision For Loan And Lease Losses	296,000	2,787,000
Balance at end of period	4,993,000	5,450,000
Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	25,785,000	13,481,000
Charge-offs	66,000
Provision For Loan And Lease Losses	2,028,000	685,000
Balance at end of period	27,747,000
Mortgage Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period		0
Balance at end of period	1,762,000	0
Mortgage Loan [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	18,352,000	19,679,000
Charge-offs	1,662,000	1,414,000
Recoveries	145,000	0
Provision For Loan And Lease Losses	1,949,000	(179,000)
Balance at end of period	18,784,000	18,086,000
Mortgage Loan [Member] | Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	1,678,000	0
Charge-offs	0
Provision For Loan And Lease Losses	84,000	0
Balance at end of period	1,762,000
Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	67,365,000	48,334,000
Charge-offs	(134,000)
Provision For Loan And Lease Losses	(858,000)
Balance at end of period	68,089,000
Commercial Loan [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	26,000
Balance at end of period	23,000
Commercial Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period		1,713,000
Balance at end of period	20,430,000	13,687,000
Commercial Loan [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	64,791,000	8,432,000
Charge-offs	1,011,000	992,000
Recoveries	88,000	89,000
Provision For Loan And Lease Losses	338,000	25,594,000
Balance at end of period	64,206,000	33,123,000
Commercial Loan [Member] | Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	26,000	65,000
Charge-offs	7,000	0
Recoveries	32,000	9,000
Provision For Loan And Lease Losses	(28,000)	(25,000)
Balance at end of period	23,000	49,000
Commercial Loan [Member] | Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	21,245,000	13,476,000
Charge-offs	66,000
Provision For Loan And Lease Losses	(749,000)	211,000
Balance at end of period	20,430,000
Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	243,000	389,000
Charge-offs	0
Provision For Loan And Lease Losses	0
Balance at end of period	243,000
Consumer Loan [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	3,429,000
Balance at end of period	3,243,000
Consumer Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period		418,000
Balance at end of period	0	0
Consumer Loan [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	11,197,000	9,072,000
Charge-offs	2,327,000	1,676,000
Recoveries	102,000	153,000
Provision For Loan And Lease Losses	2,442,000	1,856,000
Balance at end of period	11,414,000	9,405,000
Consumer Loan [Member] | Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	3,429,000	1,211,000
Charge-offs	812,000	(1,380,000)
Recoveries	81,000	134,000
Provision For Loan And Lease Losses	545,000	1,920,000
Balance at end of period	3,243,000	1,885,000
Consumer Loan [Member] | Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	0	0
Charge-offs	0
Provision For Loan And Lease Losses	0	0
Balance at end of period	0
Auto Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period		732,000
Balance at end of period	5,555,000	479,000
Auto Loan [Member] | Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	2,087,000	3,321,000
Charge-offs	737,000	(1,267,000)
Recoveries	598,000	570,000
Provision For Loan And Lease Losses	(221,000)	892,000
Balance at end of period	1,727,000	3,516,000
Auto Loan [Member] | Acquired loans [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	2,862,000	5,000
Charge-offs	0
Provision For Loan And Lease Losses	2,693,000	474,000
Balance at end of period	5,555,000
Auto and Leasing Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	0	0
Charge-offs	0
Provision For Loan And Lease Losses	0
Balance at end of period	0
Auto and Leasing Portfolio Segment | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	18,261,000	14,255,000
Charge-offs	8,362,000	8,136,000
Recoveries	2,979,000	3,384,000
Provision For Loan And Lease Losses	5,838,000	6,259,000
Balance at end of period	18,716,000	15,762,000
Unallocated Financing Receivables | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	0
Unallocated Financing Receivables | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	25,000	1,000
Charge-offs	0	0
Recoveries	0	0
Provision For Loan And Lease Losses	93,000	382,000
Balance at end of period	118,000	383,000
Unallocated Financing Receivables | Acquired loans [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	0	0
Charge-offs	0	0
Recoveries	0	0
Provision For Loan And Lease Losses	0	0
Balance at end of period	0	0
Loans secured by 1-4 family residential properties, covered [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	22,570,000	$ 15,522,000
Charge-offs	0
Provision For Loan And Lease Losses	53,000
Balance at end of period	$ 23,961,000

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Allowance for Loan and Lease Losses (Gross Loan and Allowance for loan and lease losses) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 227,117,000	$ 235,767,000
Loans and Leases Receivable, Gross, Carrying Amount	4,576,885,000	4,650,527,000
Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,993,000	5,542,000
Financing Receivable, Allowance for Credit Losses	4,993,000	5,542,000
Financing Receivable, Individually Evaluated for Impairment	464,000	474,000
Financing Receivable, Collectively Evaluated for Impairment	133,846,000	152,279,000
Loans and Leases Receivable, Gross, Carrying Amount	134,310,000	152,753,000
Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	27,747,000		$ 14,166,000	$ 2,863,000
Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1	65,715,000	65,180,000
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	47,523,000	47,446,000
Financing Receivable, Allowance for Credit Losses	113,238,000	112,626,000	76,759,000	51,439,000
Financing Receivable, Individually Evaluated for Impairment	317,425,000	325,267,000
Financing Receivable, Collectively Evaluated for Impairment	2,799,265,000	2,786,323,000
Loans and Leases Receivable, Gross, Carrying Amount	3,116,690,000	3,111,590,000
Mortgage Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	1,762,000		0	0
Mortgage Loan [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1	9,135,000	9,233,000
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	9,649,000	9,119,000
Financing Receivable, Allowance for Credit Losses	18,784,000	18,352,000	18,086,000	19,679,000
Financing Receivable, Individually Evaluated for Impairment	90,772,000	89,973,000
Financing Receivable, Collectively Evaluated for Impairment	661,047,000	667,855,000
Loans and Leases Receivable, Gross, Carrying Amount	751,819,000	757,828,000
Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	68,089,000	67,365,000		48,334,000
Commercial Loan [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	23,000	26,000
Financing Receivable, Allowance for Credit Losses	23,000	26,000
Financing Receivable, Individually Evaluated for Impairment	464,000	474,000
Financing Receivable, Collectively Evaluated for Impairment	6,094,000	6,983,000
Loans and Leases Receivable, Gross, Carrying Amount	6,558,000	7,457,000
Commercial Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	20,430,000		13,687,000	1,713,000
Commercial Loan [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1	56,580,000	55,947,000
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	7,626,000	8,844,000
Financing Receivable, Allowance for Credit Losses	64,206,000	64,791,000	33,123,000	8,432,000
Financing Receivable, Individually Evaluated for Impairment	226,653,000	235,294,000
Financing Receivable, Collectively Evaluated for Impairment	1,198,732,000	1,206,355,000
Loans and Leases Receivable, Gross, Carrying Amount	1,425,385,000	1,441,649,000
Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	243,000	243,000		389,000
Consumer Loan [Member] | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,243,000	3,429,000
Financing Receivable, Allowance for Credit Losses	3,243,000	3,429,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	36,346,000	38,385,000
Loans and Leases Receivable, Gross, Carrying Amount	36,346,000	38,385,000
Consumer Loan [Member] | Acquired BBVAPR accounted under ASC 310-30 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	0		0	418,000
Consumer Loan [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	11,414,000	11,197,000
Financing Receivable, Allowance for Credit Losses	11,414,000	11,197,000	9,405,000	9,072,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	252,327,000	242,950,000
Loans and Leases Receivable, Gross, Carrying Amount	252,327,000	242,950,000
Auotomobile Loans Portfolio Segment | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,727,000	2,087,000
Financing Receivable, Allowance for Credit Losses	1,727,000	2,087,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	91,406,000	106,911,000
Loans and Leases Receivable, Gross, Carrying Amount	91,406,000	106,911,000
Auto and Leasing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	0	0		0
Auto and Leasing [Member] | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	18,716,000	18,261,000
Financing Receivable, Allowance for Credit Losses	18,716,000	18,261,000	15,762,000	14,255,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	687,159,000	669,163,000
Loans and Leases Receivable, Gross, Carrying Amount	687,159,000	669,163,000
Unallocated Financing Receivables | Acquired BBVAPR Accounted for under ASC 310-20 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	0	0
Financing Receivable, Allowance for Credit Losses		0
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	0	0
Loans and Leases Receivable, Gross, Carrying Amount	0	0
Unallocated Financing Receivables | Non-Acquired Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	118,000	25,000
Financing Receivable, Allowance for Credit Losses	118,000	25,000	$ 383,000	$ 1,000
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	0	0
Loans and Leases Receivable, Gross, Carrying Amount	$ 0	$ 0

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Allowance for Loan and Lease Losses (Allowance for Acquired Eurobank Loan and Lease Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2015
Loan Receivable Type
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 90,178	$ 64,245
Provision for loan and lease losses, net	(805)
Charge-offs	(134)		$ 4,809
FDIC Indemnification Asset Additional Estimated Losses Recoveries	(1,444)		1,597
Balance at end of period	92,293
Loans secured by 1-4 family residential properties, covered [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	22,570	15,522
Provision for loan and lease losses, net	53
Charge-offs	0
FDIC Indemnification Asset Additional Estimated Losses Recoveries	(1,444)
Balance at end of period	23,961
Commercial Loan [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	67,365	48,334
Provision for loan and lease losses, net	(858)
Charge-offs	(134)
FDIC Indemnification Asset Additional Estimated Losses Recoveries	0
Balance at end of period	68,089
Consumer Loan [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	243	389
Provision for loan and lease losses, net	0
Charge-offs	0
FDIC Indemnification Asset Additional Estimated Losses Recoveries	0
Balance at end of period	243
Auto and Leasing [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	0	0
Provision for loan and lease losses, net	0
Charge-offs	0
FDIC Indemnification Asset Additional Estimated Losses Recoveries	0
Balance at end of period	$ 0
Eurobank Acquired Loans | Loan Receivable Type
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period		64,245
Provision for loan and lease losses, net		4,809
FDIC Indemnification Asset Additional Estimated Losses Recoveries		1,597
Balance at end of period		70,651	70,651
Eurobank Acquired Loans | Loans secured by 1-4 family residential properties, covered [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period		15,522
Provision for loan and lease losses, net		1,818
Charge-offs		1,818
FDIC Indemnification Asset Additional Estimated Losses Recoveries		0
Balance at end of period		17,340	17,340
Eurobank Acquired Loans | Commercial Loan [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period		48,334
Provision for loan and lease losses, net		2,991
FDIC Indemnification Asset Additional Estimated Losses Recoveries		1,597
Balance at end of period		52,922	52,922
Eurobank Acquired Loans | Consumer Loan [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period		389
Provision for loan and lease losses, net		0
Charge-offs		0
FDIC Indemnification Asset Additional Estimated Losses Recoveries		0
Balance at end of period		389	389
Eurobank Acquired Loans | Auto and Leasing [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period		0
Provision for loan and lease losses, net		0
Charge-offs		0
FDIC Indemnification Asset Additional Estimated Losses Recoveries		0
Balance at end of period		$ 0	$ 0

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FDIC Indemnification Indemnification Asset and True-up Payment Obligation and FDIC shared-loss expense (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016
FDIC-Assisted Acquisition [Abstract]
Percent Of Losses Fdic Absorbs	80.00%
Percent Of Losses Recoveries Fdic Shares	80.00%
FDIC Assisted Transaction Description	Also in connection with the FDIC-assisted acquisition, the Bank agreed to make a true-up payment, also known as clawback liability or clawback provision, to the FDIC on the date that is 45 days following the last day (such day, the “True-Up Measurement Date”) of the final shared-loss month, or upon the final disposition of all covered assets under the shared-loss agreements in the event losses thereunder fail to reach expected levels. Under the shared-loss agreements, the Bank will pay to the FDIC 50% of the excess, if any, of: (i) 20% of the Intrinsic Loss Estimate of $906.0 million (or $181.2 million) (as determined by the FDIC) less (ii) the sum of: (A) 25% of the asset discount (per bid) (or $227.5 million); plus (B) 25% of the cumulative shared-loss payments (defined as the aggregate of all of the payments made or payable to the Bank minus the aggregate of all of the payments made or payable to the FDIC); plus (C) the sum of the period servicing amounts for every consecutive twelve-month period prior to and ending on the True-Up Measurement Date in respect of each of the shared-loss agreements during which the shared-loss provisions of the applicable shared-loss agreement is in effect (defined as the product of the simple average of the principal amount of shared-loss loans and shared-loss assets at the beginning and end of such period times 1%). The estimated liability is included within accrued expenses and other liabilities in the unaudited consolidated statements of financial condition. This true-up payment obligation may increase if actual and expected losses decline. The Company measures the true-up payment obligation at fair value. The changes in fair value are included as a change in true-up payment obligation within the FDIC shared-loss expense, net, in the unaudited consolidated statements of operations.

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FDIC Indemnification Asset, True-up Payment Obligation and FDIC shared-loss expense (FDIC Indemnification Asset Roll Forward) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
FDIC Indemnification Asset [Roll Forward]
Balance	$ 22,599,000	$ 97,378,000
Indemnification agreements reimbursements from FDIC	(406,000)	(17,172,000)
Shared-loss agreements reimbursements expected from the FDIC	1,444,000	1,597,000
FDIC indemnification asset, expense	2,865,000	(12,221,000)
Incurred expenses to be reimbursed under shared-loss agreements	151,000	5,639,000
Balance	20,923,000	75,221,000
True-up payment obligation [Roll Forward]
Balance	24,658,000	21,981,000
Change in true-up payment obligation expense	577,000	863,000
Balance	$ 577,000	$ 22,844,000

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FDIC Indemnification Asset, True-up Payment Obligation and FDIC shared-loss expense (Fair value and the undiscounted amount of the true-up payment obligation and FDIC shared-loss expense) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
FDIC-Assisted Acquisition [Abstract]
Business Combination Contingent Consideration Liability	$ 25,235	$ 24,658
Business Combination Contingent Consideration Potential Cash Payment	$ 34,966	$ 34,956

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FDIC Indemnification Asset, True-up Payment Obligation and FDIC Shared-Loss Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
FDIC Shared-loss expense [Abstract]
FDIC indemnification asset, expense	$ 2,865	$ (12,221)
Change in true-up payment obligation expense	(577)	(863)
Reimbursement To FDIC For Recoveries	(587)	0
FDIC shared-loss expense, net	$ (4,029)	$ (13,084)

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Premises and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property Plant And Equipment Line Items
Total Premises and Equipment, net	$ 73,975	$ 74,590

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Servicing Assets (Narratives) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Servicing Assets At Fair Value Line Items
Servicing Asset at Fair Value, Amount	$ 7,819,000	$ 12,164,000	$ 7,455,000	$ 13,992,000
Servicing fee	$ 876,000	$ 1,800,000

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Servicing Assets (Changes in serving rights at fair value) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Servicing Asset At Fair Value Amount Roll Forward
Fair value	$ 7,455	$ 13,992
Servicing from mortgage securitizations or asset transfers	557	531
Changes due to payments on loans	(104)	(418)
Changes in fair value due to sales price of mortgage servicing rights held-for-sale	0	(1,882)
Changes in fair value due to changes in valuation model inputs or assumptions	(89)	(59)
Fair value	$ 7,819	$ 12,164

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Servicing Assets (Key Economic Assumptions) (Details) - Mortgage related servicing assets [Member]	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Minimum [Member]
Servicing Assets At Fair Value Line Items
Constant prepayment rate	4.43%	4.51%
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value Discount Rate	10.00%	10.00%
Maximum [Member]
Servicing Assets At Fair Value Line Items
Constant prepayment rate	12.17%	11.39%
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value Discount Rate	12.00%	12.00%

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Servicing Assets (Sensitivity of current fair value of servicing assets) (Details) - Traditional loan $ in Thousands	Mar. 31, 2016 USD ($)
Servicing Assets At Fair Value Line Items
Servicing Asset	$ 7,819
Constant Prepayment Rate - Decrease in fair value due to 10% adverse change	(197)
Constant Prepayment Rate - Decrease in fair value due to 20% adverse change	(385)
Discount Rate - Decrease in fair value due to 10% adverse change	(22)
Discount Rate - Decrease in fair value due to 20% adverse change	$ (43)

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Derivative Activities (Narratives) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount Purchased Option	$ 2,200,000	$ 3,400,000
Embedded Derivative, Fair Value of Embedded Derivative Liability	746,000	1,100,000
Notional Amount Embedded Option	2,100,000	3,200,000
Interest Rate Cap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	$ 124,600,000	$ 109,800,000

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Derivative Activities (Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	$ 2,662	$ 3,025
Derivative Liabilities	6,220	6,162
Options tied to Standard & Poor 500 Stock Market Index [Member]
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	772	1,170
Designated as Hedging Instrument [Member]
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Liabilities	4,318	4,307
Not Designated as Hedging Instrument [Member]
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	1,829	1,819
Derivative Liabilities	1,829	1,819
Interest Rate Cap [Member]
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	61	32
Derivative Liabilities	61	32
Other derivative
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	0	4
Derivative Liabilities	$ 12	$ 4

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Derivative Activities (Interest rate swap and their term) (Details) - Interest rate swap designated as cash flow hedges $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Derivative [Line Items]
Amount	$ 262,638
Rate 2.4365% [Member]
Derivative [Line Items]
Amount	$ 25,000
Fixed rate	2.4365%
Trade Date	May 05, 2011
Settlement Date	May 04, 2012
Maturity Date	May 04, 2016
Rate 2.6200% [Member]
Derivative [Line Items]
Amount	$ 25,000
Fixed rate	2.62%
Trade Date	May 05, 2011
Settlement Date	Jul. 24, 2012
Maturity Date	Jul. 24, 2016
Rate 2.6350% [Member]
Derivative [Line Items]
Amount	$ 25,000
Fixed rate	2.635%
Trade Date	May 05, 2011
Settlement Date	Jul. 30, 2012
Maturity Date	Jul. 30, 2016
Rate 2.6590% [Member]
Derivative [Line Items]
Amount	$ 50,000
Fixed rate	2.659%
Trade Date	May 05, 2011
Settlement Date	Aug. 10, 2012
Maturity Date	Aug. 10, 2016
Rate 2.6750% [Member]
Derivative [Line Items]
Amount	$ 100,000
Fixed rate	2.675%
Trade Date	May 05, 2011
Settlement Date	Aug. 16, 2012
Maturity Date	Aug. 16, 2016
Rate 2.4210% [Member]
Derivative [Line Items]
Amount	$ 37,638
Fixed rate	2.421%
Trade Date	Jul. 03, 2013
Settlement Date	Jul. 03, 2013
Maturity Date	Aug. 01, 2023

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Derivative Activities (Interest rate swap not designated as hedging instruments and their term) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Derivatives Offered to Clients [Member] | Rate 5.13% [Member]
Derivative [Line Items]
Amount	$ 3,728
Fixed rate	5.13%
Settlement Date	Jul. 03, 2006
Maturity Date	Jul. 03, 2016
Derivatives Offered to Clients [Member] | Rate 5.51% [Member]
Derivative [Line Items]
Amount	$ 12,500
Fixed rate	5.505%
Settlement Date	Apr. 11, 2009
Maturity Date	Apr. 11, 2019
Mirror Image Derivatives [Member] | Rate 5.13% [Member]
Derivative [Line Items]
Amount	$ 3,728
Fixed rate	5.13%
Settlement Date	Jul. 03, 2006
Maturity Date	Jul. 03, 2016
Mirror Image Derivatives [Member] | Rate 5.51% [Member]
Derivative [Line Items]
Amount	$ 12,500
Fixed rate	5.505%
Settlement Date	Apr. 11, 2009
Maturity Date	Apr. 11, 2019

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Accrued Interest and Other Assets (Narratives) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Other assets [Line Items]
Prepaid Taxes	$ 5,700,000	$ 7,000,000
Mortgage tax credits	6,277,000	6,277,000
Other Intangible Assets	2,400,000
Repossessed auto	4,200,000	5,500,000
CoreDepositsMember | Eurobank [Member]
Other assets [Line Items]
Other Intangible Assets	$ 5,000,000	5,300,000
Customer Relationships [Member]
Other assets [Line Items]
Other Intangible Assets		$ 2,500,000

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Accrued Interest Receivable and Other Assets (Accrued Interest)(Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts Receivable Net Abstract
Accrued Interest Receivable On Non Acquired Loans	$ 14,829	$ 16,020
Accrued Investment Income Receivable	3,563	4,617
Total Interest Receivable	$ 18,392	$ 20,637

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Accrued Interest and Other Assets (Other assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other asset
Other prepaid expenses	$ 10,363	$ 11,762
Other repossessed assets	4,408	6,226
Core deposit intangible and customer relationship intangibles	7,418	7,838
Mortgage tax credits	6,277	6,277
Investment in Statutory Trust	1,083	1,083
Accounts receivable and other assets	44,781	42,786
Other assets	$ 74,330	$ 75,972

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Deposits and Related Interest (Narratives) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Deposits [Abstract]
Weighted Average Rate Domestic Deposit	0.60%	0.56%
Puerto Rico Cash & Money Market Fund Deposits	$ 103,000,000	$ 103,700,000
Puerto Rico Cash & Money Market Fund Deposits Weighted Average Rate	0.77%	0.77%
Puerto Rico Cash & Money Market Fund Deposits Collateral	$ 78,800,000	$ 81,600,000
Time Deposits, $100,000 or More	591,000,000	597,600,000
Public Fund Time Deposits, $100,000 or more	$ 5,400,000	$ 7,700,000
Public Fund Time Deposits Weighted Average Rate, $100,000 or more	0.47%	0.49%
Public funds deposit	$ 220,500,000	$ 99,000,000
Public Fund Collateral Investments	410,900,000	410,900,000
Accrued Interest, Time Deposits	1,700,000
Unamortized deposit discounts	234,000
Bank Overdrafts	565,000	1,500,000
Brokered Certificates of Deposits	617,600,000	711,400,000
Brokered Money Market Deposit	70,500,000	$ 71,600,000
Equity indexed option	$ 746,000

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Deposits and Related Interest (Deposits by Components) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Deposits, by Component, Alternative [Abstract]
Noninterest-bearing demand deposit	$ 816,887	$ 762,009
Interest-bearing saving and demand deposits	2,311,926	2,208,180
Individual Retirement Account	266,161	268,799
Retail certificates of deposists	491,072	441,998
Institutional certificates of deposits	205,541	253,791
Total Core Deposits	4,091,587	3,934,777
Brokered Deposists	688,106	782,974
Deposits, Total	$ 4,779,693	$ 4,717,751

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Deposits and Related Interest (Interest expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Expense Domestic Deposit Liabilities [Abstract]
Demand and saving deposits	$ 2,842	$ 3,382
Certificates of Deposits	4,282	3,722
Total	$ 7,124	$ 7,104

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Deposits and Related Interest (Maturities of Time Deposits) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Maturities of Time Deposits [Abstract]
Time Deposit Maturities Less Than Three Month	$ 342,072	$ 474,051
Time Deposit Maturities Three To Twelve Month	451,919	501,551
Total Time deposits	793,991	975,602
Time Deposit Maturities, Year Two	489,143	454,906
Time Deposit Maturities, Year Three	222,568	176,406
Time Deposit Maturities, Year Four	36,253	32,396
Time Deposit Maturities, Year Five	35,824	33,715
Certificates of deposit	$ 1,577,779	$ 1,673,025

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Borrowings (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Other borrowings	$ 1,756		$ 1,734
Subordinated Debt	102,808		102,633
Gains Losses On Extinguishment Of Debt	(12,000)	$ 0
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Loans Receivable, Gross, Commercial, Mortgage	1,500,000		1,300,000
Additional Borrowing Capacity	$ 875,300		$ 770,600
Weighted average period remaining maturity of FHLB advances	5.6 months		6.3 months
Interest Payable	$ 348
Repurchase agreement
Debt Instrument [Line Items]
Interest Payable	1,700		$ 2,200
Repurchase agreement modified balance	232,000
Repurchase agreement terminated before maturity	268,000
Repurchase agreement modified during the period	$ 500,000

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Borrowings (Securities Sold Under Agreement to Repurchase by Counterparties) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Borrowings	$ 1,072,716,000	$ 1,371,534,000
Securities Sold under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Borrowings	634,500,000	932,500,000
Fair Value of Underlying Collateral	691,940,000	1,021,370,000
Securities Sold under Agreements to Repurchase [Member] | Jp Morgan Chase Bank Na [Member]
Debt Instrument [Line Items]
Borrowings	232,500,000	262,500,000
Fair Value of Underlying Collateral	252,402,000	283,483,000
Securities Sold under Agreements to Repurchase [Member] | Credit Suisse Securities LLC [Member]
Debt Instrument [Line Items]
Borrowings	402,000,000	670,000,000
Fair Value of Underlying Collateral	$ 439,538,000	$ 737,887,000

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Borrowings (Repurchase Agreements) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Borrowing Balance	$ 1,072,716	$ 1,371,534
Securities Sold under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Borrowing Balance	$ 634,500	$ 932,500
Weighted Average Coupon	2.67%
Securities Sold under Agreements to Repurchase [Member] | Due date: 12 8 2016 [Member]
Debt Instrument [Line Items]
Borrowing Balance	$ 170,000
Weighted Average Coupon	1.50%
Settlement Date	Dec. 06, 2012
Investment Repurchase Agreement, Repurchase Date	Dec. 08, 2016
Securities Sold under Agreements to Repurchase [Member] | Due date: 3 2 2016 [Member]
Debt Instrument [Line Items]
Borrowing Balance	$ 232,000
Weighted Average Coupon	4.78%
Settlement Date	Mar. 02, 2007
Investment Repurchase Agreement, Repurchase Date	Mar. 02, 2017
Securities Sold under Agreements to Repurchase [Member] | Due date: 4 29 2018 [Member]
Debt Instrument [Line Items]
Borrowing Balance	$ 232,500
Weighted Average Coupon	1.42%
Settlement Date	Dec. 10, 2012
Investment Repurchase Agreement, Repurchase Date	Apr. 29, 2018

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Borrowings (Repurchase Transaction Liability and Market Value of its Underlying Collateral) (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets Sold Under Agreements To Repurchase Line Items
Assets Sold Under Agreements To Repurchase Repurchase Liability	$ 634,500,000	$ 932,500,000
Assets Sold Under Agreements To Repurchase Interest Rate	2.67%	3.10%
Market value of underlying collateral of a repurchase agreement	$ 691,940,000	$ 1,021,370,000
FNMA and FHLMC [Member]
Assets Sold Under Agreements To Repurchase Line Items
Market value of underlying collateral of a repurchase agreement	665,206,000	1,006,659,000
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Assets Sold Under Agreements To Repurchase Line Items
Market value of underlying collateral of a repurchase agreement	1,721,000	$ 2,131,000
US Treasury Securities [Member]
Assets Sold Under Agreements To Repurchase Line Items
Market value of underlying collateral of a repurchase agreement	25,013,000
Maturity 30 To 90 Days Member
Assets Sold Under Agreements To Repurchase Line Items
Assets Sold Under Agreements To Repurchase Interest Rate		0.70%
Market value of underlying collateral of a repurchase agreement		$ 31,961,000
Maturity 30 To 90 Days Member | FNMA and FHLMC [Member]
Assets Sold Under Agreements To Repurchase Line Items
Assets Sold Under Agreements To Repurchase Interest Rate		0.70%
Market value of underlying collateral of a repurchase agreement		$ 31,961,000
Maturity over 90 days
Assets Sold Under Agreements To Repurchase Line Items
Assets Sold Under Agreements To Repurchase Repurchase Liability	$ 634,500,000	$ 902,500,000
Assets Sold Under Agreements To Repurchase Interest Rate	2.67%	3.18%
Market value of underlying collateral of a repurchase agreement	$ 691,940,000	$ 989,409,000
Maturity over 90 days | FNMA and FHLMC [Member]
Assets Sold Under Agreements To Repurchase Line Items
Market value of underlying collateral of a repurchase agreement	665,206,000	974,698,000
Maturity over 90 days | Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Assets Sold Under Agreements To Repurchase Line Items
Market value of underlying collateral of a repurchase agreement	1,721,000	2,131,000
Maturity over 90 days | US Treasury Securities [Member]
Assets Sold Under Agreements To Repurchase Line Items
Market value of underlying collateral of a repurchase agreement	$ 25,013,000	$ 12,580,000

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Borrowings (Advances from the Federal Home Loan Bank) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 1,072,716	$ 1,371,534
Federal Home Loan Bank Advances [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 331,632
FHLB, Weighted Average Interest Rate	0.92%
Federal Home Loan Bank Advances [Member] | April 3, 2017 [Member] | Four Million [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 4,209
FHLB, Weighted Average Interest Rate	1.24%
Settlement Date	Apr. 03, 2012
Maturity Date	Apr. 03, 2017
Federal Home Loan Bank Advances [Member] | January 16, 2018 [Member] | Twenty Five Millions [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 25,000
FHLB, Weighted Average Interest Rate	2.18%
Settlement Date	Jan. 16, 2013
Maturity Date	Jan. 16, 2018
Federal Home Loan Bank Advances [Member] | January 16, 2018 [Member] | Thirty Million [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 30,000
FHLB, Weighted Average Interest Rate	2.19%
Settlement Date	Jan. 16, 2013
Maturity Date	Jan. 16, 2018
Federal Home Loan Bank Advances [Member] | July 20, 2020 [Member] | Ten Million [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 9,785
FHLB, Weighted Average Interest Rate	2.59%
Settlement Date	Jul. 19, 2013
Maturity Date	Jul. 20, 2020
Federal Loan Home Bank Advances Short Term Period Matured [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 262,638
Federal Loan Home Bank Advances Short Term Period Matured [Member] | April 4, 2016 [Member] | Twenty Five Millions [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 25,000
FHLB, Weighted Average Interest Rate	0.59%
Settlement Date	Mar. 04, 2016
Maturity Date	Apr. 04, 2016
Federal Loan Home Bank Advances Short Term Period Matured [Member] | April 11, 2016 [Member] | Fifty Millions [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 50,000
FHLB, Weighted Average Interest Rate	0.60%
Settlement Date	Mar. 10, 2016
Maturity Date	Apr. 11, 2016
Federal Loan Home Bank Advances Short Term Period Matured [Member] | April 18, 2016 [Member] | One Hundred Millions [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 100,000
FHLB, Weighted Average Interest Rate	0.58%
Settlement Date	Mar. 16, 2016
Maturity Date	Apr. 18, 2016
Federal Loan Home Bank Advances Short Term Period Matured [Member] | April 25, 2016 [Member] | Twenty Five Millions [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 25,000
FHLB, Weighted Average Interest Rate	0.58%
Settlement Date	Mar. 24, 2016
Maturity Date	Apr. 25, 2016
Federal Loan Home Bank Advances Short Term Period Matured [Member] | April 29, 2016 [Member] | Twenty Five Millions [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 25,000
FHLB, Weighted Average Interest Rate	0.52%
Settlement Date	Mar. 30, 2016
Maturity Date	Apr. 29, 2016
Federal Loan Home Bank Advances Short Term Period Matured [Member] | April 4, 2016 (2) [Member] | Fourty Million [Member]
Advances From Federal Home Loan Banks [Line Items]
Borrowings	$ 37,638
FHLB, Weighted Average Interest Rate	0.60%
Settlement Date	Mar. 01, 2016
Maturity Date	Apr. 01, 2016

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Borrowings (Redemption Fund) (Details) - Redemption Fund [Member] $ in Thousands	Mar. 31, 2016 USD ($)
Debt Instrument [Line Items]
Redemption fund - December 31, 2015	$ 64,488
2016	2,512
Total	$ 67,000

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Offsetting Arrangements (Assets Offsetting) (Details) - Derivative - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Offsetting Assets [Line Items]
Gross Amount of Recognized Assets	$ 2,662	$ 3,025
Gross amounts Offset in the Statement of Financial Condition	0	0
Net Amount of Assets in Statement of Financial Condition	2,662	3,025
Financial Instruments	2,007	2,000
Cash Collateral Received	0	0
Net Amount	$ 655	$ 1,025

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Offsetting Arrangement (Liabilities Offsetting) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Offsetting Liabilities [Line Items]
Gross amount of Recognized Liabilities	$ 641,466	$ 939,757
Gross amount Offset in the Statement of Financial Condition	0	0
Net Amount of Liabilities Presented in the Statement of Financial Condition	641,466	939,757
Financial Instruments	691,940	1,021,370
Cash Collateral Provided	1,980	1,980
Net Amount	(52,454)	(83,593)
Derivative Financial Instruments, Liabilities [Member]
Offsetting Liabilities [Line Items]
Gross amount of Recognized Liabilities	6,966	7,257
Gross amount Offset in the Statement of Financial Condition	0	0
Net Amount of Liabilities Presented in the Statement of Financial Condition	6,966	7,257
Financial Instruments	0	0
Cash Collateral Provided	1,980	1,980
Net Amount	4,986	5,277
Securities Loaned or Sold under Agreements to Repurchase
Offsetting Liabilities [Line Items]
Gross amount of Recognized Liabilities	634,500	932,500
Gross amount Offset in the Statement of Financial Condition	0	0
Net Amount of Liabilities Presented in the Statement of Financial Condition	634,500	932,500
Financial Instruments	691,940	1,021,370
Cash Collateral Provided	0	0
Net Amount	$ (57,440)	$ (88,870)

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Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance	$ 31,475	$ 27,011
New loans	233	3,855
Repayments and sales	(574)	(3,358)
Balance	$ 31,134	$ 27,508

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Income Taxes (Narratives) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Taxes [Abstract]
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 40,000		$ 175,000
Deferred Tax Assets, Net	145,518,000		145,901,000
OtherComprehensiveIncomeLossTax	177,000	$ 1,182,000	1,182,000
Income Tax Expense (Benefit)	5,661,000	$ 979,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 2,200,000		$ 2,200,000

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Income Taxes (Components of income tax expense (benefit)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
ComponentsOfIncomeTaxExpenseBenefitContinuingOperationsAbstract
Deferred Income Tax Expense (Benefit)	$ 2,033	$ (613)
Income Tax Expense (Benefit)	$ 5,661	$ 979

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Income taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract
Total Income Tax Expense (Benefit)	$ 5,661	$ 979

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Income Taxes (Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Components Of Deferred Tax Liabilities Abstract
Deferred Tax Assets, Net	$ 145,518	$ 145,901

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Regulatory Capital Requirements (Group's and the Bank's actual capital amounts and ratios) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Group [Member]
Capital [Abstract]
Actual - Total capital	$ 838,284	$ 846,748
Actual - Tier 1 capital	776,181	782,912
Actual -Common equity tier 1 capital	585,144	594,482
Actual - Tier 1 leverage capital	776,181	782,912
Minimum Capital - Total Capital	379,570	391,723
Minimum capital - Tier 1 capital	284,678	293,792
Minimum capital - Common equity tier 1 capital	213,508	220,344
Minimum capital - Tier 1 leverage capital	272,797	280,009
Minimum to be well capitalized - Total Capital	474,463	489,654
Minimum to be well capitalized - Tier 1 capital	379,570	391,723
Minimum to be well capitalized - Common equity tier 1 capital	308,401	318,275
Minimum to be well capitalized - Tier 1 leverage	$ 340,996	$ 350,011
Risk Based Ratios [Abstract]
Capital to Risk Weighted Assets	17.67%	17.29%
Tier One Risk Based Capital to Risk Weighted Assets	16.36%	15.99%
Common Equity Tier OneTo Risk Weighted Assets	12.33%	12.14%
Tier One Leverage Capital to Average Assets	11.38%	11.18%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets	6.00%	6.00%
Common Equity Tier One Required For Capital Adequacy To Risk Weighted Assets	4.50%	4.50%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets	8.00%	8.00%
Tier One Risk Common Equity Tier One Required To Be Well Capitalized To Risk Weighted Assets	6.50%	6.50%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Bank [Member]
Capital [Abstract]
Actual - Total capital	$ 819,731	$ 815,458
Actual - Tier 1 capital	757,828	751,886
Actual -Common equity tier 1 capital	757,828	751,886
Actual - Tier 1 leverage capital	757,828	751,886
Minimum Capital - Total Capital	379,242	390,688
Minimum capital - Tier 1 capital	284,431	293,016
Minimum capital - Common equity tier 1 capital	213,323	219,762
Minimum capital - Tier 1 leverage capital	271,538	278,399
Minimum to be well capitalized - Total Capital	474,502	488,360
Minimum to be well capitalized - Tier 1 capital	379,242	390,688
Minimum to be well capitalized - Common equity tier 1 capital	3,308,134	317,434
Minimum to be well capitalized - Tier 1 leverage	$ 339,423	$ 347,999
Risk Based Ratios [Abstract]
Capital to Risk Weighted Assets	17.29%	16.70%
Tier One Risk Based Capital to Risk Weighted Assets	15.99%	15.40%
Common Equity Tier OneTo Risk Weighted Assets	15.99%	15.40%
Tier One Leverage Capital to Average Assets	11.16%	10.80%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets	6.00%	6.00%
Common Equity Tier One Required For Capital Adequacy To Risk Weighted Assets	4.50%	4.50%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets	8.00%	8.00%
Tier One Risk Common Equity Tier One Required To Be Well Capitalized To Risk Weighted Assets	6.50%	6.50%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%

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Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program Authorized Amount1	$ 70.0
Stock Repurchase Program Remaining Authorized Repurchase Amount1	$ 7.7
Stock repurchase program remaining number of shares authorized to be repurchased	1,105,988
SharePrice	$ 6.99
Preferred Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Preferred Stock Issue Costs	$ 13.6	$ 13.6
Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Common Stock Issuance Cost	$ 10.1	$ 10.1

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Stockholders' Equity (Shares repurchased under the stock repurchase program) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Value	$ 104,874	$ 105,379

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Stockholders' Equity (Common shares held in treasury, activity) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stockholders' Equity Note [Abstract]
Beginning of period	8,757,960	8,012,254
Common shares used for exercise of restricted stock units (Shares)	(45,810)	(51,078)
End of period	8,712,150	7,961,176
Beginning of period	$ 105,379	$ 97,070
Common shares used for exercise of restricted stock units (Value)	(505)	(575)
End of period	$ 104,874	$ 96,495

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Accumulated Other Comprehensive Income (Accumulated Comprehensive Income, net of income tax) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive income, net of tax, Total	$ 12,284	$ 13,997
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive income, net of tax, Total	12,284	13,997
AccumulatedOtherThanTemporaryImpairmentMember
Accumulated Other Comprehensive Income [Line Items]
Unrealized gain on securities available-for-sale which are not other-than-temporarily impaired	15,496	22,044
Unrealized loss on securities available-for-sale which are other-than-temporarily impaired	0	(3,196)
Income tax effect of unrealized gain on securities available-for-sale	407	1,924
Net unrealized gain on securities available for sale wich are not other than temporarily impaired	15,089	16,924
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income [Line Items]
Unrealized loss on cash flow hedges	(4,318)	(4,307)
Income tax effect of unrealized loss on cash flow hedges	1,513	1,380
Net unrealized (loss) income on cash flow hedges	$ (2,805)	$ (2,927)

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Accumulated Other Comprehensive Income (Changes in Other Comprehensive Income by Components) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net unrealized gains on securities available for sale
Accumulated Other Comprehensive Income [Line Items]
Beginning balance	$ 16,924	$ 25,764
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	(4,326)	4,311
Reclassification Out Of Accumulated Other Comprehensive Income	2,491	139
Other Comprehensive Income (Loss) Other Net Of Tax	(1,835)	4,450
Ending balance	15,089	30,214
Net unrealized loss on cash flow hedges
Accumulated Other Comprehensive Income [Line Items]
Beginning balance	(2,927)	(6,053)
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	(1,457)	(1,369)
Reclassification Out Of Accumulated Other Comprehensive Income	1,579	1,532
Other Comprehensive Income (Loss) Other Net Of Tax	122	163
Ending balance	(2,805)	(5,890)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income [Line Items]
Beginning balance	13,997	19,711
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	(5,783)	2,942
Reclassification Out Of Accumulated Other Comprehensive Income	4,070	1,671
Other Comprehensive Income (Loss) Other Net Of Tax	(1,713)	4,613
Ending balance	$ 12,284	$ 24,324

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Accumulated Other Comprehensive Income (Reclassifications out of other comprehensive income) (Details) - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Interest Rate Contract	$ 1,450,000	$ 1,606,000
Tax effect from increase in capital gains tax rate, Cash flow hedges	129,000	(74,000)
Other-than-temporary impairment losses on available for sale securities realized during the period	2,557,000	0
Residual tax effect from OIB's change in applicable tax rate AFS	8,000	10,000
Tax effect from increase in capital gains tax rate AFS	(74,000)	129,000
Total	$ 4,070,000	$ 1,671,000

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Earnings Per Common Share (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Earnings Per Share [Abstract]
Stock Conversion Rate	86.4225
Weighted average stock anti dilutive effect excluded from calculation of earnings per share	977,823	390,078
Convertible Preferred Stock	$ 84,000		$ 84,000

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Earnings Per Common Share (Earnings per common share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net (loss) income	$ 14,171	$ (2,988)
Non-Convertible Preferred Stock Dividend (Series A,B and D)	(1,627)	(1,628)
Convertible Preferred Stock Dividend (Series C)	(1,838)	(1,837)
Income available to common shareholders	10,706	(6,453)
Effect of assumed conversion of convertible preferred stock	1,838	1,837
Income available to common sharesholders assuming conversion	$ 12,544	$ (4,616)
Average common shares outstanding	43,898	44,634
Average potential common shares options	28	188
Average potential common shares convertible preferred stock	7,138	7,155
Average common shares outstanding and equivalents	51,064	51,977
Earnings per common share - basic	$ 0.24	$ (0.14)
Earnings per common share - diluted	$ 0.24	$ (0.14)

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Guarantees (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Guarantee Obligations [Line Items]
Representation and warranty arrangements GNMA	$ 19,000	$ 39,000
Loss On GNMA Repurchased Loan Not Subject To Credit Recourse	501,000	832,000
Funds Advanced To Investors Under Servicing Agreements	333,000		$ 301,000
Serviced mortgage loans for third parties	690,000,000
Liability for estimated credit losses FNMA	181,000		439,000
Loan with recourse [Member]
Guarantee Obligations [Line Items]
Continuing Involvement With Transferred Financial Assets Principal Amount Outstanding	22,000,000		$ 22,400,000
Repurchased FNMA	209,000
Representation and warranty arrangements GNMA	$ 1,500,000	$ 9,000,000

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Guarantees (Changes in liabilty of estimated loss from credit recourse agreement) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Movement In Guaranteed Benefit Liability Gross Roll Forward
Balance at beginning of the period	$ 439,000	$ 927,000
Net charge-off/terminations	(258,000)	(440,000)
Balance at the end of the period	$ 181,000	$ 487,000

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Commitments (Narratives) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Commitments and Contingencies [Abstract]
Rent Expenses	$ 2,100,000	$ 2,400,000
Line of credit reserve	$ 667,000	$ 667,000

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Commitments (Summarized credit-related financial instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Commitments To Extend Credit	$ 498,249	$ 456,720
Commercial letters credit	2,619	1,508
Standby letters of credit and financial guarantees	4,656	14,656
Loans sold with recourse	21,957	22,374
Commitments To Sell Or Securitize Mortgage Loans	$ 11,886	$ 34,888

XML

Commitments (Future rental commitments under leases) (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Operating Leases, Future Minimum Payments Due [Abstract]
2016	$ 6,519
2017	7,308
2018	6,278
2019	6,182
2020	5,455
Thereafter	12,397
Total	$ 44,139

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Fair Value (Assets and liabilities on recurring and non-recurring basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	$ 669,285	$ 974,609
Trading Securities, held to maturity	314	288
Money Market Funds, at Carrying Value	5,897	4,699
Derivative Assets	2,662	3,025
Servicing Assets	7,819	7,455	$ 12,164	$ 13,992
Derivative liabilities	(6,220)	(6,162)
Impaired Commercial Loan	227,117	235,767
Foreclosed real estate	56,777	58,176
Other repossessed assets	4,408	6,226
Total	288,302	300,169
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Trading Securities, held to maturity		0
Money Market Funds, at Carrying Value	5,897	4,699
Derivative Assets	0	0
Servicing Assets	0	0
Impaired Commercial Loan	0	0
Foreclosed real estate	0	0
Other repossessed assets	0	0
Total	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	669,285	974,609
Trading Securities, held to maturity	314	288
Money Market Funds, at Carrying Value	0	0
Derivative Assets	1,890	1,854
Servicing Assets	0	0
Impaired Commercial Loan	0	0
Foreclosed real estate	0	0
Other repossessed assets	0	0
Total	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Trading Securities, held to maturity		0
Money Market Funds, at Carrying Value	0	0
Derivative Assets	772	1,171
Servicing Assets	7,819	7,455
Impaired Commercial Loan	227,117	235,767
Foreclosed real estate	56,777	58,176
Other repossessed assets	4,408	6,226
Total	288,302	300,169
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	669,285	974,609
Trading Securities, held to maturity	314	288
Money Market Funds, at Carrying Value	5,897	4,699
Derivative Assets	2,662	3,025
Servicing Assets	7,819	7,455
Derivative liabilities	(6,966)	(7,257)
Total	679,011	982,819
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Trading Securities, held to maturity	0	0
Money Market Funds, at Carrying Value	5,897	4,699
Derivative Assets	0	0
Servicing Assets	0	0
Derivative liabilities	0	0
Total	5,897	4,699
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	669,285	974,609
Trading Securities, held to maturity	314	288
Money Market Funds, at Carrying Value	0	0
Derivative Assets	1,890	1,854
Servicing Assets	0	0
Derivative liabilities	(6,220)	(6,162)
Total	665,269	970,589
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Trading Securities, held to maturity	0	0
Money Market Funds, at Carrying Value	0	0
Derivative Assets	772	1,171
Servicing Assets	7,819	7,455
Derivative liabilities	(746)	(1,095)
Total	7,845	7,531
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Commercial Loan	227,117	235,767
Foreclosed real estate	56,777	58,176
Other repossessed assets	4,408	6,226
Total	288,302	300,169
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Commercial Loan	0	0
Foreclosed real estate	0	0
Other repossessed assets	0	0
Total	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Commercial Loan	0	0
Foreclosed real estate	0
Other repossessed assets	0	0
Total	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Commercial Loan	227,117	235,767
Foreclosed real estate	56,777	58,176
Other repossessed assets	4,408	6,226
Total	$ 288,302	$ 300,169

XML

Fair Value (Reconciliation of assets and liabilities using significant unobservable inputs (Level 3)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in fair value of servicing assets		$ (59)
Servicing Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in fair value of servicing assets		(59)
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	$ 7,531	14,070
Gains (losses) included in earnings	(69)	(39)
New instruments acquired	557	531
Principal repayments	(104)	(418)
Amortization	19	78
Changes in fair value of servicing assets	(89)	(1,882)
Balance	7,845	12,281
Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	1,171	5,555
Gains (losses) included in earnings	(399)	(1,821)
New instruments acquired	0	0
Principal repayments	0	0
Amortization	0	0
Changes in fair value of servicing assets	0	0
Balance	772	3,734
Fair Value, Measurements, Recurring [Member] | Servicing Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	7,455	13,992
Gains (losses) included in earnings	0	0
New instruments acquired	557	531
Principal repayments	(104)	(418)
Amortization	0	0
Changes in fair value of servicing assets	(89)	(1,882)
Balance	7,819	12,164
Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	(1,095)	(5,477)
Gains (losses) included in earnings	330	1,782
New instruments acquired	0	0
Principal repayments	0	0
Amortization	19	78
Changes in fair value of servicing assets	0	0
Balance	$ (746)	$ (3,617)

XML

Fair Value (Qualitative information for assets and liabilities) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 772
Derivative asset (S&P Purchased Options) [Member] | Option Pricing Model Technique [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Technique	Option pricing model
Derivative asset (S&P Purchased Options) [Member] | Option Pricing Model Technique [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Implied option volatility	35.32%
Counterparty credit risk (based on 5-year CDS spread)	79.96%
Derivative asset (S&P Purchased Options) [Member] | Option Pricing Model Technique [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Implied option volatility	38.69%
Counterparty credit risk (based on 5-year CDS spread)	89.03%
Servicing Assets [Member] | Cash Flow Valuation Technique [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 7,819
Valuation Technique	Cash flow valuation
Servicing Assets [Member] | Cash Flow Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Constant prepayment rate	4.43%
Discount rate	10.00%
Servicing Assets [Member] | Cash Flow Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Constant prepayment rate	12.17%
Discount rate	12.00%
Derivative liability (S&P Embedded Options) [Member] | Option Pricing Model Technique [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ (746)
Valuation Technique	Option pricing model
Derivative liability (S&P Embedded Options) [Member] | Option Pricing Model Technique [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Implied option volatility	35.32%
Counterparty credit risk (based on 5-year CDS spread)	79.96%
Derivative liability (S&P Embedded Options) [Member] | Option Pricing Model Technique [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Implied option volatility	38.69%
Counterparty credit risk (based on 5-year CDS spread)	89.03%
Collateral dependant impaired loan | Fair value of property or collateral [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 25,252
Valuation Technique	Fair value of property or collateral
Collateral dependant impaired loan | Fair value of property or collateral [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Appraised value	30.20%
Collateral dependant impaired loan | Fair value of property or collateral [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Appraised value	42.20%
Puerto Rico Electric Power Authority loan | Cash Flow Valuation Technique [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 186,675
Puerto Rico Electric Power Authority loan | Cash Flow Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	7.25%
Puerto Rico Electric Power Authority loan | Cash Flow Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	7.25%
Puerto Rico Electric Power Authority loan | Fair value of property or collateral [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Technique	Cash flow valuation
Other non-collateral dependant impaired loans [Member] | Cash Flow Valuation Technique [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 15,190
Valuation Technique	Cash flow valuation
Other non-collateral dependant impaired loans [Member] | Cash Flow Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	4.25%
Other non-collateral dependant impaired loans [Member] | Cash Flow Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	16.95%
Foreclosed real estate [Member] | Fair value of property or collateral [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 56,777
Valuation Technique	Fair value of property or collateral
Foreclosed real estate [Member] | Fair value of property or collateral [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Appraised value	30.20%
Foreclosed real estate [Member] | Fair value of property or collateral [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Appraised value	42.20%
Other repossessed assets [Member] | Fair value of property or collateral [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value assets and liabilities measured on reccurring basis	$ 4,408
Valuation Technique	Fair value of property or collateral
Other repossessed assets [Member] | Fair value of property or collateral [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Appraised value	30.20%
Other repossessed assets [Member] | Fair value of property or collateral [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Appraised value	42.20%

XML

Fair value (Estimated fair value and carrying value) (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
Available-for-sale Securities	$ 669,285,000	$ 974,609,000
Held to maturity Fair Value	641,346,000	614,679,000
Federal Home Loan Bank (FHLB) stock	20,761,000	20,783,000
Other Investments	3,000	3,000
Derivative Assets	2,662,000	3,025,000
Servicing Assets	7,819,000	7,455,000	$ 12,164,000	$ 13,992,000
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	6,220,000	6,162,000
Assets,Carrying Value [Abstract]
Total cash and cash equivalents	677,849,000	536,709,000	678,902,000	573,427,000
Restricted Cash And Cash Equivalents	3,349,000	3,349,000
Trading Securities, held to maturity	314,000	288,000
Loans, net of allowance for loan and lease losses	4,338,614,000	4,416,396,000
Carrying amount, net	1,062,957,000	1,123,435,000
FDIC Indemnification Asset	20,923,000	22,599,000	$ 75,221,000	$ 97,378,000
Accrued interest receivable	18,392,000	20,637,000
Liabilities,Carrying Value Disclosure [Abstract]
Deposits, Total	4,779,693,000	4,717,751,000
Securities Sold under Agreements to Repurchase	636,172,000	934,691,000
Subordinated capital notes	102,808,000	102,633,000
Accrued expenses and other liabilities	92,761,000	92,043,000
Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash and Cash Equivalents, Fair Value Disclosure	677,849,000	536,710,000
Restricted Cash, at Fair Value	3,349,000	3,349,000
Available-for-sale Securities	0	0
Derivative Assets	0	0
Servicing Assets	0	0
Assets,Carrying Value [Abstract]
Restricted Cash And Cash Equivalents	3,349,000	3,349,000
Trading Securities, held to maturity		0
Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-sale Securities	669,285,000	974,609,000
Held to maturity Fair Value	641,346,000	614,679,000
Federal Home Loan Bank (FHLB) stock	20,761,000	20,783,000
Other Investments	3,000	3,000
Derivative Assets	1,890,000	1,854,000
Accrued interest receivable	6,220,000	6,162,000
Servicing Assets	0	0
Assets,Carrying Value [Abstract]
Trading Securities, held to maturity	314,000	288,000
Investment held for sale, carrying amount	637,036,000	620,189,000
Federal Home Loan Bank Stock at carrying value	20,761,000	20,783,000
Other Investment, Carrying Value	3,000	3,000
Derivative Assets, carrying value	1,890,000	1,855,000
Liabilities,Carrying Value Disclosure [Abstract]
Derivative liabilities at carrying value	6,220,000	6,162,000
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-sale Securities	0	0
Non-covered loans, net	4,088,158,000	4,101,219,000
Derivative Assets	772,000	1,171,000
FDIC Indemnification Asset Fair Value Disclosure	10,897,000	17,786,000
Accrued interest receivable	18,392,000	20,637,000
Servicing Assets	7,819,000	7,455,000
Liabilities, Fair Value Disclosure [Abstract]
Deposits, Fair Value Disclosure	4,772,507,000	4,705,878,000
Securities sold under agreements to repurchase	645,098,000	955,859,000
Advances from FHLB	334,782,000	335,812,000
Notes Payable Fair Value Disclosure	2,661,000	2,593,000
Subordinated capital notes	97,330,000	94,940,000
Accrued expenses and other liabilities	92,761,000	92,935,000
Assets,Carrying Value [Abstract]
Trading Securities, held to maturity		0
Loans, net of allowance for loan and lease losses	4,360,129,000	4,434,213,000
Derivative Assets, carrying value	772,000	1,170,000
FDIC Indemnification Asset	20,923,000	22,599,000
Accrued interest receivable	18,392,000	20,637,000
Servicing assets, carrying value	7,819,000	7,455,000
Liabilities,Carrying Value Disclosure [Abstract]
Deposits, Total	4,778,947,000	4,715,764,000
Securities Sold under Agreements to Repurchase	636,172,000	934,691,000
Advances from FHLB	331,980,000	332,476,000
Term Notes	1,756,000	1,734,000
Subordinated capital notes	102,808,000	102,633,000
Accrued expenses and other liabilities	92,761,000	92,935,000
Derivative liabilities at carrying value	$ 746,000	$ 1,095,000

XML

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total interest income	$ 91,306	$ 107,001
Interest expense	(16,331)	(17,366)
Net interest income	74,975	89,635
Total non-interest income (loss), net	13,503	6,881
Non-interest expenses	(54,857)	(56,332)
Total assets	6,874,572		$ 7,099,149
Banking [Member]
Segment Reporting Information [Line Items]
Total interest income	81,152	97,482
Interest expense	(6,807)	(7,454)
Net interest income	74,345	90,028
Provision for Loan and Lease Losses, net	(13,789)	(42,193)
Total non-interest income (loss), net	7,795	(2,249)
Non-interest expenses	(48,249)	(49,313)
Intersegment revenues	399	544
Intersegment expenses	(101)	(98)
Income (loss) before Income Taxes, Parent	20,400	(3,281)
Total assets	5,814,279	6,302,044
Wealth Management [Member]
Segment Reporting Information [Line Items]
Total interest income	18	23
Interest expense	0	0
Net interest income	18	23
Provision for Loan and Lease Losses, net	0	0
Total non-interest income (loss), net	6,020	7,010
Non-interest expenses	(4,484)	(4,790)
Intersegment revenues	0	0
Intersegment expenses	(291)	(432)
Income (loss) before Income Taxes, Parent	1,263	1,811
Total assets	23,369	21,995
Treasury [Member]
Segment Reporting Information [Line Items]
Total interest income	10,136	9,496
Interest expense	(9,524)	(9,912)
Net interest income	612	(416)
Provision for Loan and Lease Losses, net	0	0
Total non-interest income (loss), net	(312)	2,120
Non-interest expenses	(2,124)	(2,229)
Intersegment revenues	100	98
Intersegment expenses	(107)	(112)
Income (loss) before Income Taxes, Parent	(1,831)	(539)
Total assets	1,970,264	1,965,342
Major Segment [Member]
Segment Reporting Information [Line Items]
Total interest income	91,306	107,001
Interest expense	(16,331)	(17,366)
Net interest income	74,975	89,635
Provision for Loan and Lease Losses, net	(13,789)	(42,193)
Total non-interest income (loss), net	13,503	6,881
Non-interest expenses	(54,857)	(56,332)
Intersegment revenues	499	642
Intersegment expenses	(499)	(642)
Income (loss) before Income Taxes, Parent	19,832	(2,009)
Total assets	7,807,912	8,289,381
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Total interest income	0	0
Interest expense	0	0
Net interest income	0	0
Provision for Loan and Lease Losses, net	0	0
Total non-interest income (loss), net	0	0
Non-interest expenses	0	0
Intersegment revenues	(499)	(642)
Intersegment expenses	499	642
Income (loss) before Income Taxes, Parent	0	0
Total assets	(933,340)	(925,225)
Consolidated Total [Member]
Segment Reporting Information [Line Items]
Total assets	$ 6,874,572	$ 7,364,156