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Loans Receivable | 9 Months Ended
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Sep. 30, 2015
Loans Receivable [Abstract] |
LOANS RECEIVABLE | NOTE 4 - LOANS The Company’s loan portfolio is composed of two segments, loans initially accounted for under the amortized cost method (referred as "originated and other" loans) and loans acquired (referred as "acquired" loans). Acquired loans are further segregated between acquired BBVAPR loans and acquired Eurobank loans. Acquired Eurobank loans were purchased subject to loss-sharing agreements with the FDIC. The FDIC loss sharing agreement, related to commercial and other-non single f amily acquired Eurobank loans expired on June 30, 2015. Notwithstanding the expiration of loss share coverage of non-single family loans, on July 2, 2015, the Company entered into an agreement with the FDIC pursuant to which the FDIC concurred with a poten tial sale of a pool of loss share assets covered under the non-single family loss share agreement. Pursuant to such agreement, the FDIC agreed to pay up to $20 million in loss share coverage with respect to the aggregate loss resulting from any portfolio s ale within 120 days of the agreement. This sale was completed on September 28, 2015 and a $20 million receivable from the FDIC was included in other assets in the unaudited statement of financial condition related to this reimbursement. The coverage for th e single family residential loans will expire on June 30, 2020. At September 30, 2015, the r emaining covered loans amounting to $ 60.1 million, net carrying amount, are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties". At December 31, 2014, covered loans amounted to $298.9 million, net carrying amount. Covered loans are no longer a material amount. Therefore, the Company changed its current and prior year loan disclosures d uring the quarter end ed September 30, 2015. The composition of the Company’s loan portfolio at September 30, 2015 and December 31, 2014 was as follows:
| September 30, |  | December 31,
| 2015 |  | 2014
| (In thousands)
Originated and other loans and leases held for investment: |  |  |  |  |
Mortgage | $ | 762,636 |  | $ | 791,751
Commercial |  | 1,389,353 |  |  | 1,289,732
Consumer |  | 227,756 |  |  | 186,760
Auto and leasing |  | 647,544 |  |  | 575,582
|  | 3,027,289 |  |  | 2,843,825
Allowance for loan and lease losses on originated and other loans and leases |  | (80,351) |  |  | (51,439)
|  | 2,946,938 |  |  | 2,792,386
Deferred loan costs, net |  | 4,571 |  |  | 4,282
Total originated and other loans loans held for investment, net |  | 2,951,509 |  |  | 2,796,668
Acquired loans: |  |  |  |  |
Acquired BBVAPR loans: |  |  |  |  |
Accounted for under ASC 310-20 (Loans with revolving feature and/or |  |  |  |  |
acquired at a premium) |  |  |  |  |
Commercial |  | 7,736 |  |  | 12,675
Consumer |  | 39,774 |  |  | 45,344
Auto |  | 124,120 |  |  | 184,782
|  | 171,630 |  |  | 242,801
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20 |  | (5,473) |  |  | (4,597)
|  | 166,157 |  |  | 238,204
Accounted for under ASC 310-30 (Loans acquired with deteriorated |  |  |  |  |
credit quality, including those by analogy) |  |  |  |  |
Mortgage |  | 617,268 |  |  | 656,122
Commercial |  | 395,637 |  |  | 452,201
Construction |  | - |  |  | 106,361
Consumer |  | 15,072 |  |  | 29,888
Auto |  | 173,979 |  |  | 247,233
|  | 1,201,956 |  |  | 1,491,805
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30 |  | (19,986) |  |  | (13,481)
|  | 1,181,970 |  |  | 1,478,324
Total acquired BBVAPR loans, net |  | 1,348,127 |  |  | 1,716,528
Acquired Eurobank loans: |  |  |  |  |
Loans secured by 1-4 family residential properties |  | 92,757 |  |  | 102,162
Commercial |  | 144,704 |  |  | 256,488
Consumer |  | 2,708 |  |  | 4,506
Total acquired Eurobank loans |  | 240,169 |  |  | 363,156
Allowance for loan and lease losses on Eurobank loans |  | (90,332) |  |  | (64,245)
Total acquired Eurobank loans, net |  | 149,837 |  |  | 298,911
Total acquired loans, net |  | 1,497,964 |  |  | 2,015,439
Total held for investment, net |  | 4,449,473 |  |  | 4,812,107
Mortgage loans held for sale |  | 19,203 |  |  | 14,539
Total loans, net | $ | 4,468,676 |  | $ | 4,826,646
On September 28, 2015, the Company sold a portion of covered non-performing commercial loans amounting to $197.1 million unpaid principal balance or UPB ($100.0 million carrying amount). The sales price was 18.44% of UPB, or $36.3 million. The FDIC agreed to cover $20.0 million of losses as part of its loss-share agreement with the Company. As a result, a $20.0 million reimbursement was recorded in the statement of operations. The Company also recorded a $32.9 million provision for loan and lease losses fo r acquired Eurobank loans, which was partially offset by $4.6 million in cost recoveries. Also, as part of this transaction, the Company sold certain non-performing commercial loans and real estate owned from the BBVAPR acquisition amounting to $38.1 milli on unpaid principal balance ($9.9 million carrying amount). The sales price was $5.2 million. As a result, a $5.2 million provision for loan and lease losses was recorded for BBVAPR acquired loans, which was partially offset by $2.4 million in cost recover ies. In addition, certain additional real estate owned with a carrying amount of $11.0 million was sold for $1.7 million. At September 30, 2015, the Company had a $13.0 million receivable related to this sale and a $20.0 million receivable from the FDIC reimbursement O riginated and Other Loans and L eases Held for Investment The Company’s originated and other loans held for investment are encompassed within four portfolio segments: mortgage, commercial, consumer, and auto and leasing. The following table s present the aging of the recorded investment in gross originated and other loans held for investment as of September 30, 2015 and December 31, 2014 by class of loans. Mortgage loans past due included delinquent loans in the GNMA 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 r epurchase, even when they elect not to exercise that option.
| September 30, 2015
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  | Current |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  | in Non- |  | Current |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Accrual |  | Accruing |  | Total Loans |  | Accruing
| (In thousands) |  |  |
Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Traditional (by origination year): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Up to the year 2002 | $ | 81 |  | $ | 2,270 |  | $ | 3,900 |  | $ | 6,251 |  | $ | - |  | $ | 53,330 |  | $ | 59,581 |  | $ | 73
Years 2003 and 2004 |  | 364 |  |  | 4,723 |  |  | 5,826 |  |  | 10,913 |  |  | - |  |  | 90,950 |  |  | 101,863 |  |  | -
Year 2005 |  | - |  |  | 2,525 |  |  | 3,686 |  |  | 6,211 |  |  | - |  |  | 49,389 |  |  | 55,600 |  |  | -
Year 2006 |  | 97 |  |  | 2,853 |  |  | 8,133 |  |  | 11,083 |  |  | 137 |  |  | 69,207 |  |  | 80,427 |  |  | -
Years 2007, 2008 and 2009 |  | 539 |  |  | 2,320 |  |  | 15,442 |  |  | 18,301 |  |  | - |  |  | 76,017 |  |  | 94,318 |  |  | 666
Years 2010, 2011, 2012, 2013 |  | 599 |  |  | 1,249 |  |  | 10,337 |  |  | 12,185 |  |  | - |  |  | 142,346 |  |  | 154,531 |  |  | 74
Years 2014 and 2015 |  | - |  |  | 96 |  |  | 185 |  |  | 281 |  |  | - |  |  | 76,111 |  |  | 76,392 |  |  | -
|  | 1,680 |  |  | 16,036 |  |  | 47,509 |  |  | 65,225 |  |  | 137 |  |  | 557,350 |  |  | 622,712 |  |  | 813
Non-traditional |  | - |  |  | 1,918 |  |  | 3,468 |  |  | 5,386 |  |  | 14 |  |  | 26,849 |  |  | 32,249 |  |  | -
Loss mitigation program |  | 11,696 |  |  | 5,981 |  |  | 16,001 |  |  | 33,678 |  |  | 4,786 |  |  | 61,703 |  |  | 100,167 |  |  | 3,757
|  | 13,376 |  |  | 23,935 |  |  | 66,978 |  |  | 104,289 |  |  | 4,937 |  |  | 645,902 |  |  | 755,128 |  |  | 4,570
Home equity secured personal loans |  | 64 |  |  | - |  |  | - |  |  | 64 |  |  | - |  |  | 451 |  |  | 515 |  |  | -
GNMA's buy-back option program |  | - |  |  | - |  |  | 6,993 |  |  | 6,993 |  |  | - |  |  | - |  |  | 6,993 |  |  | -
|  | 13,440 |  |  | 23,935 |  |  | 73,971 |  |  | 111,346 |  |  | 4,937 |  |  | 646,353 |  |  | 762,636 |  |  | 4,570
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 224,110 |  |  | 224,110 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 34,342 |  |  | 34,342 |  |  | -
Middle market |  | - |  |  | - |  |  | 6,212 |  |  | 6,212 |  |  | 7,889 |  |  | 193,154 |  |  | 207,255 |  |  | -
Retail |  | 516 |  |  | 350 |  |  | 7,222 |  |  | 8,088 |  |  | 1,139 |  |  | 202,534 |  |  | 211,761 |  |  | -
Floor plan |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,925 |  |  | 2,925 |  |  | -
Real estate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 16,766 |  |  | 16,766 |  |  | -
|  | 516 |  |  | 350 |  |  | 13,434 |  |  | 14,300 |  |  | 9,028 |  |  | 673,831 |  |  | 697,159 |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 71,714 |  |  | 71,714 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | 193,904 |  |  | 189,882 |  |  | 383,786 |  |  | -
Middle market |  | 20 |  |  | - |  |  | 223 |  |  | 243 |  |  | 2,046 |  |  | 105,554 |  |  | 107,843 |  |  | -
Retail |  | 276 |  |  | 255 |  |  | 1,204 |  |  | 1,735 |  |  | 944 |  |  | 89,989 |  |  | 92,668 |  |  | -
Floor plan |  | 178 |  |  | 83 |  |  | 475 |  |  | 736 |  |  | - |  |  | 35,447 |  |  | 36,183 |  |  | -
|  | 474 |  |  | 338 |  |  | 1,902 |  |  | 2,714 |  |  | 196,894 |  |  | 492,586 |  |  | 692,194 |  |  | -
|  | 990 |  |  | 688 |  |  | 15,336 |  |  | 17,014 |  |  | 205,922 |  |  | 1,166,417 |  |  | 1,389,353 |  |  | -
| September 30, 2015
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  | Current |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  | in Non- |  | Current |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Accrual |  | Accruing |  | Total Loans |  | Accruing
| (In thousands) |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 436 |  |  | 182 |  |  | 344 |  |  | 962 |  |  | - |  |  | 20,186 |  |  | 21,148 |  |  | -
Overdrafts |  | 15 |  |  | - |  |  | - |  |  | 15 |  |  | - |  |  | 260 |  |  | 275 |  |  | -
Personal lines of credit |  | 31 |  |  | 27 |  |  | 39 |  |  | 97 |  |  | 21 |  |  | 2,066 |  |  | 2,184 |  |  | -
Personal loans |  | 1,798 |  |  | 822 |  |  | 862 |  |  | 3,482 |  |  | 641 |  |  | 183,703 |  |  | 187,826 |  |  | -
Cash collateral personal loans |  | 171 |  |  | 103 |  |  | 2 |  |  | 276 |  |  | - |  |  | 16,047 |  |  | 16,323 |  |  | -
|  | 2,451 |  |  | 1,134 |  |  | 1,247 |  |  | 4,832 |  |  | 662 |  |  | 222,262 |  |  | 227,756 |  |  | -
Auto and leasing |  | 52,412 |  |  | 19,215 |  |  | 8,986 |  |  | 80,613 |  |  | 282 |  |  | 566,649 |  |  | 647,544 |  |  | -
Total | $ | 69,293 |  | $ | 44,972 |  | $ | 99,540 |  | $ | 213,805 |  | $ | 211,803 |  | $ | 2,601,681 |  | $ | 3,027,289 |  | $ | 4,570
| December 31, 2014
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  | Current |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  | in Non- |  | Current |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Accrual |  | Accruing |  | Total Loans |  | Accruing
| (In thousands) |  |  |
Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Traditional (by origination year): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Up to the year 2002 | $ | 4,128 |  | $ | 3,157 |  | $ | 4,395 |  | $ | 11,680 |  | $ | - |  | $ | 54,064 |  | $ | 65,744 |  | $ | 134
Years 2003 and 2004 |  | 10,484 |  |  | 4,735 |  |  | 6,489 |  |  | 21,708 |  |  | 455 |  |  | 87,506 |  |  | 109,669 |  |  | -
Year 2005 |  | 3,824 |  |  | 2,205 |  |  | 4,454 |  |  | 10,483 |  |  | 131 |  |  | 49,858 |  |  | 60,472 |  |  | -
Year 2006 |  | 5,706 |  |  | 3,298 |  |  | 8,667 |  |  | 17,671 |  |  | 548 |  |  | 67,331 |  |  | 85,550 |  |  | 89
Years 2007, 2008 and 2009 |  | 5,283 |  |  | 1,809 |  |  | 7,646 |  |  | 14,738 |  |  | 761 |  |  | 77,990 |  |  | 93,489 |  |  | -
Years 2010, 2011, 2012, 2013 |  | 3,394 |  |  | 2,992 |  |  | 6,900 |  |  | 13,286 |  |  | - |  |  | 149,030 |  |  | 162,316 |  |  | 365
Year 2014 |  | 290 |  |  | - |  |  | - |  |  | 290 |  |  | - |  |  | 41,818 |  |  | 42,108 |  |  | -
|  | 33,109 |  |  | 18,196 |  |  | 38,551 |  |  | 89,856 |  |  | 1,895 |  |  | 527,597 |  |  | 619,348 |  |  | 588
Non-traditional |  | 1,477 |  |  | 584 |  |  | 3,223 |  |  | 5,284 |  |  | - |  |  | 30,916 |  |  | 36,200 |  |  | -
Loss mitigation program |  | 8,199 |  |  | 7,106 |  |  | 14,114 |  |  | 29,419 |  |  | 6,358 |  |  | 57,666 |  |  | 93,443 |  |  | 2,766
|  | 42,785 |  |  | 25,886 |  |  | 55,888 |  |  | 124,559 |  |  | 8,253 |  |  | 616,179 |  |  | 748,991 |  |  | 3,354
Home equity secured personal loans |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 517 |  |  | 517 |  |  | -
GNMA's buy-back option program |  | - |  |  | - |  |  | 42,243 |  |  | 42,243 |  |  | - |  |  | - |  |  | 42,243 |  |  | -
|  | 42,785 |  |  | 25,886 |  |  | 98,131 |  |  | 166,802 |  |  | 8,253 |  |  | 616,696 |  |  | 791,751 |  |  | 3,354
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 133,076 |  |  | 133,076 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 36,611 |  |  | 36,611 |  |  | -
Middle market |  | - |  |  | 645 |  |  | 396 |  |  | 1,041 |  |  | 8,494 |  |  | 154,515 |  |  | 164,050 |  |  | -
Retail |  | 330 |  |  | 561 |  |  | 7,275 |  |  | 8,166 |  |  | 1,445 |  |  | 166,017 |  |  | 175,628 |  |  | -
Floor plan |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,650 |  |  | 1,650 |  |  | -
Real estate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 12,628 |  |  | 12,628 |  |  | -
|  | 330 |  |  | 1,206 |  |  | 7,671 |  |  | 9,207 |  |  | 9,939 |  |  | 504,497 |  |  | 523,643 |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 63,746 |  |  | 63,746 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 478,935 |  |  | 478,935 |  |  | -
Middle market |  | - |  |  | - |  |  | 618 |  |  | 618 |  |  | - |  |  | 91,716 |  |  | 92,334 |  |  | -
Retail |  | 866 |  |  | 412 |  |  | 1,061 |  |  | 2,339 |  |  | 1,047 |  |  | 86,785 |  |  | 90,171 |  |  | -
Floor plan |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 40,903 |  |  | 40,903 |  |  | -
|  | 866 |  |  | 412 |  |  | 1,679 |  |  | 2,957 |  |  | 1,047 |  |  | 762,085 |  |  | 766,089 |  |  | -
|  | 1,196 |  |  | 1,618 |  |  | 9,350 |  |  | 12,164 |  |  | 10,986 |  |  | 1,266,582 |  |  | 1,289,732 |  |  | -
| December 31, 2014
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  | Current |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  | in Non- |  | Current |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Accrual |  | Accruing |  | Total Loans |  | Accruing
| (In thousands) |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 360 |  |  | 139 |  |  | 375 |  |  | 874 |  |  | - |  |  | 18,197 |  |  | 19,071 |  |  | -
Overdrafts |  | 20 |  |  | - |  |  | - |  |  | 20 |  |  | - |  |  | 287 |  |  | 307 |  |  | -
Personal lines of credit |  | 102 |  |  | 25 |  |  | 102 |  |  | 229 |  |  | 9 |  |  | 1,962 |  |  | 2,200 |  |  | -
Personal loans |  | 1,822 |  |  | 743 |  |  | 678 |  |  | 3,243 |  |  | 337 |  |  | 144,359 |  |  | 147,939 |  |  | -
Cash collateral personal loans |  | 275 |  |  | 39 |  |  | 9 |  |  | 323 |  |  | - |  |  | 16,920 |  |  | 17,243 |  |  | -
|  | 2,579 |  |  | 946 |  |  | 1,164 |  |  | 4,689 |  |  | 346 |  |  | 181,725 |  |  | 186,760 |  |  | -
Auto and leasing |  | 47,658 |  |  | 16,916 |  |  | 7,420 |  |  | 71,994 |  |  | 145 |  |  | 503,443 |  |  | 575,582 |  |  | -
Total | $ | 94,218 |  | $ | 45,366 |  | $ | 116,065 |  | $ | 255,649 |  | $ | 19,730 |  | $ | 2,568,446 |  | $ | 2,843,825 |  | $ | 3,354
During the quarter ended September 30, 2015, the Company changed its early delinquency reporting on mortgage loans from one scheduled payment due to two scheduled payments due in order to comply with regulatory reporting instructions and be comparable with local peers, except for troubled debt restructured loans which remain using one scheduled payment due. A t September 30, 2015 and December 31, 2014, the Company had $3 38.3 million and $450.2 million, respectively, in loans granted to the Puerto Rico g overnment, including its instrumentalities, public corporations and municipalities as part of the institutional commercial loan segment. All loans granted to Puerto Rico government were current at September 30, 2015 and December 31, 2014. We, as part of a bank syndicate, have granted various extensions to the Puerto Rico Electric Power Authority (“PREPA”) and on November 5, 2015 entered into a Restructuring Support Agreement with a view towards restructuring the debt on terms that provide for full repayment of the debt to the Bank. After the first extension in the third quarter of 2014, the Company classified the credit as substandard and a troubled-debt restructuring. The Company conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under vari ous scenarios and its capacity to service its financial obl igations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite the Company’s analysis showing PREPA’s capacity to repay the line of credit, the Co mpany placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015, based on management’s concerns regarding PREPA’s willingness to repay the debt. At September 30, 2015, the allowance for loan and lease los ses to PREPA was $23.4 million. Since it was placed in non-accrual, interest payments have been applied to principal. Acquired Loans Acquired loans were initially measured at fair value and subsequently accounted for under either Accounting Standards Codification Topic ("ASC") 310-30 (Loans and Debt Securities Acquired with Deteriorated Credit Quality) or ASC 310-20 (Non-refundable fees and Other Costs). We have acquired loans in two acquisitions, BBVAPR and Eurobank. Acqui red BBVAPR Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium) Credit cards, retail and commercial revolving lines of credits, floor plans and performing auto loans with FICO scores over 660 acquired at a premium, excluding the acquired Eurobank loan portfolio, are accounted for under the guidance of ASC 310-20, which requires that any contractually required loan payment receivable in excess of the Company’s initial investment in the loans be accreted into interest income on a level-yield basis over the life of the loan. Loans accounted for under ASC 310-20 are placed on non-accrual status when past due in accordance with the Company’s non-accrual policy, and any accretion of discount or amortization of prem ium is discontinued. Acquired BBVAPR loans that were accounted for under the provisions of ASC 310-20 are removed from the acquired loan category at the end of the reporting period upon refinancing, renewal or normal re-underwriting. The following table s present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as of September 30, 2015 and December 31, 2014, by class of loans:
| September 30, 2015
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  | Current |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  | in Non- |  | Current |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Accrual |  | Accruing |  | Total Loans |  | Accruing
| (In thousands) |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail | $ | - |  | $ | - |  | $ | 279 |  | $ | 279 |  | $ | 47 |  | $ | - |  | $ | 326 |  | $ | -
Floor plan |  | - |  |  | - |  |  | 478 |  |  | 478 |  |  | - |  |  | 2,470 |  |  | 2,948 |  |  | -
|  | - |  |  | - |  |  | 757 |  |  | 757 |  |  | 47 |  |  | 2,470 |  |  | 3,274 |  |  | -
Other commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 228 |  |  | 24 |  |  | 61 |  |  | 313 |  |  | - |  |  | 3,475 |  |  | 3,788 |  |  | -
Floor plan |  | - |  |  | 10 |  |  | 7 |  |  | 17 |  |  | 1 |  |  | 656 |  |  | 674 |  |  | -
|  | 228 |  |  | 34 |  |  | 68 |  |  | 330 |  |  | 1 |  |  | 4,131 |  |  | 4,462 |  |  | -
|  | 228 |  |  | 34 |  |  | 825 |  |  | 1,087 |  |  | 48 |  |  | 6,601 |  |  | 7,736 |  |  | -
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 825 |  |  | 422 |  |  | 769 |  |  | 2,016 |  |  | - |  |  | 34,510 |  |  | 36,526 |  |  | -
Personal loans |  | 89 |  |  | 14 |  |  | 41 |  |  | 144 |  |  | - |  |  | 3,104 |  |  | 3,248 |  |  | -
|  | 914 |  |  | 436 |  |  | 810 |  |  | 2,160 |  |  | - |  |  | 37,614 |  |  | 39,774 |  |  | -
Auto |  | 9,010 |  |  | 2,921 |  |  | 1,040 |  |  | 12,971 |  |  | 49 |  |  | 111,100 |  |  | 124,120 |  |  | -
Total | $ | 10,152 |  | $ | 3,391 |  | $ | 2,675 |  | $ | 16,218 |  | $ | 97 |  | $ | 155,315 |  | $ | 171,630 |  | $ | -
| December 31, 2014
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  | Current |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  | in Non- |  | Current |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Accrual |  | Accruing |  | Total Loans |  | Accruing
| (In thousands) |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail | $ | - |  | $ | - |  | $ | 351 |  | $ | 351 |  | $ | - |  | $ | - |  | $ | 351 |  | $ | -
Floor plan |  | - |  |  | 62 |  |  | 345 |  |  | 407 |  |  | - |  |  | 3,724 |  |  | 4,131 |  |  | -
|  | - |  |  | 62 |  |  | 696 |  |  | 758 |  |  | - |  |  | 3,724 |  |  | 4,482 |  |  | -
Other commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 155 |  |  | 67 |  |  | 192 |  |  | 414 |  |  | 2 |  |  | 3,705 |  |  | 4,121 |  |  | -
Floor plan |  | 202 |  |  | 134 |  |  | 223 |  |  | 559 |  |  | 10 |  |  | 3,503 |  |  | 4,072 |  |  | -
|  | 357 |  |  | 201 |  |  | 415 |  |  | 973 |  |  | 12 |  |  | 7,208 |  |  | 8,193 |  |  | -
|  | 357 |  |  | 263 |  |  | 1,111 |  |  | 1,731 |  |  | 12 |  |  | 10,932 |  |  | 12,675 |  |  | -
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 1,376 |  |  | 654 |  |  | 1,399 |  |  | 3,429 |  |  | - |  |  | 38,419 |  |  | 41,848 |  |  | -
Personal loans |  | 151 |  |  | 47 |  |  | 77 |  |  | 275 |  |  | - |  |  | 3,221 |  |  | 3,496 |  |  | -
|  | 1,527 |  |  | 701 |  |  | 1,476 |  |  | 3,704 |  |  | - |  |  | 41,640 |  |  | 45,344 |  |  | -
Auto |  | 11,003 |  |  | 3,453 |  |  | 1,262 |  |  | 15,718 |  |  | 76 |  |  | 168,988 |  |  | 184,782 |  |  | -
Total | $ | 12,887 |  | $ | 4,417 |  | $ | 3,849 |  | $ | 21,153 |  | $ | 88 |  | $ | 221,560 |  | $ | 242,801 |  | $ | -
Acquired BBVAPR Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy) Acquired BBVAPR loans, except for credit cards, retail and commercial revolving lines of credits, floor plans and performing auto loans with FICO scores over 660 acquired at a premium, are accounted for by the Company in accordance with ASC 310-30. The carrying amount corresponding to acquired BBVAPR loans with deteriorated credit quality, including those accounted under ASC 310-30 by analogy, in the statements of financial condition at September 30, 2015 and December 31, 2014 is as follows:
|  | September 30, |  | December 31,
|  | 2015 |  | 2014
|  | (In thousands)
Contractual required payments receivable |  | $2,022,672 |  | $2,394,378
Less: Non-accretable discount |  | $442,103 |  | $456,627
Cash expected to be collected |  | 1,580,569 |  | 1,937,751
Less: Accretable yield |  | 378,613 |  | 445,946
Carrying amount, gross |  | 1,201,956 |  | 1,491,805
Less: allowance for loan and lease losses |  | 19,986 |  | 13,481
Carrying amount, net |  | $1,181,970 |  | $1,478,324
At September 30, 2015 and December 31, 2014, the Company had $80.2 million and $168.8 million, respectively, in loans granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities as part of its acquired BBVAPR loans accounted for under ASC 310-30. This entire amount was current at September 30, 2015 and December 31, 2014. The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted f or under ASC 310-30 for the quarters and nine-month period s ended September 30, 2015 and 2014
| Quarter Ended September 30, 2015
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 275,880 |  | $ | 71,563 |  | $ | 24,613 |  | $ | 31,531 |  | $ | 8,461 |  | $ | 412,048
Accretion |  | (8,614) |  |  | (12,693) |  |  | (2,719) |  |  | (5,463) |  |  | (1,207) |  |  | (30,696)
Change in expected cash flows |  | - |  |  | 6,134 |  |  | 1,396 |  |  | (1) |  |  | (1) |  |  | 7,528
Transfer (to) from non-accretable discount |  | 75 |  |  | (6,450) |  |  | (4,075) |  |  | 148 |  |  | 35 |  |  | (10,267)
Balance at end of period | $ | 267,341 |  | $ | 58,554 |  | $ | 19,215 |  | $ | 26,215 |  | $ | 7,288 |  | $ | 378,613
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 389,107 |  | $ | 10,770 |  | $ | 6,994 |  | $ | 23,690 |  | $ | 19,356 |  | $ | 449,917
Change in actual and expected losses |  | (2,184) |  |  | (12,090) |  |  | (2,937) |  |  | (555) |  |  | (315) |  |  | (18,081)
Transfer from (to) accretable yield |  | (75) |  |  | 6,450 |  |  | 4,075 |  |  | (148) |  |  | (35) |  |  | 10,267
Balance at end of period | $ | 386,848 |  | $ | 5,130 |  | $ | 8,132 |  | $ | 22,987 |  | $ | 19,006 |  | $ | 442,103
| Nine-Month Period Ended September 30, 2015
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 298,364 |  | $ | 61,196 |  | $ | 25,829 |  | $ | 53,998 |  | $ | 6,559 |  | $ | 445,946
Accretion |  | (26,414) |  |  | (33,049) |  |  | (8,672) |  |  | (18,614) |  |  | (3,420) |  |  | (90,169)
Change in expected cash flows |  | - |  |  | 6,134 |  |  | 1,396 |  |  | (1) |  |  | (1) |  |  | 7,528
Transfer (to) from non-accretable discount |  | (4,609) |  |  | 24,273 |  |  | 662 |  |  | (9,168) |  |  | 4,150 |  |  | 15,308
Balance at end of period | $ | 267,341 |  | $ | 58,554 |  | $ | 19,215 |  | $ | 26,215 |  | $ | 7,288 |  | $ | 378,613
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 389,839 |  | $ | 23,069 |  | $ | 3,486 |  | $ | 16,215 |  | $ | 24,018 |  | $ | 456,627
Change in actual and expected losses |  | (7,600) |  |  | 6,334 |  |  | 5,308 |  |  | (2,396) |  |  | (862) |  |  | 784
Transfer from (to) accretable yield |  | 4,609 |  |  | (24,273) |  |  | (662) |  |  | 9,168 |  |  | (4,150) |  |  | (15,308)
Balance at end of period | $ | 386,848 |  | $ | 5,130 |  | $ | 8,132 |  | $ | 22,987 |  | $ | 19,006 |  | $ | 442,103
| Quarter Ended September 30, 2014
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 269,105 |  | $ | 70,491 |  | $ | 30,672 |  | $ | 64,620 |  | $ | 9,718 |  | $ | 444,606
Accretion |  | (9,627) |  |  | (12,575) |  |  | (5,929) |  |  | (8,825) |  |  | (1,384) |  |  | (38,340)
Transfer (to) from non-accretable discount |  | - |  |  | 1,137 |  |  | (3,550) |  |  | 237 |  |  | 40 |  |  | (2,136)
Balance at end of period | $ | 259,478 |  | $ | 59,053 |  | $ | 21,193 |  | $ | 56,032 |  | $ | 8,374 |  | $ | 404,130
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 455,789 |  | $ | 41,050 |  | $ | 5,388 |  | $ | 27,279 |  | $ | 25,218 |  | $ | 554,724
Change in actual and expected losses |  | (15,802) |  |  | (4,215) |  |  | (8,937) |  |  | (2,800) |  |  | (1,119) |  |  | (32,873)
Transfer from (to) accretable yield |  | - |  |  | (1,137) |  |  | 3,550 |  |  | (237) |  |  | (40) |  |  | 2,136
Balance at end of period | $ | 439,987 |  | $ | 35,698 |  | $ | 1 |  | $ | 24,242 |  | $ | 24,059 |  | $ | 523,987
| Nine-Month Period September 30, 2014
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 287,841 |  |  | 96,139 |  |  | 42,993 |  |  | 77,845 |  |  | 12,735 |  |  | 517,553
Accretion |  | (28,359) |  |  | (37,509) |  |  | (16,388) |  |  | (31,243) |  |  | (4,824) |  |  | (118,323)
Transfer (to) from non-accretable discount |  | (4) |  |  | 423 |  |  | (5,412) |  |  | 9,430 |  |  | 463 |  |  | 4,900
Balance at end of period | $ | 259,478 |  |  | 59,053 |  |  | 21,193 |  |  | 56,032 |  |  | 8,374 |  |  | 404,130
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 463,166 |  |  | 42,515 |  |  | 5,851 |  |  | 39,645 |  |  | 28,410 |  |  | 579,587
Change in actual and expected losses |  | (23,183) |  |  | (6,394) |  |  | (11,262) |  |  | (5,973) |  |  | (3,888) |  |  | (50,700)
Transfer from (to) accretable yield |  | 4 |  |  | (423) |  |  | 5,412 |  |  | (9,430) |  |  | (463) |  |  | (4,900)
Balance at end of period | $ | 439,987 |  |  | 35,698 |  |  | 1 |  |  | 24,242 |  |  | 24,059 |  |  | 523,987
Acquired Eurobank Loans The carrying amount of acquired Eurobank loans at September 30, 2015 and December 31, 2014 is as follows:
| September 30 |  | December 31
| 2015 |  | 2014
| (In thousands)
Contractual required payments receivable | $ | 357,702 |  | $ | 535,425
Less: Non-accretable discount |  | 21,675 |  |  | 62,410
Cash expected to be collected |  | 336,027 |  |  | 473,015
Less: Accretable yield |  | 95,858 |  |  | 109,859
Carrying amount, gross |  | 240,169 |  |  | 363,156
Less: Allowance for covered loan and lease losses |  | 90,332 |  |  | 64,245
Carrying amount, net | $ | 149,837 |  | $ | 298,911
The following tables describe the accretable yield and non-a ccretable discount activity of acquired Eurobank loans for the quarters and nine-month periods periods ended September 30, 2015 and 2014:
| Quarter Ended September 30, 2015
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 55,806 |  | $ | 27,473 |  | $ | 18,349 |  | $ | 1,103 |  | $ | 1,910 |  | $ | 104,641
Accretion |  | (3,543) |  |  | (10,100) |  |  | (1,446) |  |  | (711) |  |  | (214) |  |  | (16,014)
Change in expected cash flows |  | 4,320 |  |  | 43,775 |  |  | (10,749) |  |  | 270 |  |  | 118 |  |  | 37,734
Transfer from (to) non-accretable discount |  | (2,188) |  |  | (30,400) |  |  | 175 |  |  | 307 |  |  | 1,603 |  |  | (30,503)
Balance at end of period | $ | 54,395 |  | $ | 30,748 |  | $ | 6,329 |  | $ | 969 |  | $ | 3,417 |  | $ | 95,858
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 11,402 |  | $ | - |  | $ | - |  | $ | - |  | $ | 9,730 |  | $ | 21,132
Change in actual and expected losses |  | (8) |  |  | (30,400) |  |  | 175 |  |  | 307 |  |  | (34) |  |  | (29,960)
Transfer from (to) accretable yield |  | 2,188 |  |  | 30,400 |  |  | (175) |  |  | (307) |  |  | (1,603) |  |  | 30,503
Balance at end of period | $ | 13,582 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,093 |  | $ | 21,675
| Nine-Month Period Ended September 30, 2015
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 47,636 |  | $ | 37,919 |  | $ | 20,753 |  | $ | 2,479 |  | $ | 1,072 |  | $ | 109,859
Accretion |  | (10,337) |  |  | (28,002) |  |  | (2,470) |  |  | (3,040) |  |  | (427) |  |  | (44,276)
Change in expected cash flows |  | 4,320 |  |  | 43,775 |  |  | (10,749) |  |  | 270 |  |  | 118 |  |  | 37,734
Transfer from (to) non-accretable discount |  | 12,776 |  |  | (22,944) |  |  | (1,205) |  |  | 1,260 |  |  | 2,654 |  |  | (7,459)
Balance at end of period | $ | 54,395 |  | $ | 30,748 |  | $ | 6,329 |  | $ | 969 |  | $ | 3,417 |  | $ | 95,858
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 27,348 |  | $ | 24,464 |  | $ | - |  | $ | - |  | $ | 10,598 |  | $ | 62,410
Change in actual and expected losses |  | (990) |  |  | (47,408) |  |  | (1,205) |  |  | 1,260 |  |  | 149 |  |  | (48,194)
Transfer from (to) accretable yield |  | (12,776) |  |  | 22,944 |  |  | 1,205 |  |  | (1,260) |  |  | (2,654) |  |  | 7,459
Balance at end of period | $ | 13,582 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,093 |  | $ | 21,675
| Quarter Ended September 30, 2014
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 50,586 |  | $ | 70,227 |  | $ | - |  | $ | 5,100 |  | $ | 2,148 |  | $ | 128,061
Accretion |  | (3,882) |  |  | (13,044) |  |  | (1,056) |  |  | (2,500) |  |  | (404) |  |  | (20,886)
Transfer from (to) non-accretable discount |  | - |  |  | 698 |  |  | 1,056 |  |  | 305 |  |  | 750 |  |  | 2,809
Balance at end of period | $ | 46,704 |  | $ | 57,881 |  | $ | - |  | $ | 2,905 |  | $ | 2,494 |  | $ | 109,984
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 29,859 |  | $ | 46,596 |  | $ | - |  | $ | - |  | $ | 8,769 |  | $ | 85,224
Change in actual and expected losses |  | (888) |  |  | (5,648) |  |  | 1,056 |  |  | 305 |  |  | 700 |  |  | (4,475)
Transfer (to) from accretable yield |  | - |  |  | (698) |  |  | (1,056) |  |  | (305) |  |  | (750) |  |  | (2,809)
Balance at end of period | $ | 28,971 |  | $ | 40,250 |  | $ | - |  | $ | - |  | $ | 8,719 |  | $ | 77,940
| Nine-Month Period Ended September 30, 2014
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 53,250 |  | $ | 95,093 |  | $ | 1,690 |  | $ | 10,238 |  | $ | 2,688 |  | $ | 162,959
Accretion |  | (12,079) |  |  | (45,037) |  |  | (3,206) |  |  | (7,888) |  |  | (944) |  |  | (69,154)
Transfer from (to) non-accretable discount |  | 5,533 |  |  | 7,825 |  |  | 1,516 |  |  | 555 |  |  | 750 |  |  | 16,179
Balance at end of period | $ | 46,704 |  | $ | 57,881 |  | $ | - |  | $ | 2,905 |  | $ | 2,494 |  | $ | 109,984
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 39,182 |  | $ | 81,092 |  | $ | - |  | $ | - |  | $ | 9,203 |  | $ | 129,477
Change in actual and expected losses |  | (4,678) |  |  | (33,017) |  |  | 1,516 |  |  | 555 |  |  | 266 |  |  | (35,358)
Transfer (to) from accretable yield |  | (5,533) |  |  | (7,825) |  |  | (1,516) |  |  | (555) |  |  | (750) |  |  | (16,179)
Balance at end of period | $ | 28,971 |  | $ | 40,250 |  | $ | - |  | $ | - |  | $ | 8,719 |  | $ | 77,940
At September 30, 2015, $92.8 million in gross loans continue subject to the loss-s haring agreements with the FDIC and are disclosed under the name "loans secured by 1-4 family residential properties." At September 30, 2015, the net carrying amount of these loans was $60.1 million. Non-accrual Loans The following table presents the recorded investment in loans in non-accrual status by class of loans as of September 30, 2015 and December 31, 2014:
| September 30, |  | December 31,
| 2015 |  | 2014
| (In thousands)
Originated and other loans and leases held for investment |  |  |  |  |
Mortgage |  |  |  |  |
Traditional (by origination year): |  |  |  |  |
Up to the year 2002 | $ | 3,827 |  | $ | 4,427
Years 2003 and 2004 |  | 6,275 |  |  | 7,042
Year 2005 |  | 3,686 |  |  | 4,585
Year 2006 |  | 8,270 |  |  | 9,274
Years 2007, 2008 and 2009 |  | 14,949 |  |  | 8,579
Years 2010, 2011, 2012, 2013 |  | 10,264 |  |  | 7,365
Years 2014 and 2015 |  | 185 |  |  | -
|  | 47,456 |  |  | 41,272
Non-traditional |  | 3,482 |  |  | 3,224
Loss mitigation program |  | 19,227 |  |  | 20,934
|  | 70,165 |  |  | 65,430
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Middle market |  | 14,101 |  |  | 9,534
Retail |  | 8,958 |  |  | 9,000
|  | 23,059 |  |  | 18,534
Other commercial and industrial |  |  |  |  |
Institutional |  | 193,904 |  |  | -
Middle market |  | 2,270 |  |  | 618
Retail |  | 2,364 |  |  | 2,527
Floor plan |  | 475 |  |  | -
|  | 199,013 |  |  | 3,145
|  | 222,072 |  |  | 21,679
Consumer |  |  |  |  |
Credit cards |  | 344 |  |  | 375
Personal lines of credit |  | 60 |  |  | 110
Personal loans |  | 1,598 |  |  | 1,092
Cash collateral personal loans |  | 2 |  |  | 13
|  | 2,004 |  |  | 1,590
Auto and leasing |  | 10,076 |  |  | 8,668
Total non-accrual originated loans | $ | 304,317 |  | $ | 97,367
| September 30, |  | December 31,
| 2015 |  | 2014
| (In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20 |  |  |  |  |
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Retail | $ | 326 |  | $ | 351
Floor plan |  | 477 |  |  | 407
|  | 803 |  |  | 758
Other commercial and industrial |  |  |  |  |
Retail |  | 61 |  |  | 195
Floor plan |  | 9 |  |  | 234
|  | 70 |  |  | 429
|  | 873 |  |  | 1,187
Consumer |  |  |  |  |
Credit cards |  | 769 |  |  | 1,399
Personal loans |  | 41 |  |  | 77
|  | 810 |  |  | 1,476
Auto |  | 1,244 |  |  | 1,512
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20 |  | 2,927 |  |  | 4,175
Total non-accrual loans | $ | 307,244 |  | $ | 101,542
Loans accounted for under ASC 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. Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due, but are not placed in non-accrual status until they become 18 months or more past due, since they are insured loans. Therefore, these loans are included as non-performing loans but excluded from non-accrual loans. During the quarter ended March 31, 2015, the revolving line of credit to PREPA was clas sified as non-accrual. At September 30, 2015, this line of credit had an unpaid principal balance of $193.9 million. For the second and third quarter of 2015, interest payments received were applied to principal. As of September 30, 2015, the specific r eserve was $23.4 million. At September 30, 2015 and December 31, 2014, loans whose terms have been extended and w hich are classified as troubled-debt restructuring s that are not included in non-accrual loans amounted to $91.2 million and $274.4 million, respectively, as they are performing under their new terms. At December 31, 2014, the balance included the revolving line of credit to PREPA. 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 $233.6 million and $236.9 million at September 30, 2015 and December 31, 2014, respectively. Impaired commercial loans at September 30, 2015 and December 31, 2014 included the PREPA line of credit with an unpaid principal balance of $193.9 million and $200.0 million, respectively. The impaired commercial loans were measured based on the fair value of collateral or the present value of cash flows, including those identified as troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to $26.8 million and $841 thousand at September 30, 2015 and December 31, 2014, respectively. The valuation allowance for impaired commercial loans at September 30, 2015 includes $23.4 million of specific allowance for PREPA recorded during the quarter ended March 31, 2015.The total investment in impaire d mortgage loans was $90.5 million and $94.2 million at September 30, 2015 and December 31, 2014, respectively. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The valuation allowanc e for impaired mortgage loans amounted to $8.2 million and $9.0 million at September 30, 2015 and December 31, 2014, respectively. O riginated and Other Loans and L eases Held for Investment T he Company’s recorded investment in commercial and mortgage loans, excluding acquired Eurobank loans, categorized as originated and other loans and leases held for investment that were individually evaluated for impairment and the related allowan ce for loan and lease losses at September 30, 2015 and December 31, 2014 are as follows:
| September 30, 2015 |  |
| Unpaid |  | Recorded |  | Related |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage |  |
| (In thousands) |  |
Impaired loans with specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 213,930 |  | $ | 206,227 |  | $ | 26,809 |  | 13% |  |
Residential troubled-debt restructuring |  | 97,203 |  |  | 90,530 |  |  | 8,249 |  | 9% |  |
Impaired loans with no specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 30,464 |  |  | 26,887 |  |  | N/A |  | N/A |  |
Total investment in impaired loans | $ | 341,597 |  | $ | 323,644 |  | $ | 35,058 |  | 11% |  |
| December 31, 2014 |  |
| Unpaid |  | Recorded |  | Related |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage |  |
| (In thousands) |  |
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 6,349 |  | $ | 6,226 |  | $ | 841 |  | 14% |  |
Residential troubled-debt restructuring |  | 99,947 |  |  | 94,185 |  |  | 8,968 |  | 10% |  |
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 237,806 |  |  | 230,044 |  |  | N/A |  | N/A |  |
Total investment in impaired loans | $ | 344,102 |  | $ | 330,455 |  | $ | 9,809 |  | 3% |  |
Acquired BBVAPR Loans Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium) T he Company’s recorded investment in acquired BBVAPR commercial loans accounted for under ASC 310-20 that were individually evaluated for impairment and the related allowance for loan and lease losses at September 30, 2015 and December 31, 2014 are as follows:
| September 30, 2015
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 494 |  | $ | 485 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 494 |  | $ | 485 |  | $ | - |  | -
| December 31, 2014
| Unpaid |  | Recorded |  | Specific |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 672 |  | $ | 672 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 672 |  | $ | 672 |  | $ | - |  | -
Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy) T he Company’s recorded investment in acquired BBVAPR loan pools accounted for under ASC 310-30 and their related allowance for loan and lease losses at September 30, 2015 and December 31, 2014 are as follows:
| September 30, 2015
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools: |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 617,268 |  | $ | 22,762 |  | $ | 557 |  | 2%
Commercial |  | 307,271 |  |  | 185,274 |  |  | 11,780 |  | 6%
Construction |  | 88,365 |  |  | 88,202 |  |  | 4,787 |  | 5%
Auto |  | 173,979 |  |  | 173,979 |  |  | 2,862 |  | 2%
Total investment in impaired loan pools | $ | 1,186,883 |  | $ | 470,217 |  | $ | 19,986 |  | 4%
| December 31 , 2014
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools: |  |  |  |  |  |  |  |  |  |
Commercial |  | 289,228 |  |  | 255,619 |  |  | 5,506 |  | 2%
Construction |  | 90,786 |  |  | 83,751 |  |  | 7,970 |  | 10%
Consumer |  | 35,812 |  |  | 29,888 |  |  | 5 |  | 0%
Total investment in impaired loan pools | $ | 415,826 |  | $ | 369,258 |  | $ | 13,481 |  | 4%
The tables above only present information with respect to acquired BBVAPR loans and pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses. As of September 30, 2015, the Company eliminated the specific allowance of $5 thousand maintained on impaired acquired BBVAPR consumer loan pool accounted under ASC 310-30 because there was an increase in the net present value of cash flows expected to be collected from such pool when compared with the recorded investment. Likewise, the increase in mortgage and auto loan pools from December 31, 2014 to September 30, 2015 was caused by the establishment of a specific reserve with respect to impaired mortgage and auto loan pools that wer e required based on the net present value of the cash flows expected to be collected. Acquired Eurobank Loans T he Company’s recorded investment in acquired Eurobank loan pools that have recorded impairment s and the ir related allowance for loan and lease losses as of September 30, 2015 and December 31, 2014 are as follows:
| September 30, 2015
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools: |  |  |  |  |  |  |  |  |  |
Loans secured by 1-4 family residential properties | $ | 108,537 |  | $ | 105,734 |  | $ | 32,685 |  | 31%
Construction and development secured by 1-4 family residential properties |  | 11,506 |  |  | 3,185 |  |  | 2,707 |  | 85%
Commercial and other construction |  | 137,163 |  |  | 128,543 |  |  | 54,697 |  | 43%
Consumer |  | 6,935 |  |  | 2,708 |  |  | 243 |  | 9%
Total investment in impaired loan pools | $ | 264,141 |  | $ | 240,170 |  | $ | 90,332 |  | 38%
| December 31, 2014
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  | Specific |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance |  |  |  |  |  |  |  |  |  |
Loans secured by 1-4 family residential properties | $ | 134,579 |  | $ | 106,116 |  | $ | 15,522 |  | 15%
Construction and development secured by 1-4 family residential properties |  | 57,123 |  |  | 19,562 |  |  | 10,724 |  | 55%
Commercial and other construction |  | 93,894 |  |  | 74,069 |  |  | 37,610 |  | 51%
Consumer |  | 7,992 |  |  | 4,506 |  |  | 389 |  | 9%
Total investment in impaired loan pools | $ | 293,588 |  | $ | 204,253 |  | $ | 64,245 |  | 31%
The decrease in construction loan pools from December 31, 2014 to September 30, 2015 was mostly caused by the sale of covered commercial loans during the quarter ended September 30, 2015. The increase in loans secured by 1-4 family residential properties, commercial and other construction loan pools from December 31, 2014 to September 30, 2015 was caused by the establishment of a specific reserve with respect to impaired commercial and other construction loan pools that were required based on the net present value of the cash flows expected to be collecte d. The following table presents the interest recognized on commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30, for the quarters and nine-month periods ended September 30, 2015 an d 2014:
| Quarter Ended September 30,
| 2015 |  | 2014
| Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment
| (In thousands)
Originated and other loans held for investment: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 37 |  | $ | 207,610 |  | $ | 28 |  | $ | 5,103
Residential troubled-debt restructuring |  | 788 |  |  | 90,278 |  |  | 666 |  |  | 91,293
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 365 |  |  | 31,159 |  |  | 1,728 |  |  | 89,029
|  | 1,190 |  |  | 329,047 |  |  | 2,422 |  |  | 185,425
Acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | - |  |  | 1,077 |  |  | - |  |  | -
Total interest income from impaired loans | $ | 1,190 |  | $ | 330,124 |  | $ | 2,422 |  | $ | 185,425
| Nine-Month Period Ended September 30,
| 2015 |  | 2014
| Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment
| (In thousands)
Originated and other loans held for investment: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 73 |  | $ | 166,633 |  | $ | 83 |  | $ | 6,187
Residential troubled-debt restructuring |  | 2,381 |  |  | 90,903 |  |  | 1,876 |  |  | 89,597
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 727 |  |  | 74,247 |  |  | 5,185 |  |  | 44,203
| $ | 3,181 |  | $ | 331,783 |  | $ | 7,144 |  | $ | 139,987
Acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | - |  |  | 1,641 |  |  | - |  |  | -
Total interest income from impaired loans | $ | 3,181 |  | $ | 333,424 |  | $ | 7,144 |  | $ | 139,987
Modifications The follow ing tables present the troubled-debt restructuring s during the quarters and nine-month periods ended September 30, 2015 and 2014:
| Quarter Ended September 30, 2015
| 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 | 30 |  | $ | 3,846 |  | 6.34% |  | 338 |  | $ | 3,992 |  | 4.45% |  | 180
Commercial | 3 |  |  | 1,001 |  | 6.50% |  | 12 |  |  | 8,511 |  | 3.19% |  | 12
Consumer | 27 |  |  | 170 |  | 12.41% |  | 70 |  |  | 400 |  | 12.32% |  | 52
| Nine-Month Period Ended September 30, 2015
| 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 | 127 |  | $ | 15,455 |  | 5.07% |  | 346 |  | $ | 15,586 |  | 4.21% |  | 306
Commercial | 7 |  |  | 5,534 |  | 6.77% |  | 67 |  |  | 13,045 |  | 4.52% |  | 57
Consumer | 59 |  |  | 567 |  | 13.87% |  | 71 |  |  | 840 |  | 13.33% |  | 60
Auto | 1 |  |  | 64 |  | 12.95% |  | 72 |  |  | 65 |  | 12.95% |  | 72
| Quarter Ended September 30, 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 | 26 |  | $ | 3,016 |  | 5.62% |  | 347 |  | $ | 2,965 |  | 4.22% |  | 393
Commercial | 20 |  |  | 200,007 |  | 7.25% |  | 3 |  |  | 200,007 |  | 7.25% |  | 10
Consumer | 6 |  |  | 58 |  | 10.00% |  | 61 |  |  | 68 |  | 9.66% |  | 55
| Nine-Month Period Ended September 30, 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 | 113 |  | $ | 14,562 |  | 5.99% |  | 349 |  | $ | 14,162 |  | 4.21% |  | 389
Commercial | 21 |  |  | 200,080 |  | 7.25% |  | 3 |  |  | 200,080 |  | 7.25% |  | 10
Consumer | 13 |  |  | 123 |  | 11.77% |  | 55 |  |  | 139 |  | 11.48% |  | 62
The following table presents troubled-debt restructurings for which there was a p ayment default during the twelve-month periods ended September 30, 2015 and 2014:
| Twelve-Month Period Ended September 30,
| 2015 |  | 2014
| Number of Contracts |  | Recorded Investment |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 49 |  | $ | 5,396 |  | 15 |  | $ | 1,739
Consumer | 8 |  | $ | 177 |  | 2 |  | $ | 5
Auto | 1 |  | $ | 64 |  | - |  | $ | -
Credit Quality Indicators The Company categorizes originated commercial loans and acquired BBVAPR commercial 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, and prior loss experience, and the results of periodic credit reviews of individual loans. The Company uses the following definitions for risk ratings: Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards. 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 w eaknesses 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 i nherent 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 de sirable 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 September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the ris k category of gross originated and other loans and BBVAPR acquired loans accounted for under ASC 310-20 subject to risk rating by class of loans is as follows:
| September 30, 2015
| 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 | $ | 224,110 |  | $ | 206,678 |  | $ | 15,227 |  | $ | - |  | $ | - |  | $ | 2,205
Institutional |  | 34,342 |  |  | 26,101 |  |  | 8,023 |  |  | - |  |  | - |  |  | 218
Middle market |  | 207,255 |  |  | 182,617 |  |  | 9,368 |  |  | - |  |  | - |  |  | 15,270
Retail |  | 211,761 |  |  | 191,523 |  |  | 4,633 |  |  | 4,821 |  |  | - |  |  | 10,784
Floor plan |  | 2,925 |  |  | 2,925 |  |  | - |  |  | - |  |  | - |  |  | -
Real estate |  | 16,766 |  |  | 16,766 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 697,159 |  |  | 626,610 |  |  | 37,251 |  |  | 4,821 |  |  | - |  |  | 28,477
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 71,714 |  |  | 66,054 |  |  | - |  |  | - |  |  | - |  |  | 5,660
Institutional |  | 383,786 |  |  | 189,882 |  |  | - |  |  | - |  |  | - |  |  | 193,904
Middle market |  | 107,843 |  |  | 102,757 |  |  | 2,395 |  |  | - |  |  | - |  |  | 2,691
Retail |  | 92,668 |  |  | 87,839 |  |  | 673 |  |  | 2,110 |  |  | - |  |  | 2,046
Floor plan |  | 36,183 |  |  | 33,453 |  |  | 2,169 |  |  | 225 |  |  | - |  |  | 336
|  | 692,194 |  |  | 479,985 |  |  | 5,237 |  |  | 2,335 |  |  | - |  |  | 204,637
Total |  | 1,389,353 |  |  | 1,106,595 |  |  | 42,488 |  |  | 7,156 |  |  | - |  |  | 233,114
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 326 |  |  | - |  |  | - |  |  | 326 |  |  | - |  |  | -
Floor plan |  | 2,948 |  |  | 1,641 |  |  | 829 |  |  | - |  |  | - |  |  | 478
|  | 3,274 |  |  | 1,641 |  |  | 829 |  |  | 326 |  |  | - |  |  | 478
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 3,788 |  |  | 3,777 |  |  | - |  |  | 11 |  |  | - |  |  | -
Floor plan |  | 674 |  |  | 666 |  |  | - |  |  | 1 |  |  | - |  |  | 7
|  | 4,462 |  |  | 4,443 |  |  | - |  |  | 12 |  |  | - |  |  | 7
Total |  | 7,736 |  |  | 6,084 |  |  | 829 |  |  | 338 |  |  | - |  |  | 485
Total | $ | 1,397,089 |  | $ | 1,112,679 |  | $ | 43,317 |  | $ | 7,494 |  | $ | - |  | $ | 233,599
| December 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 | $ | 133,076 |  | $ | 109,282 |  | $ | 15,615 |  | $ | - |  | $ | - |  | $ | 8,179
Institutional |  | 36,611 |  |  | 27,089 |  |  | 9,284 |  |  | - |  |  | - |  |  | 238
Middle market |  | 164,050 |  |  | 148,360 |  |  | 2,817 |  |  | - |  |  | - |  |  | 12,873
Retail |  | 175,628 |  |  | 159,209 |  |  | 3,690 |  |  | 2,637 |  |  | - |  |  | 10,092
Floor plan |  | 1,650 |  |  | 692 |  |  | 958 |  |  | - |  |  | - |  |  | -
Real estate |  | 12,628 |  |  | 12,628 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 523,643 |  |  | 457,260 |  |  | 32,364 |  |  | 2,637 |  |  | - |  |  | 31,382
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 63,746 |  |  | 63,746 |  |  | - |  |  | - |  |  | - |  |  | -
Institutional |  | 478,935 |  |  | 278,953 |  |  | - |  |  | - |  |  | - |  |  | 199,982
Middle market |  | 92,334 |  |  | 87,126 |  |  | 2,815 |  |  | - |  |  | - |  |  | 2,393
Retail |  | 90,171 |  |  | 85,941 |  |  | 259 |  |  | 2,575 |  |  | - |  |  | 1,396
Floor plan |  | 40,903 |  |  | 38,413 |  |  | 1,247 |  |  | 126 |  |  | - |  |  | 1,117
|  | 766,089 |  |  | 554,179 |  |  | 4,321 |  |  | 2,701 |  |  | - |  |  | 204,888
Total |  | 1,289,732 |  |  | 1,011,439 |  |  | 36,685 |  |  | 5,338 |  |  | - |  |  | 236,270
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 351 |  |  | - |  |  | - |  |  | 351 |  |  | - |  |  | -
Floor plan |  | 4,131 |  |  | 3,724 |  |  | - |  |  | - |  |  | - |  |  | 407
|  | 4,482 |  |  | 3,724 |  |  | - |  |  | 351 |  |  | - |  |  | 407
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 4,121 |  |  | 4,080 |  |  | 8 |  |  | 33 |  |  | - |  |  | -
Floor plan |  | 4,072 |  |  | 3,807 |  |  | - |  |  | - |  |  | - |  |  | 265
|  | 8,193 |  |  | 7,887 |  |  | 8 |  |  | 33 |  |  | - |  |  | 265
Total |  | 12,675 |  |  | 11,611 |  |  | 8 |  |  | 384 |  |  | - |  |  | 672
Total | $ | 1,302,407 |  | $ | 1,023,050 |  | $ | 36,693 |  | $ | 5,722 |  | $ | - |  | $ | 236,942
All loans individually measured for impairment are classified as substandard at September 30, 2015 and December 31, 2014. At September 30, 2015 and December 31, 2014, the Company had outstanding credit facilities of approximately $418.5 million and $619.0 million, respectively, granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities. A substantial portion of the Company’s credit exposure to Puerto Rico’s government consists of collateralized loans or obligations that have a specific source of income or revenues identified for their repayment. Approximately $203 million of these loans are general obligations debt of municipalities secured by ad valorem taxation, without limitation as to rate or amo unt, on all taxable property within the issuing municipalities. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations debt. In addition, some of these obligations consist o f senior and subordinated loans to public corporations that obtain revenues from rates charged for services or products, such as the Puerto Rico Electric Power Authority (“PREPA”) and the State Insurance Fund Corporation. The Commonwealth’s instrumentalit ies or public corporations have varying degrees of independence from the central government. Some instrumentalities or public corporations that provide essential or important government services, such as the University of Puerto Rico, the Puerto Rico Medi cal Services Administration and the Puerto Rico Metropolitan Bus Authority, are supported by the Commonwealth through budget appropriations, while others, such as PREPA, are owed substantial amounts for utility services rendered to the Commonwealth. At September 30, 2015, we had approximately $215.6 million of credit facilities to central government and public corporations of the Commonwealth, including: PREPA with an outstanding balance of $193.9 million; and The Puerto Rico Housing Finance Authority with an outstanding balance of $20.9 million to be repaid from abandoned or unclaimed funds at financial institutions that revert to the government under a Puerto Rico escheat law. The outstanding balance of credi t facilities to public corporations decreased during the second quarter as a result of a repayment in full of a $75 million loan by the Puerto Rico Aqueduct and Sewer Authority and in the third quarter as a result of a repayment in full of a $7 8 million lo an by the State Insurance Fund Corporation. Oriental Bank is part of a four bank syndicate providing a $550 million revolving line of credit to finance the purchase of fuel for PREPA’s day-to-day power generation activities. Our participation in the line of credit has an unpaid principal balance of $193.9 million as of September 30, 2015. As part of the bank syndicate, the Bank entered into a forbearance agreement with PREPA, which was extended several times until the execution of a Restructuring Support Agreement on November 5, 2015 with PREPA and certain other creditors. The Restructuring Support Agreement provides for the restructuring of the fuel line of credit subject to the accomplishment of several milestones, including some milestones that depend on the actions of third parties to the agreement, such as the negotiation of agreements with other creditors and legislative action. The Company has classified the credit facility to PREPA as substandard and on non-accrual status. The Compa ny conducted an impairment analysis considering the probability of collection of principal and interest, which included a financial model to project the future liquidity status of PREPA under various scenarios and its capacity to service its financial obli gations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Despite t he Company’s analysis showing PREPA’s capacity to repay the line of credit, the Company placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015. Since April 1, 2015, interest payments have been applied to principal. At September 30, 2015, the specific allowance for PREPA a mounted to $23.4 million. PREPA’s enabling act provides for local receivership upon request to any Puerto Rico court of competent jurisdiction in the event of a defaul t in debt-service payments or other obligations in connection with PREPA’s bonds. The receiver so appointed would be empowered, directly or through its agents and attorneys, to take possession of the undertakings, income and revenues pledged to the paymen t of the bonds in default; to have, hold, use, operate, manage and control the same; and to exercise all of PREPA’s rights and powers with respect to such undertakings. However, any such receiver would not have the power to sell, assign, mortgage or other wise dispose of PREPA’s assets, and its powers would be limited to the operation and maintenance of such undertakings and the collection and application of the income and revenues therefrom. Although the Puerto Rico government is actively seeking the right to bankruptcy relief for some of its public instrumentalities, including PREPA, both through an amendment to the federal bankruptcy code and the enactment of a local debt restructuring law, such efforts have thus far been unsuccessful. For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of gross origina ted and other loans and acquired BBVAPR loans accounted for under ASC 310-20 not subject to risk rating by class of loans is as follows:
| September 30, 2015
| 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 | $ | 59,581 |  | $ | 52,550 |  | $ | 82 |  | $ | 2,267 |  | $ | 999 |  | $ | 1,083 |  | $ | 1,818 |  | $ | 782
Years 2003 and 2004 |  | 101,863 |  |  | 89,211 |  |  | 364 |  |  | 4,723 |  |  | 1,763 |  |  | 1,064 |  |  | 2,999 |  |  | 1,739
Year 2005 |  | 55,600 |  |  | 48,517 |  |  | - |  |  | 2,525 |  |  | 287 |  |  | 1,192 |  |  | 2,208 |  |  | 871
Year 2006 |  | 80,427 |  |  | 65,839 |  |  | 97 |  |  | 2,854 |  |  | 1,070 |  |  | 1,708 |  |  | 5,354 |  |  | 3,505
Years 2007, 2008 and 2009 |  | 94,318 |  |  | 72,491 |  |  | 281 |  |  | 2,151 |  |  | 1,447 |  |  | 3,926 |  |  | 9,984 |  |  | 4,038
Years 2010, 2011, 2012 2013 |  | 154,531 |  |  | 139,927 |  |  | 538 |  |  | 1,248 |  |  | 139 |  |  | 4,007 |  |  | 4,338 |  |  | 4,334
Years 2014 and 2015 |  | 76,392 |  |  | 76,111 |  |  | - |  |  | 96 |  |  | - |  |  | 185 |  |  | - |  |  | -
|  | 622,712 |  |  | 544,646 |  |  | 1,362 |  |  | 15,864 |  |  | 5,705 |  |  | 13,165 |  |  | 26,701 |  |  | 15,269
Non-traditional |  | 32,249 |  |  | 26,863 |  |  | - |  |  | 1,918 |  |  | 375 |  |  | 1,362 |  |  | 1,731 |  |  | -
Loss mitigation program |  | 100,167 |  |  | 16,289 |  |  | 2,479 |  |  | 1,530 |  |  | 1,194 |  |  | 1,723 |  |  | 1,691 |  |  | 75,261
|  | 755,128 |  |  | 587,798 |  |  | 3,841 |  |  | 19,312 |  |  | 7,274 |  |  | 16,250 |  |  | 30,123 |  |  | 90,530
Home equity secured personal loans |  | 515 |  |  | 451 |  |  | 64 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
GNMA's buy-back option program |  | 6,993 |  |  | - |  |  | - |  |  | - |  |  | 973 |  |  | 3,840 |  |  | 2,180 |  |  | -
|  | 762,636 |  |  | 588,249 |  |  | 3,905 |  |  | 19,312 |  |  | 8,247 |  |  | 20,090 |  |  | 32,303 |  |  | 90,530
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 21,148 |  |  | 20,186 |  |  | 436 |  |  | 182 |  |  | 123 |  |  | 221 |  |  | - |  |  | -
Overdrafts |  | 275 |  |  | 260 |  |  | 15 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Unsecured personal lines of credit |  | 2,184 |  |  | 2,087 |  |  | 31 |  |  | 27 |  |  | 39 |  |  | - |  |  | - |  |  | -
Unsecured personal loans |  | 187,826 |  |  | 184,441 |  |  | 1,737 |  |  | 786 |  |  | 835 |  |  | 27 |  |  | - |  |  | -
Cash collateral personal loans |  | 16,323 |  |  | 16,047 |  |  | 171 |  |  | 103 |  |  | - |  |  | 2 |  |  | - |  |  | -
|  | 227,756 |  |  | 223,021 |  |  | 2,390 |  |  | 1,098 |  |  | 997 |  |  | 250 |  |  | - |  |  | -
Auto and Leasing |  | 647,544 |  |  | 566,993 |  |  | 52,350 |  |  | 19,215 |  |  | 6,668 |  |  | 2,318 |  |  | - |  |  | -
|  | 1,637,936 |  |  | 1,378,263 |  |  | 58,645 |  |  | 39,625 |  |  | 15,912 |  |  | 22,658 |  |  | 32,303 |  |  | 90,530
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 36,526 |  |  | 34,511 |  |  | 825 |  |  | 422 |  |  | 351 |  |  | 417 |  |  | - |  |  | -
Personal loans |  | 3,248 |  |  | 3,102 |  |  | 89 |  |  | 14 |  |  | 11 |  |  | 32 |  |  | - |  |  | -
|  | 39,774 |  |  | 37,613 |  |  | 914 |  |  | 436 |  |  | 362 |  |  | 449 |  |  | - |  |  | -
Auto |  | 124,120 |  |  | 111,149 |  |  | 9,010 |  |  | 2,921 |  |  | 752 |  |  | 288 |  |  | - |  |  | -
|  | 163,894 |  |  | 148,762 |  |  | 9,924 |  |  | 3,357 |  |  | 1,114 |  |  | 737 |  |  | - |  |  | -
Total | $ | 1,801,830 |  | $ | 1,527,025 |  | $ | 68,569 |  | $ | 42,982 |  | $ | 17,026 |  | $ | 23,395 |  | $ | 32,303 |  | $ | 90,530
| December 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 | $ | 65,744 |  | $ | 53,432 |  | $ | 3,963 |  | $ | 3,083 |  | $ | 1,044 |  | $ | 1,360 |  | $ | 1,975 |  | $ | 887
Years 2003 and 2004 |  | 109,669 |  |  | 86,941 |  |  | 10,391 |  |  | 4,362 |  |  | 1,657 |  |  | 3,215 |  |  | 1,330 |  |  | 1,773
Year 2005 |  | 60,472 |  |  | 49,275 |  |  | 3,824 |  |  | 2,205 |  |  | 389 |  |  | 1,673 |  |  | 1,893 |  |  | 1,213
Year 2006 |  | 85,550 |  |  | 65,113 |  |  | 5,263 |  |  | 2,967 |  |  | 1,242 |  |  | 2,801 |  |  | 4,624 |  |  | 3,540
Years 2007, 2008 and 2009 |  | 93,489 |  |  | 76,246 |  |  | 4,230 |  |  | 1,809 |  |  | 337 |  |  | 3,986 |  |  | 2,813 |  |  | 4,068
Years 2010, 2011, 2012 2013 |  | 162,316 |  |  | 148,832 |  |  | 2,698 |  |  | 2,490 |  |  | 938 |  |  | 1,397 |  |  | 1,296 |  |  | 4,665
Year 2014 |  | 42,108 |  |  | 41,818 |  |  | 290 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
|  | 619,348 |  |  | 521,657 |  |  | 30,659 |  |  | 16,916 |  |  | 5,607 |  |  | 14,432 |  |  | 13,931 |  |  | 16,146
Non-traditional |  | 36,200 |  |  | 30,916 |  |  | 1,477 |  |  | 584 |  |  | 478 |  |  | 600 |  |  | 2,096 |  |  | 49
Loss mitigation program |  | 93,443 |  |  | 10,882 |  |  | 995 |  |  | 1,123 |  |  | 802 |  |  | 405 |  |  | 1,246 |  |  | 77,990
|  | 748,991 |  |  | 563,455 |  |  | 33,131 |  |  | 18,623 |  |  | 6,887 |  |  | 15,437 |  |  | 17,273 |  |  | 94,185
Home equity secured personal loans |  | 517 |  |  | 517 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
GNMA's buy-back option program |  | 42,243 |  |  | - |  |  | - |  |  | - |  |  | 6,416 |  |  | 20,729 |  |  | 15,098 |  |  | -
|  | 791,751 |  |  | 563,972 |  |  | 33,131 |  |  | 18,623 |  |  | 13,303 |  |  | 36,166 |  |  | 32,371 |  |  | 94,185
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 19,071 |  |  | 18,198 |  |  | 360 |  |  | 139 |  |  | 171 |  |  | 203 |  |  | - |  |  | -
Overdrafts |  | 307 |  |  | 287 |  |  | 20 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Unsecured personal lines of credit |  | 2,200 |  |  | 1,970 |  |  | 102 |  |  | 25 |  |  | 38 |  |  | 62 |  |  | 3 |  |  | -
Unsecured personal loans |  | 147,939 |  |  | 144,696 |  |  | 1,822 |  |  | 743 |  |  | 623 |  |  | 55 |  |  | - |  |  | -
Cash collateral personal loans |  | 17,243 |  |  | 16,920 |  |  | 275 |  |  | 39 |  |  | 9 |  |  | - |  |  | - |  |  | -
|  | 186,760 |  |  | 182,071 |  |  | 2,579 |  |  | 946 |  |  | 841 |  |  | 320 |  |  | 3 |  |  | -
Auto and Leasing |  | 575,582 |  |  | 503,588 |  |  | 47,658 |  |  | 16,916 |  |  | 5,196 |  |  | 2,224 |  |  | - |  |  | -
|  | 1,554,093 |  |  | 1,249,631 |  |  | 83,368 |  |  | 36,485 |  |  | 19,340 |  |  | 38,710 |  |  | 32,374 |  |  | 94,185
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 41,848 |  |  | 38,419 |  |  | 1,376 |  |  | 654 |  |  | 589 |  |  | 810 |  |  | - |  |  | -
Personal loans |  | 3,496 |  |  | 3,221 |  |  | 151 |  |  | 47 |  |  | 39 |  |  | 38 |  |  | - |  |  | -
|  | 45,344 |  |  | 41,640 |  |  | 1,527 |  |  | 701 |  |  | 628 |  |  | 848 |  |  | - |  |  | -
Auto |  | 184,782 |  |  | 169,064 |  |  | 11,003 |  |  | 3,453 |  |  | 767 |  |  | 495 |  |  | - |  |  | -
|  | 230,126 |  |  | 210,704 |  |  | 12,530 |  |  | 4,154 |  |  | 1,395 |  |  | 1,343 |  |  | - |  |  | -
Total | $ | 1,784,219 |  | $ | 1,460,335 |  | $ | 95,898 |  | $ | 40,639 |  | $ | 20,735 |  | $ | 40,053 |  | $ | 32,374 |  | $ | 94,185

X
- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5162-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5074-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 + Details
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- References No definition available. + Details
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