Loans Receivable

12 Months Ended

Dec. 31, 2015

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-share coverage related to commercial and other-non single family 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 potential sale of a pool of loss-share assets covered under the commercial loss-sharing 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 within 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 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 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 covered $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 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 from the BBVAPR Acquisition 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 additional 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 tables 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 underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

	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.

At 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 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 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, based on management’s concerns regarding PREPA’s willingness 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 loans 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, and 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, renewal or normal re-underwriting.

The following tables 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-accretable 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 class 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 revolving 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. As of December 31, 2015, the specific reserve was $53.3 million.

At December 31, 2015 and 2014, loans whose terms have been extended and which are classified as troubled-debt restructurings that are not included in non-accrual loans amounted to $93.6 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 $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, respectively. The valuation allowance for impaired commercial loans at December 31, 2015 includes $53.3 million of specific allowance for PREPA recorded during 2015.The total investment in impaired mortgage loans was $90.0 million and $94.2 million at December 31, 2015 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.

Originated and Other Loans and Leases Held for Investment

The 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 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 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)

The 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)

The 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 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 December 31, 2015 was caused by the establishment of a specific reserve with respect to impaired mortgage and auto loan pools that were required based on the net present value of the cash flows expected to be collected.

Acquired Eurobank Loans

The Company’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their 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 pools 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 increase 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 was required based 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 following tables present the troubled-debt restructurings 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, 2014 included 19 contracts with PREPA which amounted to $200.0 million.

The following table presents troubled-debt restructurings for which there was a payment 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 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 weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

All loans individually measured for impairment 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 risk 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 December 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 loans 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 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 December 31, 2015, we had approximately $212.0 million of credit facilities 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 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 $190.3 million as of December 31, 2015. As part of the bank syndicate, the Bank entered into a forbearance agreement 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 enabling act provides for local receivership upon request to any Puerto Rico court of competent jurisdiction 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 powers 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 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, 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 December 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

	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

- 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.

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