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Allowance for Loan and Lease Losses | 3 Months Ended
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Mar. 31, 2014
Loans Receivable [Abstract] |
Allowance For Credit Losses Text Block | NOTE 5 – ALLOWANCE FOR LOAN AND LEASE LOSSES The composition of the Company's allowance for loan and lease losses at March 31, 2014 and December 31, 2013 was as follows:
| March 31, |  | December 31,
| 2014 |  | 2013
| (In thousands)
Allowance for loans and lease losses on non-covered loans: |  |  |  |  |
Originated and other loans and leases held for investment: |  |  |  |  |
Mortgage | $ | 19,511 |  | $ | 19,937
Commercial |  | 13,994 |  |  | 14,897
Consumer |  | 7,135 |  |  | 6,006
Auto and leasing |  | 8,731 |  |  | 7,866
Unallocated |  | 136 |  |  | 375
|  | 49,507 |  |  | 49,081
Acquired loans: |  |  |  |  |
Accounted for under ASC 310-20 (Loans with revolving feature and/or |  |  |  |  |
acquired at a premium) |  |  |  |  |
Commercial |  | 867 |  |  | 926
Consumer |  | 504 |  |  | -
Auto |  | 2,247 |  |  | 1,428
|  | 3,618 |  |  | 2,354
Accounted for under ASC 310-30 (Loans acquired with deteriorated |  |  |  |  |
credit quality, including those by analogy) |  |  |  |  |
Commercial |  | 2,653 |  |  | 1,713
Consumer |  | 405 |  |  | 418
Auto |  | - |  |  | 732
|  | 3,058 |  |  | 2,863
|  | 56,183 |  |  | 54,298
Allowance for loans and lease losses on covered loans: |  |  |  |  |
Loans secured by 1-4 family residential properties |  | 14,221 |  |  | 12,495
Commercial and other construction |  | 39,562 |  |  | 39,619
Consumer |  | 615 |  |  | 615
|  | 54,398 |  |  | 52,729
Total allowance for loan and lease losses | $ | 110,581 |  | $ | 107,027
Non-Covered Loan s The Company maintains an allowance for loan and lease losses at a level that management considers adequate to provide for probable losses based upon an evaluation of known and inherent risks. The Company's allowance for loan and lease losses policy provides for a detailed quarterly analysis of probable losses. The analysis includes a review of historical loan loss experience, value of underlying collateral, current economic conditions, financial condition of borrowers and other pertinent factors. While management uses available information in estimating probable loan losses, future additions to the allowance may be required based on factors beyond the Company's control. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition, and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition. As part of the Company's continuous enhancement to t he allowance for loan and lease losses methodology, during the quarter ended March 31, 2014, an assessment of the look-back period and historical loss factor was performed for a uto and l easing and c onsumer loan portfolios based on the trends observed and their relation with the economic cycle as of the period ended March 31, 2014. As a result, the period was change d to 24 months from the previously determined 12 months. This change in the allowance for loan and lease losse s' look back period for the c onsumer and a uto and l easing portfolios is considered a change in accounting estimate as per ASC 250-10 provisions, where adjustments should be made prospectively. Originated and Other Loans and Leases Held for Investment The following table s present the activity in our allowance for loan and lease losses and the related recorded investment of the associated loans for our originated and other loan s held for investment portfolio by segment for the period s indicated:
| Quarter Ended March 31, 2014
|  |  |  |  |  |  |  |  |  | Auto and |  |  |  |  |  |
| Mortgage |  | Commercial |  | Consumer |  | Leasing |  | Unallocated |  | Total
| (In thousands)
Allowance for loan and lease losses for non-covered originated and other loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 19,937 |  | $ | 14,897 |  | $ | 6,006 |  | $ | 7,866 |  | $ | 375 |  | $ | 49,081
Charge-offs |  | (1,214) |  |  | (419) |  |  | (838) |  |  | (4,645) |  |  | - |  |  | (7,116)
Recoveries |  | 148 |  |  | 98 |  |  | 147 |  |  | 1,524 |  |  | - |  |  | 1,917
Provision for non-covered originated and other loan and lease losses |  | 640 |  |  | (582) |  |  | 1,820 |  |  | 3,986 |  |  | (239) |  |  | 5,625
Balance at end of period | $ | 19,511 |  | $ | 13,994 |  | $ | 7,135 |  | $ | 8,731 |  | $ | 136 |  | $ | 49,507
| March 31, 2014
| Mortgage |  | Commercial |  | Consumer |  | Auto and Leasing |  | Unallocated |  | Total
| (In thousands)
Allowance for loan and lease losses on non-covered originated and other loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 8,001 |  | $ | 1,704 |  | $ | - |  | $ | - |  | $ | - |  | $ | 9,705
Collectively evaluated for impairment |  | 11,510 |  |  | 12,290 |  |  | 7,135 |  |  | 8,731 |  |  | 136 |  |  | 39,802
Total ending allowance balance | $ | 19,511 |  | $ | 13,994 |  | $ | 7,135 |  | $ | 8,731 |  | $ | 136 |  | $ | 49,507
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 87,744 |  | $ | 27,767 |  | $ | - |  | $ | - |  | $ | - |  | $ | 115,511
Collectively evaluated for impairment |  | 694,406 |  |  | 1,142,378 |  |  | 142,492 |  |  | 447,940 |  |  | - |  |  | 2,427,216
Total ending loan balance | $ | 782,150 |  | $ | 1,170,145 |  | $ | 142,492 |  | $ | 447,940 |  | $ | - |  | $ | 2,542,727
| Quarter Ended March 31, 2013
| Mortgage |  | Commercial |  | Consumer |  | Auto and Leasing |  | Unallocated |  | Total
| (In thousands)
Allowance for loan and lease losses for non-covered originated and other loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 21,092 |  | $ | 17,072 |  | $ | 856 |  | $ | 533 |  | $ | 368 |  | $ | 39,921
Charge-offs |  | (2,588) |  |  | (557) |  |  | (246) |  |  | (91) |  |  | - |  |  | (3,482)
Recoveries |  | - |  |  | 28 |  |  | 65 |  |  | 7 |  |  | - |  |  | 100
Provision for (recapture of) non-covered originated and other loan and lease losses |  | 4,385 |  |  | (229) |  |  | 638 |  |  | 1,292 |  |  | (291) |  |  | 5,795
Balance at end of period | $ | 22,889 |  | $ | 16,314 |  | $ | 1,313 |  | $ | 1,741 |  | $ | 77 |  | $ | 42,334
| December 31, 2013
| Mortgage |  | Commercial |  | Consumer |  | Auto and Leasing |  | Unallocated |  | Total
| (In thousands)
Allowance for loan and lease losses for non-covered originated and other loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 8,708 |  | $ | 1,431 |  | $ | - |  | $ | - |  | $ | - |  | $ | 10,139
Collectively evaluated for impairment |  | 11,229 |  |  | 13,466 |  |  | 6,006 |  |  | 7,866 |  |  | 375 |  |  | 38,942
Total ending allowance balance | $ | 19,937 |  | $ | 14,897 |  | $ | 6,006 |  | $ | 7,866 |  | $ | 375 |  | $ | 49,081
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 84,494 |  | $ | 28,145 |  | $ | - |  | $ | - |  | $ | - |  | $ | 112,639
Collectively evaluated for impairment |  | 681,771 |  |  | 1,099,512 |  |  | 127,744 |  |  | 379,874 |  |  | - |  |  | 2,288,901
Total ending loans balance | $ | 766,265 |  | $ | 1,127,657 |  | $ | 127,744 |  | $ | 379,874 |  | $ | - |  | $ | 2,401,540
Acquired Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium) The following table s present the activity in our allowance for loan losses and related recorded investment of the associated loans in our non-covered acquired loan portfolio, excluding loans accounted for under ASC 310-30, for the quarter ended March 3 1, 201 4:
| Quarter Ended March 31, 2014
| Commercial |  | Consumer |  | Auto |  | Unallocated |  | Total
Allowance for loan and lease losses for non-covered acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 926 | $ 1 | $ | - |  | $ | 1,428 |  | $ | - |  | $ | 2,354
Charge-offs |  | (174) |  |  | (2,058) |  |  | (1,296) |  |  | - |  |  | (3,528)
Recoveries |  | - |  |  | 100 |  |  | 450 |  |  | - |  |  | 550
Provision for non-covered acquired loan and lease losses accounted for under ASC 310-20 |  | 115 |  |  | 2,462 |  |  | 1,665 |  |  | - |  |  | 4,242
Balance at end of period | $ | 867 |  | $ | 504 |  | $ | 2,247 |  | $ | - |  | $ | 3,618
| March 31, 2014
| Commercial |  | Consumer |  | Auto |  | Unallocated |  | Total
Allowance for loan and lease losses on non-covered acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | 867 |  |  | 504 |  |  | 2,247 |  |  | - |  |  | 3,618
Total ending allowance balance | $ | 867 |  | $ | 504 |  | $ | 2,247 |  | $ | - |  | $ | 3,618
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | 71,577 |  |  | 52,049 |  |  | 268,865 |  |  | - |  |  | 392,491
Total ending loan balance | $ | 71,577 |  | $ | 52,049 |  | $ | 268,865 |  | $ | - |  | $ | 392,491
| Quarter Ended March 31, 2013
| Commercial |  | Consumer |  | Auto |  | Unallocated |  | Total
Allowance for loan and lease losses for non-covered acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | - | $ 1 | $ | - |  | $ | - |  | $ | - |  | $ | -
Charge-offs |  | - |  |  | (1,456) |  |  | (1,715) |  |  | - |  |  | (3,171)
Recoveries |  | - |  |  | 207 |  |  | 1,230 |  |  | - |  |  | 1,437
Provision for non-covered acquired loan and lease losses accounted for under ASC 310-20 |  | 386 |  |  | 1,249 |  |  | 485 |  |  | - |  |  | 2,120
Balance at end of period | $ | 386 |  | $ | - |  | $ | - |  | $ | - |  | $ | 386
| December 31, 2013
| Commercial |  | Consumer |  | Auto |  | Unallocated |  | Total
Allowance for loan and lease losses on non-covered acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | 926 |  |  | - |  |  | 1,428 |  |  | - |  |  | 2,354
Total ending allowance balance | $ | 926 |  | $ | - |  | $ | 1,428 |  | $ | - |  | $ | 2,354
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | 77,681 |  |  | 56,174 |  |  | 301,584 |  |  | - |  |  | 435,439
Total ending loan balance | $ | 77,681 |  | $ | 56,174 |  | $ | 301,584 |  | $ | - |  | $ | 435,439
Acquired Loans Accounted for under ASC 310-3 0 (including those accounted for under ASC 310-30 by analogy) The following table s present the activity in our allowance for loan losses and related recorded investment of the associated loans in our non-covered acquired loan portfolio accounted for under ASC 310-30, for the quarter ended March 31, 2014:
| Quarter Ended March 31, 2014
| Mortgage |  | Commercial |  | Construction |  | Consumer |  | Auto |  | Total
Allowance for loan and lease losses for non-covered loans accounted for under ASC 310-30: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | - | $ 1 | $ | 1,713 | $ 1 | $ | - | $ 1 | $ | 418 |  | $ | 732 |  | $ | 2,863
Provision for non-covered acquired loan and lease losses accounted for under ASC 310-30 |  | - |  |  | 940 |  |  | - |  |  | (13) |  |  | (732) |  |  | 195
Balance at end of period | $ | - |  | $ | 2,653 |  | $ | - |  | $ | 405 |  | $ | - |  | $ | 3,058
Non-covered l oans acquired accounted for under ASC 310-30 were recognized at fair value as of December 18, 2012, which included the i mpact of expected credit losses and, therefore, no allowance for credit losses was recorded during the quarter ended March 31, 2013. Impaired Loans The Company evaluates all loans, some individually and others as homogeneous groups, for purposes of determining impairment. The total investment in impaired commercial loans was $27.8 million and $28.1 million at Ma rch 31, 2014 and December 31, 2013, respectively. The impaired commercial loans were measured based on the fair value of collateral or the pr esent value of cash flows, including those identified a s troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to approximately $1.4 million at March 31, 201 4 and December 31, 2013. T he total investment in impaired mortgage loans was $87.7 million and $84.5 million at March 31, 2014 and December 31, 201 3, respectively. Impairment on mortgage loans ass essed as troubled-debt restructurings was measured using t he present value of cash flows. The valuation allowance for impaired mortgage loans amounted to approximately $8.0 million and $8.7 million at March 31, 2014 and December 31, 2013, respectively. The Company's recorded investment in commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30, and the related allowance for loan and lease losses at March 31, 2014 and December 31, 2013 are as follows: Originated and Other Loans and Leases Held for Investment
| March 31, 2014
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with specific allowance: |  |  |  |  |  |  |  |  |  |
Commercial | $ | 7,856 |  | $ | 6,686 |  | $ | 1,704 |  | 25%
Residential troubled-debt restructuring |  | 92,870 |  |  | 87,744 |  |  | 8,002 |  | 9%
Impaired loans with no specific allowance: |  |  |  |  |  |  |  |  |  |
Commercial |  | 26,744 |  |  | 21,081 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 127,470 |  | $ | 115,511 |  | $ | 9,706 |  | 8%
| December 31, 2013
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 6,600 |  | $ | 5,553 |  | $ | 1,431 |  | 26%
Residential troubled-debt restructuring |  | 89,539 |  |  | 84,494 |  |  | 8,708 |  | 10%
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial |  | 27,914 |  |  | 22,592 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 124,053 |  | $ | 112,639 |  | $ | 10,139 |  | 9%
Acquired Loans Accounted for under ASC-310-20 (Loans with revolving feature and/or acquired at a premium)
| March 31, 2014
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial |  | 208 |  |  | 208 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 208 |  | $ | 208 |  | $ | - |  | 0%
| December 31, 2013
| Unpaid |  | Recorded |  | Specific |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial |  | 208 |  |  | 208 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 208 |  | $ | 208 |  | $ | - |  | 0%
Acquired Loans Accounted for under ASC 310-3 0 (including those accounted for under ASC 310-30 by analogy) The Company's recorded investment in non-covered acquired loan pools accounted for under ASC 310-30 and their related allowance for non-covered loan and lease losses at March 31, 2014 and December 31, 2013 are as follows:
| March 31, 2014
| Unpaid |  | Recorded |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired non-covered loan pools: |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 5,008 |  | $ | 4,510 |  | $ | 57 |  | 1%
Commercial |  | 89,496 |  |  | 78,742 |  |  | 879 |  | 1%
Construction |  | 46,256 |  |  | 40,397 |  |  | 1,773 |  | 4%
Consumer |  | 61,584 |  |  | 53,307 |  |  | 349 |  | 1%
Total investment in impaired non-covered loan pools | $ | 202,344 |  | $ | 176,956 |  | $ | 3,058 |  | 2%
| December 31, 2013
| Unpaid |  | Recorded |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired non-covered loan pools: |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 5,183 |  | $ | 4,718 |  | $ | 57 |  | 1%
Commercial |  | 48,100 |  |  | 40,411 |  |  | 394 |  | 1%
Construction |  | 21,526 |  |  | 17,818 |  |  | 1,319 |  | 7%
Consumer |  | 73,043 |  |  | 63,606 |  |  | 361 |  | 1%
Auto |  | 379,236 |  |  | 377,316 |  |  | 732 |  | 0%
Total investment in impaired non-covered loan pools | $ | 527,088 |  | $ | 503,869 |  | $ | 2,863 |  | 1%
The following table presents the interest recognized in commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30, for the quarters ended March 3 1, 201 4 and 2013:
| Quarter Ended March 31,
| 2014 |  | 2013
| Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment
| (In thousands)
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 24 |  | $ | 6,259 |  | $ | 4 |  | $ | 15,472
Residential troubled-debt restructuring |  | 645 |  |  | 87,052 |  |  | 443 |  |  | 78,748
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 78 |  |  | 21,629 |  |  | 293 |  |  | 30,360
Total interest income from impaired loans | $ | 747 |  | $ | 114,940 |  | $ | 740 |  | $ | 124,580
Modifications The follow ing table presents the troubled-debt restructuring s during the quarter s ended March 31, 2014 and 2013:
| Quarter Ended March 31, 2014
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 34 |  | $ | 4,009 |  | 6.43% |  | 347 |  | $ | 3,910 |  | 4.35% |  | 375
Consumer | 5 |  |  | 42 |  | 12.97% |  | 67 |  |  | 44 |  | 12.95% |  | 66
| Quarter Ended March 31, 2013
| Number of contracts |  | Pre- Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 57 |  | $ | 7,518 |  | 6.28% |  | 331 |  | $ | 8,040 |  | 4.35% |  | 409
The following table presents troubled-debt restructurings for which there was a p ayment default during the twelve-month period ended March 3 1, 201 4 and 2013:
| Twelve-Month Period Ended March 31,
| 2014 |  | 2013
| Number of Contracts |  | Recorded Investment |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 19 |  | $ | 2,592 |  | 32 |  | $ | 4,295
Commercial | - |  | $ | - |  | 1 |  | $ | 18
Consumer | 1 |  | $ | 11 |  | - |  | $ | -
Credit Quality Indicators The Company categorizes non-covered originated and acquired loans accounted for under ASC 310-20 into risk categories based on relevant information about the ability of borrowers to service their debt, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans. The Company uses the following definitions for risk ratings: Special Mention: Loans classified as “special mention” have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable. Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of March 31, 2014 and December 31, 201 3, and based on the most recent analysis performed, the ris k category of gross non-covered originated and other loans and acquired loans accounted for under ASC 310-20 subject to risk rating by class of loans is as follows:
| March 31, 2014
| Risk Ratings
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Individually
| Balance |  |  |  |  | Special |  |  |  |  |  |  |  | Measured for
| Outstanding |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Impairment
| (In thousands)
Commercial - originated and other loans held for investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate | $ | 62,935 |  | $ | 62,935 |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Institutional |  | 9,833 |  |  | 9,833 |  |  | - |  |  | - |  |  | - |  |  | -
Middle market |  | 169,753 |  |  | 141,537 |  |  | 16,619 |  |  | - |  |  | - |  |  | 11,597
Retail |  | 156,694 |  |  | 139,971 |  |  | 1,929 |  |  | 1,892 |  |  | - |  |  | 12,902
Floor plan |  | 1,699 |  |  | 1,699 |  |  | - |  |  | - |  |  | - |  |  | -
Real estate |  | 11,837 |  |  | 11,837 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 412,751 |  |  | 367,812 |  |  | 18,548 |  |  | 1,892 |  |  | - |  |  | 24,499
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 28,475 |  |  | 28,475 |  |  | - |  |  | - |  |  | - |  |  | -
Institutional |  | 553,249 |  |  | 553,249 |  |  | - |  |  | - |  |  | - |  |  | -
Middle market |  | 82,933 |  |  | 77,566 |  |  | 3,336 |  |  | 771 |  |  | - |  |  | 1,260
Retail |  | 67,055 |  |  | 63,366 |  |  | 119 |  |  | 1,562 |  |  | - |  |  | 2,008
Floor plan |  | 25,682 |  |  | 25,372 |  |  | 202 |  |  | 108 |  |  | - |  |  | -
|  | 757,394 |  |  | 748,028 |  |  | 3,657 |  |  | 2,441 |  |  | - |  |  | 3,268
Total |  | 1,170,145 |  |  | 1,115,840 |  |  | 22,205 |  |  | 4,333 |  |  | - |  |  | 27,767
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 11,079 |  |  | 11,079 |  |  | - |  |  | - |  |  | - |  |  | -
Retail |  | 4,301 |  |  | 3,490 |  |  | 245 |  |  | 566 |  |  | - |  |  | -
Floor plan |  | 2,752 |  |  | 2,651 |  |  | - |  |  | 101 |  |  | - |  |  | -
|  | 18,132 |  |  | 17,220 |  |  | 245 |  |  | 667 |  |  | - |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 2,947 |  |  | 2,851 |  |  | - |  |  | 96 |  |  | - |  |  | -
Institutional |  | 221 |  |  | 221 |  |  | - |  |  | - |  |  | - |  |  | -
Retail |  | 17,216 |  |  | 16,460 |  |  | 100 |  |  | 656 |  |  | - |  |  | -
Floor plan |  | 33,061 |  |  | 32,998 |  |  | 63 |  |  | - |  |  | - |  |  | -
|  | 53,445 |  |  | 52,530 |  |  | 163 |  |  | 752 |  |  | - |  |  | -
Total |  | 71,577 |  |  | 69,750 |  |  | 408 |  |  | 1,419 |  |  | - |  |  | -
Total | $ | 1,241,722 |  | $ | 1,185,590 |  | $ | 22,613 |  | $ | 5,752 |  | $ | - |  | $ | 27,767
| December 31, 2013
| Risk Ratings
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Individually
| Balance |  |  |  |  | Special |  |  |  |  |  |  |  | Measured for
| Outstanding |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Impairment
| (In thousands)
Commercial - originated and other loans held for investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate | $ | 54,796 |  | $ | 54,796 |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Institutional |  | 4,050 |  |  | 4,050 |  |  | - |  |  | - |  |  | - |  |  | -
Middle market |  | 161,583 |  |  | 133,061 |  |  | 16,627 |  |  | 118 |  |  | - |  |  | 11,777
Retail |  | 166,642 |  |  | 149,018 |  |  | 2,182 |  |  | 2,258 |  |  | - |  |  | 13,184
Floor plan |  | 1,835 |  |  | 1,835 |  |  | - |  |  | - |  |  | - |  |  | -
Real estate |  | 11,655 |  |  | 11,655 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 400,561 |  |  | 354,415 |  |  | 18,809 |  |  | 2,376 |  |  | - |  |  | 24,961
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 32,598 |  |  | 32,598 |  |  | - |  |  | - |  |  | - |  |  | -
Institutional |  | 536,445 |  |  | 536,445 |  |  | - |  |  | - |  |  | - |  |  | -
Middle market |  | 58,897 |  |  | 53,868 |  |  | 3,466 |  |  | 198 |  |  | - |  |  | 1,365
Retail |  | 61,510 |  |  | 58,742 |  |  | 257 |  |  | 691 |  |  | - |  |  | 1,820
Floor plan |  | 37,646 |  |  | 37,350 |  |  | 188 |  |  | 108 |  |  | - |  |  | -
|  | 727,096 |  |  | 719,003 |  |  | 3,911 |  |  | 997 |  |  | - |  |  | 3,185
Total |  | 1,127,657 |  |  | 1,073,418 |  |  | 22,720 |  |  | 3,373 |  |  | - |  |  | 28,146
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 10,166 |  |  | 10,166 |  |  | - |  |  | - |  |  | - |  |  | -
Retail |  | 5,770 |  |  | 4,378 |  |  | 443 |  |  | 949 |  |  | - |  |  | -
Floor plan |  | 2,677 |  |  | 2,576 |  |  | - |  |  | 101 |  |  | - |  |  | -
|  | 18,613 |  |  | 17,120 |  |  | 443 |  |  | 1,050 |  |  | - |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 9,793 |  |  | 9,696 |  |  | - |  |  | 97 |  |  | - |  |  | -
Retail |  | 27,338 |  |  | 26,044 |  |  | 150 |  |  | 1,144 |  |  | - |  |  | -
Floor plan |  | 21,937 |  |  | 21,769 |  |  | 168 |  |  | - |  |  | - |  |  | -
|  | 59,068 |  |  | 57,509 |  |  | 318 |  |  | 1,241 |  |  | - |  |  | -
Total |  | 77,681 |  |  | 74,629 |  |  | 761 |  |  | 2,291 |  |  | - |  |  | -
Total | $ | 1,205,338 |  | $ | 1,148,047 |  | $ | 23,481 |  | $ | 5,664 |  | $ | - |  | $ | 28,146
At March 31, 2014 and Dece mber 3 1, 2013, we had approximately $766.7 million and $763.4 million, respectively, of credit facilities granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, of which $718.8 million and $696.0, respectively, were outstanding as of such date s. A substantial portion of our credit exposure to the government of Puerto Rico consists of collateralized loans or obligations that have a specific source of income or revenues identified for its repayment. Some o f these obligations consist of senior and subordinated loans to public corporations that obtain revenues from rates charged for services, such as water and electric power utilities. Public corporations have varying degrees of independence from the central government and many receive appropriati ons or other payments from it. We also have loans to various municipalities for which the good faith, credit and unlimited taxing power of the applicable municipality has be en pledged to their repayment. These municipalities are required by law to levy special property taxes in such amounts as shall be required for the payment of all their genera l obligation bonds and notes. Another portion of these loans consists of special obligations of various municipalities that are payable from the basic real and personal property taxes collected within such munici palities. The good faith and credit obligations of the municipalities have a first lien on the basic property taxes. For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of March 31, 2014 and December 31, 2013, and based on the most recent analysis performed, the risk category of non-covered gross originated and other loans and acquired loans accounted for under ASC 310-20 not subject to risk rating by class of loans is as follows:
| March 31, 2014
| Delinquency
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Individually
| Balance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Measured for
| Outstanding |  | 0-29 days |  | 30-59 days |  | 60-89 days |  | 90-119 days |  | 120-364 days |  | 365+ days |  | Impairment
| (In thousands)
Originated and other loans and leases held for investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Traditional (by origination year) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Up to the year 2002 | $ | 72,096 |  | $ | 61,268 |  | $ | 5,230 |  | $ | 2,621 |  | $ | 382 |  | $ | 1,037 |  | $ | 1,459 |  | $ | 99
Years 2003 and 2004 |  | 63,515 |  |  | 53,170 |  |  | 5,494 |  |  | 2,445 |  |  | 484 |  |  | 1,246 |  |  | 612 |  |  | 64
Year 2005 |  | 87,818 |  |  | 72,414 |  |  | 6,448 |  |  | 2,288 |  |  | 1,233 |  |  | 3,576 |  |  | 1,324 |  |  | 535
Year 2006 |  | 116,904 |  |  | 97,822 |  |  | 10,151 |  |  | 4,376 |  |  | 1,169 |  |  | 2,410 |  |  | 850 |  |  | 126
Years 2007, 2008 and 2009 |  | 97,840 |  |  | 87,065 |  |  | 3,807 |  |  | 2,025 |  |  | 223 |  |  | 3,619 |  |  | 875 |  |  | 226
Years 2010, 2011, 2012 2013 and 2014 |  | 182,167 |  |  | 164,134 |  |  | 2,126 |  |  | 721 |  |  | 1,070 |  |  | 1,004 |  |  | 1,064 |  |  | 12,048
|  | 620,340 |  |  | 535,873 |  |  | 33,256 |  |  | 14,476 |  |  | 4,561 |  |  | 12,892 |  |  | 6,184 |  |  | 13,098
Non-traditional |  | 39,790 |  |  | 35,078 |  |  | 1,744 |  |  | 470 |  |  | - |  |  | 1,439 |  |  | 986 |  |  | 73
Loss mitigation program |  | 86,005 |  |  | 8,366 |  |  | 1,001 |  |  | 171 |  |  | 219 |  |  | 779 |  |  | 896 |  |  | 74,573
|  | 746,135 |  |  | 579,317 |  |  | 36,001 |  |  | 15,117 |  |  | 4,780 |  |  | 15,110 |  |  | 8,066 |  |  | 87,744
Home equity secured personal loans |  | 733 |  |  | 595 |  |  | - |  |  | - | - |  | - |  |  | 126 |  |  | 12 |  |  | -
GNMA's buy-back option program |  | 35,282 |  |  | - |  |  | - |  |  | - | - |  | 5,529 |  |  | 16,742 |  |  | 13,011 |  |  | -
|  | 782,150 |  |  | 579,912 |  |  | 36,001 |  |  | 15,117 |  |  | 10,309 |  |  | 31,978 |  |  | 21,089 |  |  | 87,744
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 15,490 |  |  | 14,701 |  |  | 263 |  |  | 171 |  |  | 136 |  |  | 219 |  |  | - |  |  | -
Overdrafts |  | 331 |  |  | 289 |  |  | 28 |  |  | 11 |  |  | 1 |  |  | 2 |  |  | - |  |  | -
Unsecured personal lines of credit |  | 1,934 |  |  | 1,718 |  |  | 60 |  |  | 99 |  |  | 15 |  |  | 35 |  |  | 7 |  |  | -
Unsecured personal loans |  | 108,037 |  |  | 105,369 |  |  | 1,397 |  |  | 512 |  |  | 195 |  |  | 42 |  |  | 12 |  |  | 510
Cash collateral personal loans |  | 16,700 |  |  | 16,263 |  |  | 375 |  |  | 46 |  |  | 13 |  |  | 3 |  |  | - |  |  | -
|  | 142,492 |  |  | 138,340 |  |  | 2,123 |  |  | 839 |  |  | 360 |  |  | 301 |  |  | 19 |  |  | 510
Auto and Leasing |  | 447,940 |  |  | 399,721 |  |  | 33,788 |  |  | 8,559 |  |  | 3,461 |  |  | 2,411 |  |  | - |  |  | -
|  | 1,372,582 |  |  | 1,117,973 |  |  | 71,912 |  |  | 24,515 |  |  | 14,130 |  |  | 34,690 |  |  | 21,108 |  |  | 88,254
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 48,381 |  |  | 44,111 |  |  | 1,413 |  |  | 781 |  |  | 743 |  |  | 1,333 |  |  | - |  |  | -
Personal loans |  | 3,668 |  |  | 3,423 |  |  | 105 |  |  | 83 |  |  | 4 |  |  | 53 |  |  | - |  |  | -
|  | 52,049 |  |  | 47,534 |  |  | 1,518 |  |  | 864 |  |  | 747 |  |  | 1,386 |  |  | - |  |  | -
Auto |  | 268,865 |  |  | 250,840 |  |  | 13,161 |  |  | 3,522 |  |  | 804 |  |  | 538 |  |  | - |  |  | -
|  | 320,914 |  |  | 298,374 |  |  | 14,679 |  |  | 4,386 |  |  | 1,551 |  |  | 1,924 |  |  | - |  |  | -
Total | $ | 1,693,496 |  | $ | 1,416,347 |  | $ | 86,591 |  | $ | 28,901 |  | $ | 15,681 |  | $ | 36,614 |  | $ | 21,108 |  | $ | 88,254
| December 31, 2013
| Delinquency
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Individually
| Balance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Measured for
| Outstanding |  | 0-29 days |  | 30-59 days |  | 60-89 days |  | 90-119 days |  | 120-364 days |  | 365+ days |  | Impairment
| (In thousands)
Originated and other loans and leases held for investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Traditional (by origination year) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Up to the year 2002 | $ | 76,512 |  | $ | 64,743 |  | $ | 6,594 |  | $ | 1,634 |  | $ | 868 |  | $ | 1,082 |  | $ | 1,458 |  | $ | 133
Years 2003 and 2004 |  | 65,117 |  |  | 56,283 |  |  | 4,722 |  |  | 1,938 |  |  | 56 |  |  | 1,437 |  |  | 352 |  |  | 329
Year 2005 |  | 89,541 |  |  | 74,016 |  |  | 8,414 |  |  | 2,119 |  |  | 1,198 |  |  | 3,037 |  |  | 573 |  |  | 184
Year 2006 |  | 120,322 |  |  | 99,243 |  |  | 12,055 |  |  | 4,312 |  |  | 1,148 |  |  | 2,755 |  |  | 515 |  |  | 294
Years 2007, 2008 and 2009 |  | 101,150 |  |  | 91,920 |  |  | 3,464 |  |  | 1,104 |  |  | 1,264 |  |  | 2,844 |  |  | 554 |  |  | -
Years 2010, 2011, 2012 and 2013 |  | 149,546 |  |  | 134,577 |  |  | 3,192 |  |  | 1,609 |  |  | 115 |  |  | 974 |  |  | 989 |  |  | 8,090
|  | 602,188 |  |  | 520,782 |  |  | 38,441 |  |  | 12,716 |  |  | 4,649 |  |  | 12,129 |  |  | 4,441 |  |  | 9,030
Non-traditional |  | 42,102 |  |  | 35,168 |  |  | 3,217 |  |  | 1,162 |  |  | - |  |  | 1,324 |  |  | 833 |  |  | 398
Loss mitigation program |  | 86,318 |  |  | 7,762 |  |  | 1,376 |  |  | 149 |  |  | 624 |  |  | 312 |  |  | 1,029 |  |  | 75,066
|  | 730,608 |  |  | 563,712 |  |  | 43,034 |  |  | 14,027 |  |  | 5,273 |  |  | 13,765 |  |  | 6,303 |  |  | 84,494
Home equity secured personal loans |  | 736 |  |  | 598 |  |  | - |  |  | - | - |  | - |  |  | 126 |  |  | 12 |  |  | -
GNMA's buy-back option program |  | 34,921 |  |  | - |  |  | - |  |  | - | - |  | 7,670 |  |  | 14,425 |  |  | 12,826 |  |  | -
|  | 766,265 |  |  | 564,310 |  |  | 43,034 |  |  | 14,027 |  |  | 12,943 |  |  | 28,316 |  |  | 19,141 |  |  | 84,494
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 15,241 |  |  | 14,555 |  |  | 287 |  |  | 168 |  |  | 118 |  |  | 113 |  |  | - |  |  | -
Overdrafts |  | 372 |  |  | 322 |  |  | 46 |  |  | 4 |  |  | - |  |  | - |  |  | - |  |  | -
Unsecured personal lines of credit |  | 1,981 |  |  | 1,844 |  |  | 33 |  |  | 38 |  |  | 25 |  |  | 34 |  |  | 7 |  |  | -
Unsecured personal loans |  | 94,560 |  |  | 92,102 |  |  | 1,272 |  |  | 399 |  |  | 300 |  |  | 39 |  |  | 13 |  |  | 435
Cash collateral personal loans |  | 15,590 |  |  | 15,223 |  |  | 324 |  |  | 43 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 127,744 |  |  | 124,046 |  |  | 1,962 |  |  | 652 |  |  | 443 |  |  | 186 |  |  | 20 |  |  | 435
Auto and Leasing |  | 379,874 |  |  | 339,817 |  |  | 25,532 |  |  | 9,437 |  |  | 3,397 |  |  | 1,691 |  |  | - |  |  | -
|  | 1,273,883 |  |  | 1,028,173 |  |  | 70,528 |  |  | 24,116 |  |  | 16,783 |  |  | 30,193 |  |  | 19,161 |  |  | 84,929
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 52,199 |  |  | 46,713 |  |  | 2,217 |  |  | 1,200 |  |  | 828 |  |  | 1,241 |  |  | - |  |  | -
Personal loans |  | 3,975 |  |  | 3,681 |  |  | 196 |  |  | 7 |  |  | 60 |  |  | 31 |  |  | - |  |  | -
|  | 56,174 |  |  | 50,394 |  |  | 2,413 |  |  | 1,207 |  |  | 888 |  |  | 1,272 |  |  | - |  |  | -
Auto |  | 301,584 |  |  | 283,825 |  |  | 12,534 |  |  | 3,616 |  |  | 1,095 |  |  | 514 |  |  | - |  |  | -
|  | 357,758 |  |  | 334,219 |  |  | 14,947 |  |  | 4,823 |  |  | 1,983 |  |  | 1,786 |  |  | - |  |  | -
Total | $ | 1,631,641 |  | $ | 1,362,392 |  | $ | 85,475 |  | $ | 28,939 |  | $ | 18,766 |  | $ | 31,979 |  | $ | 19,161 |  | $ | 84,929
Covered Loans For covered loans, as part of the evaluation of actual versus expected cash flows, the Company assesses on a quarterly basis the credit quality of these loans based on delinquency, severity factors and risk ratings, among other assumptions. Migration and credit quality trends are assessed at the pool level, by comparing information from the latest evaluation period through the end of the reporting per iod. The changes in the allowance for loan and lease losses on covered loans for the quarters ended March 3 1, 201 4 and 201 3 were as follows:
| Quarter Ended March 31,
| 2014 |  | 2013
| (In thousands)
Balance at beginning of the period | $ | 52,729 |  | $ | 54,124
Provision for covered loan and lease losses, net |  | 1,629 |  |  | 672
FDIC shared-loss portion of provision for (recapture of) |  |  |  |  |
covered loan and lease losses, net |  | 40 |  |  | (1,822)
Balance at end of the period | $ | 54,398 |  | $ | 52,974
FDIC shared-loss portion of provision for (recapture of) covered loans and lease losses net, represents the credit impairment losses to be covered under the FDIC loss-share agreement which is increasing (decreasing) the FDIC loss-share indemnification asset. Net provision for covered loans includes both additional reserves and reserve releases for different pools. The pools for which there were releases are also subject to a reduction to the FDIC shared-loss indemnification a sset because of lower expec ted losses which are recognized as recaptures. The Company's recorded investment in covered loan pools that have recorded impairment s and the ir related allowance for covered loan and lease losses as of March 31, 2014 and December 31, 2013 are as follows:
| March 31, 2014
| Unpaid |  | Recorded |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired covered loan pools: |  |  |  |  |  |  |  |  |  |
Loans secured by 1-4 family residential properties | $ | 147,597 |  | $ | 111,410 |  | $ | 14,221 |  | 13%
Construction and development secured by 1-4 family residential properties |  | 65,747 |  |  | 18,254 |  |  | 6,866 |  | 38%
Commercial and other construction |  | 192,095 |  |  | 111,679 |  |  | 32,696 |  | 29%
Consumer |  | 9,671 |  |  | 5,503 |  |  | 615 |  | 11%
Total investment in impaired covered loan pools | $ | 415,110 |  | $ | 246,846 |  | $ | 54,398 |  | 22%
| December 31, 2013
| Unpaid |  | Recorded |  | Specific |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired covered loan pools with specific allowance |  |  |  |  |  |  |  |  |  |
Loans secured by 1-4 family residential properties | $ | 52,142 |  | $ | 38,179 |  | $ | 12,495 |  | 33%
Construction and development secured by 1-4 family residential properties |  | 66,037 |  |  | 17,304 |  |  | 6,866 |  | 40%
Commercial and other construction |  | 209,566 |  |  | 111,946 |  |  | 32,753 |  | 29%
Consumer |  | 10,512 |  |  | 5,857 |  |  | 615 |  | 11%
Total investment in impaired covered loan pools | $ | 338,257 |  | $ | 173,286 |  | $ | 52,729 |  | 30%

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