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 2013 Annual Report.

The following table presents the composition of non-covered loans held-in-portfolio (“HIP”), net of unearned income, at March 31, 2014 and December 31, 2013.


(In thousands)		March 31, 2014		December 31, 2013
Commercial multi-family		$	1,174,906	$	1,175,937
Commercial real estate non-owner occupied			3,013,789		2,970,505
Commercial real estate owner occupied			2,109,840		2,166,545
Commercial and industrial			3,716,186		3,724,197
Construction			176,766		206,084
Mortgage			6,669,376		6,681,476
Leasing			546,880		543,761
Legacy^[2]			197,164		211,135
Consumer:
	Credit cards		1,163,617		1,185,272
	Home equity lines of credit		466,783		478,211
	Personal		1,424,161		1,349,119
	Auto		735,976		699,980
	Other		216,333		219,644
Total loans held-in-portfolio^[1]		$	21,611,777	$	21,611,866

[1]	Non-covered loans held-in-portfolio at March 31, 2014 are net of $91 million in unearned income and exclude $95 million in loans held-for-sale (December 31, 2013 - $92 million in unearned income and $110 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 March 31, 2014 and December 31, 2013.


(In thousands)	March 31, 2014		December 31, 2013
Commercial real estate	$	1,684,134	$	1,710,229
Commercial and industrial		107,551		102,575
Construction		127,444		190,127
Mortgage		907,069		934,373
Consumer		43,856		47,123
Total loans held-in-portfolio	$	2,870,054	$	2,984,427

The following table provides a breakdown of loans held-for-sale (“LHFS”) at March 31, 2014 and December 31, 2013 by main categories.

During the quarter ended March 31, 2014, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $161 million (March 31, 2013 - $1.0 billion). Additionally, the Corporation recorded purchases of $92 million in consumer loans during the quarter ended March 31, 2014 (March 31, 2013 - $0) and purchases of $21 million in commercial loans during the quarter ended March 31, 2014 (March 31, 2013 - $0).

The Corporation performed whole-loan sales involving approximately $43 million of residential mortgage loans during the quarter ended March 31, 2014 (March 31, 2013 - $50 million). Also, during the quarter ended March 31, 2014, the Corporation securitized approximately $166 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities and $63 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities, compared to $285 million and $128 million, respectively, during the quarter ended March 31, 2013. The Corporation sold commercial and construction loans with a book value of approximately $30 million during the quarter ended March 31, 2014 (March 31, 2013 - $401 million, sold as part of the bulk sale of non-performing asset completed during such quarter).

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 March 31, 2014 and December 31, 2013. 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 March 31, 2014
			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		$	4,351	$	-	$	9,655	$	-	$	14,006	$	-
Commercial real estate non-owner occupied			46,879		-		26,344		-		73,223		-
Commercial real estate owner occupied			107,617		-		18,456		-		126,073		-
Commercial and industrial			87,084		691		6,543		-		93,627		691
Construction			22,464		-		-		-		22,464		-
Mortgage^[2][3]			229,801		386,765		22,220		-		252,021		386,765
Leasing			3,050		-		-		-		3,050		-
Legacy			-		-		11,608		-		11,608		-
Consumer:
	Credit cards		-		21,333		474		-		474		21,333
	Home equity lines of credit		-		71		6,976		-		6,976		71
	Personal		16,467		-		833		-		17,300		-
	Auto		10,887		-		2		-		10,889		-
	Other		3,623		550		-		-		3,623		550
Total^[1]		$	532,223	$	409,410	$	103,111	$	-	$	635,334	$	409,410

[1] For purposes of this table non-performing loans exclude $ 789 thousand in non-performing loans held-for-sale.

[2] Non-covered loans by $49 million 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 $117 million of residential mortgage loans in Puerto Rico insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2014. Furthermore, the Corporation has approximately $52 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, 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		$	4,944	$	-	$	20,894	$	-	$	25,838	$	-
Commercial real estate non-owner occupied			41,959		-		42,413		-		84,372		-
Commercial real estate owner occupied			83,441		-		23,507		-		106,948		-
Commercial and industrial			55,753		556		6,142		-		61,895		556
Construction			18,108		-		5,663		-		23,771		-
Mortgage^[2][3]			206,389		395,645		26,292		-		232,681		395,645
Leasing			3,495		-		-		-		3,495		-
Legacy			-		-		15,050		-		15,050		-
Consumer:
	Credit cards		-		20,313		486		-		486		20,313
	Home equity lines of credit		-		147		8,632		-		8,632		147
	Personal		17,054		54		1,591		-		18,645		54
	Auto		10,562		-		2		-		10,564		-
	Other		5,550		585		21		-		5,571		585
Total^[1]		$	447,255	$	417,300	$	150,693	$	-	$	597,948	$	417,300

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

[2] Non-covered loans by $43 million 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 $115 million of residential mortgage loans in Puerto Rico insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2013. Furthermore, the Corporation has approximately $50 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.

The following tables present loans by past due status at March 31, 2014 and December 31, 2013 for non-covered loans held-in-portfolio (net of unearned income).

March 31, 2014
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		$	438	$	-	$	4,351	$	4,789	$	68,503	$	73,292
Commercial real estate non-owner occupied			19,114		1,597		46,879		67,590		1,862,095		1,929,685
Commercial real estate owner occupied			44,994		4,315		107,617		156,926		1,411,179		1,568,105
Commercial and industrial			46,108		2,056		87,775		135,939		2,735,977		2,871,916
Construction			14,441		-		22,464		36,905		104,698		141,603
Mortgage			293,866		159,568		666,065		1,119,499		4,305,362		5,424,861
Leasing			6,230		2,519		3,050		11,799		535,081		546,880
Consumer:
	Credit cards		13,358		9,092		21,333		43,783		1,104,767		1,148,550
	Home equity lines of credit		266		-		71		337		14,193		14,530
	Personal		13,715		6,733		16,467		36,915		1,255,697		1,292,612
	Auto		33,886		8,202		10,887		52,975		682,585		735,560
	Other		806		148		4,173		5,127		210,198		215,325
Total		$	487,222	$	194,230	$	991,132	$	1,672,584	$	14,290,335	$	15,962,919

March 31, 2014
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		$	3,757	$	-	$	9,655	$	13,412	$	1,088,202	$	1,101,614
Commercial real estate non-owner occupied			4,364		626		26,344		31,334		1,052,770		1,084,104
Commercial real estate owner occupied			5,002		380		18,456		23,838		517,897		541,735
Commercial and industrial			10,611		1,511		6,543		18,665		825,605		844,270
Construction			-		-		-		-		35,163		35,163
Mortgage			36,914		2,181		22,220		61,315		1,183,200		1,244,515
Legacy			10,218		1,001		11,608		22,827		174,337		197,164
Consumer:
	Credit cards		218		186		474		878		14,189		15,067
	Home equity lines of credit		3,350		1,387		6,976		11,713		440,540		452,253
	Personal		2,897		737		833		4,467		127,082		131,549
	Auto		21		-		2		23		393		416
	Other		-		-		-		-		1,008		1,008
Total		$	77,352	$	8,009	$	103,111	$	188,472	$	5,460,386	$	5,648,858

March 31, 2014
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		$	4,195	$	-	$	14,006	$	18,201	$	1,156,705	$	1,174,906
Commercial real estate non-owner occupied			23,478		2,223		73,223		98,924		2,914,865		3,013,789
Commercial real estate owner occupied			49,996		4,695		126,073		180,764		1,929,076		2,109,840
Commercial and industrial			56,719		3,567		94,318		154,604		3,561,582		3,716,186
Construction			14,441		-		22,464		36,905		139,861		176,766
Mortgage			330,780		161,749		688,285		1,180,814		5,488,562		6,669,376
Leasing			6,230		2,519		3,050		11,799		535,081		546,880
Legacy			10,218		1,001		11,608		22,827		174,337		197,164
Consumer:
	Credit cards		13,576		9,278		21,807		44,661		1,118,956		1,163,617
	Home equity lines of credit		3,616		1,387		7,047		12,050		454,733		466,783
	Personal		16,612		7,470		17,300		41,382		1,382,779		1,424,161
	Auto		33,907		8,202		10,889		52,998		682,978		735,976
	Other		806		148		4,173		5,127		211,206		216,333
Total		$	564,574	$	202,239	$	1,094,243	$	1,861,056	$	19,750,721	$	21,611,777

December 31, 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		$	446	$	-	$	4,944	$	5,390	$	77,013	$	82,403
Commercial real estate non-owner occupied			13,889		349		41,959		56,197		1,808,021		1,864,218
Commercial real estate owner occupied			13,725		8,318		83,441		105,484		1,501,019		1,606,503
Commercial and industrial			9,960		4,463		56,309		70,732		2,841,734		2,912,466
Construction			2,329		-		18,108		20,437		140,734		161,171
Mortgage			316,663		154,882		645,444		1,116,989		4,283,690		5,400,679
Leasing			7,457		1,607		3,495		12,559		531,202		543,761
Consumer:
	Credit cards		13,797		9,991		20,313		44,101		1,125,520		1,169,621
	Home equity lines of credit		133		53		147		333		14,845		15,178
	Personal		12,897		6,794		17,108		36,799		1,177,085		1,213,884
	Auto		31,340		9,361		10,562		51,263		648,228		699,491
	Other		1,834		859		6,135		8,828		209,636		218,464
Total		$	424,470	$	196,677	$	907,965	$	1,529,112	$	14,358,727	$	15,887,839

December 31, 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		$	3,621	$	1,675	$	20,894	$	26,190	$	1,067,344	$	1,093,534
Commercial real estate non-owner occupied			4,255		-		42,413		46,668		1,059,619		1,106,287
Commercial real estate owner occupied			657		8,452		23,507		32,616		527,426		560,042
Commercial and industrial			2,331		2,019		6,142		10,492		801,239		811,731
Construction			-		-		5,663		5,663		39,250		44,913
Mortgage			30,713		9,630		26,292		66,635		1,214,162		1,280,797
Legacy			9,079		2,098		15,050		26,227		184,908		211,135
Consumer:
	Credit cards		285		200		486		971		14,680		15,651
	Home equity lines of credit		2,794		2,198		8,632		13,624		449,409		463,033
	Personal		3,196		826		1,591		5,613		129,622		135,235
	Auto		11		-		2		13		476		489
	Other		43		50		21		114		1,066		1,180
Total		$	56,985	$	27,148	$	150,693	$	234,826	$	5,489,201	$	5,724,027

December 31, 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		$	4,067	$	1,675	$	25,838	$	31,580	$	1,144,357	$	1,175,937
Commercial real estate non-owner occupied			18,144		349		84,372		102,865		2,867,640		2,970,505
Commercial real estate owner occupied			14,382		16,770		106,948		138,100		2,028,445		2,166,545
Commercial and industrial			12,291		6,482		62,451		81,224		3,642,973		3,724,197
Construction			2,329		-		23,771		26,100		179,984		206,084
Mortgage			347,376		164,512		671,736		1,183,624		5,497,852		6,681,476
Leasing			7,457		1,607		3,495		12,559		531,202		543,761
Legacy			9,079		2,098		15,050		26,227		184,908		211,135
Consumer:
	Credit cards		14,082		10,191		20,799		45,072		1,140,200		1,185,272
	Home equity lines of credit		2,927		2,251		8,779		13,957		464,254		478,211
	Personal		16,093		7,620		18,699		42,412		1,306,707		1,349,119
	Auto		31,351		9,361		10,564		51,276		648,704		699,980
	Other		1,877		909		6,156		8,942		210,702		219,644
Total		$	481,455	$	223,825	$	1,058,658	$	1,763,938	$	19,847,928	$	21,611,866

The following table provides a breakdown of loans held-for-sale (“LHFS”) in non-performing status at March 31, 2014 and December 31, 2013 by main categories.

The outstanding principal balance of non-covered loans accounted pursuant to ASC Subtopic 310-30, net of amounts charged off by the Corporation, amounted to $216 million at March 31, 2014 (March 31, 2013 - $148 million). At March 31, 2014, 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 quarters ended March 31, 2014 and 2013 were as follows:



Activity in the accretable yield - Non-covered loans ASC 310-30
	For the quarters ended
(In thousands)	March 31, 2014			March 31, 2013
Beginning balance	$	49,398	$	-
Additions		7,084		37,235
Accretion		(2,374)		(608)
Change in expected cash flows		13,177		-
Ending balance	$	67,285	$	36,627

Carrying amount of non-covered loans accounted for pursuant to ASC 310-30
		For the quarters ended
(In thousands)		March 31, 2014			March 31, 2013
Beginning balance		$	173,659	$	-
Additions			20,042		133,412
Accretion			2,374		608
Collections and charge-offs			(5,859)		(979)
Ending balance		$	190,216	$	133,041
	Allowance for loan losses ASC 310-30 non-covered loans		(15,078)		-
Ending balance, net of allowance for loan losses		$	175,138	$	133,041

The following table presents covered loans in non-performing status and accruing loans past-due 90 days or more by loan class at March 31, 2014 and December 31, 2013.

	March 31, 2014				December 31, 2013

	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	$	8,570	$	-	$	8,345	$	-
Commercial and industrial		1,003		-		7,335		456
Construction		11,580		-		11,872		-
Mortgage		2,537		-		1,739		69
Consumer		222		-		90		112
Total^[1]	$	23,912	$	-	$	29,381	$	637

[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 March 31, 2014 and December 31, 2013 for covered loans held-in-portfolio. The information considers covered loans accounted for under ASC Subtopic 310-20 and ASC Subtopic 310-30.

March 31, 2014

		Past due
	30-59		60-89		90 days		Total				Covered
(In thousands)	days		days		or more		past due		Current		loans HIP
Commercial real estate	$	32,837	$	4,819	$	368,923	$	406,579	$	1,277,555	$	1,684,134
Commercial and industrial		1,160		862		8,378		10,400		97,151		107,551
Construction		-		-		115,978		115,978		11,466		127,444
Mortgage		60,074		14,979		156,194		231,247		675,822		907,069
Consumer		2,346		1,025		4,014		7,385		36,471		43,856
Total covered loans	$	96,417	$	21,685	$	653,487	$	771,589	$	2,098,465	$	2,870,054

December 31, 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	$	42,898	$	8,745	$	374,301	$	425,944	$	1,284,285	$	1,710,229
Commercial and industrial		1,584		349		16,318		18,251		84,324		102,575
Construction		399		-		178,007		178,406		11,721		190,127
Mortgage		50,222		23,384		165,030		238,636		695,737		934,373
Consumer		2,588		1,328		4,200		8,116		39,007		47,123
Total covered loans	$	97,691	$	33,806	$	737,856	$	869,353	$	2,115,074	$	2,984,427

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.

	March 31, 2014						December 31, 2013

	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	$	1,481,476	$	150,681	$	1,632,157	$	1,483,331	$	149,341	$	1,632,672
Commercial and industrial		55,268		2,223		57,491		55,192		3,069		58,261
Construction		58,975		54,556		113,531		71,864		104,356		176,220
Mortgage		840,490		53,774		894,264		862,878		59,483		922,361
Consumer		33,244		2,435		35,679		35,810		2,623		38,433
Carrying amount		2,469,453		263,669		2,733,122		2,509,075		318,872		2,827,947
Allowance for loan losses		(56,953)		(33,418)		(90,371)		(57,594)		(36,321)		(93,915)
Carrying amount, net of allowance	$	2,412,500	$	230,251	$	2,642,751	$	2,451,481	$	282,551	$	2,734,032

The outstanding principal balance of covered loans accounted pursuant to ASC Subtopic 310-30, net of amounts charged off by the Corporation, amounted to $3.6 billion at March 31, 2014 (December 31, 2013 - $3.8 billion). At March 31, 2014, 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 ended March 31, 2014 and 2013, were as follows:

	Activity in the accretable yield
	Covered loans ASC 310-30
	For the quarters ended
	March 31, 2014						March 31, 2013
		Non-credit		Credit				Non-credit		Credit
(In thousands)		impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance	$	1,297,725	$	11,480	$	1,309,205	$	1,446,381	$	5,288	$	1,451,669
Accretion		(72,552)		(6,566)		(79,118)		(61,177)		(3,813)		(64,990)
Change in expected cash flows		(12,467)		592		(11,875)		(12,829)		(1,715)		(14,544)
Ending balance	$	1,212,706	$	5,506	$	1,218,212	$	1,372,375	$	(240)	$	1,372,135

		Carrying amount of covered loans accounted for pursuant to ASC 310-30
		For the quarters ended
		March 31, 2014						March 31, 2013
			Non-credit		Credit				Non-credit		Credit
(In thousands)			impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance		$	2,509,075	$	318,872	$	2,827,947	$	3,051,964	$	439,795	$	3,491,759
Accretion			72,552		6,566		79,118		61,177		3,813		64,990
Collections and charge-offs			(112,174)		(61,769)		(173,943)		(354,197)		(44,889)		(399,086)
Ending balance		$	2,469,453	$	263,669	$	2,733,122	$	2,758,944	$	398,719	$	3,157,663
	Allowance for loan losses
	ASC 310-30 covered loans		(56,953)		(33,418)		(90,371)		(52,542)		(39,031)		(91,573)
Ending balance, net of ALLL		$	2,412,500	$	230,251	$	2,642,751	$	2,706,402	$	359,688	$	3,066,090

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 $0.1 billion at March 31, 2014 (December 31, 2013 - $0.2 billion).