Loans

3 Months Ended

Mar. 31, 2018

Note 7 – 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 9.

During the quarter ended March 31, 2018, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $156 million and consumer loans of $51 million, compared to purchases (including repurchases) of mortgage loans of $136 million, consumer loans of $42 million and leases of $2 million, during the quarter ended March 31, 2017.

The Corporation performed whole-loan sales involving approximately $10 million of residential mortgage loans during the quarter ended March 31, 2018 (March 31, 2017 - $28 million). Also, during the quarter ended March 31, 2018, the Corporation securitized approximately $112 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities and $26 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities, compared to $147 million and $28 million, respectively, during the quarter ended March 31, 2017.

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, 2018 and December 31, 2017, including loans previously covered by the commercial FDIC loss sharing agreements.

March 31, 2018
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		$	5,296	$	211	$	2,876	$	8,383	$	142,706	$	151,089
Commercial real estate non-owner occupied			106,662		3,383		27,890		137,935		2,243,092		2,381,027
Commercial real estate owner occupied			31,295		16,783		121,620		169,698		1,598,786		1,768,484
Commercial and industrial			38,309		4,712		36,832		79,853		2,742,343		2,822,196
Construction			1,369		-		4,463		5,832		88,026		93,858
Mortgage			281,846		185,748		1,558,078		2,025,672		4,330,034		6,355,706
Leasing			8,899		2,962		3,957		15,818		822,565		838,383
Consumer:
	Credit cards		15,418		21,379		11,004		47,801		1,007,076		1,054,877
	Home equity lines of credit		404		176		329		909		4,524		5,433
	Personal		15,259		10,791		21,963		48,013		1,182,928		1,230,941
	Auto		26,996		10,329		13,356		50,681		835,793		886,474
	Other		1,303		510		15,789		17,602		133,610		151,212
Total		$	533,056	$	256,984	$	1,818,157	$	2,608,197	$	15,131,483	$	17,739,680

March 31, 2018
Popular U.S.
			Past due
		30-59		60-89		90 days		Total				Loans HIP
(In thousands)		days		days		or more		past due		Current		Popular U.S.
Commercial multi-family		$	20	$	-	$	-	$	20	$	1,249,577	$	1,249,597
Commercial real estate non-owner occupied			4,965		126		365		5,456		1,786,075		1,791,531
Commercial real estate owner occupied			2,771		-		405		3,176		265,507		268,683
Commercial and industrial			5,616		2,115		94,141		101,872		934,028		1,035,900
Construction			20,021		-		-		20,021		779,512		799,533
Mortgage			15,600		948		11,647		28,195		680,743		708,938
Legacy			1,597		8		3,137		4,742		26,425		31,167
Consumer:
	Credit cards		1		8		7		16		57		73
	Home equity lines of credit		1,402		2,791		14,731		18,924		147,493		166,417
	Personal		2,399		1,575		2,604		6,578		289,628		296,206
	Other		-		-		7		7		205		212
Total		$	54,392	$	7,571	$	127,044	$	189,007	$	6,159,250	$	6,348,257

March 31, 2018
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		$	5,316	$	211	$	2,876	$	8,403	$	1,392,283	$	1,400,686
Commercial real estate non-owner occupied			111,627		3,509		28,255		143,391		4,029,167		4,172,558
Commercial real estate owner occupied			34,066		16,783		122,025		172,874		1,864,293		2,037,167
Commercial and industrial			43,925		6,827		130,973		181,725		3,676,371		3,858,096
Construction			21,390		-		4,463		25,853		867,538		893,391
Mortgage			297,446		186,696		1,569,725		2,053,867		5,010,777		7,064,644
Leasing			8,899		2,962		3,957		15,818		822,565		838,383
Legacy^[3]			1,597		8		3,137		4,742		26,425		31,167
Consumer:
	Credit cards		15,419		21,387		11,011		47,817		1,007,133		1,054,950
	Home equity lines of credit		1,806		2,967		15,060		19,833		152,017		171,850
	Personal		17,658		12,366		24,567		54,591		1,472,556		1,527,147
	Auto		26,996		10,329		13,356		50,681		835,793		886,474
	Other		1,303		510		15,796		17,609		133,815		151,424
Total		$	587,448	$	264,555	$	1,945,201	$	2,797,204	$	21,290,733	$	24,087,937

[1]	Non-covered loans held-in-portfolio are net of $137 million in unearned income and exclude $78 million in loans held-for-sale.
[2]	Includes $7.1 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.6 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings, $2.1 billion at the Federal Reserve Bank ("FRB") for discount window borrowings and $0.4 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 Popular U.S. segment.

December 31, 2017
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		$	-	$	426	$	1,210	$	1,636	$	144,763	$	146,399
Commercial real estate non-owner occupied			39,617		131		28,045		67,793		2,336,766		2,404,559
Commercial real estate owner occupied			7,997		2,291		123,929		134,217		1,689,397		1,823,614
Commercial and industrial			3,556		1,251		40,862		45,669		2,845,658		2,891,327
Construction			-		-		170		170		95,199		95,369
Mortgage			217,890		77,833		1,596,763		1,892,486		4,684,293		6,576,779
Leasing			10,223		1,490		2,974		14,687		795,303		809,990
Consumer:
	Credit cards		7,319		4,464		18,227		30,010		1,063,211		1,093,221
	Home equity lines of credit		438		395		257		1,090		4,997		6,087
	Personal		13,926		6,857		19,981		40,764		1,181,548		1,222,312
	Auto		24,405		5,197		5,466		35,068		815,745		850,813
	Other		537		444		16,765		17,746		139,842		157,588
Total		$	325,908	$	100,779	$	1,854,649	$	2,281,336	$	15,796,722	$	18,078,058

December 31, 2017
Popular U.S.
			Past due
			30-59		60-89		90 days		Total				Loans HIP
(In thousands)			days		days		or more		past due		Current		Popular U.S.
Commercial multi-family		$	395	$	-	$	784	$	1,179	$	1,209,514	$	1,210,693
Commercial real estate non-owner occupied			4,028		1,186		1,599		6,813		1,681,498		1,688,311
Commercial real estate owner occupied			2,684		-		862		3,546		315,429		318,975
Commercial and industrial			1,121		5,278		97,427		103,826		901,157		1,004,983
Construction			-		-		-		-		784,660		784,660
Mortgage			13,453		6,148		14,852		34,453		659,175		693,628
Legacy			291		417		3,039		3,747		29,233		32,980
Consumer:
	Credit cards		3		2		11		16		84		100
	Home equity lines of credit		4,653		3,675		14,997		23,325		158,760		182,085
	Personal		3,342		2,149		2,779		8,270		289,732		298,002
	Other		-		-		-		-		319		319
Total		$	29,970	$	18,855	$	136,350	$	185,175	$	6,029,561	$	6,214,736

December 31, 2017
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		$	395	$	426	$	1,994	$	2,815	$	1,354,277	$	1,357,092
Commercial real estate non-owner occupied			43,645		1,317		29,644		74,606		4,018,264		4,092,870
Commercial real estate owner occupied			10,681		2,291		124,791		137,763		2,004,826		2,142,589
Commercial and industrial			4,677		6,529		138,289		149,495		3,746,815		3,896,310
Construction			-		-		170		170		879,859		880,029
Mortgage			231,343		83,981		1,611,615		1,926,939		5,343,468		7,270,407
Leasing			10,223		1,490		2,974		14,687		795,303		809,990
Legacy^[3]			291		417		3,039		3,747		29,233		32,980
Consumer:
	Credit cards		7,322		4,466		18,238		30,026		1,063,295		1,093,321
	Home equity lines of credit		5,091		4,070		15,254		24,415		163,757		188,172
	Personal		17,268		9,006		22,760		49,034		1,471,280		1,520,314
	Auto		24,405		5,197		5,466		35,068		815,745		850,813
	Other		537		444		16,765		17,746		140,161		157,907
Total		$	355,878	$	119,634	$	1,990,999	$	2,466,511	$	21,826,283	$	24,292,794

[1]	Non-covered loans held-in-portfolio are net of $131 million in unearned income and exclude $132 million in loans held-for-sale.
[2]	Includes $7.1 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.6 billion were pledged at the FHLB as collateral for borrowings, $2.0 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 Popular U.S. segment.

The level of delinquencies for mortgage loans was impacted by the loan moratorium implemented by the Corporation as part of its hurricane relief measures. Also, loans with a delinquency status of 90 days past due as of March 31, 2018 include approximately $535 million in loans previously pooled into GNMA securities (December 31, 2017 - $840 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of the Bank with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the loan payment moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. Management will continue to monitor the effect of the moratorium as the period comes to an end and the loan repayment schedule is resumed.

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, 2018 and December 31, 2017. Accruing loans past due 90 days or more consist primarily of credit cards, Federal Housing Administration (“FHA”) / U.S. Department of Veterans Affairs (“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, 2018
			Puerto Rico				Popular U.S.				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		$	1,396	$	-	$	-	$	-	$	1,396	$	-
Commercial real estate non-owner occupied			18,205		-		365		-		18,570		-
Commercial real estate owner occupied			100,777		-		405		-		101,182		-
Commercial and industrial			36,754		78		377		-		37,131		78
Construction			4,293		-		-		-		4,293		-
Mortgage^[3]			357,967		1,117,460		11,647		-		369,614		1,117,460
Leasing			3,957		-		-		-		3,957		-
Legacy			-		-		3,137		-		3,137		-
Consumer:
	Credit cards		-		11,004		7		-		7		11,004
	Home equity lines of credit		-		329		14,731		-		14,731		329
	Personal		21,852		91		2,604		-		24,456		91
	Auto		13,356		-		-		-		13,356		-
	Other		14,959		830		7		-		14,966		830
Total^[2]		$	573,516	$	1,129,792	$	33,280	$	-	$	606,796	$	1,129,792

[1] Non-covered loans of $209 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 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 $194 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, 2018. These balances also include approximately $535 million of loans rebooked due to a repurchase option with GNMA. Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. The Corporation has approximately $57 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, 2017
			Puerto Rico				Popular U.S.				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		$	1,115	$	-	$	784	$	-	$	1,899	$	-
Commercial real estate non-owner occupied			18,866		-		1,599		-		20,465		-
Commercial real estate owner occupied			101,068		-		862		-		101,930		-
Commercial and industrial			40,177		685		594		-		40,771		685
Mortgage^[3]			306,697		1,204,691		14,852		-		321,549		1,204,691
Leasing			2,974		-		-		-		2,974		-
Legacy			-		-		3,039		-		3,039		-
Consumer:
	Credit cards		-		18,227		11		-		11		18,227
	Home equity lines of credit		-		257		14,997		-		14,997		257
	Personal		19,460		141		2,779		-		22,239		141
	Auto		5,466		-		-		-		5,466		-
	Other		15,617		1,148		-		-		15,617		1,148
Total^[2]		$	511,440	$	1,225,149	$	39,517	$	-	$	550,957	$	1,225,149

[1] Non-covered loans of $215 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 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 $178 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, 2017. These balances also include approximately $840 million of loans rebooked due to a repurchase option with GNMA. Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. The Corporation has approximately $58 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.

Covered loans

The following tables present the composition of loans by past due status at March 31, 2018 and December 31, 2017 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, 2018

			Past due
		30-59		60-89		90 days		Total				Covered
(In thousands)		days		days		or more		past due		Current		loans HIP [1]
Mortgage		$	44,199	$	2,753	$	67,652	$	114,604	$	386,079	$	500,683
Consumer			1,231		-		1,026		2,257		11,671		13,928
Total covered loans		$	45,430	$	2,753	$	68,678	$	116,861	$	397,750	$	514,611
[1]	Includes $268 million pledged to secure credit facilities at the FHLB which are not permitted to sell or repledge the collateral.

December 31, 2017

			Past due
			30-59	60-89		90 days		Total				Covered
(In thousands)			days	days		or more		past due			Current	loans HIP [1]
Mortgage		$	16,640	$	5,453	$	59,018	$	81,111	$	421,818	$	502,929
Consumer			518		147		988		1,653		12,692		14,345
Total covered loans		$	17,158	$	5,600	$	60,006	$	82,764	$	434,510	$	517,274
[1]	Includes $279 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, 2018 and December 31, 2017.

	March 31, 2018				December 31, 2017

	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	$	3,413	$	-	$	3,165	$	-
Consumer		182		-		188		-
Total^[1]	$	3,595	$	-	$	3,353	$	-

[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, 2018 (December 31, 2017 - $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, 2018						December 31, 2017

	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	$	898,172	$	13,543	$	911,715	$	909,389	$	14,035	$	923,424
Commercial and industrial		86,447		-		86,447		88,130		-		88,130
Construction		-		170		170		-		170		170
Mortgage		538,352		21,605		559,957		542,182		21,357		563,539
Consumer		16,096		758		16,854		16,900		758		17,658
Carrying amount [1]		1,539,067		36,076		1,575,143		1,556,601		36,320		1,592,921
Allowance for loan losses		(84,801)		(4,962)		(89,763)		(64,520)		(5,609)		(70,129)
Carrying amount, net of allowance	$	1,454,266	$	31,114	$	1,485,380	$	1,492,081	$	30,711	$	1,522,792
[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 $505 million as of March 31, 2018 and $507 million as of December 31, 2017.

The outstanding principal balance of Westernbank loans accounted pursuant to ASC Subtopic 310-30, amounted to $1.9 billion at March 31, 2018 (December 31, 2017 - $1.9 billion). At March 31, 2018, 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, 2018 and 2017, were as follows:

	Activity in the accretable yield
	Westernbank loans ASC 310-30
	For the quarters ended
	March 31, 2018						March 31, 2017
		Non-credit		Credit				Non-credit		Credit
(In thousands)		impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance	$	875,837	$	4,878	$	880,715	$	1,001,908	$	8,179	$	1,010,087
Accretion		(34,349)		(659)		(35,008)		(36,016)		(876)		(36,892)
Change in expected cash flows		28,798		(130)		28,668		7,789		222		8,011
Ending balance	$	870,286	$	4,089	$	874,375	$	973,681	$	7,525	$	981,206

		Carrying amount of Westernbank loans accounted for pursuant to ASC 310-30
		For the quarters ended
		March 31, 2018						March 31, 2017
			Non-credit		Credit				Non-credit		Credit
(In thousands)			impaired loans		impaired loans		Total		impaired loans		impaired loans		Total
Beginning balance		$	1,556,601	$	36,320	$	1,592,921	$	1,695,381	$	42,948	$	1,738,329
Accretion			34,349		659		35,008		36,016		876		36,892
Collections / loan sales / charge-offs			(51,883)		(903)		(52,786)		(83,069)		(3,252)		(86,321)
Ending balance^[1]		$	1,539,067	$	36,076	$	1,575,143	$	1,648,328	$	40,572	$	1,688,900
	Allowance for loan losses
	ASC 310-30 Westernbank loans		(84,801)		(4,962)		(89,763)		(59,283)		(7,261)		(66,544)
Ending balance, net of ALLL		$	1,454,266	$	31,114	$	1,485,380	$	1,589,045	$	33,311	$	1,622,356
[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 $ 505 million as of March 31, 2018 (March 31, 2017- $542 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 $552 million at March 31, 2018 (December 31, 2017 - $556 million). At March 31, 2018, 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, 2018 and 2017 were as follows:



Activity in the accretable yield - Other acquired loans ASC 310-30
	For the quarters ended
(In thousands)	March 31, 2018			March 31, 2017
Beginning balance	$	333,773	$	278,896
Additions		3,437		3,254
Accretion		(7,052)		(8,836)
Change in expected cash flows		193		36,464
Ending balance	$	330,351	$	309,778

Carrying amount of other acquired loans accounted for pursuant to ASC 310-30
		For the quarters ended
(In thousands)		March 31, 2018		March 31, 2017
Beginning balance		$	516,072	$	562,695
Additions			5,272		5,581
Accretion			7,052		8,836
Collections and charge-offs			(18,348)		(20,388)
Ending balance		$	510,048	$	556,724
	Allowance for loan losses ASC 310-30 non-covered loans		(56,357)		(28,909)
Ending balance, net of allowance for loan losses		$	453,691	$	527,815

- 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