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Loans Receivable | 12 Months Ended
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Dec. 31, 2015
Loans Receivable [Abstract] |
LOANS RECEIVABLE | NOTE 5 - 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-shar e coverage related to commercial and other-non single fa mily acquired Eurobank loans expired on June 30, 2015. Notwithstanding the expiration of loss share coverage of commercial loans, on July 2, 2015, the Company entered into an agreement with the FDIC pursuant to which the FDIC concurred with a potent ial sale of a pool of loss-share assets covered under the commercial loss-shar ing agreement. Pursuant to such agreement, and as further discussed below, the FDIC agreed and paid $20 million in loss share coverage with respect to the aggregate loss resulting from any portfolio sale w ithin 120 days of the agreement. This sale was completed on September 28, 2015. The coverage for the single family residential loans will expire on June 30, 2020. At December 31, 2015, the remaining covered loans amounting to $59.6 million, net carrying am ount, 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. T herefore, the Company changed its current and prior year loan disclosures during 2015. 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 cover ed $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 for acqui red 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 from the BBVAPR A cquisition amounting to $38.1 million 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 recoveries. In addition, certain add itional foreclosed real estate with a carrying amount of $11.0 million was sold for $1.7 million. As part of this transaction, the Company made customary representations and warranties to the purchaser regarding certain characteristics of the assets that were sold. Such representations and warranties survive for a limited period of time. To the extent that the assets sold do not meet the specified characteristics, and subject to certain notice, cure period and other conditions, the purchaser would be entitled to require the Company to repurchase such assets. The composition of the Company’s loan portfolio at December 31, 2015 and 2014 was as follows:
| December 31,
| 2015 |  | 2014
| (In thousands)
Originated and other loans and leases held for investment: |  |  |  |  |
Mortgage | $ | 757,828 |  | $ | 791,751
Commercial |  | 1,441,649 |  |  | 1,289,732
Consumer |  | 242,950 |  |  | 186,760
Auto and leasing |  | 669,163 |  |  | 575,582
|  | 3,111,590 |  |  | 2,843,825
Allowance for loan and lease losses on originated and other loans and leases |  | (112,626) |  |  | (51,439)
|  | 2,998,964 |  |  | 2,792,386
Deferred loan costs, net |  | 4,203 |  |  | 4,282
Total originated and other loans loans held for investment, net |  | 3,003,167 |  |  | 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 |  | 7,457 |  |  | 12,675
Consumer |  | 38,385 |  |  | 45,344
Auto |  | 106,911 |  |  | 184,782
|  | 152,753 |  |  | 242,801
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20 |  | (5,542) |  |  | (4,597)
|  | 147,211 |  |  | 238,204
Accounted for under ASC 310-30 (Loans acquired with deteriorated |  |  |  |  |
credit quality, including those by analogy) |  |  |  |  |
Mortgage |  | 608,294 |  |  | 656,122
Commercial |  | 287,311 |  |  | 452,201
Construction |  | 88,180 |  |  | 106,361
Consumer |  | 11,843 |  |  | 29,888
Auto |  | 153,592 |  |  | 247,233
|  | 1,149,220 |  |  | 1,491,805
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30 |  | (25,785) |  |  | (13,481)
|  | 1,123,435 |  |  | 1,478,324
Total acquired BBVAPR loans, net |  | 1,270,646 |  |  | 1,716,528
Acquired Eurobank loans: |  |  |  |  |
Loans secured by 1-4 family residential properties |  | 92,273 |  |  | 102,162
Commercial and construction |  | 142,377 |  |  | 256,488
Consumer |  | 2,314 |  |  | 4,506
Total acquired Eurobank loans |  | 236,964 |  |  | 363,156
Allowance for loan and lease losses on Eurobank loans |  | (90,178) |  |  | (64,245)
Total acquired Eurobank loans, net |  | 146,786 |  |  | 298,911
Total acquired loans, net |  | 1,417,432 |  |  | 2,015,439
Total held for investment, net |  | 4,420,599 |  |  | 4,812,107
Mortgage loans held-for-sale |  | 13,614 |  |  | 14,539
Total loans, net | $ | 4,434,213 |  | $ | 4,826,646
At December 31, 2015 and 2014, covered loans amounted to $92.3 million and 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 $363.2 million, gross carrying amount. Interest income recognized for covered loans during 2015 and 2014 was $33.7 million and $89.0 million, respectively. Originated and Other Loans and Leases 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 December 31, 2015 and 2014 by class of loans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of loans unde rlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.
| December 31, 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 | $ | 80 |  | $ | 2,217 |  | $ | 3,889 |  | $ | 6,186 |  | $ | 41 |  | $ | 51,562 |  | $ | 57,789 |  | $ | 144
Years 2003 and 2004 |  | 251 |  |  | 5,036 |  |  | 5,536 |  |  | 10,823 |  |  | - |  |  | 88,623 |  |  | 99,446 |  |  | -
Year 2005 |  | 79 |  |  | 2,553 |  |  | 3,549 |  |  | 6,181 |  |  | - |  |  | 48,040 |  |  | 54,221 |  |  | -
Year 2006 |  | 551 |  |  | 2,878 |  |  | 7,934 |  |  | 11,363 |  |  | 176 |  |  | 66,864 |  |  | 78,403 |  |  | -
Years 2007, 2008 and 2009 |  | 170 |  |  | 2,053 |  |  | 14,733 |  |  | 16,956 |  |  | - |  |  | 74,590 |  |  | 91,546 |  |  | 526
Years 2010, 2011, 2012, 2013 |  | 662 |  |  | 1,673 |  |  | 10,519 |  |  | 12,854 |  |  | 141 |  |  | 137,749 |  |  | 150,744 |  |  | 72
Years 2014 and 2015 |  | - |  |  | 65 |  |  | 663 |  |  | 728 |  |  | - |  |  | 85,128 |  |  | 85,856 |  |  | -
|  | 1,793 |  |  | 16,475 |  |  | 46,823 |  |  | 65,091 |  |  | 358 |  |  | 552,556 |  |  | 618,005 |  |  | 742
Non-traditional |  | - |  |  | 977 |  |  | 5,079 |  |  | 6,056 |  |  | 13 |  |  | 23,483 |  |  | 29,552 |  |  | -
Loss mitigation program |  | 9,958 |  |  | 6,887 |  |  | 14,930 |  |  | 31,775 |  |  | 5,593 |  |  | 64,548 |  |  | 101,916 |  |  | 3,083
|  | 11,751 |  |  | 24,339 |  |  | 66,832 |  |  | 102,922 |  |  | 5,964 |  |  | 640,587 |  |  | 749,473 |  |  | 3,825
Home equity secured personal loans |  | - |  |  | - |  |  | 64 |  |  | 64 |  |  | - |  |  | 346 |  |  | 410 |  |  | -
GNMA's buy-back option program |  | - |  |  | - |  |  | 7,945 |  |  | 7,945 |  |  | - |  |  | - |  |  | 7,945 |  |  | -
|  | 11,751 |  |  | 24,339 |  |  | 74,841 |  |  | 110,931 |  |  | 5,964 |  |  | 640,933 |  |  | 757,828 |  |  | 3,825
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 227,557 |  |  | 227,557 |  |  | -
Institutional |  | 213 |  |  | - |  |  | - |  |  | 213 |  |  | - |  |  | 33,594 |  |  | 33,807 |  |  | -
Middle market |  | 1,174 |  |  | 712 |  |  | 9,113 |  |  | 10,999 |  |  | 1,730 |  |  | 194,219 |  |  | 206,948 |  |  | -
Retail |  | 686 |  |  | 466 |  |  | 6,921 |  |  | 8,073 |  |  | 1,177 |  |  | 231,840 |  |  | 241,090 |  |  | -
Floor plan |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,892 |  |  | 2,892 |  |  | -
Real estate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 16,662 |  |  | 16,662 |  |  | -
|  | 2,073 |  |  | 1,178 |  |  | 16,034 |  |  | 19,285 |  |  | 2,907 |  |  | 706,764 |  |  | 728,956 |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 108,582 |  |  | 108,582 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | 190,290 |  |  | 190,695 |  |  | 380,985 |  |  | -
Middle market |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,565 |  |  | 105,748 |  |  | 107,313 |  |  | -
Retail |  | 282 |  |  | 639 |  |  | 604 |  |  | 1,525 |  |  | 783 |  |  | 75,489 |  |  | 77,797 |  |  | -
Floor plan |  | 238 |  |  | 51 |  |  | 39 |  |  | 328 |  |  | - |  |  | 37,688 |  |  | 38,016 |  |  | -
|  | 520 |  |  | 690 |  |  | 643 |  |  | 1,853 |  |  | 192,638 |  |  | 518,202 |  |  | 712,693 |  |  | -
|  | 2,593 |  |  | 1,868 |  |  | 16,677 |  |  | 21,138 |  |  | 195,545 |  |  | 1,224,966 |  |  | 1,441,649 |  |  | -
| December 31, 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 |  | 449 |  |  | 182 |  |  | 369 |  |  | 1,000 |  |  | - |  |  | 21,766 |  |  | 22,766 |  |  | -
Overdrafts |  | 24 |  |  | - |  |  | - |  |  | 24 |  |  | - |  |  | 166 |  |  | 190 |  |  | -
Personal lines of credit |  | 74 |  |  | - |  |  | 45 |  |  | 119 |  |  | 19 |  |  | 2,106 |  |  | 2,244 |  |  | -
Personal loans |  | 2,078 |  |  | 1,179 |  |  | 627 |  |  | 3,884 |  |  | 414 |  |  | 196,858 |  |  | 201,156 |  |  | -
Cash collateral personal loans |  | 125 |  |  | 17 |  |  | 2 |  |  | 144 |  |  | - |  |  | 16,450 |  |  | 16,594 |  |  | -
|  | 2,750 |  |  | 1,378 |  |  | 1,043 |  |  | 5,171 |  |  | 433 |  |  | 237,346 |  |  | 242,950 |  |  | -
Auto and leasing |  | 53,566 |  |  | 16,898 |  |  | 8,293 |  |  | 78,757 |  |  | 49 |  |  | 590,357 |  |  | 669,163 |  |  | -
Total | $ | 70,660 |  | $ | 44,483 |  | $ | 100,854 |  | $ | 215,997 |  | $ | 201,991 |  | $ | 2,693,602 |  | $ | 3,111,590 |  | $ | 3,825
| 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 year ended 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 continue using one scheduled payment due. A t December 31, 2015 and 2014, the Company had carrying balance of $334.6 million and $450.2 million, respectively, in loans granted to the Puerto Rico government, 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 December 31, 2015 and 2014. We, as part of a bank syndicate, have gra nted 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 various scenarios and its capacity to service its financial obligations, and concluded that PREPA had sufficient cash flows for the repayment of the line of credit. Desp ite the 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, based on management’s concerns regarding PREPA’s wil lingness to repay the debt. During the fourth quarter of 2015, the Company recorded an additional $29.3 million provision for loan and lease losses on PREPA. 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 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 l oans in two acquisitions, BBVAPR and Eurobank. Acquired 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, an d any accretion of discount or amortization of premium 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, renewa l 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 December 31, 2015 and 2014, by class of loans:
| December 31, 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 | $ | - |  | $ | - |  | $ | 228 |  | $ | 228 |  | $ | - |  | $ | - |  | $ | 228 |  | $ | -
Floor plan |  | - |  |  | - |  |  | 467 |  |  | 467 |  |  | - |  |  | 2,422 |  |  | 2,889 |  |  | -
|  | - |  |  | - |  |  | 695 |  |  | 695 |  |  | - |  |  | 2,422 |  |  | 3,117 |  |  | -
Other commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 186 |  |  | 29 |  |  | 178 |  |  | 393 |  |  | - |  |  | 3,331 |  |  | 3,724 |  |  | -
Floor plan |  | - |  |  | - |  |  | 7 |  |  | 7 |  |  | - |  |  | 609 |  |  | 616 |  |  | -
|  | 186 |  |  | 29 |  |  | 185 |  |  | 400 |  |  | - |  |  | 3,940 |  |  | 4,340 |  |  | -
|  | 186 |  |  | 29 |  |  | 880 |  |  | 1,095 |  |  | - |  |  | 6,362 |  |  | 7,457 |  |  | -
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 930 |  |  | 384 |  |  | 489 |  |  | 1,803 |  |  | - |  |  | 33,414 |  |  | 35,217 |  |  | -
Personal loans |  | 14 |  |  | 29 |  |  | 46 |  |  | 89 |  |  | - |  |  | 3,079 |  |  | 3,168 |  |  | -
|  | 944 |  |  | 413 |  |  | 535 |  |  | 1,892 |  |  | - |  |  | 36,493 |  |  | 38,385 |  |  | -
Auto |  | 7,553 |  |  | 2,279 |  |  | 831 |  |  | 10,663 |  |  | - |  |  | 96,248 |  |  | 106,911 |  |  | -
Total | $ | 8,683 |  | $ | 2,721 |  | $ | 2,246 |  | $ | 13,650 |  | $ | - |  | $ | 139,103 |  | $ | 152,753 |  | $ | -
| 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 December 31, 2015 and 2014 is as follows:
|  | December 31,
|  | 2015 |  | 2014
|  | (In thousands)
Contractual required payments receivable |  | $1,945,098 |  | $2,394,378
Less: Non-accretable discount |  | $434,190 |  | $456,627
Cash expected to be collected |  | 1,510,908 |  | 1,937,751
Less: Accretable yield |  | 361,688 |  | 445,946
Carrying amount, gross |  | 1,149,220 |  | 1,491,805
Less: allowance for loan and lease losses |  | 25,785 |  | 13,481
Carrying amount, net |  | $1,123,435 |  | $1,478,324
At December 31, 2015 and 2014, the Company had $80.9 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 December 31, 2015 and 2014. The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the years ended December 31, 2015, 2014
| Year Ended December 31, 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 |  | (34,842) |  |  | (39,268) |  |  | (10,161) |  |  | (23,463) |  |  | (4,379) |  |  | (112,113)
Change in expected cash flows |  | - |  |  | 6,130 |  |  | 2,402 |  |  | - |  |  | (1) |  |  | 8,531
Transfer (to) from non-accretable discount |  | 5,272 |  |  | 17,353 |  |  | 1,545 |  |  | (8,957) |  |  | 4,111 |  |  | 19,324
Balance at end of period | $ | 268,794 |  | $ | 45,411 |  | $ | 19,615 |  | $ | 21,578 |  | $ | 6,290 |  | $ | 361,688
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 |  | (9,795) |  |  | 6,065 |  |  | 4,823 |  |  | (3,133) |  |  | (1,073) |  |  | (3,113)
Transfer from (to) accretable yield |  | (5,272) |  |  | (17,353) |  |  | (1,545) |  |  | 8,957 |  |  | (4,111) |  |  | (19,324)
Balance at end of period | $ | 374,772 |  | $ | 11,781 |  | $ | 6,764 |  | $ | 22,039 |  | $ | 18,834 |  | $ | 434,190
| Year Ended December 31, 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 |  | (37,612) |  |  | (49,039) |  |  | (21,894) |  |  | (39,023) |  |  | (5,968) |  |  | (153,536)
Transfer (to) from non-accretable discount |  | 48,135 |  |  | 14,096 |  |  | 4,730 |  |  | 15,176 |  |  | (208) |  |  | 81,929
Balance at end of period | $ | 298,364 |  | $ | 61,196 |  | $ | 25,829 |  | $ | 53,998 |  | $ | 6,559 |  | $ | 445,946
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 |  | (25,192) |  |  | (5,350) |  |  | 2,365 |  |  | (8,254) |  |  | (4,600) |  |  | (41,031)
Transfer from (to) accretable yield |  | (48,135) |  |  | (14,096) |  |  | (4,730) |  |  | (15,176) |  |  | 208 |  |  | (81,929)
Balance at end of period | $ | 389,839 |  | $ | 23,069 |  | $ | 3,486 |  | $ | 16,215 |  | $ | 24,018 |  | $ | 456,627
| Year Ended December 31, 2013
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 328,243 |  |  | 145,173 |  |  | 30,802 |  |  | 126,803 |  |  | 24,812 |  |  | 655,833
Accretion |  | (42,740) |  |  | (59,998) |  |  | (29,557) |  |  | (55,255) |  |  | (11,628) |  |  | (199,178)
Transfer (to) from non-accretable discount |  | 2,338 |  |  | 10,964 |  |  | 41,748 |  |  | 6,297 |  |  | (449) |  |  | 60,898
Balance at end of period | $ | 287,841 |  |  | 96,139 |  |  | 42,993 |  |  | 77,845 |  |  | 12,735 |  |  | 517,553
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 502,857 |  |  | 60,275 |  |  | 62,803 |  |  | 55,733 |  |  | 32,794 |  |  | 714,462
Change in actual and expected losses |  | (37,353) |  |  | (6,796) |  |  | (15,204) |  |  | (9,791) |  |  | (4,833) |  |  | (73,977)
Transfer from (to) accretable yield |  | (2,338) |  |  | (10,964) |  |  | (41,748) |  |  | (6,297) |  |  | 449 |  |  | (60,898)
Balance at end of period | $ | 463,166 |  |  | 42,515 |  |  | 5,851 |  |  | 39,645 |  |  | 28,410 |  |  | 579,587
Acquired Eurobank Loans The carrying amount of acquired Eurobank loans at December 31, 2015 and 2014 is as follows:
| December 31
| 2015 |  | 2014
| (In thousands)
Contractual required payments receivable | $ | 342,511 |  | $ | 535,425
Less: Non-accretable discount |  | 21,156 |  |  | 62,410
Cash expected to be collected |  | 321,355 |  |  | 473,015
Less: Accretable yield |  | 84,391 |  |  | 109,859
Carrying amount, gross |  | 236,964 |  |  | 363,156
Less: Allowance for loan and lease losses |  | 90,178 |  |  | 64,245
Carrying amount, net | $ | 146,786 |  | $ | 298,911
The following tables describe the accretable yield and non-a ccretable discount activity of acquired Eurobank loans for the years ended December 31, 2015, 2014 and 2013:
| Year Ended December 31, 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 |  | $ | 37,920 |  | $ | 20,753 |  | $ | 2,479 |  | $ | 1,071 |  | $ | 109,859
Accretion |  | (13,685) |  |  | (32,124) |  |  | (2,513) |  |  | (3,458) |  |  | (631) |  |  | (52,411)
Change in expected cash flows |  | 4,631 |  |  | 44,660 |  |  | (15,048) |  |  | (51) |  |  | 305 |  |  | 34,497
Transfer from (to) non-accretable discount |  | 13,372 |  |  | (23,486) |  |  | (937) |  |  | 1,030 |  |  | 2,467 |  |  | (7,554)
Balance at end of period | $ | 51,954 |  | $ | 26,970 |  | $ | 2,255 |  | $ | - |  | $ | 3,212 |  | $ | 84,391
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 27,348 |  | $ | 24,464 |  | $ | - |  | $ | - |  | $ | 10,598 |  | $ | 62,410
Change in actual and expected losses |  | (1,107) |  |  | (47,950) |  |  | (937) |  |  | 1,030 |  |  | 156 |  |  | (48,808)
Transfer from (to) accretable yield |  | (13,372) |  |  | 23,486 |  |  | 937 |  |  | (1,030) |  |  | (2,467) |  |  | 7,554
Balance at end of period | $ | 12,869 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,287 |  | $ | 21,156
| Year Ended December 31, 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 |  | (15,731) |  |  | (57,099) |  |  | (4,102) |  |  | (9,837) |  |  | (2,200) |  |  | (88,969)
Transfer from (to) non-accretable discount |  | 10,117 |  |  | (74) |  |  | 23,165 |  |  | 2,078 |  |  | 583 |  |  | 35,869
Balance at end of period | $ | 47,636 |  | $ | 37,920 |  | $ | 20,753 |  | $ | 2,479 |  | $ | 1,071 |  | $ | 109,859
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 39,182 |  | $ | 81,092 |  | $ | - |  | $ | - |  | $ | 9,203 |  | $ | 129,477
Change in actual and expected losses |  | (1,717) |  |  | (56,702) |  |  | 23,165 |  |  | 2,078 |  |  | 1,978 |  |  | (31,198)
Transfer (to) from accretable yield |  | (10,117) |  |  | 74 |  |  | (23,165) |  |  | (2,078) |  |  | (583) |  |  | (35,869)
Balance at end of period | $ | 27,348 |  | $ | 24,464 |  | $ | - |  | $ | - |  | $ | 10,598 |  | $ | 62,410
| Year Ended December 31, 2013
| 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 | $ | 57,569 |  | $ | 103,591 |  | $ | 7,380 |  | $ | 16,916 |  | $ | 2,552 |  | $ | 188,008
Accretion |  | (18,784) |  |  | (54,821) |  |  | (3,715) |  |  | (13,402) |  |  | (1,047) |  |  | (91,769)
Change in Expected Cash Flows |  | (12,328) |  |  | 14,743 |  |  | (2,514) |  |  | 625 |  |  | (526) |  |  | -
Transfer from (to) non-accretable discount |  | 26,793 |  |  | 31,580 |  |  | 539 |  |  | 6,099 |  |  | 1,709 |  |  | 66,720
Balance at end of period | $ | 53,250 |  | $ | 95,093 |  | $ | 1,690 |  | $ | 10,238 |  | $ | 2,688 |  | $ | 162,959
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 66,021 |  | $ | 154,185 |  | $ | - |  | $ | 6,345 |  | $ | 11,004 |  | $ | 237,555
Change in actual and expected losses |  | (46) |  |  | (41,513) |  |  | 539 |  |  | (246) |  |  | (92) |  |  | (41,358)
Transfer (to) from accretable yield |  | (26,793) |  |  | (31,580) |  |  | (539) |  |  | (6,099) |  |  | (1,709) |  |  | (66,720)
Balance at end of period | $ | 39,182 |  | $ | 81,092 |  | $ | - |  | $ | - |  | $ | 9,203 |  | $ | 129,477
Non-accrual Loans The following table presents the recorded investment in loans in non-accrual status by clas s of loans as of December 31, 2015 and 2014:
| December 31, |  | 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 | $ | 3,786 |  | $ | 4,427
Years 2003 and 2004 |  | 5,737 |  |  | 7,042
Year 2005 |  | 3,627 |  |  | 4,585
Year 2006 |  | 8,189 |  |  | 9,274
Years 2007, 2008 and 2009 |  | 14,625 |  |  | 8,579
Years 2010, 2011, 2012, 2013 |  | 10,588 |  |  | 7,365
Years 2014 and 2015 |  | 663 |  |  | -
|  | 47,215 |  |  | 41,272
Non-traditional |  | 5,092 |  |  | 3,224
Loss mitigation program |  | 20,172 |  |  | 20,934
|  | 72,479 |  |  | 65,430
Home equity loans, secured personal loans |  | 64 |  |  | -
|  | 72,543 |  |  | 65,430
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Middle market |  | 12,729 |  |  | 9,534
Retail |  | 8,726 |  |  | 9,000
|  | 21,455 |  |  | 18,534
Other commercial and industrial |  |  |  |  |
Institutional |  | 190,290 |  |  | -
Middle market |  | 1,565 |  |  | 618
Retail |  | 1,932 |  |  | 2,527
Floor plan |  | 39 |  |  | -
|  | 193,826 |  |  | 3,145
|  | 215,281 |  |  | 21,679
Consumer |  |  |  |  |
Credit cards |  | 369 |  |  | 375
Personal lines of credit |  | 100 |  |  | 110
Personal loans |  | 1,146 |  |  | 1,092
Cash collateral personal loans |  | 16 |  |  | 13
|  | 1,631 |  |  | 1,590
Auto and leasing |  | 8,418 |  |  | 8,668
Total non-accrual originated loans | $ | 297,873 |  | $ | 97,367
| December 31, |  | December 31,
| 2015 |  | 2014
| (In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20 |  |  |  |  |
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Retail | $ | 228 |  | $ | 351
Floor plan |  | 467 |  |  | 407
|  | 695 |  |  | 758
Other commercial and industrial |  |  |  |  |
Retail |  | 178 |  |  | 195
Floor plan |  | 7 |  |  | 234
|  | 185 |  |  | 429
|  | 880 |  |  | 1,187
Consumer |  |  |  |  |
Credit cards |  | 489 |  |  | 1,399
Personal loans |  | 46 |  |  | 77
|  | 535 |  |  | 1,476
Auto |  | 831 |  |  | 1,512
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20 |  | 2,246 |  |  | 4,175
Total non-accrual loans | $ | 300,119 |  | $ | 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 or are accounted under the cost recovery method. 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 first quarter of 2015, the r evolving line of credit to PREPA was classified as non-accrual. At December 31, 2015, this line of credit had an unpaid principal balance of $190.3 million. Starting with the second quarter of 2015, interest payments received were applied to principal. A s of December 31, 2015, the specific reserve was $53.3 million. At December 31, 2015 and 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 $93.6 mil lion 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 $235.8 million and $236.9 million at December 31, 2015 and 2014, respectively. Impaired commercial loans at December 31, 2015 and 2014 included the PREPA line of credit with an unpaid principal balance of $190.3 million and $200.0 million, respectively. The PREPA line of credit was classified as a troubled-debt restructuring during 2014. 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 $55.9 million and $841 thousand at December 31, 2015 and 2014, respective ly. The valuation allowance for impaired commercial loans at December 31, 2015 includes $53.3 million of specific allowance for PREPA recorded during 2015.T he total investment in impaired mortgage loans was $90.0 million and $94.2 million at December 31, 2 015 and 2014, respectively. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The valuation allowance for impaired mortgage loans amounted to $9.2 million and $9.0 million at December 31, 2015 and 2014, respectively. O riginated and Other Loans and L eases Held for Investment T he Company’s recorded investment in commercial and mortgage 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 December 31, 2015 and 2014 are as follows:
| December 31, 2015 |  |
| Unpaid |  | Recorded |  | Related |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage |  |
| (In thousands) |  |
Impaired loans with specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 210,718 |  | $ | 199,366 |  | $ | 55,947 |  | 13% |  |
Residential impaired and troubled-debt restructuring |  | 97,424 |  |  | 89,973 |  |  | 9,233 |  | 9% |  |
Impaired loans with no specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 42,110 |  |  | 35,928 |  |  | N/A |  | N/A |  |
Total investment in impaired loans | $ | 350,252 |  | $ | 325,267 |  | $ | 65,180 |  | 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 impaired and 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 December 31, 2015 and 2014 are as follows:
| December 31, 2015
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 486 |  | $ | 474 |  |  | N/A |  | N/A
Total investment in impaired loans | $ | 486 |  | $ | 474 |  | $ | - |  | -
| 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 that have recorded impairments and their related allowance for loan and lease losses at December 31, 2015 and 2014 are as follows:
| December 31, 2015
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance: |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 608,294 |  | $ | 608,294 |  | $ | 1,761 |  | 0%
Commercial |  | 287,311 |  |  | 168,107 |  |  | 15,455 |  | 9%
Construction |  | 88,180 |  |  | 87,983 |  |  | 5,707 |  | 6%
Auto |  | 153,592 |  |  | 153,592 |  |  | 2,862 |  | 2%
Total investment in impaired loan pools | $ | 1,137,377 |  | $ | 1,017,976 |  | $ | 25,785 |  | 3%
| December 31 , 2014
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance: |  |  |  |  |  |  |  |  |  |
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 loan 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. The decrease in commercial loan pools from December 31, 2014 to December 31, 2015 was mostly caused by the sale of covered commercial loans during the third quarter of 2015. As of December 31, 2015, the Company elimin ated 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 December 31, 2015 was caused by the establishment of a specific reserve with respect to impaired mortgage and auto loan pools that were required bas ed 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 December 31, 2015 and 2014 are as follows:
| December 31, 2015
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance: |  |  |  |  |  |  |  |  |  |
Loans secured by 1-4 family residential properties | $ | 101,444 |  | $ | 92,273 |  | $ | 22,570 |  | 24%
Commercial and construction |  | 133,148 |  |  | 142,377 |  |  | 67,365 |  | 47%
Consumer |  | 6,713 |  |  | 2,314 |  |  | 243 |  | 11%
Total investment in impaired loan pools | $ | 241,305 |  | $ | 236,964 |  | $ | 90,178 |  | 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%
Commercial and construction |  | 151,017 |  |  | 93,631 |  |  | 48,334 |  | 52%
Consumer |  | 7,992 |  |  | 4,506 |  |  | 389 |  | 9%
Total investment in impaired loan pools | $ | 293,588 |  | $ | 204,253 |  | $ | 64,245 |  | 31%
The tables above only present information with respect to acquired Eurobank loans and loan 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. The decrease in construction and development secured by 1-4 family residential properties loan p ools from December 31, 2014 to December 31, 2015 was mostly caused by the sale of covered commercial loans during the quarter ended September 30, 2015. The incre ase in allowance for commercial and other construction loan pools from December 31, 2014 to December 31, 2015 was caused by the establishment of a specific reserve with respect to impaired commercial and other construction loan pools that w as required ba sed on the net present value of the cash flows expected to be collected. 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 years ended 2015, 2014, and 2013:
| Year Ended December 31,
| 2015 |  |  | 2014 |  |  | 2013
| Interest Income Recognized |  | Average Recorded Investment |  |  | 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 | $ | 280 |  | $ | 175,115 |  | $ | 237 |  | $ | 5,899 |  | $ | 160 |  | $ | 12,709
Residential troubled-debt restructuring |  | 3,219 |  |  | 90,736 |  |  | 2,623 |  |  | 90,383 |  |  | 2,266 |  |  | 82,028
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 1,350 |  |  | 64,356 |  |  | 9,400 |  |  | 90,748 |  |  | 1,139 |  |  | 26,188
Total interest income from impaired loans | $ | 4,849 |  | $ | 330,207 |  | $ | 12,260 |  | $ | 187,030 |  | $ | 3,565 |  | $ | 120,925
Modifications The follow ing tables present the troubled-debt restructuring s during the years ended 2015, 2014 and 2013
| Year Ended December 31, 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 | 160 |  | $ | 21,053 |  | 5.42% |  | 356 |  | $ | 21,182 |  | 4.35% |  | 272
Commercial | 9 |  |  | 5,664 |  | 6.79% |  | 66 |  |  | 13,174 |  | 4.57% |  | 56
Consumer | 64 |  |  | 611 |  | 13.85% |  | 71 |  |  | 898 |  | 13.43% |  | 60
Auto | 5 |  |  | 130 |  | 10.51% |  | 65 |  |  | 131 |  | 10.87% |  | 61
| Year Ended December 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 | 162 |  |  | 21,188 |  | 6.03% |  | 350 |  | $ | 20,958 |  | 4.25% |  | 420
Commercial | 26 |  |  | 200,446 |  | 7.25% |  | 3 |  |  | 200,125 |  | 7.25% |  | 10
Consumer | 26 |  |  | 212 |  | 10.09% |  | 56 |  |  | 240 |  | 12.96% |  | 65
| Year Ended December 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 | 145 |  | $ | 20,143 |  | 6.52% |  | 340 |  | $ | 20,971 |  | 4.34% |  | 409
Commercial | 2 |  |  | 1,842 |  | 8.99% |  | 87 |  |  | 1,842 |  | 4.00% |  | 66
Consumer | 2 |  |  | 15 |  | 13.43% |  | 75 |  |  | 15 |  | 12.67% |  | 67
Commercial troubled-debt during the year ended December 31, 201 4 included 19 contracts with PREPA which amounted to $200.0 million. The following table presents troubled-debt restructurings for which there was a p ayment default during the years ended 2015, 2014 and 2013:
| Year Ended December 31,
| 2015 |  |  | 2014 |  |  | 2013
| Number of Contracts |  | Recorded Investment |  |  | Number of Contracts |  | Recorded Investment |  |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 65 |  | $ | 7,387 |  |  | 15 |  | $ | 1,700 |  |  | 15 |  | $ | 1,689
Consumer | 8 |  | $ | 177 |  |  | 5 |  | $ | 37 |  |  | 1 |  | $ | 9
Auto | 1 |  | $ | 64 |  |  | - |  | $ | - |  |  | - |  | $ | -
Credit Quality Indicators The Company categorizes originated and other loans 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: Pass: Loans classified as “pass” have a well-defined primary s ource 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” h ave 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. Substanda rd: 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 liquidatio n 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 substanda rd, 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 worthl ess 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. All loans individually measured for imp airment are classified as substandard or TDR as of December 31, 2015. As of December 31, 2015 and 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:
| December 31, 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 | $ | 227,557 |  | $ | 212,410 |  | $ | 15,147 |  | $ | - |  | $ | - |  | $ | -
Institutional |  | 33,807 |  |  | 25,907 |  |  | - |  |  | - |  |  | - |  |  | 7,900
Middle market |  | 206,948 |  |  | 181,916 |  |  | 9,697 |  |  | - |  |  | - |  |  | 15,335
Retail |  | 241,090 |  |  | 217,836 |  |  | 7,936 |  |  | 5,097 |  |  | - |  |  | 10,221
Floor plan |  | 2,892 |  |  | 2,892 |  |  | - |  |  | - |  |  | - |  |  | -
Real estate |  | 16,662 |  |  | 16,662 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 728,956 |  |  | 657,623 |  |  | 32,780 |  |  | 5,097 |  |  | - |  |  | 33,456
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 108,582 |  |  | 100,826 |  |  | - |  |  | - |  |  | - |  |  | 7,756
Institutional |  | 380,985 |  |  | 190,695 |  |  | - |  |  | - |  |  | - |  |  | 190,290
Middle market |  | 107,313 |  |  | 97,288 |  |  | 8,052 |  |  | - |  |  | - |  |  | 1,973
Retail |  | 77,797 |  |  | 73,757 |  |  | 1,076 |  |  | 1,184 |  |  | - |  |  | 1,780
Floor plan |  | 38,016 |  |  | 35,862 |  |  | 2,115 |  |  | - |  |  | - |  |  | 39
|  | 712,693 |  |  | 498,428 |  |  | 11,243 |  |  | 1,184 |  |  | - |  |  | 201,838
Total |  | 1,441,649 |  |  | 1,156,051 |  |  | 44,023 |  |  | 6,281 |  |  | - |  |  | 235,294
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 228 |  |  | - |  |  | - |  |  | 228 |  |  | - |  |  | -
Floor plan |  | 2,889 |  |  | 602 |  |  | 1,820 |  |  | - |  |  | - |  |  | 467
|  | 3,117 |  |  | 602 |  |  | 1,820 |  |  | 228 |  |  | - |  |  | 467
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 3,724 |  |  | 3,637 |  |  | - |  |  | 87 |  |  | - |  |  | -
Floor plan |  | 616 |  |  | 609 |  |  | - |  |  | - |  |  | - |  |  | 7
|  | 4,340 |  |  | 4,246 |  |  | - |  |  | 87 |  |  | - |  |  | 7
Total |  | 7,457 |  |  | 4,848 |  |  | 1,820 |  |  | 315 |  |  | - |  |  | 474
Total | $ | 1,449,106 |  | $ | 1,160,899 |  | $ | 45,843 |  | $ | 6,596 |  | $ | - |  | $ | 235,768
| 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
At D ecember 31, 2015 and 2014, the Company had outstanding credit facilities of approximately $415.4 million and $619.0 million, respectively, granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, included within portfolio of originated and other loans and acquired BBVAPR loans accounted for under ASC 310-30. 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 $204 million of these loans are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, 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. In addition, some of these obligations consist of senior and subordinated lo ans to public corporations that obtain revenues from rates charged for services or products, such as the Puerto Rico Electric Power Authority (“PREPA”). The Commonwealth’s instrumentalities 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 Medical Services Administration and the Puerto Rico Metropolitan Bus Auth ority, 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 December 31, 2015, we had approximately $212.0 million of credit facili ties to central government and public corporations of the Commonwealth, including: PREPA with an outstanding balance of $190.3 million; and The Puerto Rico Housing Finance Authority with an outstanding balance of $21.0 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 credit facilities to public corporations decreased during 2015 as a result of a repayment in full of a $75 million loan by the Puerto Rico Aqueduct and Sewer Authority and a repayment in full of a $78 million loan by the State Insurance Fund Corporation. Oriental Bank is part of a four bank syndicate providing a $550 million revolving line of credit to fina nce 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 $190.3 million as of D ecember 31, 2015. As part of the bank syndicate, the Bank entered into a forbearance a greement with PREPA, which was extended several times during 2015 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 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 various scenarios and its capacity to service its financial obligations, 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 Company placed its participation in non-accrual and recorded a $24 million provision during the first quarter of 2015. During the fourth quarter of 2015, the Company recorded an additional $29.3 million provision for loan and lease losses for PREPA as a result of the increased level of uncertainty as to the closing of the restructuring agreement, which is expected by the second half of 2016. Since April 1, 2015, interest payments have been applied to principal. PREPA’s enabli ng act provides for local receivership upon request to any Puerto Rico court of competent j urisdiction in the event of a default 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 payment of the bonds in default; to have, hold, use, operate, manage and control the same; and to exercise all of PREPA’s rights and po wers with respect to such undertakings. However, any such receiver would not have the power to sell, assign, mortgage or otherwise dispose of PREPA’s assets, and its powers would be limited to the operation and maintenance of such undertakings and the col lection 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 bankrup tcy code and the enactment of a local debt restructuring law, so far 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 D ecembe r 31, 2015 and 2014, and based on the most recent analysis performed, the risk category of gross originated 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: 204 75
| December 31, 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 | $ | 57,789 |  | $ | 50,912 |  | $ | 82 |  | $ | 2,218 |  | $ | 530 |  | $ | 1,504 |  | $ | 1,858 |  | $ | 685
Years 2003 and 2004 |  | 99,446 |  |  | 87,060 |  |  | 251 |  |  | 4,867 |  |  | 1,261 |  |  | 1,353 |  |  | 2,921 |  |  | 1,733
Year 2005 |  | 54,221 |  |  | 47,197 |  |  | 79 |  |  | 2,553 |  |  | 292 |  |  | 1,068 |  |  | 2,189 |  |  | 843
Year 2006 |  | 78,403 |  |  | 63,659 |  |  | 318 |  |  | 2,878 |  |  | 1,168 |  |  | 1,895 |  |  | 4,871 |  |  | 3,614
Years 2007, 2008 and 2009 |  | 91,546 |  |  | 71,439 |  |  | 170 |  |  | 1,665 |  |  | 685 |  |  | 2,972 |  |  | 10,725 |  |  | 3,890
Years 2010, 2011, 2012 2013 |  | 150,744 |  |  | 134,945 |  |  | 569 |  |  | 1,611 |  |  | 434 |  |  | 1,982 |  |  | 6,737 |  |  | 4,466
Years 2014 and 2015 |  | 85,856 |  |  | 85,128 |  |  | - |  |  | 65 |  |  | 148 |  |  | 281 |  |  | 234 |  |  | -
|  | 618,005 |  |  | 540,340 |  |  | 1,469 |  |  | 15,857 |  |  | 4,518 |  |  | 11,055 |  |  | 29,535 |  |  | 15,231
Non-traditional |  | 29,552 |  |  | 23,497 |  |  | - |  |  | 977 |  |  | 552 |  |  | 2,621 |  |  | 1,905 |  |  | -
Loss mitigation program |  | 101,916 |  |  | 16,031 |  |  | 4,173 |  |  | 1,977 |  |  | 727 |  |  | 1,728 |  |  | 2,538 |  |  | 74,742
|  | 749,473 |  |  | 579,868 |  |  | 5,642 |  |  | 18,811 |  |  | 5,797 |  |  | 15,404 |  |  | 33,978 |  |  | 89,973
Home equity secured personal loans |  | 410 |  |  | 346 |  |  | - |  |  | - |  |  | - |  |  | 64 |  |  | - |  |  | -
GNMA's buy-back option program |  | 7,945 |  |  | - |  |  | - |  |  | - |  |  | 1,593 |  |  | 3,578 |  |  | 2,774 |  |  | -
|  | 757,828 |  |  | 580,214 |  |  | 5,642 |  |  | 18,811 |  |  | 7,390 |  |  | 19,046 |  |  | 36,752 |  |  | 89,973
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 22,766 |  |  | 21,766 |  |  | 449 |  |  | 182 |  |  | 179 |  |  | 190 |  |  | - |  |  | -
Overdrafts |  | 190 |  |  | 166 |  |  | 24 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Unsecured personal lines of credit |  | 2,244 |  |  | 2,125 |  |  | 74 |  |  | - |  |  | 17 |  |  | 28 |  |  | - |  |  | -
Unsecured personal loans |  | 201,156 |  |  | 197,339 |  |  | 2,083 |  |  | 1,107 |  |  | 621 |  |  | 6 |  |  | - |  |  | -
Cash collateral personal loans |  | 16,594 |  |  | 16,450 |  |  | 125 |  |  | 17 |  |  | 2 |  |  | - |  |  | - |  |  | -
|  | 242,950 |  |  | 237,846 |  |  | 2,755 |  |  | 1,306 |  |  | 819 |  |  | 224 |  |  | - |  |  | -
Auto and Leasing |  | 669,163 |  |  | 590,482 |  |  | 53,549 |  |  | 16,839 |  |  | 5,708 |  |  | 2,585 |  |  | - |  |  | -
|  | 1,669,941 |  |  | 1,408,542 |  |  | 61,946 |  |  | 36,956 |  |  | 13,917 |  |  | 21,855 |  |  | 36,752 |  |  | 89,973
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 35,217 |  |  | 33,414 |  |  | 930 |  |  | 384 |  |  | 186 |  |  | 303 |  |  | - |  |  | -
Personal loans |  | 3,168 |  |  | 3,079 |  |  | 14 |  |  | 29 |  |  | 1 |  |  | 45 |  |  | - |  |  | -
|  | 38,385 |  |  | 36,493 |  |  | 944 |  |  | 413 |  |  | 187 |  |  | 348 |  |  | - |  |  | -
Auto |  | 106,911 |  |  | 96,247 |  |  | 7,553 |  |  | 2,279 |  |  | 623 |  |  | 209 |  |  | - |  |  | -
|  | 145,296 |  |  | 132,740 |  |  | 8,497 |  |  | 2,692 |  |  | 810 |  |  | 557 |  |  | - |  |  | -
Total | $ | 1,815,237 |  | $ | 1,541,282 |  | $ | 70,443 |  | $ | 39,648 |  | $ | 14,727 |  | $ | 22,412 |  | $ | 36,752 |  | $ | 89,973
| 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

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