Covered loans acquired in the Westernbank FDIC-assisted transaction, except for lines of credit with revolving privileges, are accounted for by the Corporation in accordance with ASC Subtopic 310-30. Under ASC Subtopic 310-30, the acquired loans were aggregated into pools based on similar characteristics. Each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. The covered loans which are accounted for under ASC Subtopic 310-30 by the Corporation are not considered non-performing and will continue to have an accretable yield as long as there is a reasonable expectation about the timing and amount of cash flows expected to be collected. The Corporation measures additional losses for this portfolio when it is probable the Corporation will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. Lines of credit with revolving privileges that were acquired as part of the Westernbank FDIC-assisted transaction are accounted for under the guidance of ASC Subtopic 310-20, which requires that any differences between the contractually required loan payment receivable in excess of the Corporation's initial investment in the loans be accreted into interest income. Loans accounted for under ASC Subtopic 310-20 are placed in non-accrual status when past due in accordance with the Corporation's non-accruing policy and any accretion of discount is discontinued.

The risks on loans acquired in the FDIC-assisted transaction are significantly different from the risks on loans not covered under the FDIC loss sharing agreements because of the loss protection provided by the FDIC. Accordingly, the Corporation presents loans subject to the loss sharing agreements as “covered loans” in the information below and loans that are not subject to the FDIC loss sharing agreements as “non-covered loans”.

For a summary of the accounting policy related to loans, interest recognition and allowance for loan losses refer to the summary of significant accounting policies included in Note 2 to the consolidated financial statements included in 2012 Annual Report.

The following table presents the composition of non-covered loans held-in-portfolio (“HIP”), net of unearned income, at September 30, 2013 and December 31, 2012.


(In thousands)		September 30, 2013		December 31, 2012
Commercial multi-family		$	1,146,929	$	1,021,780
Commercial real estate non-owner occupied			2,881,959		2,634,432
Commercial real estate owner occupied			2,217,503		2,608,450
Commercial and industrial			3,599,086		3,593,540
Construction			293,220		252,857
Mortgage			6,613,133		6,078,507
Leasing			539,290		540,523
Legacy^[2]			235,645		384,217
Consumer:
	Credit cards		1,174,330		1,198,213
	Home equity lines of credit		485,614		491,035
	Personal		1,361,340		1,388,911
	Auto		658,826		561,084
	Other		220,308		229,643
Total loans held-in-portfolio^[1]		$	21,427,183	$	20,983,192

[1]	Non-covered loans held-in-portfolio at September 30, 2013 are net of $93 million in unearned income and exclude $125 million in loans held-for-sale (December 31, 2012 - $97 million in unearned income and $354 million in loans held-for-sale).

[2]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the
	Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

The following table presents the composition of covered loans at September 30, 2013 and December 31, 2012.


(In thousands)	September 30, 2013		December 31, 2012
Commercial real estate	$	1,725,153	$	2,077,411
Commercial and industrial		128,698		167,236
Construction		201,437		361,396
Mortgage		965,779		1,076,730
Consumer		54,942		73,199
Total loans held-in-portfolio	$	3,076,009	$	3,755,972

The following table provides a breakdown of loans held-for-sale (“LHFS”) at September 30, 2013 and December 31, 2012 by main categories.

During the quarter and nine months ended September 30, 2013, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $199 million and $1.7 billion, respectively (September 30, 2012 - $453 million and $1.1 billion, respectively). Also, the Corporation recorded purchases of $42 million in consumer loans during the nine months ended September 30, 2013 (September 30, 2012 - $230 million). In addition, during the quarter and nine months ended September 30, 2013, the Corporation recorded purchases of commercial loans amounting to $5 million and $8 million, respectively, and there were no purchases during the quarter and nine months ended September 30, 2012. There were no purchases of construction loans during the quarter and nine months ended September 30, 2013 (September 30, 2012 - $0.1 million and $1 million, respectively).

The Corporation performed whole-loan sales involving approximately $60 million and $614 million of residential mortgage loans during the quarter and nine months ended September 30, 2013, respectively (September 30, 2012 - $94 million and $238 million, respectively). These sales included $435 million from the bulk sale of non-performing mortgage loans, completed during the quarter ended June 30, 2013. Also, the Corporation securitized approximately $ 200 million and $ 767 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2013, respectively (September 30, 2012 - $ 181 million and $ 576 million, respectively). Furthermore, the Corporation securitized approximately $ 102 million and $ 354 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2013, respectively (September 30, 2012 - $ 107 million and $ 238 million, respectively). Also, the Corporation securitized approximately $ 1 million and $ 28 million of mortgage loans into Federal Home Loan Mortgage Corporation (“FHLMC”) mortgage-backed securities during the quarter and nine months ended September 30, 2013 (September 30, 2012 - $ 20 million and $ 20 million, respectively). The Corporation sold commercial and construction loans with a book value of approximately $6 million and $413 million during the quarter and nine months ended September 30, 2013, respectively (September 30, 2012 - $9 million and $48 million, respectively). These sales included $401 million from the bulk sale of non-performing commercial and construction loans during the quarter ended March 31, 2013.

The following tables present non-covered loans held-in-portfolio by loan class that are in non-performing status or are accruing interest but are past due 90 days or more at September 30, 2013 and December 31, 2012. Accruing loans past due 90 days or more consist primarily of credit cards, FHA / VA and other insured mortgage loans, and delinquent mortgage loans which are included in the Corporation's financial statements pursuant to GNMA's 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. Also, accruing loans past due 90 days or more include residential conventional loans purchased from another financial institution that, although delinquent, the Corporation has received timely payment from the seller / servicer, and, in some instances, have partial guarantees under recourse agreements. However, residential conventional loans purchased from another financial institution, which are in the process of foreclosure, are classified as non-performing mortgage loans.

At September 30, 2013
			Puerto Rico				U.S. mainland				Popular, Inc.

				Accruing				Accruing				Accruing
		Non-accrual		loans past-due		Non-accrual		loans past-due			Non-accrual	loans past-due
(In thousands)		loans		90 days or more		loans		90 days or more			loans	90 days or more
Commercial multi-family		$	9,394	$	-	$	21,779	$	-	$	31,173	$	-
Commercial real estate non-owner occupied			41,860		-		54,707		-		96,567		-
Commercial real estate owner occupied			97,237		-		26,792		-		124,029		-
Commercial and industrial			56,078		806		8,193		-		64,271		806
Construction			23,019		-		5,763		-		28,782		-
Mortgage^[2][3]			177,835		392,650		25,373		-		203,208		392,650
Leasing			3,716		-		-		-		3,716		-
Legacy			-		-		24,206		-		24,206		-
Consumer:
	Credit cards		-		19,785		482		-		482		19,785
	Home equity lines of credit		-		43		7,676		-		7,676		43
	Personal		17,477		41		1,340		-		18,817		41
	Auto		9,464		-		3		-		9,467		-
	Other		5,173		547		6		-		5,179		547
Total^[1]		$	441,253	$	413,872	$	176,320	$	-	$	617,573	$	413,872

[1] For purposes of this table non-performing loans exclude $ 2 million in non-performing loans held-for-sale.

[2] Non-covered loans accounted for under ASC Subtopic 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 analysis.

[3] It is the Corporation's policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $113 million of residential mortgage loans in Puerto Rico insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2013. Furthermore, the Corporation has approximately $25 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets.

At December 31, 2012
			Puerto Rico				U.S. mainland				Popular, Inc.

				Accruing				Accruing				Accruing
		Non-accrual		loans past-due		Non-accrual		loans past-due			Non-accrual	loans past-due
(In thousands)		loans		90 days or more		loans		90 days or more			loans	90 days or more
Commercial multi-family		$	15,816	$	-	$	18,435	$	-	$	34,251	$	-
Commercial real estate non-owner occupied			66,665		-		78,140		-		144,805		-
Commercial real estate owner occupied			315,534		-		31,931		-		347,465		-
Commercial and industrial			124,717		529		14,051		-		138,768		529
Construction			37,390		-		5,960		-		43,350		-
Mortgage			596,105		364,387		34,025		-		630,130		364,387
Leasing			4,865		-		-		-		4,865		-
Legacy			-		-		40,741		-		40,741		-
Consumer:
	Credit cards		-		22,184		505		-		505		22,184
	Home equity lines of credit		-		312		7,454		-		7,454		312
	Personal		19,300		23		1,905		-		21,205		23
	Auto		8,551		-		4		-		8,555		-
	Other		3,036		469		3		-		3,039		469
Total^[1]		$	1,191,979	$	387,904	$	233,154	$	-	$	1,425,133	$	387,904

[1] For purposes of this table non-performing loans exclude $ 96 million in non-performing loans held-for-sale.

The following tables present loans by past due status at September 30, 2013 and December 31, 2012 for non-covered loans held-in-portfolio (net of unearned income).

September 30, 2013
Puerto Rico

			Past due									Non - covered
		30-59		60-89		90 days		Total				loans HIP
(In thousands)		days		days		or more		past due		Current		Puerto Rico
Commercial multi-family		$	-	$	334	$	9,394	$	9,728	$	75,552	$	85,280
Commercial real estate non-owner occupied			1,485		3,815		41,860		47,160		1,664,650		1,711,810
Commercial real estate owner occupied			37,237		9,112		97,237		143,586		1,524,630		1,668,216
Commercial and industrial			19,991		16,809		56,884		93,684		2,696,034		2,789,718
Construction			640		1,580		23,019		25,239		226,631		251,870
Mortgage			302,671		143,631		606,332		1,052,634		4,291,048		5,343,682
Leasing			6,408		1,324		3,716		11,448		527,842		539,290
Consumer:
	Credit cards		13,223		8,803		19,785		41,811		1,117,504		1,159,315
	Home equity lines of credit		381		-		43		424		15,094		15,518
	Personal		13,266		6,528		17,518		37,312		1,185,051		1,222,363
	Auto		30,407		8,597		9,464		48,468		609,810		658,278
	Other		1,658		1,004		5,720		8,382		210,665		219,047
Total		$	427,367	$	201,537	$	890,972	$	1,519,876	$	14,144,511	$	15,664,387

September 30, 2013
U.S. mainland
			Past due
		30-59		60-89		90 days		Total				Loans HIP
(In thousands)		days		days		or more		past due		Current		U.S. mainland
Commercial multi-family		$	1,381	$	1,862	$	21,779	$	25,022	$	1,036,627	$	1,061,649
Commercial real estate non-owner occupied			3,270		-		54,707		57,977		1,112,172		1,170,149
Commercial real estate owner occupied			6,505		923		26,792		34,220		515,067		549,287
Commercial and industrial			5,408		2,206		8,193		15,807		793,561		809,368
Construction			-		-		5,763		5,763		35,587		41,350
Mortgage			9,448		6,936		25,373		41,757		1,227,694		1,269,451
Legacy			4,943		2,365		24,206		31,514		204,131		235,645
Consumer:
	Credit cards		288		178		482		948		14,067		15,015
	Home equity lines of credit		3,096		2,920		7,676		13,692		456,404		470,096
	Personal		836		834		1,340		3,010		135,967		138,977
	Auto		1		-		3		4		544		548
	Other		6		20		6		32		1,229		1,261
Total		$	35,182	$	18,244	$	176,320	$	229,746	$	5,533,050	$	5,762,796

September 30, 2013
Popular, Inc.

			Past due									Non-covered
		30-59		60-89		90 days		Total					loans HIP
(In thousands)		days		days		or more		past due		Current			Popular, Inc.
Commercial multi-family		$	1,381	$	2,196	$	31,173	$	34,750	$	1,112,179	$	1,146,929
Commercial real estate non-owner occupied			4,755		3,815		96,567		105,137		2,776,822		2,881,959
Commercial real estate owner occupied			43,742		10,035		124,029		177,806		2,039,697		2,217,503
Commercial and industrial			25,399		19,015		65,077		109,491		3,489,595		3,599,086
Construction			640		1,580		28,782		31,002		262,218		293,220
Mortgage			312,119		150,567		631,705		1,094,391		5,518,742		6,613,133
Leasing			6,408		1,324		3,716		11,448		527,842		539,290
Legacy			4,943		2,365		24,206		31,514		204,131		235,645
Consumer:
	Credit cards		13,511		8,981		20,267		42,759		1,131,571		1,174,330
	Home equity lines of credit		3,477		2,920		7,719		14,116		471,498		485,614
	Personal		14,102		7,362		18,858		40,322		1,321,018		1,361,340
	Auto		30,408		8,597		9,467		48,472		610,354		658,826
	Other		1,664		1,024		5,726		8,414		211,894		220,308
Total		$	462,549	$	219,781	$	1,067,292	$	1,749,622	$	19,677,561	$	21,427,183

December 31, 2012
Puerto Rico

			Past due									Non-covered
			30-59		60-89		90 days	Total				loans HIP
(In thousands)			days		days		or more	past due		Current		Puerto Rico
Commercial multi-family		$	1,005	$	-	$	15,816	$	16,821	$	98,272	$	115,093
Commercial real estate non-owner occupied			10,580		4,454		66,665		81,699		1,268,734		1,350,433
Commercial real estate owner occupied			28,240		13,319		315,534		357,093		1,685,393		2,042,486
Commercial and industrial			27,977		5,922		125,246		159,145		2,629,127		2,788,272
Construction			1,243		-		37,390		38,633		173,634		212,267
Mortgage			241,930		121,175		960,492		1,323,597		3,625,327		4,948,924
Leasing			6,493		1,555		4,865		12,913		527,610		540,523
Consumer:
	Credit cards		14,521		10,614		22,184		47,319		1,135,753		1,183,072
	Home equity lines of credit		124		-		312		436		16,370		16,806
	Personal		13,208		7,392		19,323		39,923		1,205,859		1,245,782
	Auto		24,128		6,518		8,551		39,197		521,119		560,316
	Other		2,120		536		3,505		6,161		222,192		228,353
Total		$	371,569	$	171,485	$	1,579,883	$	2,122,937	$	13,109,390	$	15,232,327

December 31, 2012
U.S. mainland
			Past due
			30-59		60-89		90 days		Total				Loans HIP
(In thousands)			days		days		or more		past due		Current		U.S. mainland
Commercial multi-family		$	6,828	$	5,067	$	18,435	$	30,330	$	876,357	$	906,687
Commercial real estate non-owner occupied			19,032		1,309		78,140		98,481		1,185,518		1,283,999
Commercial real estate owner occupied			9,979		100		31,931		42,010		523,954		565,964
Commercial and industrial			12,885		1,975		14,051		28,911		776,357		805,268
Construction			5,268		-		5,960		11,228		29,362		40,590
Mortgage			29,909		10,267		34,025		74,201		1,055,382		1,129,583
Legacy			15,765		20,112		40,741		76,618		307,599		384,217
Consumer:
	Credit cards		305		210		505		1,020		14,121		15,141
	Home equity lines of credit		3,937		2,506		7,454		13,897		460,332		474,229
	Personal		2,757		1,585		1,905		6,247		136,882		143,129
	Auto		38		3		4		45		723		768
	Other		41		9		3		53		1,237		1,290
Total		$	106,744	$	43,143	$	233,154	$	383,041	$	5,367,824	$	5,750,865

December 31, 2012
Popular, Inc.

			Past due									Non-covered
			30-59		60-89		90 days		Total			loans HIP
(In thousands)			days		days		or more		past due	Current		Popular, Inc.
Commercial multi-family		$	7,833	$	5,067	$	34,251	$	47,151	$	974,629	$	1,021,780
Commercial real estate non-owner occupied			29,612		5,763		144,805		180,180		2,454,252		2,634,432
Commercial real estate owner occupied			38,219		13,419		347,465		399,103		2,209,347		2,608,450
Commercial and industrial			40,862		7,897		139,297		188,056		3,405,484		3,593,540
Construction			6,511		-		43,350		49,861		202,996		252,857
Mortgage			271,839		131,442		994,517		1,397,798		4,680,709		6,078,507
Leasing			6,493		1,555		4,865		12,913		527,610		540,523
Legacy			15,765		20,112		40,741		76,618		307,599		384,217
Consumer:
	Credit cards		14,826		10,824		22,689		48,339		1,149,874		1,198,213
	Home equity lines of credit		4,061		2,506		7,766		14,333		476,702		491,035
	Personal		15,965		8,977		21,228		46,170		1,342,741		1,388,911
	Auto		24,166		6,521		8,555		39,242		521,842		561,084
	Other		2,161		545		3,508		6,214		223,429		229,643
Total		$	478,313	$	214,628	$	1,813,037	$	2,505,978	$	18,477,214	$	20,983,192

The following table provides a breakdown of loans held-for-sale (“LHFS”) in non-performing status at September 30, 2013 and December 31, 2012 by main categories.

The outstanding principal balance of non-covered loans accounted pursuant to ASC Subtopic 310-30, including amounts charged off by the Corporation, amounted to $175 million at September 30, 2013. At September 30, 2013, none of the acquired non-covered loans accounted under ASC Subtopic 310-30 were considered non-performing loans. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

Changes in the carrying amount and the accretable yield for the non-covered loans accounted pursuant to the ASC Subtopic 310-30, for the quarter and nine months ended September 30, 2013 were as follows:



Activity in the accretable discount - Non-covered loans ASC 310-30
	For the quarter ended			For the nine months ended
(In thousands)		September 30, 2013		September 30, 2013
Beginning balance		$	49,213	$	-
Additions			6,732		54,074
Accretion			(2,417)		(5,029)
Change in expected cash flows			(6,247)		(1,764)
Ending balance		$	47,281	$	47,281

Carrying amount of non-covered loans accounted for pursuant to ASC 310-30
		For the quarter ended		For the nine months ended
(In thousands)		September 30, 2013		September 30, 2013
Beginning balance		$	138,632		$ -
Additions			18,789		175,100
Accretion			2,417		5,029
Collections and charge-offs			(4,213)		(24,504)
Ending balance		$	155,625	$	155,625
	Allowance for loan losses ASC 310-30 non-covered loans		(3,511)		(3,511)
Ending balance, net of ALLL		$	152,114	$	152,114

The following table presents covered loans in non-performing status and accruing loans past-due 90 days or more by loan class at September 30, 2013 and December 31, 2012.

	September 30, 2013				December 31, 2012

	Non-accrual		Accruing loans past		Non-accrual		Accruing loans past
(In thousands)	loans		due 90 days or more		loans		due 90 days or more
Commercial real estate	$	12,877	$	-	$	14,628	$	-
Commercial and industrial		8,283		132		48,743		504
Construction		5,642		69		8,363		-
Mortgage		1,260		-		2,133		-
Consumer		323		116		543		265
Total^[1]	$	28,385	$	317	$	74,410	$	769

[1] Covered loans accounted for under ASC Subtopic 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.

The following tables present loans by past due status at September 30, 2013 and December 31, 2012 for covered loans held-in-portfolio. The information considers covered loans accounted for under ASC Subtopic 310-20 and ASC Subtopic 310-30.

September 30, 2013

		Past due
	30-59		60-89		90 days		Total				Covered
(In thousands)	days		days		or more		past due		Current		loans HIP
Commercial real estate	$	18,765	$	11,876	$	469,107	$	499,748	$	1,225,405	$	1,725,153
Commercial and industrial		1,516		800		16,718		19,034		109,664		128,698
Construction		-		160		189,612		189,772		11,665		201,437
Mortgage		32,205		19,268		109,373		160,846		804,933		965,779
Consumer		1,072		689		2,699		4,460		50,482		54,942
Total covered loans	$	53,558	$	32,793	$	787,509	$	873,860	$	2,202,149	$	3,076,009

December 31, 2012

		Past due
		30-59	60-89		90 days		Total				Covered
(In thousands)		days	days		or more		past due		Current		loans HIP
Commercial real estate	$	81,386	$	41,256	$	545,241	$	667,883	$	1,409,528	$	2,077,411
Commercial and industrial		3,242		551		59,554		63,347		103,889		167,236
Construction		13		-		296,837		296,850		64,546		361,396
Mortgage		38,307		28,206		182,376		248,889		827,841		1,076,730
Consumer		1,382		1,311		11,094		13,787		59,412		73,199
Total covered loans	$	124,330	$	71,324	$	1,095,102	$	1,290,756	$	2,465,216	$	3,755,972

The carrying amount of the covered loans consisted of loans determined to be impaired at the time of acquisition, which are accounted for in accordance with ASC Subtopic 310-30 (“credit impaired loans”), and loans that were considered to be performing at the acquisition date, accounted for by analogy to ASC Subtopic 310-30 (“non-credit impaired loans”), as detailed in the following table.

	September 30, 2013						December 31, 2012

	Carrying amount						Carrying amount
(In thousands)		Non-credit impaired loans		Credit impaired loans		Total		Non-credit impaired loans		Credit impaired loans		Total
Commercial real estate	$	1,485,109	$	153,590	$	1,638,699	$	1,778,594	$	185,386	$	1,963,980
Commercial and industrial		53,977		4,183		58,160		55,396		4,379		59,775
Construction		78,818		114,543		193,361		174,054		174,093		348,147
Mortgage		895,054		59,862		954,916		988,158		69,654		1,057,812
Consumer		42,648		3,265		45,913		55,762		6,283		62,045
Carrying amount		2,555,606		335,443		2,891,049		3,051,964		439,795		3,491,759
Allowance for loan losses		(49,744)		(59,130)		(108,874)		(48,365)		(47,042)		(95,407)
Carrying amount, net of allowance	$	2,505,862	$	276,313	$	2,782,175	$	3,003,599	$	392,753	$	3,396,352

The outstanding principal balance of covered loans accounted pursuant to ASC Subtopic 310-30, including amounts charged off by the Corporation, amounted to $3.9 billion at September 30, 2013 (December 31, 2012 - $4.8 billion). At September 30, 2013, none of the acquired loans from the Westernbank FDIC-assisted transaction accounted for under ASC Subtopic 310-30 were considered non-performing loans. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

Changes in the carrying amount and the accretable yield for the covered loans accounted pursuant to the ASC Subtopic 310-30, for the quarters and nine months ended September 30, 2013 and 2012, were as follows:

	Activity in the accretable discount
	Covered loans ASC 310-30
	For the quarters ended
	September 30, 2013						September 30, 2012
		Non-credit		Credit				Non-credit		Credit
(In thousands)		impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance	$	1,365,670	$	13,942	$	1,379,612	$	1,550,959	$	23,891	$	1,574,850
Accretion		(69,146)		617		(68,529)		(61,540)		(4,628)		(66,168)
Change in expected cash flows		4,879		(6,344)		(1,465)		(29,029)		(8,771)		(37,800)
Ending balance	$	1,301,403	$	8,215	$	1,309,618	$	1,460,390	$	10,492	$	1,470,882

	Activity in the accretable discount
	Covered loans ASC 310-30
	For the nine months ended
	September 30, 2013						September 30, 2012
		Non-credit		Credit				Non-credit		Credit
		impaired		impaired				impaired		impaired
(In thousands)		loans		loans		Total		loans		loans		Total
Beginning balance	$	1,446,381	$	5,288	$	1,451,669	$	1,428,764	$	41,495	$	1,470,259
Accretion		(190,607)		(5,448)		(196,055)		(191,989)		(17,504)		(209,493)
Change in expected cash flows		45,629		8,375		54,004		223,615		(13,499)		210,116
Ending balance	$	1,301,403	$	8,215	$	1,309,618	$	1,460,390	$	10,492	$	1,470,882

		Carrying amount of covered loans accounted for pursuant to ASC 310-30
		For the quarters ended
		September 30, 2013						September 30, 2012
			Non-credit		Credit				Non-credit		Credit
(In thousands)			impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance		$	2,653,071	$	359,795	$	3,012,866	$	3,244,957	$	484,532	$	3,729,489
Accretion			69,146		(617)		68,529		61,540		4,628		66,168
Collections and charge-offs			(166,611)		(23,735)		(190,346)		(149,583)		(18,865)		(168,448)
Ending balance		$	2,555,606	$	335,443	$	2,891,049	$	3,156,914	$	470,295	$	3,627,209
	Allowance for loan losses
	ASC 310-30 covered loans		(49,744)		(59,130)		(108,874)		(64,015)		(39,532)		(103,547)
Ending balance, net of ALLL		$	2,505,862	$	276,313	$	2,782,175	$	3,092,899	$	430,763	$	3,523,662

		Carrying amount of loans accounted for pursuant to ASC 310-30
		For the nine months ended
		September 30, 2013						September 30, 2012
			Non-credit		Credit				Non-credit		Credit
			impaired		impaired				impaired		impaired
(In thousands)			loans		loans		Total		loans		loans		Total
Beginning balance		$	3,051,964	$	439,795	$	3,491,759	$	3,446,451	$	590,020	$	4,036,471
Accretion			190,607		5,448		196,055		191,989		17,504		209,493
Collections and charge offs			(686,965)		(109,800)		(796,765)		(481,526)		(137,229)		(618,755)
Ending balance		$	2,555,606	$	335,443	$	2,891,049	$	3,156,914	$	470,295	$	3,627,209
Allowance for loan losses
	ASC 310-30 covered loans		(49,744)		(59,130)		(108,874)		(64,015)		(39,532)		(103,547)
Ending balance, net of ALLL		$	2,505,862	$	276,313	$	2,782,175	$	3,092,899	$	430,763	$	3,523,662

The Corporation accounts for lines of credit with revolving privileges under the accounting guidance of ASC Subtopic 310-20, which requires that any differences between the contractually required loans payment receivable in excess of the initial investment in the loans be accreted into interest income over the life of the loans, if the loan is accruing interest. Covered loans accounted for under ASC Subtopic 310-20 amounted to $0.2 billion at September 30, 2013 (September 30, 2012 - $0.3 billion).