Other Real Estate Owned

12 Months Ended

Dec. 31, 2018

Note 14 – Other real estate owned

The following tables present the activity related to Other Real Estate Owned (“OREO”), for the years ended December 31, 2018, 2017 and 2016.

		For the year ended December 31, 2018
		Non-covered		Non-covered		Covered
		OREO		OREO		OREO
(In thousands)		Commercial/ Construction		Mortgage		Mortgage		Total
Balance at beginning of period	$	21,411	$	147,849	$	19,595	$	188,855
Write-downs in value		(2,974)		(10,380)		(287)		(13,641)
Additions		10,688		41,167		-		51,855
Sales		(8,108)		(78,330)		(3,282)		(89,720)
Other adjustments		777		(728)		(693)		(644)
Transfer to non-covered status^[1]		-		15,333		(15,333)		-
Ending balance	$	21,794	$	114,911	$	-	$	136,705
[1] Represents the reclassification of OREOs to the non-covered category, pursuant to the Termination Agreement of all shared-loss agreements with the Federal Deposit Insurance Corporation related to loans acquired from Westernbank, that was completed on May 22, 2018.

		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

- Definition

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

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