Loans

3 Months Ended

Mar. 31, 2016

Note 9 – Loans

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 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”. The FDIC loss sharing agreements expired on June 30, 2015 for commercial (including construction) and consumer loans, and expires on June 30, 2020 for single-family residential mortgage loans, as explained in Note 11.

For a summary of the accounting policies related to loans, interest recognition and allowance for loan losses refer to Note 2 - Summary of significant accounting policies, of the 2015 Form 10-K.

During the quarter ended March 31, 2016, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $122 million, consumer loans of $106 million and commercial loans amounting to $51 million. Excluding the impact of the Doral Bank Transaction, during the quarter ended March 31, 2015, the Corporation recorded purchases of mortgage loans amounting to $169 million. Refer to Note 5 for information on loans acquired as part of the Doral Bank Transaction.

The Corporation performed whole-loan sales involving approximately $21 million of residential mortgage loans during the quarter ended March 31, 2016 (March 31, 2015 - $39 million). Also, during the quarter ended March 31, 2016, the Corporation securitized approximately $134 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities and $36 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities, compared to $156 million and $47 million, respectively, during the quarter ended March 31, 2015.

Non-covered loans

The following table presents the composition of non-covered loans held-in-portfolio (“HIP”), net of unearned income, by past due status at March 31, 2016 and December 31, 2015, including loans previously covered by the commercial FDIC loss sharing agreements.

March 31, 2016
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		$	652	$	168	$	1,418	$	2,238	$	172,413	$	174,651
Commercial real estate non-owner occupied			46,119		3,102		103,719		152,940		2,506,513		2,659,453
Commercial real estate owner occupied			16,339		6,608		141,443		164,390		1,703,399		1,867,789
Commercial and industrial			7,267		4,297		39,529		51,093		2,615,305		2,666,398
Construction			678		372		13,133		14,183		90,961		105,144
Mortgage			352,313		134,842		823,440		1,310,595		4,789,164		6,099,759
Leasing			7,209		1,598		3,419		12,226		630,916		643,142
Consumer:
	Credit cards		10,915		7,159		18,864		36,938		1,061,845		1,098,783
	Home equity lines of credit		82		141		280		503		9,126		9,629
	Personal		12,963		7,693		20,495		41,151		1,150,239		1,191,390
	Auto		32,638		6,029		10,844		49,511		776,794		826,305
	Other		1,337		282		19,220		20,839		162,145		182,984
Total		$	488,512	$	172,291	$	1,195,804	$	1,856,607	$	15,668,820	$	17,525,427

March 31, 2016
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		$	32	$	-	$	246	$	278	$	762,276	$	762,554
Commercial real estate non-owner occupied			9,556		-		11,155		20,711		969,937		990,648
Commercial real estate owner occupied			3,817		-		193		4,010		219,791		223,801
Commercial and industrial			16,935		156		84,086		101,177		781,918		883,095
Construction			15,091		-		671		15,762		613,952		629,714
Mortgage			18,877		514		12,069		31,460		847,982		879,442
Legacy			3,119		400		4,046		7,565		53,479		61,044
Consumer:
	Credit cards		187		157		382		726		12,292		13,018
	Home equity lines of credit		1,701		845		4,309		6,855		287,405		294,260
	Personal		1,624		639		1,429		3,692		240,722		244,414
	Auto		-		-		6		6		18		24
	Other		-		-		10		10		286		296
Total		$	70,939	$	2,711	$	118,602	$	192,252	$	4,790,058	$	4,982,310

March 31, 2016
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.^{[1] [2]}
Commercial multi-family		$	684	$	168	$	1,664	$	2,516	$	934,689	$	937,205
Commercial real estate non-owner occupied			55,675		3,102		114,874		173,651		3,476,450		3,650,101
Commercial real estate owner occupied			20,156		6,608		141,636		168,400		1,923,190		2,091,590
Commercial and industrial			24,202		4,453		123,615		152,270		3,397,223		3,549,493
Construction			15,769		372		13,804		29,945		704,913		734,858
Mortgage			371,190		135,356		835,509		1,342,055		5,637,146		6,979,201
Leasing			7,209		1,598		3,419		12,226		630,916		643,142
Legacy^[3]			3,119		400		4,046		7,565		53,479		61,044
Consumer:
	Credit cards		11,102		7,316		19,246		37,664		1,074,137		1,111,801
	Home equity lines of credit		1,783		986		4,589		7,358		296,531		303,889
	Personal		14,587		8,332		21,924		44,843		1,390,961		1,435,804
	Auto		32,638		6,029		10,850		49,517		776,812		826,329
	Other		1,337		282		19,230		20,849		162,431		183,280
Total		$	559,451	$	175,002	$	1,314,406	$	2,048,859	$	20,458,878	$	22,507,737

[1]	Non-covered loans held-in-portfolio are net of $111 million in unearned income and exclude $125 million in loans held-for-sale.
[2]	Includes $7.7 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.7 billion were pledged at the FHLB as collateral for borrowings, $2.5 billion at the FRB for discount window borrowings and $0.5 billion serve as collateral for public funds.
[3]	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.

December 31, 2015
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		$	459	$	217	$	1,316	$	1,992	$	130,154	$	132,146
Commercial real estate non-owner occupied			166,732		12,520		84,982		264,234		2,404,858		2,669,092
Commercial real estate owner occupied			14,245		5,624		138,778		158,647		1,750,597		1,909,244
Commercial and industrial			6,010		6,059		38,464		50,533		2,607,204		2,657,737
Construction			238		253		13,738		14,229		86,719		100,948
Mortgage			344,858		162,341		863,869		1,371,068		4,756,423		6,127,491
Leasing			7,844		1,630		3,009		12,483		615,167		627,650
Consumer:
	Credit cards		11,078		9,414		19,098		39,590		1,088,755		1,128,345
	Home equity lines of credit		186		292		394		872		9,816		10,688
	Personal		13,756		7,889		22,625		44,270		1,158,565		1,202,835
	Auto		33,554		7,500		11,640		52,694		763,256		815,950
	Other		1,069		298		19,232		20,599		167,885		188,484
Total		$	600,029	$	214,037	$	1,217,145	$	2,031,211	$	15,539,399	$	17,570,610

December 31, 2015
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		$	33	$	253	$	-	$	286	$	693,647	$	693,933
Commercial real estate non-owner occupied			160		-		253		413		962,610		963,023
Commercial real estate owner occupied			1,490		429		221		2,140		200,204		202,344
Commercial and industrial			13,647		1,526		75,575		90,748		780,896		871,644
Construction			-		-		-		-		580,158		580,158
Mortgage			18,957		3,424		13,538		35,919		872,671		908,590
Legacy			1,160		662		3,649		5,471		58,965		64,436
Consumer:
	Credit cards		327		134		437		898		13,037		13,935
	Home equity lines of credit		3,149		1,114		4,176		8,439		296,045		304,484
	Personal		1,836		690		1,240		3,766		168,860		172,626
	Auto		-		-		6		6		22		28
	Other		-		10		5		15		289		304
Total		$	40,759	$	8,242	$	99,100	$	148,101	$	4,627,404	$	4,775,505

December 31, 2015
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.^{[1] [2]}
Commercial multi-family		$	492	$	470	$	1,316	$	2,278	$	823,801	$	826,079
Commercial real estate non-owner occupied			166,892		12,520		85,235		264,647		3,367,468		3,632,115
Commercial real estate owner occupied			15,735		6,053		138,999		160,787		1,950,801		2,111,588
Commercial and industrial			19,657		7,585		114,039		141,281		3,388,100		3,529,381
Construction			238		253		13,738		14,229		666,877		681,106
Mortgage			363,815		165,765		877,407		1,406,987		5,629,094		7,036,081
Leasing			7,844		1,630		3,009		12,483		615,167		627,650
Legacy^[3]			1,160		662		3,649		5,471		58,965		64,436
Consumer:
	Credit cards		11,405		9,548		19,535		40,488		1,101,792		1,142,280
	Home equity lines of credit		3,335		1,406		4,570		9,311		305,861		315,172
	Personal		15,592		8,579		23,865		48,036		1,327,425		1,375,461
	Auto		33,554		7,500		11,646		52,700		763,278		815,978
	Other		1,069		308		19,237		20,614		168,174		188,788
Total		$	640,788	$	222,279	$	1,316,245	$	2,179,312	$	20,166,803	$	22,346,115

[1]	Non-covered loans held-in-portfolio are net of $108 million in unearned income and exclude $137 million in loans held-for-sale.
[2]	Includes $7.3 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.3 billion were pledged at the FHLB as collateral for borrowings, $2.5 billion at the FRB for discount window borrowings and $0.5 billion serve as collateral for public funds.
[3]	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 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, 2016 and 2015. 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.

At March 31, 2016
			Puerto Rico				U.S. mainland				Popular, Inc.

				Accruing loans				Accruing loans				Accruing loans
		Non-accrual		past-due 90		Non-accrual		past-due 90			Non-accrual	past-due 90
(In thousands)		loans		days or more [1]		loans		days or more [1]			loans	days or more [1]
Commercial multi-family		$	1,178	$	-	$	246	$	-	$	1,424	$	-
Commercial real estate non-owner occupied			32,310		-		11,155		-		43,465		-
Commercial real estate owner occupied			110,972		-		193		-		111,165		-
Commercial and industrial			38,179		332		3,398		-		41,577		332
Construction			3,270		-		671		-		3,941		-
Mortgage^[3]			322,838		406,327		12,069		-		334,907		406,327
Leasing			3,419		-		-		-		3,419		-
Legacy			-		-		4,046		-		4,046		-
Consumer:
	Credit cards		-		18,864		382		-		382		18,864
	Home equity lines of credit		-		280		4,309		-		4,309		280
	Personal		20,023		46		1,429		-		21,452		46
	Auto		10,844		-		6		-		10,850		-
	Other		18,579		588		10		-		18,589		588
Total^[2]		$	561,612	$	426,437	$	37,914	$	-	$	599,526	$	426,437

[1] Non-covered loans of $288 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.

[2] For purposes of this table non-performing loans exclude $ 43 million in non-performing loans held-for-sale.

[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 $161 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, 2016. Furthermore, the Corporation has approximately $68 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, 2015
			Puerto Rico				U.S. mainland				Popular, Inc.

				Accruing loans				Accruing loans				Accruing loans
		Non-accrual		past-due 90		Non-accrual		past-due 90			Non-accrual	past-due 90
(In thousands)		loans		days or more [1]		loans		days or more [1]			loans	days or more [1]
Commercial multi-family		$	1,062	$	-	$	-	$	-	$	1,062	$	-
Commercial real estate non-owner occupied			33,720		-		253		-		33,973		-
Commercial real estate owner occupied			106,449		-		221		-		106,670		-
Commercial and industrial			36,671		555		3,440		-		40,111		555
Construction			3,550		-		-		-		3,550		-
Mortgage^[3]			337,933		426,094		13,538		-		351,471		426,094
Leasing			3,009		-		-		-		3,009		-
Legacy			-		-		3,649		-		3,649		-
Consumer:
	Credit cards		-		19,098		437		-		437		19,098
	Home equity lines of credit		-		394		4,176		-		4,176		394
	Personal		22,102		523		1,240		-		23,342		523
	Auto		11,640		-		6		-		11,646		-
	Other		18,698		61		5		-		18,703		61
Total^[2]		$	574,834	$	446,725	$	26,965	$	-	$	601,799	$	446,725

[1] Non-covered loans by $268 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.

[2] For purposes of this table non-performing loans exclude $ 45 million in non-performing loans held-for-sale.

[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 $164 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, 2015. Furthermore, the Corporation has approximately $70 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 table provides a breakdown of loans held-for-sale (“LHFS”) at March 31, 2016 and December 31, 2015 by main categories.

(In thousands)	March 31, 2016		December 31, 2015
Commercial	$	42,771	$	45,074
Construction		2		95
Mortgage		82,542		91,831
Total loans held-for-sale	$	125,315	$	137,000

The following table provides a breakdown of loans held-for-sale (“LHFS”) in non-performing status at March 31, 2016 and December 31, 2015 by main categories.

(In thousands)	March 31, 2016		December 31, 2015
Commercial	$	42,741	$	45,074
Construction		2		95
Total	$	42,743	$	45,169

The following table presents loans acquired as part of the Doral Bank Transaction accounted for under ASC subtopic 310-20 as of the February 27, 2015 acquisition date:


(In thousands)
Fair value of loans accounted under ASC Subtopic 310-20	$	1,178,543
Gross contractual amounts receivable (principal and interest)	$	1,666,695
Estimate of contractual cash flows not expected to be collected	$	34,646

Covered loans

The following tables present the composition of loans by past due status at March 31, 2016 and December 31, 2015 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, 2016

		Past due
	30-59		60-89		90 days		Total				Covered
(In thousands)	days		days		or more		past due		Current		loans HIP [1]
Mortgage	$	29,539	$	15,953	$	77,968	$	123,460	$	483,251	$	606,711
Consumer		1,108		324		1,389		2,821		15,598		18,419
Total covered loans	$	30,647	$	16,277	$	79,357	$	126,281	$	498,849	$	625,130
[1] Includes $374 million pledged to secure credit facilities at the FHLB which are not permitted to sell or repledge the collateral.

December 31, 2015

		Past due
		30-59	60-89		90 days		Total				Covered
(In thousands)		days	days		or more		past due			Current	loans HIP [1]
Mortgage	$	31,413	$	16,593	$	83,132	$	131,138	$	495,964	$	627,102
Consumer		1,246		444		1,283		2,973		16,040		19,013
Total covered loans	$	32,659	$	17,037	$	84,415	$	134,111	$	512,004	$	646,115
[1] Includes $386 million pledged to secure credit facilities at the FHLB which are not permitted to sell or repledge the collateral.

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, 2016 and December 31, 2015.

	March 31, 2016				December 31, 2015

	Non-accrual		Accruing loans past		Non-accrual		Accruing loans past
(In thousands)	loans		due 90 days or more		loans		due 90 days or more
Mortgage	$	3,408	$	-	$	3,790	$	-
Consumer		111		-		97		-
Total^[1]	$	3,519	$	-	$	3,887	$	-

[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 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 $10 million at March 31, 2016 (December 31, 2015 - $10 million).

Loans acquired with deteriorated credit quality accounted for under ASC 310-30

The following provides information of loans acquired with evidence of credit deterioration as of the acquisition date, accounted for under the guidance of ASC 310-30.

Loans acquired from Westernbank as part of an FDIC-assisted transaction

The carrying amount of the Westernbank 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, 2016 [1]						December 31, 2015 [1]

	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	$	1,104,257	$	30,090	$	1,134,347	$	1,114,368	$	35,393	$	1,149,761
Commercial and industrial		83,267		519		83,786		84,765		519		85,284
Construction		8,479		6,026		14,505		8,943		6,027		14,970
Mortgage		647,739		31,627		679,366		667,023		33,090		700,113
Consumer		22,198		1,239		23,437		23,047		1,326		24,373
Carrying amount		1,865,940		69,501		1,935,441		1,898,146		76,355		1,974,501
Allowance for loan losses		(58,703)		(4,264)		(62,967)		(59,753)		(3,810)		(63,563)
Carrying amount, net of allowance	$	1,807,237	$	65,237	$	1,872,474	$	1,838,393	$	72,545	$	1,910,938
[1] The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remains subject to the loss sharing agreement with the FDIC amounted to approximately $615 million as of March 31, 2016 and $636 million as of December 31, 2015.

The outstanding principal balance of Westernbank loans accounted pursuant to ASC Subtopic 310-30, amounted to $2.4 billion at March 31, 2016 (December 31, 2015 - $2.4 billion). At March 31, 2016, 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 Westernbank loans accounted pursuant to the ASC Subtopic 310-30, for the quarters ended March 31, 2016 and 2015, were as follows:

	Activity in the accretable yield
	Westernbank loans ASC 310-30
	For the quarters ended
	March 31, 2016						March 31, 2015
		Non-credit		Credit				Non-credit		Credit
(In thousands)		impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance	$	1,105,732	$	6,726	$	1,112,458	$	1,265,752	$	5,585	$	1,271,337
Accretion		(42,000)		(1,533)		(43,533)		(53,776)		(1,921)		(55,697)
Change in expected cash flows		54,544		5,339		59,883		42,273		1,035		43,308
Ending balance	$	1,118,276	$	10,532	$	1,128,808	$	1,254,249	$	4,699	$	1,258,948

		Carrying amount of Westernbank loans accounted for pursuant to ASC 310-30
		For the quarters ended
		March 31, 2016 [1]						March 31, 2015
			Non-credit		Credit				Non-credit		Credit
(In thousands)			impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance		$	1,898,146	$	76,355	$	1,974,501	$	2,272,142	$	172,030	$	2,444,172
Accretion			42,000		1,533		43,533		53,776		1,921		55,697
Collections and charge-offs			(74,206)		(8,387)		(82,593)		(114,137)		(18,636)		(132,773)
Ending balance		$	1,865,940	$	69,501	$	1,935,441	$	2,211,781	$	155,315	$	2,367,096
	Allowance for loan losses
	ASC 310-30 Westernbank loans		(58,703)		(4,264)		(62,967)		(49,750)		(18,636)		(68,386)
Ending balance, net of ALLL		$	1,807,237	$	65,237	$	1,872,474	$	2,162,031	$	136,679	$	2,298,710
[1]	The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss sharing agreement with the FDIC amounted to approximately $ 615 million as of March 31, 2016.

Other loans acquired with deteriorated credit quality

The outstanding principal balance of other acquired loans accounted pursuant to ASC Subtopic 310-30, amounted to $713 million at March 31, 2016 (December 31, 2015 - $710 million). At March 31, 2016, none of the other acquired 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 other acquired loans accounted pursuant to the ASC Subtopic 310-30, for the quarters ended March 31, 2016 and 2015 were as follows:



Activity in the accretable yield - Other acquired loans ASC 310-30
	For the quarters ended
(In thousands)	March 31, 2016			March 31, 2015
Beginning balance	$	221,128	$	116,304
Additions		4,340		50,662
Accretion		(8,555)		(3,223)
Change in expected cash flows		50,855		(5,319)
Ending balance	$	267,768	$	158,424

Carrying amount of other acquired loans accounted for pursuant to ASC 310-30
		For the quarters ended
(In thousands)		March 31, 2016		March 31, 2015
Beginning balance		$	564,050	$	212,763
Purchase accounting adjustments related to the Doral Bank Transaction (Refer to Note 5)			(4,707)		-
Additions			10,051		157,091
Accretion			8,555		3,223
Collections and charge-offs			(15,226)		(9,980)
Ending balance		$	562,723	$	363,097
	Allowance for loan losses ASC 310-30 non-covered loans		(15,258)		(16,092)
Ending balance, net of allowance for loan losses		$	547,465	$	347,005

The following table presents loans acquired as part of the Doral Bank Transaction accounted for pursuant to ASC Subtopic 310-30 at the February 27, 2015 acquisition date.


(In thousands)
Contractually-required principal and interest	$	560,833
Non-accretable difference		112,153
Cash flows expected to be collected		448,680
Accretable yield		113,977
Fair value of loans accounted for under ASC Subtopic 310-30	$	334,703

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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