Loans

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2016, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $118 million and $240 million, respectively; consumer loans of $58 million and $164 million, respectively; and commercial loans amounting to $51 million during the six months ended June 30, 2016. Excluding the impact of the Doral Bank Transaction, during the quarter and six months ended June 30, 2015, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $213 million and $382 million, respectively.

Excluding the bulk sale of Westernbank loans with a carrying value of approximately $100 million, the Corporation sold commercial and construction loans with a carrying value of approximately $1 million during the six months ended June 30, 2016 (during the quarter and six months ended June 30, 2015 - $8 million and $9 million). The Corporation sold approximately $19 million and $40 million of residential mortgage loans (on a whole loan basis) during the quarter and six months ended June 30, 2016, respectively (June 30, 2015 - $25 million and $65 million, respectively). Also, the Corporation securitized approximately $ 170 million and $ 304 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the quarter and six months ended June 30, 2016, respectively (June 30, 2015 - $ 243 million and $ 400 million, respectively). Furthermore, the Corporation securitized approximately $ 43 million and $ 79 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the quarter and six months ended June 30, 2016, respectively (June 30, 2015 - $ 70 million and $ 117 million, respectively).

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 June 30, 2016 and December 31, 2015, including loans previously covered by the commercial FDIC loss sharing agreements.

June 30, 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		$	359	$	63	$	1,004	$	1,426	$	174,085	$	175,511
Commercial real estate non-owner occupied			98,373		6,624		57,017		162,014		2,436,617		2,598,631
Commercial real estate owner occupied			9,570		4,969		122,337		136,876		1,679,956		1,816,832
Commercial and industrial			8,286		2,348		34,944		45,578		2,580,500		2,626,078
Construction			-		-		4,848		4,848		98,794		103,642
Mortgage			292,558		159,972		802,407		1,254,937		4,765,625		6,020,562
Leasing			6,611		1,034		3,019		10,664		653,430		664,094
Consumer:
	Credit cards		11,024		8,109		17,225		36,358		1,078,082		1,114,440
	Home equity lines of credit		49		206		293		548		8,945		9,493
	Personal		13,660		7,510		20,349		41,519		1,146,847		1,188,366
	Auto		32,909		6,925		11,117		50,951		778,906		829,857
	Other		512		255		18,158		18,925		160,601		179,526
Total		$	473,911	$	198,015	$	1,092,718	$	1,764,644	$	15,562,388	$	17,327,032

June 30, 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		$	-	$	-	$	375	$	375	$	888,457	$	888,832
Commercial real estate non-owner occupied			251		375		317		943		1,092,910		1,093,853
Commercial real estate owner occupied			2,072		97		746		2,915		279,637		282,552
Commercial and industrial			1,800		7,786		80,312		89,898		787,628		877,526
Construction			-		-		100		100		613,590		613,690
Mortgage			1,381		5,009		14,390		20,780		822,776		843,556
Legacy			623		176		3,839		4,638		45,071		49,709
Consumer:
	Credit cards		19		83		535		637		-		637
	Home equity lines of credit		2,684		674		3,861		7,219		272,232		279,451
	Personal		1,299		1,098		1,351		3,748		279,788		283,536
	Auto		-		-		-		-		15		15
	Other		4		-		-		4		268		272
Total		$	10,133	$	15,298	$	105,826	$	131,257	$	5,082,372	$	5,213,629

June 30, 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		$	359	$	63	$	1,379	$	1,801	$	1,062,542	$	1,064,343
Commercial real estate non-owner occupied			98,624		6,999		57,334		162,957		3,529,527		3,692,484
Commercial real estate owner occupied			11,642		5,066		123,083		139,791		1,959,593		2,099,384
Commercial and industrial			10,086		10,134		115,256		135,476		3,368,128		3,503,604
Construction			-		-		4,948		4,948		712,384		717,332
Mortgage			293,939		164,981		816,797		1,275,717		5,588,401		6,864,118
Leasing			6,611		1,034		3,019		10,664		653,430		664,094
Legacy^[3]			623		176		3,839		4,638		45,071		49,709
Consumer:
	Credit cards		11,043		8,192		17,760		36,995		1,078,082		1,115,077
	Home equity lines of credit		2,733		880		4,154		7,767		281,177		288,944
	Personal		14,959		8,608		21,700		45,267		1,426,635		1,471,902
	Auto		32,909		6,925		11,117		50,951		778,921		829,872
	Other		516		255		18,158		18,929		160,869		179,798
Total		$	484,044	$	213,313	$	1,198,544	$	1,895,901	$	20,644,760	$	22,540,661

[1]	Non-covered loans held-in-portfolio are net of $115 million in unearned income and exclude $122 million in loans held-for-sale.
[2]	Includes $7.6 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, $2.4 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 June 30, 2016 and December 31, 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 June 30, 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		$	1,004	$	-	$	375	$	-	$	1,379	$	-
Commercial real estate non-owner occupied			25,348		-		317		-		25,665		-
Commercial real estate owner occupied			111,713		-		746		-		112,459		-
Commercial and industrial			34,519		270		1,593		-		36,112		270
Construction			2,423		-		100		-		2,523		-
Mortgage^[3]			323,658		394,936		14,390		-		338,048		394,936
Leasing			3,019		-		-		-		3,019		-
Legacy			-		-		3,839		-		3,839		-
Consumer:
	Credit cards		-		17,225		535		-		535		17,225
	Home equity lines of credit		-		293		3,861		-		3,861		293
	Personal		20,271		13		1,351		-		21,622		13
	Auto		11,117		-		-		-		11,117		-
	Other		17,560		582		-		-		17,560		582
Total^[2]		$	550,632	$	413,319	$	27,107	$	-	$	577,739	$	413,319

[1] Non-covered loans of $207 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 $ 40 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 $149 million of residential mortgage loans in Puerto Rico insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2016. Furthermore, the Corporation has approximately $63 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 June 30, 2016 and December 31, 2015 by main categories.

(In thousands)	June 30, 2016		December 31, 2015
Commercial	$	39,544	$	45,074
Construction		-		95
Mortgage		82,794		91,831
Total loans held-for-sale	$	122,338	$	137,000

The following table provides a breakdown of loans held-for-sale (“LHFS”) in non-performing status at June 30, 2016 and December 31, 2015 by main categories.

(In thousands)	June 30, 2016		December 31, 2015
Commercial	$	39,544	$	45,074
Construction		-		95
Total	$	39,544	$	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 June 30, 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.

June 30, 2016

		Past due
	30-59		60-89		90 days		Total				Covered
(In thousands)	days		days		or more		past due		Current		loans HIP [1]
Mortgage	$	30,197	$	15,806	$	74,541	$	120,544	$	468,712	$	589,256
Consumer		905		396		1,680		2,981		14,933		17,914
Total covered loans	$	31,102	$	16,202	$	76,221	$	123,525	$	483,645	$	607,170
[1] Includes $361 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 June 30, 2016 and December 31, 2015.

	June 30, 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	$	3,335	$	-	$	3,790	$	-
Consumer		147		-		97		-
Total^[1]	$	3,482	$	-	$	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 June 30, 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.

	June 30, 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	$	1,028,516	$	14,844	$	1,043,360	$	1,114,368	$	35,393	$	1,149,761
Commercial and industrial		80,040		-		80,040		84,765		519		85,284
Construction		4,723		1,723		6,446		8,943		6,027		14,970
Mortgage		621,229		27,181		648,410		667,023		33,090		700,113
Consumer		20,105		1,582		21,687		23,047		1,326		24,373
Carrying amount		1,754,613		45,330		1,799,943		1,898,146		76,355		1,974,501
Allowance for loan losses		(57,895)		(9,100)		(66,995)		(59,753)		(3,810)		(63,563)
Carrying amount, net of allowance	$	1,696,718	$	36,230	$	1,732,948	$	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 $597 million as of June 30, 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 $2.2 billion at June 30, 2016 (December 31, 2015 - $2.4 billion). At June 30, 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 and six months ended June 30, 2016 and 2015, were as follows:

	Activity in the accretable yield
	Westernbank loans ASC 310-30
	For the quarters ended
	June 30, 2016						June 30, 2015
		Non-credit		Credit				Non-credit		Credit
(In thousands)		impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance	$	1,118,276	$	10,532	$	1,128,808	$	1,254,249	$	4,699	$	1,258,948
Accretion		(45,137)		(3,339)		(48,476)		(50,228)		(3,766)		(53,994)
Change in expected cash flows		(11,168)		2,516		(8,652)		35,755		5,215		40,970
Ending balance	$	1,061,971	$	9,709	$	1,071,680	$	1,239,776	$	6,148	$	1,245,924

	Activity in the accretable yield
	Westernbank loans ASC 310-30
	For the six months ended
	June 30, 2016						June 30, 2015
		Non-credit		Credit				Non-credit		Credit
		impaired		impaired				impaired		impaired
(In thousands)		loans		loans		Total		loans		loans		Total
Beginning balance	$	1,105,732	$	6,726	$	1,112,458	$	1,265,752	$	5,585	$	1,271,337
Accretion		(87,137)		(4,872)		(92,009)		(104,004)		(5,687)		(109,691)
Change in expected cash flows		43,376		7,855		51,231		78,028		6,250		84,278
Ending balance	$	1,061,971	$	9,709	$	1,071,680	$	1,239,776	$	6,148	$	1,245,924

		Carrying amount of Westernbank loans accounted for pursuant to ASC 310-30
		For the quarters ended
		June 30, 2016 [1]						June 30, 2015
			Non-credit		Credit				Non-credit		Credit
(In thousands)			impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance		$	1,865,940	$	69,501	$	1,935,441	$	2,211,781	$	155,315	$	2,367,096
Accretion			45,137		3,339		48,476		50,228		3,766		53,994
Collections / loan sales / charge-offs [2]			(156,464)		(27,510)		(183,974)		(239,516)		(44,496)		(284,012)
Ending balance		$	1,754,613	$	45,330	$	1,799,943	$	2,022,493	$	114,585	$	2,137,078
	Allowance for loan losses
	ASC 310-30 Westernbank loans		(57,895)		(9,100)		(66,995)		(42,503)		(4,546)		(47,049)
Ending balance, net of ALLL		$	1,696,718	$	36,230	$	1,732,948	$	1,979,990	$	110,039	$	2,090,029
[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 $ 597 million as of June 30, 2016.
[2]	For the quarter ended June 30, 2016, includes the impact of the bulk sale of loans with a carrying value of approximately $99 million.

		Carrying amount of Westernbank loans accounted for pursuant to ASC 310-30
		For the six months ended
		June 30, 2016 [1]						June 30, 2015
			Non-credit		Credit				Non-credit		Credit
			impaired		impaired				impaired		impaired
(In thousands)			loans		loans		Total		loans		loans		Total
Beginning balance		$	1,898,146	$	76,355	$	1,974,501	$	2,272,142	$	172,030	$	2,444,172
Accretion			87,137		4,872		92,009		104,004		5,687		109,691
Collections / loan sales / charge-offs [2]			(230,670)		(35,897)		(266,567)		(353,653)		(63,132)		(416,785)
Ending balance		$	1,754,613	$	45,330	$	1,799,943	$	2,022,493	$	114,585	$	2,137,078
Allowance for loan losses
	ASC 310-30 Westernbank loans		(57,895)		(9,100)		(66,995)		(42,503)		(4,546)		(47,049)
Ending balance, net of ALLL		$	1,696,718	$	36,230	$	1,732,948	$	1,979,990	$	110,039	$	2,090,029
[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 $597 million as of June 30, 2016.
[2]	For the quarter ended June 30, 2016, includes the impact of the bulk sale of loans with a carrying value of approximately $99 million.

Other loans acquired with deteriorated credit quality

The outstanding principal balance of other acquired loans accounted pursuant to ASC Subtopic 310-30, amounted to $710 million at June 30, 2016 (December 31, 2015 - $710 million). At June 30, 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 and six months ended June 30, 2016 and 2015 were as follows:



Activity in the accretable yield - other acquired loans ASC 310-30
	For the quarter ended			For the quarter ended
(In thousands)		June 30, 2016		June 30, 2015
Beginning balance		$	267,768	$	158,424
Additions			4,171		5,406
Accretion			(8,730)		(4,633)
Change in expected cash flows			9,400		2,962
Ending balance		$	272,609	$	162,159


Activity in the accretable yield - other acquired loans ASC 310-30
	For the six months ended			For the six months ended
(In thousands)		June 30, 2016		June 30, 2015
Beginning balance		$	221,128	$	116,304
Additions			8,511		56,068
Accretion			(17,285)		(7,856)
Change in expected cash flows			60,255		(2,357)
Ending balance		$	272,609	$	162,159

Carrying amount of other acquired loans accounted for pursuant to ASC 310-30
		For the quarter ended		For the quarter ended
(In thousands)		June 30, 2016		June 30, 2015
Beginning balance		$	562,723		363,097
Additions			8,354		17,089
Accretion			8,730		4,633
Collections and charge-offs			(17,062)		(16,532)
Ending balance		$	562,745	$	368,287
	Allowance for loan losses ASC 310-30 other acquired loans		(16,059)		(16,842)
Ending balance, net of ALLL		$	546,686	$	351,445


Carrying amount of other acquired loans accounted for pursuant to ASC 310-30
	For the six months ended			For the six months ended
(In thousands)		June 30, 2016		June 30, 2015
Beginning balance		$	564,050	$	212,763
Purchase accounting adjustments related to the Doral Bank Transaction (Refer to Note 5)			(4,707)		-
Additions			18,405		174,180
Accretion			17,285		7,856
Collections and charge-offs			(32,288)		(26,512)
Ending balance		$	562,745	$	368,287
	Allowance for loan losses ASC 310-30 other acquired loans		(16,059)		(16,842)
Ending balance, net of ALLL		$	546,686	$	351,445

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.

+ References + Details