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Loans Receivable | 6 Months Ended
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Jun. 30, 2016
Loans Receivable [Abstract] |
LOANS RECEIVABLE | NOTE 4 - LOANS The Company’s loan portfolio is composed of two segments, loans initially accounted for under the amortized cost method (referred to as "originated and other" loans) and loans acquired (referred to 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 to and paid $20 million in loss share coverage with respect to the aggregate loss resulting from a ny portfolio sale within 120 days of the agreement. This sale was completed on September 28, 2015. Covered loans are no longer a material amount. Therefore, the Company changed its loan disclosures during 2015. The coverage for the single family residential loans will expire on June 30, 2020. At June 30, 2016, the remaining covered loans, amounting to $65.8 million, net carrying amount ($76.8 million gross amount), are included as part of acquired Eurobank loans under the name "loans secured by 1-4 family residential properties." At December 31, 2015, covered loans amounted to $67.2 million, net carrying amount ($92.3 million gross amount). Interest income recognized for covered loans during the six-month p eriods ended June 30, 2016 and 2015 was $4.3 million and $28.3 million, respectively. The decrease in interest income recognized for covered loans is due to the expiration of the FDIC loss-share coverage related to commercial and other-non single fa mily residential loans on June 30, 2015. Effective June 30, 2016, pursuant to supervisory direction, the Company changed the purchase credit impaired policy for all loans accounted for under ASC 310-30 (Loans and Debt Securities Acquired with Deteriorate d Credit Quality). Under the revised policy, the Company writes-off the loan’s recorded investment and derecognizes the associated allowance for loan and lease losses for loans that exit the acquired pools. The revised policy will be implemented prospecti vely due to the immaterial impact o f retrospective adoption. Prior to June 30, 2016, the pool’s carrying value and allowance was determined by discounting expected cash flows at the pool’s effective yield. The allowance for loan and lease losses was maint ained until all of the loans in the pool were paid off or charged-off. The transition to this revised policy on June 30, 2016 resulted in the de-recognition of $8.5 million and $72.2 million in the recorded investment balance and associated allowance for loans that had exited the pools, for acquired BBVAPR loans and acquired Eurobank loans, respectively, with no impact to the provision for loan and lease losses. Refer to Note 5 Allowances for Loan and Lease Losses. The composition of the Company’s loan portfolio at June 30, 2016 and December 31, 2015 was as follows
|  | June 30, |  |  | December 31,
| 2016 |  | 2015
| (In thousands)
Originated and other loans and leases held for investment: |  |  |  |  |
Mortgage | $ | 741,917 |  | $ | 757,828
Commercial |  | 1,476,613 |  |  | 1,441,649
Consumer |  | 265,269 |  |  | 242,950
Auto and leasing |  | 712,268 |  |  | 669,163
|  | 3,196,067 |  |  | 3,111,590
Allowance for loan and lease losses on originated and other loans and leases |  | (112,812) |  |  | (112,626)
|  | 3,083,255 |  |  | 2,998,964
Deferred loan costs, net |  | 4,619 |  |  | 4,203
Total originated and other loans loans held for investment, net |  | 3,087,874 |  |  | 3,003,167
Acquired loans: |  |  |  |  |
Acquired BBVAPR loans: |  |  |  |  |
Accounted for under ASC 310-20 (Loans with revolving feature and/or |  |  |  |  |
acquired at a premium) |  |  |  |  |
Commercial |  | 4,559 |  |  | 7,457
Consumer |  | 35,194 |  |  | 38,385
Auto |  | 77,118 |  |  | 106,911
|  | 116,871 |  |  | 152,753
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20 |  | (4,487) |  |  | (5,542)
|  | 112,384 |  |  | 147,211
Accounted for under ASC 310-30 (Loans acquired with deteriorated |  |  |  |  |
credit quality, including those by analogy) (a) |  |  |  |  |
Mortgage |  | 591,029 |  |  | 608,294
Commercial |  | 246,188 |  |  | 287,311
Construction |  | 76,917 |  |  | 88,180
Consumer |  | 7,331 |  |  | 11,843
Auto |  | 117,038 |  |  | 153,592
|  | 1,038,503 |  |  | 1,149,220
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30 (b) |  | (22,801) |  |  | (25,785)
|  | 1,015,702 |  |  | 1,123,435
Total acquired BBVAPR loans, net |  | 1,128,086 |  |  | 1,270,646
Acquired Eurobank loans: (a) |  |  |  |  |
Loans secured by 1-4 family residential properties |  | 76,777 |  |  | 92,273
Commercial and construction |  | 83,377 |  |  | 142,377
Consumer |  | 1,410 |  |  | 2,314
Total acquired Eurobank loans |  | 161,564 |  |  | 236,964
Allowance for loan and lease losses on Eurobank loans (b) |  | (22,116) |  |  | (90,178)
Total acquired Eurobank loans, net |  | 139,448 |  |  | 146,786
Total acquired loans, net |  | 1,267,534 |  |  | 1,417,432
Total held for investment, net |  | 4,355,408 |  |  | 4,420,599
Mortgage loans held-for-sale |  | 18,209 |  |  | 13,614
Total loans, net | $ | 4,373,617 |  | $ | 4,434,213
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized on June 30, 2016 due to the revision in the derecognition policy for these loans.
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 June 30, 2016 and December 31, 2015 by class of loans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of l oans 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.
| June 30, 2016
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 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 | $ | 260 |  | $ | 2,024 |  | $ | 2,973 |  | $ | 5,257 |  | $ | - |  | $ | 48,801 |  | $ | 54,058 |  | $ | 227
Years 2003 and 2004 |  | 343 |  |  | 3,936 |  |  | 6,201 |  |  | 10,480 |  |  | 65 |  |  | 84,208 |  |  | 94,753 |  |  | -
Year 2005 |  | - |  |  | 1,878 |  |  | 3,826 |  |  | 5,704 |  |  | 64 |  |  | 46,293 |  |  | 52,061 |  |  | -
Year 2006 |  | 743 |  |  | 2,243 |  |  | 6,741 |  |  | 9,727 |  |  | 50 |  |  | 64,109 |  |  | 73,886 |  |  | -
Years 2007, 2008 and 2009 |  | 854 |  |  | 1,414 |  |  | 11,793 |  |  | 14,061 |  |  | - |  |  | 69,957 |  |  | 84,018 |  |  | 699
Years 2010, 2011, 2012, 2013 |  | 498 |  |  | 1,307 |  |  | 9,420 |  |  | 11,225 |  |  | 142 |  |  | 133,384 |  |  | 144,751 |  |  | 416
Years 2014, 2015 and 2016 |  | - |  |  | 189 |  |  | 901 |  |  | 1,090 |  |  | 62 |  |  | 98,209 |  |  | 99,361 |  |  | -
|  | 2,698 |  |  | 12,991 |  |  | 41,855 |  |  | 57,544 |  |  | 383 |  |  | 544,961 |  |  | 602,888 |  |  | 1,342
Non-traditional |  | - |  |  | 938 |  |  | 5,217 |  |  | 6,155 |  |  | 12 |  |  | 20,028 |  |  | 26,195 |  |  | -
Loss mitigation program |  | 9,898 |  |  | 6,574 |  |  | 15,738 |  |  | 32,210 |  |  | 3,857 |  |  | 68,014 |  |  | 104,081 |  |  | 3,770
|  | 12,596 |  |  | 20,503 |  |  | 62,810 |  |  | 95,909 |  |  | 4,252 |  |  | 633,003 |  |  | 733,164 |  |  | 5,112
Home equity secured personal loans |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 384 |  |  | 384 |  |  | -
GNMA's buy-back option program |  | - |  |  | - |  |  | 8,369 |  |  | 8,369 |  |  | - |  |  | - |  |  | 8,369 |  |  | -
Total mortgage |  | 12,596 |  |  | 20,503 |  |  | 71,179 |  |  | 104,278 |  |  | 4,252 |  |  | 633,387 |  |  | 741,917 |  |  | 5,112
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 230,296 |  |  | 230,296 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 27,838 |  |  | 27,838 |  |  | -
Middle market |  | - |  |  | 125 |  |  | 8,589 |  |  | 8,714 |  |  | 2,255 |  |  | 209,127 |  |  | 220,096 |  |  | -
Retail |  | 96 |  |  | 1,226 |  |  | 5,871 |  |  | 7,193 |  |  | 3,327 |  |  | 236,171 |  |  | 246,691 |  |  | -
Floor plan |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,826 |  |  | 2,826 |  |  | -
Real estate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 16,079 |  |  | 16,079 |  |  | -
|  | 96 |  |  | 1,351 |  |  | 14,460 |  |  | 15,907 |  |  | 5,582 |  |  | 722,337 |  |  | 743,826 |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 140,192 |  |  | 140,192 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | 183,020 |  |  | 193,258 |  |  | 376,278 |  |  | -
Middle market |  | 2,007 |  |  | - |  |  | - |  |  | 2,007 |  |  | 1,421 |  |  | 102,112 |  |  | 105,540 |  |  | -
Retail |  | 896 |  |  | 529 |  |  | 582 |  |  | 2,007 |  |  | 135 |  |  | 74,823 |  |  | 76,965 |  |  | -
Floor plan |  | 6 |  |  | 38 |  |  | 40 |  |  | 84 |  |  | - |  |  | 33,728 |  |  | 33,812 |  |  | -
|  | 2,909 |  |  | 567 |  |  | 622 |  |  | 4,098 |  |  | 184,576 |  |  | 544,113 |  |  | 732,787 |  |  | -
Total commercial |  | 3,005 |  |  | 1,918 |  |  | 15,082 |  |  | 20,005 |  |  | 190,158 |  |  | 1,266,450 |  |  | 1,476,613 |  |  | -
| June 30, 2016
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 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 |  | 459 |  |  | 177 |  |  | 432 |  |  | 1,068 |  |  | - |  |  | 23,809 |  |  | 24,877 |  |  | -
Overdrafts |  | 15 |  |  | 1 |  |  | - |  |  | 16 |  |  | - |  |  | 204 |  |  | 220 |  |  | -
Personal lines of credit |  | 42 |  |  | 14 |  |  | 94 |  |  | 150 |  |  | - |  |  | 2,281 |  |  | 2,431 |  |  | -
Personal loans |  | 1,854 |  |  | 1,137 |  |  | 898 |  |  | 3,889 |  |  | 875 |  |  | 216,884 |  |  | 221,648 |  |  | -
Cash collateral personal loans |  | 63 |  |  | 3 |  |  | 1 |  |  | 67 |  |  | - |  |  | 16,026 |  |  | 16,093 |  |  | -
Total consumer |  | 2,433 |  |  | 1,332 |  |  | 1,425 |  |  | 5,190 |  |  | 875 |  |  | 259,204 |  |  | 265,269 |  |  | -
Auto and leasing |  | 44,433 |  |  | 19,438 |  |  | 7,322 |  |  | 71,193 |  |  | 15 |  |  | 641,060 |  |  | 712,268 |  |  | -
Total | $ | 62,467 |  | $ | 43,191 |  | $ | 95,008 |  | $ | 200,666 |  | $ | 195,300 |  | $ | 2,800,101 |  | $ | 3,196,067 |  | $ | 5,112
| 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 |  |  | -
Total mortgage |  | 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 |  |  | -
Total commercial |  | 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 |  |  | -
Total consumer |  | 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
During 2015, the Company changed its early delinquency reporting on mortgage loans from one scheduled payment due to two scheduled payments due to be comparable with local peers, except for troubled-debt restructured loans which continue using one scheduled payment due for delinquency reporting. During the quarter ended June 30, 2016, the Company changed its early delinquency reporting on consumer and auto loans from one scheduled payment due to two scheduled payments to report consistently its retail portfolio. The change resulted in a $1 9 thousand and $5.9 million reduction in early and total delinquency for consumer and auto loans, respectively. A t June 30, 2016 and December 31, 2015, the Company had carrying balances of $327.0 million and $334.6 million, respectively, in loans granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities as part of the institutional commercial loan seg ment. All loans granted to the Puerto Rico government were current at June 30, 2016 and December 31, 2015. A s part of a bank syndicate, on November 5, 2015 the Company entered into a Restructuring Support Agreement with a view towards restructuring a line of credit to the Puerto Rico Electric Power Authority ("PREPA") on terms that provide for full repayment of the debt to the Bank. In the third quarter of 2014, the Com pany 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 classified the credit as doubtful, 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 millio n provision for loan and lease losses on PREPA. Since it was placed in non-accrual, interest payments have been applied to principal. At June 30, 2016 and December 31, 2015, the allowance for loan and lease losses to PREPA was $53.3 million. Acqu ired Loans Acquired loans were initially measured at fair value and subsequently accounted for under either ASC 310-30 or ASC 310-20 (Non-refundable fees and Other Costs). We have acquired loans in two bank 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 int o 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 pr emium is discontinued. Acquired BBVAPR loans that were accounted for under the provisions of ASC 310-20 are removed from the acquired loan category at the end of the reporting period upon refinancing, renewal or normal re-underwriting. The following table s present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as of June 30, 2016 and December 31, 2015, by class of loans:
| June 30, 2016
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 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 | $ | - |  | $ | - |  | $ | 197 |  | $ | 197 |  | $ | - |  | $ | - |  | $ | 197 |  | $ | -
Floor plan |  | - |  |  | - |  |  | 446 |  |  | 446 |  |  | - |  |  | 2,309 |  |  | 2,755 |  |  | -
|  | - |  |  | - |  |  | 643 |  |  | 643 |  |  | - |  |  | 2,309 |  |  | 2,952 |  |  | -
Other commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 37 |  |  | 17 |  |  | 120 |  |  | 174 |  |  | - |  |  | 1,426 |  |  | 1,600 |  |  | -
Floor plan |  | - |  |  | - |  |  | 7 |  |  | 7 |  |  | - |  |  | - |  |  | 7 |  |  | -
|  | 37 |  |  | 17 |  |  | 127 |  |  | 181 |  |  | - |  |  | 1,426 |  |  | 1,607 |  |  | -
|  | 37 |  |  | 17 |  |  | 770 |  |  | 824 |  |  | - |  |  | 3,735 |  |  | 4,559 |  |  | -
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 731 |  |  | 290 |  |  | 704 |  |  | 1,725 |  |  | - |  |  | 30,573 |  |  | 32,298 |  |  | -
Personal loans |  | 116 |  |  | 14 |  |  | 60 |  |  | 190 |  |  | - |  |  | 2,706 |  |  | 2,896 |  |  | -
|  | 847 |  |  | 304 |  |  | 764 |  |  | 1,915 |  |  | - |  |  | 33,279 |  |  | 35,194 |  |  | -
Auto |  | 5,088 |  |  | 2,196 |  |  | 562 |  |  | 7,846 |  |  | - |  |  | 69,272 |  |  | 77,118 |  |  | -
Total | $ | 5,972 |  | $ | 2,517 |  | $ | 2,096 |  | $ | 10,585 |  | $ | - |  | $ | 106,286 |  | $ | 116,871 |  | $ | -
| 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 |  | $ | -
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 June 30, 2016 and December 31, 2015 is as follows:
|  | June 30, |  | December 31,
|  | 2016 |  | 2015
|  |  | (In thousands)
Contractual required payments receivable (a) |  | $ | 1,788,121 |  | $ | 1,945,098
Less: Non-accretable discount |  |  | 394,500 |  |  | 434,190
Cash expected to be collected |  |  | 1,393,621 |  |  | 1,510,908
Less: Accretable yield |  |  | 355,118 |  |  | 361,688
Carrying amount, gross |  |  | 1,038,503 |  |  | 1,149,220
Less: allowance for loan and lease losses (b) |  |  | 22,801 |  |  | 25,785
Carrying amount, net |  | $ | 1,015,702 |  | $ | 1,123,435
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized on June 30, 2016 due to the revision in the derecognition policy for these loans.
At June 30, 2016 and December 31, 2015, the Company had $7 1.6 million and $80.9 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 June 30, 2016 and December 31, 2015 .The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the
| Quarter Ended June 30, 2016
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 260,557 |  | $ | 40,102 |  | $ | 17,156 |  | $ | 17,587 |  | $ | 5,261 |  | $ | 340,663
Accretion |  | (8,294) |  |  | (5,272) |  |  | (1,307) |  |  | (3,616) |  |  | (870) |  |  | (19,359)
Change in expected cash flows |  | - |  |  | 3,062 |  |  | (408) |  |  | 630 |  |  | (1) |  |  | 3,283
Transfer from (to) non-accretable discount |  | 31,560 |  |  | (833) |  |  | (193) |  |  | (498) |  |  | 495 |  |  | 30,531
Balance at end of period | $ | 283,823 |  | $ | 37,059 |  | $ | 15,248 |  | $ | 14,103 |  | $ | 4,885 |  | $ | 355,118
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 370,155 |  | $ | 10,716 |  | $ | 7,432 |  | $ | 21,938 |  | $ | 18,735 |  | $ | 428,976
Change in actual and expected losses |  | (2,442) |  |  | (967) |  |  | (206) |  |  | (315) |  |  | (15) |  |  | (3,945)
Transfer (to) from accretable yield |  | (31,560) |  |  | 833 |  |  | 193 |  |  | 498 |  |  | (495) |  |  | (30,531)
Balance at end of period | $ | 336,153 |  | $ | 10,582 |  | $ | 7,419 |  | $ | 22,121 |  | $ | 18,225 |  | $ | 394,500
| Six-Month Period Ended June 30, 2016
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 268,794 |  | $ | 45,411 |  | $ | 19,615 |  | $ | 21,578 |  | $ | 6,290 |  | $ | 361,688
Accretion |  | (16,601) |  |  | (11,111) |  |  | (3,176) |  |  | (7,827) |  |  | (1,808) |  |  | (40,523)
Change in expected cash flows |  | - |  |  | 3,190 |  |  | (208) |  |  | 631 |  |  | (1) |  |  | 3,612
Transfer from (to) non-accretable discount |  | 31,630 |  |  | (431) |  |  | (983) |  |  | (279) |  |  | 404 |  |  | 30,341
Balance at end of period | $ | 283,823 |  | $ | 37,059 |  | $ | 15,248 |  | $ | 14,103 |  | $ | 4,885 |  | $ | 355,118
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 374,772 |  | $ | 11,781 |  | $ | 6,764 |  | $ | 22,039 |  | $ | 18,834 |  | $ | 434,190
Change in actual and expected losses |  | (6,989) |  |  | (1,630) |  |  | (328) |  |  | (197) |  |  | (205) |  |  | (9,349)
Transfer (to) from accretable yield |  | (31,630) |  |  | 431 |  |  | 983 |  |  | 279 |  |  | (404) |  |  | (30,341)
Balance at end of period | $ | 336,153 |  | $ | 10,582 |  | $ | 7,419 |  | $ | 22,121 |  | $ | 18,225 |  | $ | 394,500
| Quarter Ended June 30, 2015
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 284,612 |  | $ | 57,330 |  | $ | 19,390 |  | $ | 47,097 |  | $ | 5,601 |  | $ | 414,030
Accretion |  | (8,813) |  |  | (9,597) |  |  | (2,143) |  |  | (6,163) |  |  | (1,287) |  |  | (28,003)
Change in actual and expected losses |  | - |  |  | 23,695 |  |  | 9,867 |  |  | - |  |  | - |  |  | 33,562
Transfer from (to) non-accretable discount |  | 81 |  |  | 135 |  |  | (2,501) |  |  | (9,403) |  |  | 4,147 |  |  | (7,541)
Balance at end of period | $ | 275,880 |  | $ | 71,563 |  | $ | 24,613 |  | $ | 31,531 |  | $ | 8,461 |  | $ | 412,048
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 392,609 |  | $ | 15,826 |  | $ | 3,957 |  | $ | 14,543 |  | $ | 23,576 |  | $ | 450,511
Change in actual and expected losses |  | (3,421) |  |  | (4,921) |  |  | 536 |  |  | (256) |  |  | (73) |  |  | (8,135)
Transfer (to) from accretable yield |  | (81) |  |  | (135) |  |  | 2,501 |  |  | 9,403 |  |  | (4,147) |  |  | 7,541
Balance at end of period | $ | 389,107 |  | $ | 10,770 |  | $ | 6,994 |  | $ | 23,690 |  | $ | 19,356 |  | $ | 449,917
| Six-Month Period Ended June 30, 2015
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 298,364 |  | $ | 61,196 |  | $ | 25,829 |  | $ | 53,998 |  | $ | 6,559 |  | $ | 445,946
Accretion |  | (17,800) |  |  | (20,356) |  |  | (5,953) |  |  | (13,151) |  |  | (2,213) |  |  | (59,473)
Change in actual and expected losses |  | - |  |  | 23,695 |  |  | 9,867 |  |  | - |  |  | - |  |  | 33,562
Transfer (to) from non-accretable discount |  | (4,684) |  |  | 7,028 |  |  | (5,130) |  |  | (9,316) |  |  | 4,115 |  |  | (7,987)
Balance at end of period | $ | 275,880 |  |  | 71,563 |  |  | 24,613 |  |  | 31,531 |  |  | 8,461 |  |  | 412,048
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 |  | (5,416) |  |  | (5,271) |  |  | (1,622) |  |  | (1,841) |  |  | (547) |  |  | (14,697)
Transfer from (to) accretable yield |  | 4,684 |  |  | (7,028) |  |  | 5,130 |  |  | 9,316 |  |  | (4,115) |  |  | 7,987
Balance at end of period | $ | 389,107 |  | $ | 10,770 |  | $ | 6,994 |  | $ | 23,690 |  | $ | 19,356 |  | $ | 449,917
Acquired Eurobank Loans The carrying amount of acquired Eurobank loans at June 30, 2016 and December 31, 2015 is as follows:
|  | June 30 |  |  | December 31
| 2016 |  | 2015
| (In thousands)
Contractual required payments receivable (a) | $ | 252,801 |  | $ | 342,511
Less: Non-accretable discount |  | 11,555 |  |  | 21,156
Cash expected to be collected |  | 241,246 |  |  | 321,355
Less: Accretable yield |  | 79,682 |  |  | 84,391
Carrying amount, gross |  | 161,564 |  |  | 236,964
Less: Allowance for loan and lease losses (b) |  | 22,116 |  |  | 90,178
Carrying amount, net | $ | 139,448 |  | $ | 146,786
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized on June 30, 2016 due to the revision in the derecognition policy for these loans.
The following tables describe the accretable yield and non-a ccretable discount activity of acquired Eurobank loans for the quarters and six-months periods ended June 30, 2016 and 2015:
| Quarter Ended June 30, 2016
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 50,787 |  | $ | 33,203 |  | $ | 2,237 |  | $ | - |  | $ | - |  | $ | 86,227
Accretion |  | (2,263) |  |  | (4,528) |  |  | (33) |  |  | 2 |  |  | (76) |  |  | (6,898)
Change in expected cash flows |  | (198) |  |  | 1,619 |  |  | - |  |  | (77) |  |  | 81 |  |  | 1,425
Transfer from (to) non-accretable discount |  | 10 |  |  | (1,152) |  |  | - |  |  | 75 |  |  | (5) |  |  | (1,072)
Balance at end of year | $ | 48,336 |  | $ | 29,142 |  | $ | 2,204 |  | $ | - |  | $ | - |  | $ | 79,682
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 12,703 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 12,703
Change in actual and expected losses |  | (1,138) |  |  | (1,152) |  |  | - |  |  | 75 |  |  | (5) |  |  | (2,220)
Transfer from (to) accretable yield |  | (10) |  |  | 1,152 |  |  | - |  |  | (75) |  |  | 5 |  |  | 1,072
Balance at end of period | $ | 11,555 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 11,555
| Six-Month Period Ended June 30, 2016
| 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 | $ | 51,954 |  | $ | 26,970 |  | $ | 2,255 |  | $ | - |  | $ | 3,213 |  | $ | 84,392
Accretion |  | (4,529) |  |  | (8,623) |  |  | (47) |  |  | 2 |  |  | (1,261) |  |  | (14,458)
Change in expected cash flows |  | 786 |  |  | 12,712 |  |  | (23) |  |  | (77) |  |  | (1,947) |  |  | 11,451
Transfer from (to) non-accretable discount |  | 125 |  |  | (1,917) |  |  | 19 |  |  | 75 |  |  | (5) |  |  | (1,703)
Balance at end of period | $ | 48,336 |  | $ | 29,142 |  | $ | 2,204 |  | $ | - |  | $ | - |  | $ | 79,682
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 12,869 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,287 |  | $ | 21,156
Change in actual and expected losses |  | (1,189) |  |  | (1,917) |  |  | 19 |  |  | 75 |  |  | (8,292) |  |  | (11,304)
Transfer (to) from accretable yield |  | (125) |  |  | 1,917 |  |  | (19) |  |  | (75) |  |  | 5 |  |  | 1,703
Balance at end of period | $ | 11,555 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 11,555
| Quarter Ended June 30, 2015
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 58,332 |  | $ | 33,481 |  | $ | 20,806 |  | $ | 1,665 |  | $ | 2,004 |  | $ | 116,288
Accretion |  | (3,276) |  |  | (8,047) |  |  | (405) |  |  | (937) |  |  | (93) |  |  | (12,758)
Transfer from non-accretable discount |  | 750 |  |  | 2,039 |  |  | (2,052) |  |  | 375 |  |  | (1) |  |  | 1,111
Balance at end of period | $ | 55,806 |  | $ | 27,473 |  | $ | 18,349 |  | $ | 1,103 |  | $ | 1,910 |  | $ | 104,641
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 12,557 |  | $ | 10,493 |  | $ | - |  | $ | - |  | $ | 9,662 |  | $ | 32,712
Change in actual and expected losses |  | (405) |  |  | (8,454) |  |  | (2,052) |  |  | 375 |  |  | 67 |  |  | (10,469)
Transfer to accretable yield |  | (750) |  |  | (2,039) |  |  | 2,052 |  |  | (375) |  |  | 1 |  |  | (1,111)
Balance at end of period | $ | 11,402 |  | $ | - |  | $ | - |  | $ | - |  | $ | 9,730 |  | $ | 21,132
| Six-Month Period Ended June 30, 2015
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 47,636 |  | $ | 37,919 |  | $ | 20,753 |  | $ | 2,479 |  | $ | 1,072 |  | $ | 109,859
Accretion |  | (6,794) |  |  | (17,902) |  |  | (1,024) |  |  | (2,329) |  |  | (213) |  |  | (28,262)
Transfer from (to) non-accretable discount |  | 14,964 |  |  | 7,456 |  |  | (1,380) |  |  | 953 |  |  | 1,051 |  |  | 23,044
Balance at end of period | $ | 55,806 |  | $ | 27,473 |  | $ | 18,349 |  | $ | 1,103 |  | $ | 1,910 |  | $ | 104,641
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 27,348 |  | $ | 24,464 |  | $ | - |  | $ | - |  | $ | 10,598 |  | $ | 62,410
Change in actual and expected cash flows |  | (982) |  |  | (17,008) |  |  | (1,380) |  |  | 953 |  |  | 183 |  |  | (18,234)
Transfer (to) from accretable yield |  | (14,964) |  |  | (7,456) |  |  | 1,380 |  |  | (953) |  |  | (1,051) |  |  | (23,044)
Balance at end of period | $ | 11,402 |  | $ | - |  | $ | - |  | $ | - |  | $ | 9,730 |  | $ | 21,132
Non-accrual Loans The following table presents the recorded investment in loans in non-accrual status by class of loans as of June 30, 2016 and December 31, 2015:
| June 30, |  | December 31,
| 2016 |  | 2015
| (In thousands)
Originated and other loans and leases held for investment |  |  |  |  |
Mortgage |  |  |  |  |
Traditional (by origination year): |  |  |  |  |
Up to the year 2002 | $ | 2,812 |  | $ | 3,786
Years 2003 and 2004 |  | 6,359 |  |  | 5,737
Year 2005 |  | 3,889 |  |  | 3,627
Year 2006 |  | 7,135 |  |  | 8,189
Years 2007, 2008 and 2009 |  | 11,292 |  |  | 14,625
Years 2010, 2011, 2012, 2013 |  | 9,311 |  |  | 10,588
Years 2014, 2015 and 2016 |  | 963 |  |  | 663
|  | 41,761 |  |  | 47,215
Non-traditional |  | 5,229 |  |  | 5,092
Loss mitigation program |  | 18,769 |  |  | 20,172
|  | 65,759 |  |  | 72,479
Home equity loans, secured personal loans |  | - |  |  | 64
|  | 65,759 |  |  | 72,543
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Middle market |  | 10,969 |  |  | 12,729
Retail |  | 10,352 |  |  | 8,726
|  | 21,321 |  |  | 21,455
Other commercial and industrial |  |  |  |  |
Institutional |  | 183,020 |  |  | 190,290
Middle market |  | 1,421 |  |  | 1,565
Retail |  | 1,966 |  |  | 1,932
Floor plan |  | 40 |  |  | 39
|  | 186,447 |  |  | 193,826
|  | 207,768 |  |  | 215,281
Consumer |  |  |  |  |
Credit cards |  | 432 |  |  | 369
Personal lines of credit |  | 94 |  |  | 100
Personal loans |  | 1,812 |  |  | 1,146
Cash collateral personal loans |  | 1 |  |  | 16
|  | 2,339 |  |  | 1,631
Auto and leasing |  | 7,337 |  |  | 8,418
Total non-accrual originated loans | $ | 283,203 |  | $ | 297,873
| June 30, |  | December 31,
| 2016 |  | 2015
| (In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20 |  |  |  |  |
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Retail | $ | 197 |  | $ | 228
Floor plan |  | 446 |  |  | 467
|  | 643 |  |  | 695
Other commercial and industrial |  |  |  |  |
Retail |  | 120 |  |  | 178
Floor plan |  | 7 |  |  | 7
|  | 127 |  |  | 185
|  | 770 |  |  | 880
Consumer |  |  |  |  |
Credit cards |  | 704 |  |  | 489
Personal loans |  | 60 |  |  | 46
|  | 764 |  |  | 535
Auto |  | 562 |  |  | 831
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20 |  | 2,096 |  |  | 2,246
Total non-accrual loans | $ | 285,299 |  | $ | 300,119
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 for under the cost recovery method. Delinquent residential mortgage loans insured or guaranteed under applicable Federal Housing Administration ("FHA") and U.S. Department of Veterans Affairs ("VA") programs are c lassified 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 bu t excluded from non-accrual loans. During the first quarter of 2015, the revolving line of credit to PREPA was classified as non-accrual. At June 30, 2016, this line of credit had an unpaid principal balance of $183.0 million. Since the second quarte r of 2015, interest payments have been applied to principal. As of June 30, 2016, the specific reserve for the PREPA line of credit is $53.3 millio n. At June 30, 2016 and December 31, 2015, loans whose terms have been extended and w hich are classifie d as troubled-debt restructurings that are not included in non-accrual loans amounted to $97.2 million and $93.6 million, respectively, as they are performing under their new term s. 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 $219.4 million and $2 35.8 million at June 30, 2016 and December 31, 2015, respectively. Impaired commercial loans at June 30, 2016 and December 31, 2015 included the PREPA line of credit with an unpaid principal balance of $183.0 million and $190.3 million, respectively. The impaired commercial loans were measured based on the fair value of collateral or the present value of cash flows, including those identified as troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to $56.8 million at June 30, 2016 and $55.9 million at December 31, 2015. The valuation allowance for impaired commercial loans at June 30, 2016 and December 31, 2015 inclu ded $53.3 million of specific allowance for PREPA. The total investment in impaired mortgage loans was $90.9 million and $90.0 million at June 30, 2016 and December 31, 2015, 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 $8.9 million at June 30, 2016 and $9.2 million at December 31, 2015. 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 June 30, 2016 and December 31, 2015 are as follows:
| June 30, 2016 |  |
| Unpaid |  | Recorded |  | Related |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage |  |
| (In thousands) |  |
Impaired loans with specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 212,876 |  | $ | 194,084 |  | $ | 56,758 |  | 29% |  |
Residential impaired and troubled-debt restructuring |  | 99,145 |  |  | 90,948 |  |  | 8,864 |  | 10% |  |
Impaired loans with no specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 30,228 |  |  | 23,876 |  |  | - |  | 0% |  |
Total investment in impaired loans | $ | 342,249 |  | $ | 308,908 |  | $ | 65,622 |  | 21% |  |
| December 31, 2015 |  |
| Unpaid |  | Recorded |  | Related |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage |  |
| (In thousands) |  |
Impaired loans with specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 210,718 |  | $ | 199,366 |  | $ | 55,947 |  | 28% |  |
Residential impaired and troubled-debt restructuring |  | 97,424 |  |  | 89,973 |  |  | 9,233 |  | 10% |  |
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 42,110 |  |  | 35,928 |  |  | - |  | 0% |  |
Total investment in impaired loans | $ | 350,252 |  | $ | 325,267 |  | $ | 65,180 |  | 20% |  |
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 June 30, 2016 and December 31, 2015 are as follows:
| June 30, 2016
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 1,450 |  | $ | 1,433 |  | $ | - |  | 0%
Total investment in impaired loans | $ | 1,450 |  | $ | 1,433 |  | $ | - |  | 0%
| December 31, 2015
| Unpaid |  | Recorded |  | Specific |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 486 |  | $ | 474 |  | $ | - |  | 0%
Total investment in impaired loans | $ | 486 |  | $ | 474 |  | $ | - |  | 0%
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 June 30, 2016 and December 31, 2015 are as follows:
| June 30, 2016
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance: (a)(b) |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 591,029 |  | $ | 591,056 |  | $ | 1,585 |  | 0%
Commercial |  | 246,142 |  |  | 173,949 |  |  | 11,884 |  | 7%
Construction |  | 76,677 |  |  | 56,457 |  |  | 3,979 |  | 7%
Auto |  | 117,038 |  |  | 117,043 |  |  | 5,353 |  | 5%
Total investment in impaired loan pools | $ | 1,030,886 |  | $ | 938,505 |  | $ | 22,801 |  | 2%
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized on June 30, 2016 due to the revision in the derecognition policy for these loans.
| 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%
The tables above only present information with respect to acquired BBVAPR loans and pools accounted for under ASC 310-30 if there is a recorded impairment to such loans or loan pools and a specific allowance for loan losses. 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 June 30, 2016 and December 31, 2015 are as follows:
| June 30, 2016
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance: (a)(b) |  |  |  |  |  |  |  |  |  |
Loans secured by 1-4 family residential properties | $ | 95,755 |  | $ | 76,777 |  | $ | 11,016 |  | 14%
Commercial and construction |  | 114,932 |  |  | 83,377 |  |  | 11,096 |  | 13%
Consumer |  | 1,252 |  |  | 1,410 |  |  | 4 |  | 0%
Total investment in impaired loan pools | $ | 211,939 |  | $ | 161,564 |  | $ | 22,116 |  | 14%
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized on June 30, 2016 due to the revision in the derecognition policy for these loans.
| December 31, 2015
|  |  |  |  |  |  |  |  |  | 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 | $ | 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%
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 following table presents the interest recognized in commercial and mortgage loans that were individually evaluated for impairment, excluding loans accounted for under ASC 310-30 for the quarters and six-month periods ended June 30, 2016 and 2015:
| Quarter Ended June 30,
| 2016 |  | 2015
| 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 | $ | 75 |  | $ | 194,759 |  | $ | 45 |  | $ | 212,414
Residential troubled-debt restructuring |  | 791 |  |  | 91,007 |  |  | 781 |  |  | 89,041
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 149 |  |  | 29,579 |  |  | 316 |  |  | 30,015
|  | 1,015 |  |  | 315,345 |  |  | 1,142 |  |  | 331,470
Acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 15 |  |  | 789 |  |  | 11 |  |  | 1,446
Total interest income from impaired loans | $ | 1,030 |  | $ | 316,134 |  | $ | 1,153 |  | $ | 332,916
| Six-Month Period Ended June 30,
| 2016 |  |  | 2015
| 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 | $ | 150 |  | $ | 195,777 |  | $ | 90 |  | $ | 146,144
Residential troubled-debt restructuring |  | 1,591 |  |  | 90,650 |  |  | 1,563 |  |  | 91,216
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 298 |  |  | 31,603 |  |  | 631 |  |  | 95,791
Total interest income from impaired loans | $ | 2,039 |  | $ | 318,030 |  | $ | 2,284 |  | $ | 333,151
Aquired loans accounted for under SC 310-20: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 30 |  |  | 628 |  |  | 21 |  |  | 1,923
Total interest income from impaired loans | $ | 2,069 |  | $ | 318,658 |  | $ | 2,305 |  | $ | 335,074
Modifications The follow ing tables present the troubled-debt restructuring s during the
| Quarter Ended June 30, 2016
| 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 | 19 |  | $ | 2,670 |  | 5.69% |  | 372 |  | $ | 2,670 |  | 4.54% |  | 494
Commercial | 6 |  |  | 668 |  | 6.65% |  | 65 |  |  | 668 |  | 5.91% |  | 86
Consumer | 26 |  |  | 364 |  | 12.73% |  | 75 |  |  | 372 |  | 10.20% |  | 70
| Six-Month Period Ended June 30, 2016
| 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 | 52 |  | $ | 6,628 |  | 5.90% |  | 365 |  | $ | 7,525 |  | 4.73% |  | 493
Commercial | 8 |  |  | 1,323 |  | 6.73% |  | 53 |  |  | 1,324 |  | 6.31% |  | 61
Consumer | 47 |  |  | 556 |  | 13.27% |  | 75 |  |  | 603 |  | 10.56% |  | 71
| Quarter Ended June 30, 2015
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 39 |  | $ | 4,455 |  | 5.62% |  | 330 |  | $ | 4,455 |  | 4.21% |  | 330
Commercial | 1 |  |  | 29 |  | 7.25% |  | 44 |  |  | 29 |  | 6.50% |  | 60
Consumer | 21 |  |  | 250 |  | 14.40% |  | 71 |  |  | 259 |  | 13.87% |  | 69
Auto | 1 |  |  | 64 |  | 12.95% |  | 72 |  |  | 65 |  | 12.95% |  | 72
| Six-Month Period Ended June 30, 2015
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 97 |  | $ | 11,609 |  | 4.65% |  | 348 |  | $ | 11,594 |  | 4.13% |  | 349
Commercial | 4 |  |  | 4,533 |  | 6.83% |  | 80 |  |  | 4,533 |  | 7.00% |  | 141
Consumer | 32 |  |  | 396 |  | 14.50% |  | 72 |  |  | 440 |  | 14.25% |  | 68
Auto | 1 |  |  | 64 |  | 12.95% |  | 72 |  |  | 65 |  | 12.95% |  | 72
The following table presents troubled-debt restructurings for which there was a p ayment default during the twelve-month periods ended June 30, 2016 and 2015:
| Twelve-Month Period Ended June 30,
| 2016 |  |  | 2015
| Number of Contracts |  | Recorded Investment |  |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 84 |  | $ | 9,869 |  |  | 60 |  | $ | 6,911
Consumer | 7 |  | $ | 134 |  |  | 4 |  | $ | 72
Auto | 1 |  | $ | 17 |  |  | - |  | $ | -
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. As of June 30, 2016 and December 31, 2015, 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:
| June 30, 2016
| 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 | $ | 230,296 |  | $ | 215,312 |  | $ | 14,984 |  | $ | - |  | $ | - |  | $ | -
Institutional |  | 27,838 |  |  | 26,200 |  |  | - |  |  | - |  |  | - |  |  | 1,638
Middle market |  | 220,096 |  |  | 188,700 |  |  | 17,697 |  |  | 374 |  |  | - |  |  | 13,325
Retail |  | 246,691 |  |  | 222,814 |  |  | 7,468 |  |  | 4,128 |  |  | - |  |  | 12,281
Floor plan |  | 2,826 |  |  | 2,826 |  |  | - |  |  | - |  |  | - |  |  | -
Real estate |  | 16,079 |  |  | 16,079 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 743,826 |  |  | 671,931 |  |  | 40,149 |  |  | 4,502 |  |  | - |  |  | 27,244
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 140,192 |  |  | 140,192 |  |  | - |  |  | - |  |  | - |  |  | -
Institutional |  | 376,278 |  |  | 193,258 |  |  | - |  |  | - |  |  | - |  |  | 183,020
Middle market |  | 105,540 |  |  | 95,946 |  |  | 5,142 |  |  | 181 |  |  | - |  |  | 4,271
Retail |  | 76,965 |  |  | 71,933 |  |  | 898 |  |  | 979 |  |  | - |  |  | 3,155
Floor plan |  | 33,812 |  |  | 28,046 |  |  | 5,415 |  |  | 81 |  |  | - |  |  | 270
|  | 732,787 |  |  | 529,375 |  |  | 11,455 |  |  | 1,241 |  |  | - |  |  | 190,716
Total |  | 1,476,613 |  |  | 1,201,306 |  |  | 51,604 |  |  | 5,743 |  |  | - |  |  | 217,960
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 197 |  |  | - |  |  | - |  |  | 197 |  |  | - |  |  | -
Floor plan |  | 2,755 |  |  | 953 |  |  | 376 |  |  | - |  |  | - |  |  | 1,426
|  | 2,952 |  |  | 953 |  |  | 376 |  |  | 197 |  |  | - |  |  | 1,426
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 1,600 |  |  | 1,527 |  |  | - |  |  | 73 |  |  | - |  |  | -
Floor plan |  | 7 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 7
|  | 1,607 |  |  | 1,527 |  |  | - |  |  | 73 |  |  | - |  |  | 7
Total |  | 4,559 |  |  | 2,480 |  |  | 376 |  |  | 270 |  |  | - |  |  | 1,433
Total | $ | 1,481,172 |  | $ | 1,203,786 |  | $ | 51,980 |  | $ | 6,013 |  | $ | - |  | $ | 219,393
| 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
At June 30, 2016 and December 31, 2015, the Company had outstanding credit facilities of approximately $398.6 million and $4 1 5.4 million, respectively, granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, included within the portfolios 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 o bligations 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 valo rem 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. At June 30, 2016, we had approximately $19 4.4 million of credit facilities to central government and public corporations of the Commonwealth, including: PREPA with an outstanding balance of $183.0 million; and The Puerto Rico Housing Finance Authority ("PRHFA") with an outstanding balance of $1 1.0 million t o 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 central government and public corporations decreased by $10.0 million du ring the first quarter of 2016 as a result of a partial repayment by PRHFA. Oriental Bank is part of a four bank syndicate that provided 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 $183.0 million as of June 30, 2016. As part of the bank syndicate, the Bank entered into a Restructuring Support Agreement on No vember 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 o f third parties to the agreement, such as the negotiation of agreements with other creditors and legislative action. The Company expects the restructuring to be completed by the end of 2016. The Company conducted an impairment analysis considering the prob ability 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 fl ows 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 classifies this participation i n the substandard risk category and non-accrual and has a $53.3 million allowance f or loan and lease losses recorded for this line of credit. Since April 1, 2015, interest payments have been applied to pri ncipal. For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of June 30, 2016 and December 31, 2015, 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:
| June 30, 2016
| 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 | $ | 54,058 |  | $ | 48,163 |  | $ | 259 |  | $ | 2,023 |  | $ | 527 |  | $ | 1,153 |  | $ | 1,292 |  | $ | 641
Years 2003 and 2004 |  | 94,753 |  |  | 82,651 |  |  | 343 |  |  | 3,936 |  |  | 1,864 |  |  | 1,859 |  |  | 2,312 |  |  | 1,788
Year 2005 |  | 52,061 |  |  | 45,538 |  |  | - |  |  | 1,878 |  |  | 497 |  |  | 918 |  |  | 2,410 |  |  | 820
Year 2006 |  | 73,886 |  |  | 60,860 |  |  | 511 |  |  | 2,244 |  |  | 554 |  |  | 1,603 |  |  | 4,584 |  |  | 3,530
Years 2007, 2008 and 2009 |  | 84,018 |  |  | 66,997 |  |  | 703 |  |  | 1,286 |  |  | 569 |  |  | 1,724 |  |  | 8,898 |  |  | 3,841
Years 2010, 2011, 2012 2013 |  | 144,751 |  |  | 132,451 |  |  | 407 |  |  | 1,203 |  |  | 182 |  |  | 1,581 |  |  | 5,132 |  |  | 3,795
Years 2014, 2015 and 2016 |  | 99,361 |  |  | 98,270 |  |  | - |  |  | 189 |  |  | 140 |  |  | 398 |  |  | 364 |  |  | -
|  | 602,888 |  |  | 534,930 |  |  | 2,223 |  |  | 12,759 |  |  | 4,333 |  |  | 9,236 |  |  | 24,992 |  |  | 14,415
Non-traditional |  | 26,195 |  |  | 20,040 |  |  | - |  |  | 938 |  |  | 564 |  |  | 1,999 |  |  | 2,654 |  |  | -
Loss mitigation program |  | 104,081 |  |  | 18,865 |  |  | 1,692 |  |  | 1,381 |  |  | 940 |  |  | 1,306 |  |  | 3,364 |  |  | 76,533
|  | 733,164 |  |  | 573,835 |  |  | 3,915 |  |  | 15,078 |  |  | 5,837 |  |  | 12,541 |  |  | 31,010 |  |  | 90,948
Home equity secured personal loans |  | 384 |  |  | 384 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
GNMA's buy-back option program |  | 8,369 |  |  | - |  |  | - |  |  | - |  |  | 1,498 |  |  | 3,228 |  |  | 3,643 |  |  | -
|  | 741,917 |  |  | 574,219 |  |  | 3,915 |  |  | 15,078 |  |  | 7,335 |  |  | 15,769 |  |  | 34,653 |  |  | 90,948
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 24,877 |  |  | 23,809 |  |  | 459 |  |  | 177 |  |  | 214 |  |  | 218 |  |  | - |  |  | -
Overdrafts |  | 220 |  |  | 204 |  |  | 15 |  |  | 1 |  |  | - |  |  | - |  |  | - |  |  | -
Unsecured personal lines of credit |  | 2,431 |  |  | 2,281 |  |  | 42 |  |  | 14 |  |  | 11 |  |  | 83 |  |  | - |  |  | -
Unsecured personal loans |  | 221,648 |  |  | 217,759 |  |  | 1,854 |  |  | 1,137 |  |  | 898 |  |  | - |  |  | - |  |  | -
Cash collateral personal loans |  | 16,093 |  |  | 16,026 |  |  | 63 |  |  | 3 |  |  | - |  |  | 1 |  |  | - |  |  | -
|  | 265,269 |  |  | 260,079 |  |  | 2,433 |  |  | 1,332 |  |  | 1,123 |  |  | 302 |  |  | - |  |  | -
Auto and Leasing |  | 712,268 |  |  | 641,075 |  |  | 44,433 |  |  | 19,438 |  |  | 5,492 |  |  | 1,830 |  |  | - |  |  | -
|  | 1,719,454 |  |  | 1,475,373 |  |  | 50,781 |  |  | 35,848 |  |  | 13,950 |  |  | 17,901 |  |  | 34,653 |  |  | 90,948
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 32,298 |  |  | 30,573 |  |  | 731 |  |  | 290 |  |  | 290 |  |  | 414 |  |  | - |  |  | -
Personal loans |  | 2,896 |  |  | 2,707 |  |  | 116 |  |  | 14 |  |  | 26 |  |  | 33 |  |  | - |  |  | -
|  | 35,194 |  |  | 33,280 |  |  | 847 |  |  | 304 |  |  | 316 |  |  | 447 |  |  | - |  |  | -
Auto |  | 77,118 |  |  | 69,272 |  |  | 5,088 |  |  | 2,196 |  |  | 412 |  |  | 150 |  |  | - |  |  | -
|  | 112,312 |  |  | 102,552 |  |  | 5,935 |  |  | 2,500 |  |  | 728 |  |  | 597 |  |  | - |  |  | -
Total | $ | 1,831,766 |  | $ | 1,577,925 |  | $ | 56,716 |  | $ | 38,348 |  | $ | 14,678 |  | $ | 18,498 |  | $ | 34,653 |  | $ | 90,948
| 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
Year 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

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