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 , which were terminated on February 6, 2017. The composition of the Company’s loan portfolio at June 30 , 2017 and December 31 , 2016 was as follows : June 30, December 31, 2017 2016 (In thousands) Originated and other loans and leases held for investment: Mortgage $ 699,290 $ 721,494 Commercial 1,270,844 1,277,866 Consumer 314,267 290,515 Auto and leasing 807,204 756,395 3,091,605 3,046,270 Allowance for loan and lease losses on originated and other loans and leases (69,666) (59,300) 3,021,939 2,986,970 Deferred loan costs, net 6,574 5,766 Total originated and other loans loans held for investment, net 3,028,513 2,992,736 Acquired loans: Acquired BBVAPR loans: Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium) Commercial 5,350 5,562 Consumer 30,233 32,862 Auto 33,661 53,026 69,244 91,450 Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20 (3,348) (4,300) 65,896 87,150 Accounted for under ASC 310-30 (Loans acquired with deteriorated credit quality, including those by analogy) Mortgage 544,325 569,253 Commercial 266,002 292,564 Consumer 2,163 4,301 Auto 58,078 85,676 870,568 951,794 Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30 (37,494) (31,056) 833,074 920,738 Total acquired BBVAPR loans, net 898,970 1,007,888 Acquired Eurobank loans: Loans secured by 1-4 family residential properties 70,329 73,018 Commercial 66,894 81,460 Consumer 1,256 1,372 Total acquired Eurobank loans 138,479 155,850 Allowance for loan and lease losses on Eurobank loans (21,787) (21,281) Total acquired Eurobank loans, net 116,692 134,569 Total acquired loans, net 1,015,662 1,142,457 Total held for investment, net 4,044,175 4,135,193 Mortgage loans held-for-sale 14,044 12,499 Other loans held for sale 33,647 - Total loans, net $ 4,091,866 $ 4,147,692 Originated and Other Loans and Leases Held for Investment The Company’s originated and other loans held for investment are encompassed within four portfolio segments: mortgage, commercial, consumer, and auto and leasing. The following tables present the aging of the recorded investment in gross originated and other loans held for investment a t June 30 , 2017 and December 31 , 2016 , by class of loans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option . June 30, 2017 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 $ 193 $ 1,406 $ 2,930 $ 4,529 $ - $ 43,252 $ 47,781 $ 168 Years 2003 and 2004 333 3,162 6,319 9,814 299 76,028 86,141 - Year 2005 106 2,247 3,500 5,853 284 39,796 45,933 - Year 2006 262 1,641 5,882 7,785 185 56,871 64,841 - Years 2007, 2008 and 2009 435 1,693 8,653 10,781 38 60,375 71,194 335 Years 2010, 2011, 2012, 2013 324 1,506 6,845 8,675 - 124,191 132,866 164 Years 2014, 2015, 2016 and 2017 - 184 1,380 1,564 - 115,824 117,388 - 1,653 11,839 35,509 49,001 806 516,337 566,144 667 Non-traditional - 161 4,303 4,464 - 16,011 20,475 - Loss mitigation program 11,348 7,291 13,806 32,445 2,921 67,744 103,110 1,217 13,001 19,291 53,618 85,910 3,727 600,092 689,729 1,884 Home equity secured personal loans - - - - - 332 332 - GNMA's buy-back option program - - 9,229 9,229 - - 9,229 - 13,001 19,291 62,847 95,139 3,727 600,424 699,290 1,884 Commercial Commercial secured by real estate: Corporate - - - - - 226,979 226,979 - Institutional - - 254 254 - 46,806 47,060 - Middle market - - 3,601 3,601 634 224,571 228,806 - Retail 1,350 1,242 8,301 10,893 4,496 230,863 246,252 - Floor plan - - - - - 2,916 2,916 - Real estate - - - - - 15,783 15,783 - 1,350 1,242 12,156 14,748 5,130 747,918 767,796 - Other commercial and industrial: Corporate - - - - - 161,839 161,839 - Institutional - - - - - 128,479 128,479 - Middle market 881 - - 881 1,227 84,158 86,266 - Retail 327 848 1,300 2,475 695 85,673 88,843 - Floor plan - - 53 53 - 37,568 37,621 - 1,208 848 1,353 3,409 1,922 497,717 503,048 - 2,558 2,090 13,509 18,157 7,052 1,245,635 1,270,844 - June 30, 2017 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 $ 442 $ 288 $ 636 $ 1,366 $ - $ 26,308 $ 27,674 $ - Overdrafts 29 13 20 62 - 167 229 - Personal lines of credit 59 - 29 88 - 2,188 2,276 - Personal loans 2,693 1,752 1,096 5,541 699 262,728 268,968 - Cash collateral personal loans 216 3 - 219 - 14,901 15,120 - 3,439 2,056 1,781 7,276 699 306,292 314,267 - Auto and leasing 45,914 20,458 8,205 74,577 90 732,537 807,204 - Total $ 64,912 $ 43,895 $ 86,342 $ 195,149 $ 11,568 $ 2,884,888 $ 3,091,605 $ 1,884 December 31, 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 $ 196 $ 2,176 $ 3,371 $ 5,743 $ - $ 44,542 $ 50,285 $ 158 Years 2003 and 2004 156 3,872 7,272 11,300 181 79,226 90,707 - Year 2005 - 1,952 4,306 6,258 180 43,571 50,009 - Year 2006 506 2,905 6,261 9,672 94 59,534 69,300 - Years 2007, 2008 and 2009 409 1,439 11,732 13,580 111 63,038 76,729 398 Years 2010, 2011, 2012, 2013 349 1,772 10,417 12,538 126 127,196 139,860 583 Years 2014, 2015 and 2016 47 123 1,357 1,527 - 106,672 108,199 - 1,663 14,239 44,716 60,618 692 523,779 585,089 1,139 Non-traditional - 498 4,730 5,228 - 17,631 22,859 - Loss mitigation program 8,911 7,205 16,541 32,657 3,599 67,272 103,528 1,724 10,574 21,942 65,987 98,503 4,291 608,682 711,476 2,863 Home equity secured personal loans - - - - - 337 337 - GNMA's buy-back option program - - 9,681 9,681 - - 9,681 - 10,574 21,942 75,668 108,184 4,291 609,019 721,494 2,863 Commercial Commercial secured by real estate: Corporate - - - - - 242,770 242,770 - Institutional - - 254 254 - 26,546 26,800 - Middle market - 60 3,319 3,379 1,304 230,298 234,981 - Retail 154 350 6,594 7,098 4,638 237,992 249,728 - Floor plan - - - - - 2,989 2,989 - Real estate - - - - - 16,395 16,395 - 154 410 10,167 10,731 5,942 756,990 773,663 - Other commercial and industrial: Corporate - - - - - 136,438 136,438 - Institutional - - - - - 180,285 180,285 - Middle market - - - - 1,278 80,355 81,633 - Retail 930 100 969 1,999 294 71,412 73,705 - Floor plan 8 - 61 69 - 32,073 32,142 - 938 100 1,030 2,068 1,572 500,563 504,203 - 1,092 510 11,197 12,799 7,514 1,257,553 1,277,866 - December 31, 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 $ 527 $ 283 $ 525 $ 1,335 $ - $ 25,023 $ 26,358 $ - Overdrafts 16 12 5 33 - 174 207 - Personal lines of credit 41 4 32 77 - 2,327 2,404 - Personal loans 2,474 1,489 1,081 5,044 259 240,969 246,272 - Cash collateral personal loans 240 20 4 264 - 15,010 15,274 - 3,298 1,808 1,647 6,753 259 283,503 290,515 - Auto and leasing 42,714 19,014 8,173 69,901 181 686,313 756,395 - Total $ 57,678 $ 43,274 $ 96,685 $ 197,637 $ 12,245 $ 2,836,388 $ 3,046,270 $ 2,863 At June 30 , 2017 and December 31 , 2016 , the Company had carrying balance of $ 13 2 . 2 million and $ 136.6 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 originated and other loans granted to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation a s 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. On June 30, 2017, the Company was opportunistic and entered into an agreement to sell a performing originated municipal loan, which was due in July 2018, for $ 28.8 million. The sale reduced near-term risk associated with a likely refinancing. The loan was moved to other loans held-for-sale at June 30, 2017 with a balance of $33.7 million, and included a principal payment of $ 4.8 million received by the Company in July 1, 2017 . The sale tran saction settled in July 5, 2017 . In addition, on July 1, 2017, the Company received $ 3.7 million principal payments from the remaining municipal loans. 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 acquisitions, BBVAPR and Eurobank. Acquired BBVAPR Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium) Credit ca rds, 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 under the guidance of ASC 310-20, which requires that any contractually required loan payment rec eivable in excess of the Company’s initial investment in the loans be accreted into interest income on a level-yield basis over the life of the loan. Loans accounted for under ASC 310-20 are placed on non-accrual status when past due in accordance with the Company’s non-accrual policy, and any accretion of discount or amortization of premium is discontinued. Acquired BBVAPR loans that were accounted for under the provisions of ASC 310-20 are removed from the acquired loan category at the end of the reportin g period upon refinancing, renewal or normal re-underwriting. The following tables present the aging of the recorded investment in gross acquired BBVAPR loans accounted for under ASC 310-20 as of June 30 , 2017 and December 31, 2016 , by class of lo ans: June 30, 2017 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 $ 28 $ - $ 98 $ 126 $ - $ - $ 126 $ - Floor plan - - 959 959 - 1,148 2,107 - 28 - 1,057 1,085 - 1,148 2,233 - Other commercial and industrial Retail 50 32 45 127 - 2,988 3,115 - Floor plan - - 2 2 - - 2 - 50 32 47 129 - 2,988 3,117 - 78 32 1,104 1,214 - 4,136 5,350 - Consumer Credit cards 676 203 489 1,368 - 26,206 27,574 - Personal loans 133 10 47 190 - 2,469 2,659 - 809 213 536 1,558 - 28,675 30,233 - Auto 2,435 1,231 325 3,991 - 29,670 33,661 - Total $ 3,322 $ 1,476 $ 1,965 $ 6,763 $ - $ 62,481 $ 69,244 $ - December 31, 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 $ 33 $ - $ 110 $ 143 $ - $ - $ 143 $ - Floor plan - - 219 219 929 1,242 2,390 - 33 - 329 362 929 1,242 2,533 - Other commercial and industrial Retail 97 34 121 252 - 2,775 3,027 - Floor plan - - 2 2 - - 2 - 97 34 123 254 - 2,775 3,029 - 130 34 452 616 929 4,017 5,562 - Consumer Credit cards 736 369 708 1,813 - 28,280 30,093 - Personal loans 48 14 120 182 - 2,587 2,769 - 784 383 828 1,995 - 30,867 32,862 - Auto 3,652 1,355 517 5,524 15 47,487 53,026 - Total $ 4,566 $ 1,772 $ 1,797 $ 8,135 $ 944 $ 82,371 $ 91,450 $ - 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 , 2017 and December 31 , 2016 is as follows: June 30, December 31, 2017 2016 (In thousands) Contractual required payments receivable: $ 1,569,855 $ 1,669,602 Less: Non-accretable discount 366,762 363,107 Cash expected to be collected 1,203,093 1,306,495 Less: Accretable yield 332,525 354,701 Carrying amount, gross 870,568 951,794 Less: allowance for loan and lease losses 37,494 31,056 Carrying amount, net $ 833,074 $ 920,738 At June 30 , 2017 and December 31, 2016 , the Company had $ 66.6 million and $ 66.2 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. These loans are primarily secured municipal general obligations and a $ 10.6 million participation in a loan to the Puerto Rico Housing Finance Authority ("PRHFA") legally required to be repaid from abandoned or unclaimed funds at financial institutions that revert to the government under a Puerto Rico escheat law. Such loan defaulted on an annual principal payment in the third quarter of 2016. On July 1, 2017, the Company received $5.2 million principal payments from acquired BBVAPR loans to municipalities. The following tables describe the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the quarters and six-month periods ended June 30 , 2017 , and 2016 Quarter Ended June 30, 2017 Mortgage Commercial Auto Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 276,817 $ 46,902 $ 6,583 $ 3,058 $ 333,360 Accretion (7,694) (4,513) (1,776) (556) (14,539) Change in expected cash flows 1 15,993 98 50 16,142 Transfer (to) from non-accretable discount 1,024 (2,344) (52) (1,066) (2,438) Balance at end of period $ 270,148 $ 56,038 $ 4,853 $ 1,486 $ 332,525 Non-Accretable Discount Activity: Balance at beginning of period $ 309,993 $ 14,803 $ 22,564 $ 18,159 $ 365,519 Change in actual and expected losses (2,465) (280) 1,344 206 (1,195) Transfer from (to) accretable yield (1,024) 2,344 52 1,066 2,438 Balance at end of period $ 306,504 $ 16,867 $ 23,960 $ 19,431 $ 366,762 Six-Month Period Ended June 30, 2017 Mortgage Commercial Auto Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 292,115 $ 50,366 $ 8,538 $ 3,682 $ 354,701 Accretion (15,584) (9,494) (3,923) (1,158) (30,159) Change in expected cash flows 2 16,191 150 86 16,429 Transfer (to) from non-accretable discount (6,385) (1,025) 88 (1,124) (8,446) Balance at end of period $ 270,148 $ 56,038 $ 4,853 $ 1,486 $ 332,525 Non-Accretable Discount Activity: Balance at beginning of period $ 305,615 $ 16,965 $ 22,407 $ 18,120 $ 363,107 Change in actual and expected losses (5,496) (1,123) 1,641 187 (4,791) Transfer from (to) accretable yield 6,385 1,025 (88) 1,124 8,446 Balance at end of period $ 306,504 $ 16,867 $ 23,960 $ 19,431 $ 366,762 Quarter Ended June 30, 2016 Mortgage Commercial Auto Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 260,557 $ 57,258 $ 17,587 $ 5,261 $ 340,663 Accretion (8,294) (6,579) (3,616) (870) (19,359) Change in actual and expected losses - 2,654 630 (1) 3,283 Transfer from (to) non-accretable discount 31,560 (1,026) (498) 495 30,531 Balance at end of period $ 283,823 $ 52,307 $ 14,103 $ 4,885 $ 355,118 Non-Accretable Discount Activity: Balance at beginning of period $ 370,155 $ 18,148 $ 21,938 $ 18,735 $ 428,976 Change in actual and expected losses (2,442) (1,173) (315) (15) (3,945) Transfer (to) from accretable yield (31,560) 1,026 498 (495) (30,531) Balance at end of period $ 336,153 $ 18,001 $ 22,121 $ 18,225 $ 394,500 Six-Month Period Ended June 30, 2016 Mortgage Commercial Auto Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 268,794 $ 65,026 $ 21,578 $ 6,290 $ 361,688 Accretion (16,601) (14,287) (7,827) (1,808) (40,523) Change in actual and expected losses - 2,982 631 (1) 3,612 Transfer (to) from non-accretable discount 31,630 (1,414) (279) 404 30,341 Balance at end of period $ 283,823 $ 52,307 $ 14,103 $ 4,885 $ 355,118 Non-Accretable Discount Activity: Balance at beginning of period $ 374,772 $ 18,545 $ 22,039 $ 18,834 $ 434,190 Change in actual and expected losses (6,989) (1,958) (197) (205) (9,349) Transfer from (to) accretable yield (31,630) 1,414 279 (404) (30,341) Balance at end of period $ 336,153 $ 18,001 $ 22,121 $ 18,225 $ 394,500 Acquired Eurobank Loans The carrying amount of acquired Eurobank loans at June 30 , 2017 and December 31 , 2016 is as follows: June 30 December 31 2017 2016 (In thousands) Contractual required payments receivable: $ 201,564 $ 232,698 Less: Non-accretable discount 9,010 12,340 Cash expected to be collected 192,554 220,358 Less: Accretable yield 54,075 64,508 Carrying amount, gross 138,479 155,850 Less: Allowance for loan and lease losses 21,787 21,281 Carrying amount, net $ 116,692 $ 134,569 The following tables describe the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarters and six-month period s ended June 30 , 2017 , and 2016 : Quarter Ended June 30, 2017 Loans Secured by 1-4 Family Residential Properties Commercial Construction & Development Secured by 1-4 Family Residential Properties Leasing Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 44,697 12,743 1,871 - - 59,311 Accretion (1,923) (4,061) (5) (11) (37) (6,037) Change in expected cash flows 19 543 6 (22) 74 620 Transfer from (to) non-accretable discount 219 (68) 34 33 (37) 181 Balance at end of period $ 43,012 $ 9,157 $ 1,906 $ - $ - $ 54,075 Non-Accretable Discount Activity: Balance at beginning of period $ 7,426 2,471 333 - 6 10,236 Change in actual and expected losses (520) (529) - 33 (29) (1,045) Transfer from (to) accretable yield (219) 68 (34) (33) 37 (181) Balance at end of period $ 6,687 $ 2,010 $ 299 $ - $ 14 $ 9,010 Six-Month Period Ended June 30, 2017 Loans Secured by 1-4 Family Residential Properties Commercial Construction & Development Secured by 1-4 Family Residential Properties Leasing Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 45,839 $ 16,475 $ 2,194 $ - $ - $ 64,508 Accretion (3,827) (8,571) (43) (11) (195) (12,647) Change in expected cash flows 100 1,321 43 (165) 384 1,683 Transfer from (to) non-accretable discount 900 (68) (288) 176 (189) 531 Balance at end of period $ 43,012 $ 9,157 $ 1,906 $ - $ - $ 54,075 Non-Accretable Discount Activity: Balance at beginning of period $ 8,441 $ 3,880 $ 11 $ - $ 8 $ 12,340 Change in actual and expected losses (854) (1,938) - 176 (183) (2,799) Transfer from (to) accretable yield (900) 68 288 (176) 189 (531) Balance at end of period $ 6,687 $ 2,010 $ 299 $ - $ 14 $ 9,010 Quarter Ended June 30, 2016 Loans Secured by 1-4 Family Residential Properties Commercial 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 actual and expected losses (198) 1,619 - (77) 81 1,425 Transfer from (to) non-accretable discount 10 (1,152) - 75 (5) (1,072) Balance at end of period $ 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 (to) from 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 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 cash flows (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 Non-accrual Loans The following table presents the recorded investment in loans in non-accrual status by class of loans as of June 30 , 2017 and December 31 , 2016 : June 30, December 31, 2017 2016 (In thousands) Originated and other loans and leases held for investment Mortgage Traditional (by origination year): Up to the year 2002 $ 2,824 $ 3,336 Years 2003 and 2004 6,809 7,668 Year 2005 3,890 4,487 Year 2006 6,067 6,746 Years 2007, 2008 and 2009 8,633 11,526 Years 2010, 2011, 2012, 2013 6,680 10,089 Years 2014, 2015, 2016 and 2017 1,380 1,404 36,283 45,256 Non-traditional 4,303 4,730 Loss mitigation program 18,082 20,744 58,668 70,730 Commercial Commercial secured by real estate Institutional 254 - Middle market 4,236 4,682 Retail 14,239 11,561 18,729 16,243 Other commercial and industrial Middle market 2,108 1,278 Retail 2,629 1,950 Floor plan 53 61 4,790 3,289 23,519 19,532 Consumer Credit cards 636 525 Overdrafts 20 - Personal lines of credit 29 32 Personal loans 1,999 1,420 Cash collateral personal loans 3 4 2,687 1,981 Auto and leasing 8,295 9,052 Total non-accrual originated loans $ 93,169 $ 101,295 June 30, December 31, 2017 2016 (In thousands) Acquired BBVAPR loans accounted for under ASC 310-20 Commercial Commercial secured by real estate Retail $ 127 $ 143 Floor plan 959 1,149 1,086 1,292 Other commercial and industrial Retail 45 121 Floor plan 2 2 47 123 1,133 1,415 Consumer Credit cards 489 708 Personal loans 47 120 536 828 Auto 325 552 Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20 1,994 2,795 Total non-accrual loans $ 95,163 $ 104,090 Loans accounted for under ASC 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses or are accounted under the cost recovery method. Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due , but are not placed in non-accrual status until they become 18 months or more past due, since they are insured loans. Therefore, these loans are included as non-performing loans but excluded from non-accrual loans. In addition, these loans are excluded fr om the impairment analysis. At June 30 , 2017 and December 31 , 2016 , loans whose terms have been extended and which are classified as troubled-debt restructurings that are not included in non-accrual loans amounted to $ 98 .7 million and $ 98 .1 million, respectively, as they are performing under their new terms. 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 that were individually evaluated for impairment was $ 5 8 . 1 million and $ 54.3 million at June 30 , 2017 and December 31 , 2016 , respectively. The impairments on these commercial loans were measured based on the fair value of collateral or the present value of cash flows, including those identified as troubled-de bt restructurings . The allowance for loan and lease losses for these impaired commercial loans amounted to $ 1.9 million and $ 1.8 million at June 30 , 2017 and December 31 , 2016 , respectively. The total investment in impaired mortgage loans that were in dividually evaluated for impairment was $ 87 .0 million and $ 91.6 million at June 30 , 2017 and December 31 , 2016 , respectively. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The allowance for loan losses for these impaired mortgage loans amounted to $ 8.6 million and $ 7.8 million at June 30 , 2017 and December 31 , 2016 , respectively. Originated and Other Loans and Leases Held for Investment The Company’s recorded investment in commercial and mortgage loans categorized as originated and other loans and leases held for investment that were individually evaluated for impairment and the related allowance for loan and lease losses at June 30 , 2017 and December 31 , 2016 are as follows: June 30, 2017 Unpaid Recorded Related Principal Investment Allowance Coverage (In thousands) Impaired loans with specific allowance: Commercial $ 21,475 $ 19,486 $ 1,940 10% Residential impaired and troubled-debt restructuring 95,821 87,042 8,630 10% Impaired loans with no specific allowance: Commercial 44,367 37,842 N/A 0% Total investment in impaired loans $ 161,663 $ 144,370 $ 10,570 7% December 31, 2016 Unpaid Recorded Related Principal Investment Allowance Coverage (In thousands) Impaired loans with specific allowance: Commercial $ 13,183 $ 11,698 $ 1,626 14% Residential impaired and troubled-debt restructuring 100,101 91,650 7,761 8% Impaired loans with no specific allowance Commercial 49,038 41,441 N/A 0% Total investment in impaired loans $ 162,322 $ 144,789 $ 9,387 6% Acquired BBVAPR Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium) The Company’s recorded investment in acquired BBVAPR commercial loans accounted for under ASC 310-20 that were individually evaluated for impairment and the related allowance for loan and lease losses at June 30 , 2017 and December 31 , 2016 are as follows: June 30, 2017 Unpaid Recorded Related Principal Investment Allowance Coverage (In thousands) Impaired loans with specific allowance Commercial $ - $ - $ - 0% Impaired loans with no specific allowance Commercial $ 926 $ 761 N/A 0% Total investment in impaired loans $ 926 $ 761 $ - 0% December 31, 2016 Unpaid Recorded Specific Principal Investment Allowance Coverage (In thousands) Impaired loans with specific allowance Commercial $ 944 $ 929 $ 141 15% Impaired loans with no specific allowance Commercial $ 240 $ 221 N/A 0% Total investment in impaired loans $ 1,184 $ 1,150 $ 141 12% Acquired BBVAPR Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy) The Company’s recorded investment in acquired BBVAPR loan pools accounted for under ASC 310-30 that have recorded impairments and their related allowance for loan and lease losses at June 30 , 2017 and December 31 , 2016 are as follows : June 30, 2017 Coverage Unpaid Recorded to Recorded Principal Investment Allowance Investment (In thousands) Impaired loan pools with specific allowance: Mortgage $ 567,845 $ 544,326 $ 4,141 1% Commercial 224,838 217,495 25,614 12% Auto 58,132 58,078 7,739 13% Total investment in impaired loan pools $ 850,815 $ 819,899 $ 37,494 5% December 31 , 2016 Coverage Unpaid Recorded to Recorded Principal Investment Allowance Investment (In thousands) Impaired loan pools with specific allowance: Mortgage $ 595,757 $ 569,250 $ 2,682 0% Commercial 199,092 195,528 23,452 12% Auto 92,797 85,676 4,922 6% Total investment in impaired loan pools $ 887,646 $ 850,454 $ 31,056 4% The tables above only present information with respect to acquired BBVAPR loan pools accounted for under ASC 310-30 if there is a recorded impairment to such loan pools and a specific allowance for loan losses. Acquired Eurobank Loans The Company’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their related allowance for loan and lease losses as of June 30 , 2017 and December 31 , 2016 are as follows : June 30, 2017 Coverage Unpaid Recorded to Recorded Principal Investment Allowance Investment (In thousands) Impaired loan pools with specific allowance: Loans secured by 1-4 family residential properties $ 83,293 $ 70,329 $ 13,651 19% Commercial 56,193 53,389 8,131 15% Consumer 14 1,256 5 0% Total investment in impaired loan pools $ 139,500 $ 124,974 $ 21,787 17% December 31, 2016 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 $ 88,017 $ 73,018 $ 11,947 16% Commercial 81,992 72,140 9,328 13% Consumer 29 1,372 6 0% Total investment in impaired loan pools $ 170,038 $ 146,530 $ 21,281 15% The tables above only present information with respect to acquired Eurobank loan pools accounted for under ASC 310-30 if there is a recorded impairment to such 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, which excludes loans accounted for under ASC 310-30, for the quarters and six-month periods ended June 30 , 2017 and 2016 : Quarter Ended June 30, 2017 2016 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 $ 193 $ 14,908 $ 75 $ 194,759 Residential troubled-debt restructuring 723 87,615 791 91,007 Impaired loans with no specific allowance Commercial 383 44,528 149 29,579 1,299 147,051 1,015 315,345 Acquired loans accounted for under ASC 310-20: Impaired loans with specific allowance Commercial - - - - Impaired loans with no specific allowance Commercial - 763 15 789 Total interest income from impaired loans $ 1,299 $ 147,814 $ 1,030 $ 316,134 Six-Month Period Ended June 30, 2017 2016 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 $ 385 $ 13,859 $ 150 $ 195,777 Residential troubled-debt restructuring 1,427 88,579 1,591 90,650 Impaired loans with no specific allowance Commercial 766 44,211 298 31,603 Total interest income from impaired loans $ 2,578 $ 146,649 $ 2,039 $ 318,030 Acquired loans accounted for under ASC 310-20: Impaired loans with specific allowance Commercial $ - $ - $ - $ - Impaired loans with no specific allowance Commercial - 840 30 628 Total interest income from impaired loans $ 2,578 $ 147,489 $ 2,069 $ 318,658 Modifications The following tables present the troubled-debt restructurings in all loan portfolios during the quarters and six-month periods ended June 30 , 2017 and 2016 . Quarter Ended June 30, 2017 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 27 $ 3,349 6.00% 382 $ 3,313 4.21% 367 Commercial 9 2,155 5.96% 55 2,155 5.12% 68 Consumer 37 477 12.83% 65 477 10.87% 68 Auto 4 66 6.39% 61 66 12.91% 37 Six-Month Period Ended June 30, 2017 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 59 $ 7,353 6.29% 387 $ 7,328 4.26% 378 Commercial 18 3,373 6.44% 55 3,374 5.41% 67 Consumer 62 869 11.98% 65 907 10.62% 70 Auto 7 111 7.41% 67 113 12.48% 38 Quarter Ended Ju |