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Loans Receivable | 9 Months Ended
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Sep. 30, 2016
Loans Receivable [Abstract] |
LOANS RECEIVABLE | NOTE 4 - LOANS The Company’s loan portfolio held for investment 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. Loans held for sale are presented separately. The coverage for the single family residential loans will expire on June 30, 2020. At September 30, 2016, the remaining covered loans, amounting to $62.8 million, net carrying amount ($75.0 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 nine-month periods ended September 30, 2016 and 2015 was $6.4 million and $31.4 million, respectively. The decrease in interest income recognized for covered loans is mainly due to the expiration of the FDIC loss-share coverage related to commercial and other-non single family 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 Deteriora ted 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 w as implemented prospect ively due to the immaterial impact of 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 during the second quarter of 2016 resulted in the de-recognition of $8.9 million and $73.1 million in the recorded investment balance and associat ed 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. During the third quarter of 2016, the Company entered into an agreement to sell its outstanding $200.0 million participation in the Puerto Rico Electric Power Authority ("PREPA") line of credit for $12 3.5 million, slightly lower than the adjusted book balance, net of reserves. As a result of this transaction, the Company recognized a $56.2 million charge-off and $2.9 million provision for loan and lease losses during the quarter ended September 30, 2016. A t September 30, 2016, this line of credit was reported as other loans held for sale, at fair value of $123.1 million. The sale transaction settled on October 7, 2016. The composition of the Company’s loan portfolio at September 30, 2016 and December 31, 2015 was as follows
| September 30, |  | December 31,
| 2016 |  | 2015
| (In thousands)
Originated and other loans and leases held for investment: (c) |  |  |  |  |
Mortgage | $ | 735,367 |  | $ | 757,828
Commercial |  | 1,267,177 |  |  | 1,441,649
Consumer |  | 278,666 |  |  | 242,950
Auto and leasing |  | 730,589 |  |  | 669,163
|  | 3,011,799 |  |  | 3,111,590
Allowance for loan and lease losses on originated and other loans and leases |  | (62,168) |  |  | (112,626)
|  | 2,949,631 |  |  | 2,998,964
Deferred loan costs, net |  | 5,421 |  |  | 4,203
Total originated and other loans loans held for investment, net |  | 2,955,052 |  |  | 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 |  | 5,755 |  |  | 7,457
Consumer |  | 34,215 |  |  | 38,385
Auto |  | 64,393 |  |  | 106,911
|  | 104,363 |  |  | 152,753
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20 (b) |  | (4,213) |  |  | (5,542)
|  | 100,150 |  |  | 147,211
Accounted for under ASC 310-30 (Loans acquired with deteriorated |  |  |  |  |
credit quality, including those by analogy) (a) |  |  |  |  |
Mortgage |  | 579,769 |  |  | 608,294
Commercial |  | 230,163 |  |  | 287,311
Construction |  | 71,436 |  |  | 88,180
Consumer |  | 5,768 |  |  | 11,843
Auto |  | 100,475 |  |  | 153,592
|  | 987,611 |  |  | 1,149,220
Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30 |  | (29,819) |  |  | (25,785)
|  | 957,792 |  |  | 1,123,435
Total acquired BBVAPR loans, net |  | 1,057,942 |  |  | 1,270,646
Acquired Eurobank loans: (a) |  |  |  |  |
Loans secured by 1-4 family residential properties |  | 75,043 |  |  | 92,273
Commercial and construction |  | 82,753 |  |  | 142,377
Consumer |  | 1,488 |  |  | 2,314
Total Eurobank loans |  | 159,284 |  |  | 236,964
Allowance for loan and lease losses on Eurobank loans (b) |  | (22,812) |  |  | (90,178)
Total Eurobank loans, net |  | 136,472 |  |  | 146,786
Total acquired loans, net |  | 1,194,414 |  |  | 1,417,432
Total held for investment, net |  | 4,149,466 |  |  | 4,420,599
Mortgage loans held for sale |  | 26,362 |  |  | 13,614
Other loans held for sale (c) |  | 123,137 |  |  | -
Total loans, net | $ | 4,298,965 |  | $ | 4,434,213
(a) Current period amounts have been re-measured using the revised de-recognition policy for purchased credit impaired loans implemented in the second quarter of 2016.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was de-recognized due to the revision in the de-recognition policy for these loans implemented during the second quarter of 2016.
(c) During the third quarter of 2016, the Company entered into an agreement to sell its outstanding participation in the PREPA line of credit. At September 30, 2016 this line of credit was reported as other loans held for sale, at fair value of $123.1 million.
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 September 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.
| September 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 | $ | 190 |  | $ | 1,607 |  | $ | 3,388 |  | $ | 5,185 |  | $ | 92 |  | $ | 47,169 |  | $ | 52,446 |  | $ | 114
Years 2003 and 2004 |  | 249 |  |  | 4,271 |  |  | 6,142 |  |  | 10,662 |  |  | 332 |  |  | 81,915 |  |  | 92,909 |  |  | -
Year 2005 |  | 123 |  |  | 1,810 |  |  | 3,930 |  |  | 5,863 |  |  | 202 |  |  | 44,617 |  |  | 50,682 |  |  | -
Year 2006 |  | 781 |  |  | 3,434 |  |  | 7,045 |  |  | 11,260 |  |  | 321 |  |  | 60,358 |  |  | 71,939 |  |  | -
Years 2007, 2008 and 2009 |  | 929 |  |  | 2,182 |  |  | 11,283 |  |  | 14,394 |  |  | 46 |  |  | 66,407 |  |  | 80,847 |  |  | 569
Years 2010, 2011, 2012, 2013 |  | 452 |  |  | 2,777 |  |  | 10,497 |  |  | 13,726 |  |  | - |  |  | 129,710 |  |  | 143,436 |  |  | 571
Years 2014, 2015 and 2016 |  | - |  |  | 430 |  |  | 1,150 |  |  | 1,580 |  |  | 47 |  |  | 102,789 |  |  | 104,416 |  |  | -
|  | 2,724 |  |  | 16,511 |  |  | 43,435 |  |  | 62,670 |  |  | 1,040 |  |  | 532,965 |  |  | 596,675 |  |  | 1,254
Non-traditional |  | - |  |  | 301 |  |  | 5,002 |  |  | 5,303 |  |  | - |  |  | 19,036 |  |  | 24,339 |  |  | -
Loss mitigation program |  | 10,908 |  |  | 6,571 |  |  | 18,315 |  |  | 35,794 |  |  | 2,704 |  |  | 65,918 |  |  | 104,416 |  |  | 2,120
|  | 13,632 |  |  | 23,383 |  |  | 66,752 |  |  | 103,767 |  |  | 3,744 |  |  | 617,919 |  |  | 725,430 |  |  | 3,374
Home equity secured personal loans |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 339 |  |  | 339 |  |  | -
GNMA's buy-back option program |  | - |  |  | - |  |  | 9,598 |  |  | 9,598 |  |  | - |  |  | - |  |  | 9,598 |  |  | -
Total mortgage |  | 13,632 |  |  | 23,383 |  |  | 76,350 |  |  | 113,365 |  |  | 3,744 |  |  | 618,258 |  |  | 735,367 |  |  | 3,374
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 240,458 |  |  | 240,458 |  |  | -
Institutional |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,495 |  |  | 27,265 |  |  | 28,760 |  |  | -
Middle market |  | - |  |  | 205 |  |  | 3,114 |  |  | 3,319 |  |  | 1,406 |  |  | 232,088 |  |  | 236,813 |  |  | -
Retail |  | 672 |  |  | 707 |  |  | 6,477 |  |  | 7,856 |  |  | 3,710 |  |  | 236,983 |  |  | 248,549 |  |  | -
Floor plan |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,793 |  |  | 2,793 |  |  | -
Real estate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 15,783 |  |  | 15,783 |  |  | -
|  | 672 |  |  | 912 |  |  | 9,591 |  |  | 11,175 |  |  | 6,611 |  |  | 755,370 |  |  | 773,156 |  |  | -
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 126,325 |  |  | 126,325 |  |  | -
Institutional |  | 500 |  |  | - |  |  | - |  |  | 500 |  |  | 1,345 |  |  | 172,988 |  |  | 174,833 |  |  | -
Middle market |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,350 |  |  | 85,349 |  |  | 86,699 |  |  | -
Retail |  | 1,112 |  |  | 311 |  |  | 1,060 |  |  | 2,483 |  |  | 210 |  |  | 71,252 |  |  | 73,945 |  |  | -
Floor plan |  | 670 |  |  | - |  |  | 119 |  |  | 789 |  |  | - |  |  | 31,430 |  |  | 32,219 |  |  | -
|  | 2,282 |  |  | 311 |  |  | 1,179 |  |  | 3,772 |  |  | 2,905 |  |  | 487,344 |  |  | 494,021 |  |  | -
Total commercial |  | 2,954 |  |  | 1,223 |  |  | 10,770 |  |  | 14,947 |  |  | 9,516 |  |  | 1,242,714 |  |  | 1,267,177 |  |  | -
| September 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 |  | 486 |  |  | 264 |  |  | 510 |  |  | 1,260 |  |  | - |  |  | 24,204 |  |  | 25,464 |  |  | -
Overdrafts |  | 12 |  |  | 3 |  |  | 3 |  |  | 18 |  |  | - |  |  | 178 |  |  | 196 |  |  | -
Personal lines of credit |  | 38 |  |  | 18 |  |  | 37 |  |  | 93 |  |  | - |  |  | 2,199 |  |  | 2,292 |  |  | -
Personal loans |  | 2,154 |  |  | 1,657 |  |  | 926 |  |  | 4,737 |  |  | 778 |  |  | 229,480 |  |  | 234,995 |  |  | -
Cash collateral personal loans |  | 162 |  |  | 2 |  |  | 30 |  |  | 194 |  |  | - |  |  | 15,525 |  |  | 15,719 |  |  | -
Total consumer |  | 2,852 |  |  | 1,944 |  |  | 1,506 |  |  | 6,302 |  |  | 778 |  |  | 271,586 |  |  | 278,666 |  |  | -
Auto and leasing |  | 46,564 |  |  | 18,738 |  |  | 8,407 |  |  | 73,709 |  |  | 115 |  |  | 656,765 |  |  | 730,589 |  |  | -
Total | $ | 66,002 |  | $ | 45,288 |  | $ | 97,033 |  | $ | 208,323 |  | $ | 14,153 |  | $ | 2,789,323 |  | $ | 3,011,799 |  | $ | 3,374
| 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 reta il portfolio. The change resulted in a $19 thousand and $5.9 million reduction in early and total delinquency for consumer and auto loans, respectively. At September 30, 2016 and December 31, 2015, the Company had carrying balances of $13 6.8 million and $334.6 million, respectively, in originated and other loans held for investment 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 the Puerto R ico government were current at September 30, 2016 and December 31, 2015. Acquired 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 receivabl e 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 Compa ny’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 peri od upon refinancing, renewal or normal re-underwriting. The following table s present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as of September 30, 2016 and December 31, 2015, by class of loans:
| September 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 | $ | - |  | $ | - |  | $ | 150 |  | $ | 150 |  | $ | - |  | $ | - |  | $ | 150 |  | $ | -
Floor plan |  | 969 |  |  | - |  |  | 227 |  |  | 1,196 |  |  | - |  |  | 1,286 |  |  | 2,482 |  |  | -
|  | 969 |  |  | - |  |  | 377 |  |  | 1,346 |  |  | - |  |  | 1,286 |  |  | 2,632 |  |  | -
Other commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 67 |  |  | 56 |  |  | 78 |  |  | 201 |  |  | - |  |  | 2,919 |  |  | 3,120 |  |  | -
Floor plan |  | - |  |  | - |  |  | 3 |  |  | 3 |  |  | - |  |  | - |  |  | 3 |  |  | -
|  | 67 |  |  | 56 |  |  | 81 |  |  | 204 |  |  | - |  |  | 2,919 |  |  | 3,123 |  |  | -
|  | 1,036 |  |  | 56 |  |  | 458 |  |  | 1,550 |  |  | - |  |  | 4,205 |  |  | 5,755 |  |  | -
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 827 |  |  | 443 |  |  | 641 |  |  | 1,911 |  |  | - |  |  | 29,452 |  |  | 31,363 |  |  | -
Personal loans |  | 95 |  |  | 15 |  |  | 62 |  |  | 172 |  |  | - |  |  | 2,680 |  |  | 2,852 |  |  | -
|  | 922 |  |  | 458 |  |  | 703 |  |  | 2,083 |  |  | - |  |  | 32,132 |  |  | 34,215 |  |  | -
Auto |  | 4,321 |  |  | 1,608 |  |  | 739 |  |  | 6,668 |  |  | 4 |  |  | 57,721 |  |  | 64,393 |  |  | -
Total | $ | 6,279 |  | $ | 2,122 |  | $ | 1,900 |  | $ | 10,301 |  | $ | 4 |  | $ | 94,058 |  | $ | 104,363 |  | $ | -
| 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 September 30, 2016 and December 31, 2015 is as follows:
|  | September 30, |  | December 31,
|  | 2016 |  | 2015
|  |  | (In thousands)
Contractual required payments receivable (a) |  | $ | 1,716,721 |  | $ | 1,945,098
Less: Non-accretable discount |  |  | 367,754 |  |  | 434,190
Cash expected to be collected |  |  | 1,348,967 |  |  | 1,510,908
Less: Accretable yield |  |  | 361,356 |  |  | 361,688
Carrying amount, gross |  |  | 987,611 |  |  | 1,149,220
Less: allowance for loan and lease losses (b) |  |  | 29,819 |  |  | 25,785
Carrying amount, net |  | $ | 957,792 |  | $ | 1,123,435
(a) Current period amounts have been re-measured using the revised de-recognition policy for purchased credit impaired loans implemented in the second quarter of 2016.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was de-recognized due to the revision in the de-recognition policy for these loans implemented during the second quarter of 2016.
At September 30, 2016 and December 31, 2015, the Company had $65.6 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. The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted f or under ASC 310-30 for the
| Quarter Ended September 30, 2016
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 283,823 |  | $ | 37,059 |  | $ | 15,248 |  | $ | 14,103 |  | $ | 4,885 |  | $ | 355,118
Accretion |  | (8,197) |  |  | (5,201) |  |  | (1,485) |  |  | (3,107) |  |  | (662) |  |  | (18,652)
Change in expected cash flows |  | (1) |  |  | 1,764 |  |  | (1) |  |  | 618 |  |  | (241) |  |  | 2,139
Transfer from (to) non-accretable discount |  | 24,056 |  |  | (1,296) |  |  | 283 |  |  | (525) |  |  | 233 |  |  | 22,751
Balance at end of period | $ | 299,681 |  | $ | 32,326 |  | $ | 14,045 |  | $ | 11,089 |  | $ | 4,215 |  | $ | 361,356
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 336,153 |  | $ | 10,582 |  | $ | 7,419 |  | $ | 22,121 |  | $ | 18,225 |  | $ | 394,500
Change in actual and expected losses |  | (2,591) |  |  | (1,215) |  |  | (1) |  |  | (309) |  |  | 121 |  |  | (3,995)
Transfer (to) from accretable yield |  | (24,056) |  |  | 1,296 |  |  | (283) |  |  | 525 |  |  | (233) |  |  | (22,751)
Balance at end of period | $ | 309,506 |  | $ | 10,663 |  | $ | 7,135 |  | $ | 22,337 |  | $ | 18,113 |  | $ | 367,754
| Nine-Month Period Ended September 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 |  | (24,798) |  |  | (16,312) |  |  | (4,661) |  |  | (10,934) |  |  | (2,470) |  |  | (59,175)
Change in expected cash flows |  | (1) |  |  | 4,954 |  |  | (209) |  |  | 1,249 |  |  | (242) |  |  | 5,751
Transfer from (to) non-accretable discount |  | 55,686 |  |  | (1,727) |  |  | (700) |  |  | (804) |  |  | 637 |  |  | 53,092
Balance at end of period | $ | 299,681 |  | $ | 32,326 |  | $ | 14,045 |  | $ | 11,089 |  | $ | 4,215 |  | $ | 361,356
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 |  | (9,580) |  |  | (2,845) |  |  | (329) |  |  | (506) |  |  | (84) |  |  | (13,344)
Transfer (to) from accretable yield |  | (55,686) |  |  | 1,727 |  |  | 700 |  |  | 804 |  |  | (637) |  |  | (53,092)
Balance at end of period | $ | 309,506 |  | $ | 10,663 |  | $ | 7,135 |  | $ | 22,337 |  | $ | 18,113 |  | $ | 367,754
| Quarter Ended September 30, 2015
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 275,880 |  | $ | 71,563 |  | $ | 24,613 |  | $ | 31,531 |  | $ | 8,461 |  | $ | 412,048
Accretion |  | (8,614) |  |  | (12,693) |  |  | (2,719) |  |  | (5,463) |  |  | (1,207) |  |  | (30,696)
Change in actual and expected losses |  | - |  |  | 6,134 |  |  | 1,396 |  |  | (1) |  |  | (1) |  |  | 7,528
Transfer from (to) non-accretable discount |  | 75 |  |  | (6,450) |  |  | (4,075) |  |  | 148 |  |  | 35 |  |  | (10,267)
Balance at end of period | $ | 267,341 |  | $ | 58,554 |  | $ | 19,215 |  | $ | 26,215 |  | $ | 7,288 |  | $ | 378,613
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 389,107 |  | $ | 10,770 |  | $ | 6,994 |  | $ | 23,690 |  | $ | 19,356 |  | $ | 449,917
Change in actual and expected losses |  | (2,184) |  |  | (12,090) |  |  | (2,937) |  |  | (555) |  |  | (315) |  |  | (18,081)
Transfer (to) from accretable yield |  | (75) |  |  | 6,450 |  |  | 4,075 |  |  | (148) |  |  | (35) |  |  | 10,267
Balance at end of period | $ | 386,848 |  | $ | 5,130 |  | $ | 8,132 |  | $ | 22,987 |  | $ | 19,006 |  | $ | 442,103
| Nine-Month Period Ended September 30, 2015
| Mortgage |  | Commercial |  | Construction |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 298,364 |  | $ | 61,196 |  | $ | 25,829 |  | $ | 53,998 |  | $ | 6,559 |  | $ | 445,946
Accretion |  | (26,414) |  |  | (33,049) |  |  | (8,672) |  |  | (18,614) |  |  | (3,420) |  |  | (90,169)
Change in actual and expected losses |  | - |  |  | 6,134 |  |  | 1,396 |  |  | (1) |  |  | (1) |  |  | 7,528
Transfer (to) from non-accretable discount |  | (4,609) |  |  | 24,273 |  |  | 662 |  |  | (9,168) |  |  | 4,150 |  |  | 15,308
Balance at end of period | $ | 267,341 |  |  | 58,554 |  |  | 19,215 |  |  | 26,215 |  |  | 7,288 |  |  | 378,613
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 389,839 |  | $ | 23,069 |  | $ | 3,486 |  | $ | 16,215 |  | $ | 24,018 |  | $ | 456,627
Change in actual and expected losses |  | (7,600) |  |  | 6,334 |  |  | 5,308 |  |  | (2,396) |  |  | (862) |  |  | 784
Transfer from (to) accretable yield |  | 4,609 |  |  | (24,273) |  |  | (662) |  |  | 9,168 |  |  | (4,150) |  |  | (15,308)
Balance at end of period | $ | 386,848 |  | $ | 5,130 |  | $ | 8,132 |  | $ | 22,987 |  | $ | 19,006 |  | $ | 442,103
Acquired Eurobank Loans The carrying amount of acquired Eurobank loans at September 30, 2016 and December 31, 2015 is as follows:
|  | September 30 |  |  | December 31
| 2016 |  | 2015
| (In thousands)
Contractual required payments receivable (a) | $ | 243,873 |  | $ | 342,511
Less: Non-accretable discount |  | 7,934 |  |  | 21,156
Cash expected to be collected |  | 235,939 |  |  | 321,355
Less: Accretable yield |  | 76,655 |  |  | 84,391
Carrying amount, gross |  | 159,284 |  |  | 236,964
Less: Allowance for loan and lease losses (b) |  | 22,812 |  |  | 90,178
Carrying amount, net | $ | 136,472 |  | $ | 146,786
(a) Current period amounts have been re-measured using the revised de-recognition policy for purchased credit impaired loans implemented in the second quarter of 2016.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was de-recognized due to the revision in the de-recognition policy for these loans implemented during the second quarter of 2016.
The following tables describe the accretable yield and non-a ccretable discount activity of acquired Eurobank loans for the quarters and nine-month periods ended September 30, 2016 and 2015:
| Quarter Ended September 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 | $ | 48,336 |  | $ | 29,142 |  | $ | 2,204 |  | $ | - |  | $ | - |  | $ | 79,682
Accretion |  | (2,217) |  |  | (6,570) |  |  | - |  |  | (62) |  |  | (490) |  |  | (9,339)
Change in expected cash flows |  | 646 |  |  | 1,719 |  |  | (8) |  |  | 62 |  |  | 490 |  |  | 2,909
Transfer from (to) non-accretable discount |  | 3,737 |  |  | (188) |  |  | (146) |  |  | - |  |  | - |  |  | 3,403
Balance at end of year | $ | 50,502 |  | $ | 24,103 |  | $ | 2,050 |  | $ | - |  | $ | - |  | $ | 76,655
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 11,555 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 11,555
Change in actual and expected losses |  | (845) |  |  | 617 |  |  | 10 |  |  | - |  |  | - |  |  | (218)
Transfer from (to) accretable yield |  | (3,737) |  |  | 188 |  |  | 146 |  |  | - |  |  | - |  |  | (3,403)
Balance at end of period | $ | 6,973 |  | $ | 805 |  | $ | 156 |  | $ | - |  | $ | - |  | $ | 7,934
| Nine-Month Period Ended September 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 |  | $ | - |  | $ | 3,212 |  | $ | 84,391
Accretion |  | (6,746) |  |  | (15,193) |  |  | (47) |  |  | (60) |  |  | (1,751) |  |  | (23,797)
Change in expected cash flows |  | 1,432 |  |  | 14,431 |  |  | (31) |  |  | (15) |  |  | (1,456) |  |  | 14,361
Transfer from (to) non-accretable discount |  | 3,862 |  |  | (2,105) |  |  | (127) |  |  | 75 |  |  | (5) |  |  | 1,700
Balance at end of period | $ | 50,502 |  | $ | 24,103 |  | $ | 2,050 |  | $ | - |  | $ | - |  | $ | 76,655
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 12,869 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,287 |  | $ | 21,156
Change in actual and expected losses |  | (2,034) |  |  | (1,300) |  |  | 29 |  |  | 75 |  |  | (8,292) |  |  | (11,522)
Transfer (to) from accretable yield |  | (3,862) |  |  | 2,105 |  |  | 127 |  |  | (75) |  |  | 5 |  |  | (1,700)
Balance at end of period | $ | 6,973 |  | $ | 805 |  | $ | 156 |  | $ | - |  | $ | - |  | $ | 7,934
| Quarter Ended September 30, 2015
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 55,806 |  | $ | 27,473 |  | $ | 18,349 |  | $ | 1,103 |  | $ | 1,910 |  | $ | 104,641
Accretion |  | (3,543) |  |  | (10,100) |  |  | (1,446) |  |  | (711) |  |  | (214) |  |  | (16,014)
Change in expected cash flows |  | 4,320 |  |  | 43,775 |  |  | (10,749) |  |  | 270 |  |  | 118 |  |  | 37,734
Transfer from non-accretable discount |  | (2,188) |  |  | (30,400) |  |  | 175 |  |  | 307 |  |  | 1,603 |  |  | (30,503)
Balance at end of period | $ | 54,395 |  | $ | 30,748 |  | $ | 6,329 |  | $ | 969 |  | $ | 3,417 |  | $ | 95,858
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 11,402 |  | $ | - |  | $ | - |  | $ | - |  | $ | 9,730 |  | $ | 21,132
Change in actual and expected losses |  | (8) |  |  | (30,400) |  |  | 175 |  |  | 307 |  |  | (34) |  |  | (29,960)
Transfer to accretable yield |  | 2,188 |  |  | 30,400 |  |  | (175) |  |  | (307) |  |  | (1,603) |  |  | 30,503
Balance at end of period | $ | 13,582 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,093 |  | $ | 21,675
| Nine-Month Period Ended September 30, 2015
| Loans Secured by 1-4 Family Residential Properties |  | Commercial and Other Construction |  | Construction & Development Secured by 1-4 Family Residential Properties |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 47,636 |  | $ | 37,919 |  | $ | 20,753 |  | $ | 2,479 |  | $ | 1,072 |  | $ | 109,859
Accretion |  | (10,337) |  |  | (28,002) |  |  | (2,470) |  |  | (3,040) |  |  | (427) |  |  | (44,276)
Change in Expected Cash Flows |  | 4,320 |  |  | 43,775 |  |  | (10,749) |  |  | 270 |  |  | 118 |  |  | 37,734
Transfer from (to) non-accretable discount |  | 12,776 |  |  | (22,944) |  |  | (1,205) |  |  | 1,260 |  |  | 2,654 |  |  | (7,459)
Balance at end of period | $ | 54,395 |  | $ | 30,748 |  | $ | 6,329 |  | $ | 969 |  | $ | 3,417 |  | $ | 95,858
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 27,348 |  | $ | 24,464 |  | $ | - |  | $ | - |  | $ | 10,598 |  | $ | 62,410
Change in actual and expected cash flows |  | (990) |  |  | (47,408) |  |  | (1,205) |  |  | 1,260 |  |  | 149 |  |  | (48,194)
Transfer (to) from accretable yield |  | (12,776) |  |  | 22,944 |  |  | 1,205 |  |  | (1,260) |  |  | (2,654) |  |  | 7,459
Balance at end of period | $ | 13,582 |  | $ | - |  | $ | - |  | $ | - |  | $ | 8,093 |  | $ | 21,675
Non-accrual Loans The following table presents the recorded investment in loans in non-accrual status by class of loans as of September 30, 2016 and December 31, 2015:
| September 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 | $ | 3,436 |  | $ | 3,786
Years 2003 and 2004 |  | 6,474 |  |  | 5,737
Year 2005 |  | 4,367 |  |  | 3,627
Year 2006 |  | 7,412 |  |  | 8,189
Years 2007, 2008 and 2009 |  | 10,931 |  |  | 14,625
Years 2010, 2011, 2012, 2013 |  | 10,059 |  |  | 10,588
Years 2014, 2015 and 2016 |  | 1,197 |  |  | 663
|  | 43,876 |  |  | 47,215
Non-traditional |  | 5,002 |  |  | 5,092
Loss mitigation program |  | 21,485 |  |  | 20,172
|  | 70,363 |  |  | 72,479
Home equity loans, secured personal loans |  | - |  |  | 64
|  | 70,363 |  |  | 72,543
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Middle market |  | 4,726 |  |  | 12,729
Retail |  | 11,040 |  |  | 8,726
|  | 15,766 |  |  | 21,455
Other commercial and industrial |  |  |  |  |
Institutional |  | 1,845 |  |  | 190,290
Middle market |  | 1,350 |  |  | 1,565
Retail |  | 2,101 |  |  | 1,932
Floor plan |  | 790 |  |  | 39
|  | 6,086 |  |  | 193,826
|  | 21,852 |  |  | 215,281
Consumer |  |  |  |  |
Credit cards |  | 510 |  |  | 369
Personal lines of credit |  | 37 |  |  | 100
Personal loans |  | 1,890 |  |  | 1,146
Cash collateral personal loans |  | 30 |  |  | 16
|  | 2,467 |  |  | 1,631
Auto and leasing |  | 9,477 |  |  | 8,418
Total non-accrual originated loans | $ | 104,159 |  | $ | 297,873
| September 30, |  | December 31,
| 2016 |  | 2015
| (In thousands)
Acquired BBVAPR loans accounted for under ASC 310-20 |  |  |  |  |
Commercial |  |  |  |  |
Commercial secured by real estate |  |  |  |  |
Retail | $ | 150 |  | $ | 228
Floor plan |  | 227 |  |  | 467
|  | 377 |  |  | 695
Other commercial and industrial |  |  |  |  |
Retail |  | 78 |  |  | 178
Floor plan |  | 3 |  |  | 7
|  | 81 |  |  | 185
|  | 458 |  |  | 880
Consumer |  |  |  |  |
Credit cards |  | 641 |  |  | 489
Personal loans |  | 62 |  |  | 46
|  | 703 |  |  | 535
Auto |  | 777 |  |  | 831
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20 |  | 1,938 |  |  | 2,246
Total non-accrual loans | $ | 106,097 |  | $ | 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 a re 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 loan s but excluded from non-accrual loans. In addition, these loans are excluded from the impairment analysis. During the first quarter of 2015, the participation in the PREPA line of credit was classified as non-accrual. At December 31, 2015, this participat ion had an unpaid principal balance of $190.3 million. During the third quarter of 2016, the Company agreed to sell its participation with a settlement on October 7, 2016. Therefore, a t September 30, 2016 this line of credit was reported as other loans held for sale, at fair value of $123.1 million. At September 30, 2016 and December 31, 2015, loans whose terms have been extended and w hich are classified as troubled-debt restructurings that are not included in non-accrual loans amounte d to $100.3 million a nd $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 $3 6.6 million and $2 35.8 million at September 30, 2016 and December 31, 2015, respectively. Impaired commercial loans at December 31, 2015 included the PREPA line of credit with an unpaid principal balance of $190.3 million. The impaired commercial loans were measured based on the fair value of collateral or the p resent value of cash flows, including those identified as troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to $5.6 million at September 30, 2016 and $55.9 million at December 31, 2015. The valuation allowance fo r impaired commercial loans at December 31, 2015 inclu ded $53.3 million of specific allowance for PREPA. The total investment in impaired mortgage loans was $92.3 million and $90.0 million at September 30, 2016 and December 31, 2015, respectively. Impairme nt 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 $8.7 million at September 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 September 30, 2016 and December 31, 2015 are as follows:
| September 30, 2016 |  |
| Unpaid |  | Recorded |  | Related |  |  |  |
| Principal |  | Investment |  | Allowance |  | Coverage |  |
| (In thousands) |  |
Impaired loans with specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 16,915 |  | $ | 14,949 |  | $ | 5,572 |  | 38% |  |
Residential impaired and troubled-debt restructuring |  | 100,390 |  |  | 92,343 |  |  | 8,725 |  | 9% |  |
Impaired loans with no specific allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 27,908 |  |  | 21,420 |  |  | - |  | 0% |  |
Total investment in impaired loans | $ | 145,213 |  | $ | 128,712 |  | $ | 14,297 |  | 11% |  |
| 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 September 30, 2016 and December 31, 2015 are as follows:
| September 30, 2016
| Unpaid |  | Recorded |  | Related |  |
| Principal |  | Investment |  | Allowance |  | Coverage
| (In thousands)
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |
Commercial | $ | 251 |  | $ | 230 |  | $ | - |  | 0%
Total investment in impaired loans | $ | 251 |  | $ | 230 |  | $ | - |  | 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 September 30, 2016 and December 31, 2015 are as follows:
| September 30, 2016
|  |  |  |  |  |  |  |  |  | Coverage
| Unpaid |  | Recorded |  |  |  | to Recorded
| Principal |  | Investment |  | Allowance |  | Investment
| (In thousands)
Impaired loan pools with specific allowance: (a)(b) |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 608,751 |  | $ | 579,770 |  | $ | 2,664 |  | 0%
Commercial |  | 168,980 |  |  | 164,061 |  |  | 17,878 |  | 11%
Construction |  | 52,775 |  |  | 51,271 |  |  | 4,120 |  | 8%
Auto |  | 107,358 |  |  | 100,475 |  |  | 5,157 |  | 5%
Total investment in impaired loan pools | $ | 937,864 |  | $ | 895,577 |  | $ | 29,819 |  | 3%
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans implemented in the second quarter of 2016.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized due to the revision in the derecognition policy for these loans implemented during the second quarter of 2016.
| 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 September 30, 2016 and December 31, 2015 are as follows:
| September 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 | $ | 83,216 |  | $ | 70,337 |  | $ | 12,268 |  | 17%
Commercial and construction |  | 57,889 |  |  | 53,445 |  |  | 10,544 |  | 20%
Consumer |  | - |  |  | 1,488 |  |  | - |  | 0%
Total investment in impaired loan pools | $ | 141,105 |  | $ | 125,270 |  | $ | 22,812 |  | 18%
(a) Current period amounts have been re-measured using the revised derecognition policy for purchased credit impaired loans implemented in the second quarter of 2016.
(b) A portion of the allowance for loan and lease losses associated with purchased credit impaired loans was derecognized due to the revision in the derecognition policy for these loans implemented during the second quarter of 2016.
| 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 nine-month periods ended September 30, 2016 and 2015:
| Quarter Ended September 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 | $ | 162 |  | $ | 73,729 |  | $ | 37 |  | $ | 207,610
Residential troubled-debt restructuring |  | 765 |  |  | 91,345 |  |  | 788 |  |  | 90,278
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 259 |  |  | 62,946 |  |  | 365 |  |  | 31,159
|  | 1,186 |  |  | 228,020 |  |  | 1,190 |  |  | 329,047
Acquired loans accounted for under ASC 310-20: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 15 |  | $ | 323 |  | $ | - |  | $ | -
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | - |  |  | 952 |  |  | - |  |  | 1,077
Total interest income from impaired loans | $ | 1,201 |  | $ | 229,295 |  | $ | 1,190 |  | $ | 330,124
| Nine-Month Period Ended September 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 | $ | 202 |  | $ | 155,094 |  | $ | 73 |  | $ | 166,633
Residential troubled-debt restructuring |  | 2,321 |  |  | 90,881 |  |  | 2,381 |  |  | 90,903
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 749 |  |  | 42,050 |  |  | 727 |  |  | 74,247
Total interest income from impaired loans | $ | 3,272 |  | $ | 288,025 |  | $ | 3,181 |  | $ | 331,783
Aquired loans accounted for under SC 310-20: |  |  |  |  |  |  |  |  |  |  |
Impaired loans with specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 45 |  | $ | 108 |  | $ | - |  | $ | -
Impaired loans with no specific allowance |  |  |  |  |  |  |  |  |  |  |
Commercial |  | - |  |  | 736 |  |  | - |  |  | 1,641
Total interest income from impaired loans | $ | 3,317 |  | $ | 288,869 |  | $ | 3,181 |  | $ | 333,424
Modifications The follow ing tables present the troubled-debt restructuring s during the
| Quarter Ended September 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 | 20 |  | $ | 2,737 |  | 6.28% |  | 297 |  | $ | 2,768 |  | 4.72% |  | 387
Commercial | 5 |  |  | 7,352 |  | 5.31% |  | 65 |  |  | 7,352 |  | 5.89% |  | 130
Consumer | 20 |  |  | 183 |  | 14.73% |  | 72 |  |  | 210 |  | 12.72% |  | 54
| Nine-Month Period Ended September 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 | 72 |  | $ | 9,558 |  | 6.00% |  | 347 |  | $ | 9,284 |  | 4.69% |  | 462
Commercial | 13 |  |  | 8,675 |  | 5.53% |  | 63 |  |  | 8,676 |  | 5.95% |  | 120
Consumer | 67 |  |  | 739 |  | 13.63% |  | 74 |  |  | 813 |  | 11.12% |  | 67
| Quarter Ended September 30, 2015
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 30 |  | $ | 3,846 |  | 6.34% |  | 338 |  | $ | 3,992 |  | 4.45% |  | 180
Commercial | 3 |  |  | 1,001 |  | 6.50% |  | 12 |  |  | 8,511 |  | 3.19% |  | 12
Consumer | 27 |  |  | 170 |  | 12.41% |  | 70 |  |  | 400 |  | 12.32% |  | 52
| Nine-Month Period Ended September 30, 2015
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 127 |  | $ | 15,455 |  | 5.07% |  | 346 |  | $ | 15,586 |  | 4.21% |  | 306
Commercial | 7 |  |  | 5,534 |  | 6.77% |  | 67 |  |  | 13,045 |  | 4.52% |  | 57
Consumer | 59 |  |  | 567 |  | 13.87% |  | 71 |  |  | 840 |  | 13.33% |  | 60
Auto | 1 |  |  | 64 |  | 12.95% |  | 72 |  |  | 65 |  | 12.95% |  | 72
The following table presents troubled-debt restructurings for which there was a p ayment default during the twelve-month periods ended September 30, 2016 and 2015:
| Twelve-Month Period Ended September 30,
| 2016 |  |  | 2015
| Number of Contracts |  | Recorded Investment |  |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 23 |  | $ | 3,437 |  |  | 49 |  | $ | 5,396
Commercial | 2 |  | $ | 157 |  |  | - |  | $ | -
Consumer | 7 |  | $ | 68 |  |  | 8 |  | $ | 177
Auto | - |  | $ | - |  |  | 1 |  | $ | 64
Credit Quality Indicators The Company categorizes originated and other loans and acquired loans accounted for under ASC 310-20 into risk categories based on relevant information about the ability of borrowers to service their debt, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans. The Company uses the following definitions for risk ratings: Pass: Loans classified as “pass” have a well-defined primary s ource of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards. Special Mention: Loans classified as “special mention” h ave a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substanda rd: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidatio n of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substanda rd, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable. Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthl ess loan even though partial recovery may be effected in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 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:
| September 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 | $ | 240,458 |  | $ | 225,559 |  | $ | 14,899 |  | $ | - |  | $ | - |  | $ | -
Institutional |  | 28,760 |  |  | 25,745 |  |  | - |  |  | - |  |  | - |  |  | 3,015
Middle market |  | 236,813 |  |  | 200,191 |  |  | 23,628 |  |  | 517 |  |  | - |  |  | 12,477
Retail |  | 248,549 |  |  | 224,865 |  |  | 6,486 |  |  | 4,435 |  |  | - |  |  | 12,763
Floor plan |  | 2,793 |  |  | 1,824 |  |  | - |  |  | - |  |  | - |  |  | 969
Real estate |  | 15,783 |  |  | 15,783 |  |  | - |  |  | - |  |  | - |  |  | -
|  | 773,156 |  |  | 693,967 |  |  | 45,013 |  |  | 4,952 |  |  | - |  |  | 29,224
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | 126,325 |  |  | 126,325 |  |  | - |  |  | - |  |  | - |  |  | -
Institutional |  | 174,833 |  |  | 172,749 |  |  | 239 |  |  | - |  |  | - |  |  | 1,845
Middle market |  | 86,699 |  |  | 80,606 |  |  | 4,582 |  |  | 161 |  |  | - |  |  | 1,350
Retail |  | 73,945 |  |  | 68,670 |  |  | 863 |  |  | 1,328 |  |  | - |  |  | 3,084
Floor plan |  | 32,219 |  |  | 27,396 |  |  | 3,876 |  |  | 81 |  |  | - |  |  | 866
|  | 494,021 |  |  | 475,746 |  |  | 9,560 |  |  | 1,570 |  |  | - |  |  | 7,145
Total |  | 1,267,177 |  |  | 1,169,713 |  |  | 54,573 |  |  | 6,522 |  |  | - |  |  | 36,369
Commercial - acquired loans (under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 150 |  |  | - |  |  | - |  |  | 150 |  |  | - |  |  | -
Floor plan |  | 2,482 |  |  | 1,899 |  |  | 356 |  |  | - |  |  | - |  |  | 227
|  | 2,632 |  |  | 1,899 |  |  | 356 |  |  | 150 |  |  | - |  |  | 227
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | 3,120 |  |  | 3,096 |  |  | - |  |  | 24 |  |  | - |  |  | -
Floor plan |  | 3 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 3
|  | 3,123 |  |  | 3,096 |  |  | - |  |  | 24 |  |  | - |  |  | 3
Total |  | 5,755 |  |  | 4,995 |  |  | 356 |  |  | 174 |  |  | - |  |  | 230
Total | $ | 1,272,932 |  | $ | 1,174,708 |  | $ | 54,929 |  | $ | 6,696 |  | $ | - |  | $ | 36,599
| 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 September 30, 2016 and December 31, 2015, the Company had outstanding credit facilities held for investment of approximately $202.4 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 co llateralized loans or obligations that have a specific source of income or revenues identified for their repayment. Approximately $191.2 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 September 30, 2016, we had approximately $1 1.2 million of credit facilities to central government and public corporations of the Commonwealth, consisting of a participation in a loan to the Puerto Rico Housing Finance Authority ("PRHFA") with an outstanding balance of $10.9 million to be repaid from abandoned or unclaimed funds at financial institutions that revert to the government under a Puerto Rico escheat law. The loan to PRHFA defaulted on an annual principal payment in the third quarter of 2016. The outstanding balance of credit facilities to the central government and public corporations decreased by $200.8 mill ion during 2016 mainly as a result of the sale of the PREPA fuel line of credit which had an outstanding balance of $190.3 million at December 31, 2015. At September 30, 2016, this fuel line of credit was reported as othe r loans held for sale, at fair valu e. The sale settled on October 7, 2016. For residential and consumer loan classes, the Company evaluates credit quality based on the delinquency status of the loan. As of September 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:
| September 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 | $ | 52,446 |  | $ | 46,884 |  | $ | - |  | $ | 1,607 |  | $ | 304 |  | $ | 1,296 |  | $ | 1,646 |  | $ | 709
Years 2003 and 2004 |  | 92,909 |  |  | 81,218 |  |  | - |  |  | 4,003 |  |  | 1,492 |  |  | 1,806 |  |  | 2,442 |  |  | 1,948
Year 2005 |  | 50,682 |  |  | 44,294 |  |  | 123 |  |  | 1,810 |  |  | 790 |  |  | 910 |  |  | 1,797 |  |  | 958
Year 2006 |  | 71,939 |  |  | 58,195 |  |  | 231 |  |  | 3,380 |  |  | 955 |  |  | 1,283 |  |  | 4,173 |  |  | 3,722
Years 2007, 2008 and 2009 |  | 80,847 |  |  | 64,798 |  |  | 171 |  |  | 1,779 |  |  | 863 |  |  | 2,212 |  |  | 7,068 |  |  | 3,956
Years 2010, 2011, 2012 2013 |  | 143,436 |  |  | 131,227 |  |  | 292 |  |  | 2,398 |  |  | 717 |  |  | 809 |  |  | 3,954 |  |  | 4,039
Years 2014, 2015 and 2016 |  | 104,416 |  |  | 102,788 |  |  | - |  |  | 430 |  |  | 244 |  |  | 447 |  |  | 460 |  |  | 47
|  | 596,675 |  |  | 529,404 |  |  | 817 |  |  | 15,407 |  |  | 5,365 |  |  | 8,763 |  |  | 21,540 |  |  | 15,379
Non-traditional |  | 24,339 |  |  | 19,036 |  |  | - |  |  | 301 |  |  | - |  |  | 1,904 |  |  | 3,098 |  |  | -
Loss mitigation program |  | 104,416 |  |  | 17,991 |  |  | 2,086 |  |  | 1,598 |  |  | 1,150 |  |  | 1,233 |  |  | 3,394 |  |  | 76,964
|  | 725,430 |  |  | 566,431 |  |  | 2,903 |  |  | 17,306 |  |  | 6,515 |  |  | 11,900 |  |  | 28,032 |  |  | 92,343
Home equity secured personal loans |  | 339 |  |  | 339 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
GNMA's buy-back option program |  | 9,598 |  |  | - |  |  | - |  |  | - |  |  | 1,872 |  |  | 4,065 |  |  | 3,661 |  |  | -
|  | 735,367 |  |  | 566,770 |  |  | 2,903 |  |  | 17,306 |  |  | 8,387 |  |  | 15,965 |  |  | 31,693 |  |  | 92,343
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 25,464 |  |  | 24,204 |  |  | 486 |  |  | 264 |  |  | 251 |  |  | 259 |  |  | - |  |  | -
Overdrafts |  | 196 |  |  | 178 |  |  | 12 |  |  | 3 |  |  | 2 |  |  | 1 |  |  | - |  |  | -
Unsecured personal lines of credit |  | 2,292 |  |  | 2,199 |  |  | 38 |  |  | 18 |  |  | 21 |  |  | 13 |  |  | 3 |  |  | -
Unsecured personal loans |  | 234,995 |  |  | 230,259 |  |  | 2,154 |  |  | 1,657 |  |  | 889 |  |  | 36 |  |  | - |  |  | -
Cash collateral personal loans |  | 15,719 |  |  | 15,525 |  |  | 162 |  |  | 2 |  |  | 30 |  |  | - |  |  | - |  |  | -
|  | 278,666 |  |  | 272,365 |  |  | 2,852 |  |  | 1,944 |  |  | 1,193 |  |  | 309 |  |  | 3 |  |  | -
Auto and Leasing |  | 730,589 |  |  | 656,880 |  |  | 46,564 |  |  | 18,738 |  |  | 6,015 |  |  | 2,392 |  |  | - |  |  | -
|  | 1,744,622 |  |  | 1,496,015 |  |  | 52,319 |  |  | 37,988 |  |  | 15,595 |  |  | 18,666 |  |  | 31,696 |  |  | 92,343
Acquired loans (accounted for under ASC 310-20) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  | 31,363 |  |  | 29,452 |  |  | 827 |  |  | 443 |  |  | 238 |  |  | 403 |  |  | - |  |  | -
Personal loans |  | 2,852 |  |  | 2,679 |  |  | 95 |  |  | 15 |  |  | 22 |  |  | 41 |  |  | - |  |  | -
|  | 34,215 |  |  | 32,131 |  |  | 922 |  |  | 458 |  |  | 260 |  |  | 444 |  |  | - |  |  | -
Auto |  | 64,393 |  |  | 57,725 |  |  | 4,321 |  |  | 1,608 |  |  | 588 |  |  | 151 |  |  | - |  |  | -
|  | 98,608 |  |  | 89,856 |  |  | 5,243 |  |  | 2,066 |  |  | 848 |  |  | 595 |  |  | - |  |  | -
Total | $ | 1,843,230 |  | $ | 1,585,871 |  | $ | 57,562 |  | $ | 40,054 |  | $ | 16,443 |  | $ | 19,261 |  | $ | 31,696 |  | $ | 92,343
| 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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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5162-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5074-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
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