Other Real Estate Owned

12 Months Ended

Dec. 31, 2017

Other Real Estate

Other Real Estate Owned

Note 15 – Other real estate owned

The following tables present the activity related to Other Real Estate Owned (“OREO”), for the yearsended December 31,2017, 2016 and 2015. During the second quarter of 2015, the Corporation completed a bulk sale of $37 million of covered OREOs.

		For the year ended December 31, 2017
		Non-covered		Non-covered		Covered
		OREO		OREO		OREO
(In thousands)		Commercial/ Construction		Mortgage		Mortgage		Total
Balance at beginning of period	$	20,401	$	160,044	$	32,128	$	212,573
Write-downs in value[1]		(5,011)		(16,876)		(3,311)		(25,198)
Additions		8,918		70,763		9,912		89,593
Sales		(2,765)		(68,145)		(16,273)		(87,183)
Other adjustments		(132)		2,063		(2,861)		(930)
Ending balance	$	21,411	$	147,849	$	19,595	$	188,855
[1] Includes $2.7 million related to the damages from Hurricane Maria, of which $1.3 million were for commercial and $1.4 million for residential.

		For the year ended December 31, 2016
		Non-covered		Non-covered		Covered
		OREO		OREO		OREO
(In thousands)		Commercial/ Construction		Mortgage		Mortgage		Total
Balance at beginning of period	$	32,471	$	122,760	$	36,685	$	191,916
Write-downs in value		(2,909)		(9,889)		(2,273)		(15,071)
Additions		7,372		105,140		17,588		130,100
Sales		(15,894)		(56,826)		(18,206)		(90,926)
Other adjustments		(639)		(1,141)		(1,666)		(3,446)
Ending balance	$	20,401	$	160,044	$	32,128	$	212,573

		For the year ended December 31, 2015
		Non-covered		Non-covered		Covered		Covered
		OREO		OREO		OREO		OREO
(In thousands)		Commercial/ Construction		Mortgage		Commercial/ Construction		Mortgage		Total
Balance at beginning of period	$	38,983	$	96,517	$	85,394	$	44,872	$	265,766
Write-downs in value		(13,356)		(8,567)		(20,350)		(3,891)		(46,164)
Additions		17,671		86,040		9,661		25,019		138,391
Sales		(25,065)		(53,782)		(59,749)		(25,990)		(164,586)
Other adjustments		(266)		(540)		(452)		(233)		(1,491)
Transfer to non-covered status[1]		14,504		3,092		(14,504)		(3,092)		-
Ending balance	$	32,471	$	122,760	$	-	$	36,685	$	191,916
[1] Represents the reclassification of OREOs to the non-covered category, pursuant to the expiration of the commercial and consumer shared-loss arrangement with the FDIC related to loans acquired from Westernbank, on June 30, 2015.