LOANS RECEIVABLE | NOTE 5 - LOANS Oriental’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 . As a result of the devastation cau sed by hur ricane s Irma and Maria, Oriental offered an automatic three-month forbearance for the payment due on auto and personal loans for customers whose payments were not over 89 days past due at August 31, 2017. These payments, together with any additio nal accrued interest , will be pa id in three installments after the original maturity of the loan s . Residential mortgage loans will have the same forbearance, but the payments subject to the forbearance on non-conforming loans will be payable in aggregate as a balloon payment at the maturity of the loan and on conforming mortgage loans the repayment terms will be established on a case by case basis at the end of the forbearance period . For credit cards, that were not over 29 days past due at August 31, 2017, the minimum pay ment amount will be skipped until December 31, 2017. Oriental also offered an automatic one-month forbearance for the payment of principal and interest for commercial loans, for customers whose payments were not over 30 days past due at August 31, 2017 , an d the flexibility of extending it up to two additional months, based on the customer 's need s. Oriental had approximately 100 thousand loans under the automatic three- month forbearance program with a UPB of $ 3.7 billion at September 30, 2017. The composition of Oriental’s loan portfolio at September 30 , 2017 and December 31 , 2016 was as follows : September 30, December 31, 2017 2016 (In thousands) Originated and other loans and leases held for investment: Mortgage $ 694,476 $ 721,494 Commercial 1,245,711 1,277,866 Consumer 316,357 290,515 Auto and leasing 831,437 756,395 3,087,981 3,046,270 Allowance for loan and lease losses on originated and other loans and leases (87,541) (59,300) 3,000,440 2,986,970 Deferred loan costs, net 6,592 5,766 Total originated and other loans loans held for investment, net 3,007,032 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 4,612 5,562 Consumer 29,464 32,862 Auto 26,562 53,026 60,638 91,450 Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-20 (3,363) (4,300) 57,275 87,150 Accounted for under ASC 310-30 (Loans acquired with deteriorated credit quality, including those by analogy) Mortgage 532,948 569,253 Commercial 244,359 292,564 Consumer 1,598 4,301 Auto 49,258 85,676 828,163 951,794 Allowance for loan and lease losses on acquired BBVAPR loans accounted for under ASC 310-30 (40,110) (31,056) 788,053 920,738 Total acquired BBVAPR loans, net 845,328 1,007,888 Acquired Eurobank loans: Loans secured by 1-4 family residential properties 68,996 73,018 Commercial 53,028 81,460 Consumer 1,220 1,372 Total acquired Eurobank loans 123,244 155,850 Allowance for loan and lease losses on Eurobank loans (23,146) (21,281) Total acquired Eurobank loans, net 100,098 134,569 Total acquired loans, net 945,426 1,142,457 Total held for investment, net 3,952,458 4,135,193 Mortgage loans held-for-sale 12,114 12,499 Total loans, net $ 3,964,572 $ 4,147,692 Originated and Other Loans and Leases Held for Investment Oriental ’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 September 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 . September 30, 2017 Loans 90+ Days Past Due and 30-59 Days 60-89 Days 90+ Days Total Past Still Past Due Past Due Past Due Due Current Total Loans Accruing (In thousands) Mortgage Traditional (by origination year): Up to the year 2002 $ 278 $ 1,469 $ 3,074 $ 4,821 $ 42,086 $ 46,907 $ 283 Years 2003 and 2004 242 3,388 5,963 9,593 74,405 83,998 - Year 2005 - 2,465 3,231 5,696 39,363 45,059 - Year 2006 179 1,965 5,536 7,680 55,883 63,563 - Years 2007, 2008 and 2009 252 1,706 7,859 9,817 59,451 69,268 98 Years 2010, 2011, 2012, 2013 349 2,213 7,274 9,836 118,409 128,245 414 Years 2014, 2015, 2016 and 2017 - 184 1,247 1,431 120,538 121,969 - 1,300 13,390 34,184 48,874 510,135 559,009 795 Non-traditional - 506 3,529 4,035 14,670 18,705 - Loss mitigation program 12,621 7,456 15,941 36,018 67,472 103,490 2,576 13,921 21,352 53,654 88,927 592,277 681,204 3,371 Home equity secured personal loans - - 12 12 261 273 - GNMA's buy-back option program - - 12,999 12,999 - 12,999 - 13,921 21,352 66,665 101,938 592,538 694,476 3,371 Commercial Commercial secured by real estate: Corporate - - - - 209,000 209,000 - Institutional - - 254 254 45,922 46,176 - Middle market - 303 3,545 3,848 233,829 237,677 - Retail 292 461 9,471 10,224 233,701 243,925 - Floor plan - - - - 3,607 3,607 - Real estate - - - - 15,473 15,473 - 292 764 13,270 14,326 741,532 755,858 - Other commercial and industrial: Corporate - - - - 163,192 163,192 - Institutional - - - - 118,091 118,091 - Middle market 2 - 881 883 81,061 81,944 - Retail 608 1,053 1,219 2,880 85,289 88,169 - Floor plan 8 - 53 61 38,396 38,457 - 618 1,053 2,153 3,824 486,029 489,853 - 910 1,817 15,423 18,150 1,227,561 1,245,711 - September 30, 2017 Loans 90+ Days Past Due and 30-59 Days 60-89 Days 90+ Days Total Past Still Past Due Past Due Past Due Due Current Total Loans Accruing (In thousands) Consumer Credit cards $ 1,000 $ 363 $ 565 $ 1,928 $ 26,082 $ 28,010 $ - Overdrafts 45 12 19 76 189 265 - Personal lines of credit 103 31 9 143 2,201 2,344 - Personal loans 3,777 1,694 732 6,203 264,691 270,894 - Cash collateral personal loans 447 32 18 497 14,347 14,844 - 5,372 2,132 1,343 8,847 307,510 316,357 - Auto and leasing 43,331 28,275 10,831 82,437 749,000 831,437 - Total $ 63,534 $ 53,576 $ 94,262 $ 211,372 $ 2,876,609 $ 3,087,981 $ 3,371 December 31, 2016 Loans 90+ Days Past Due and 30-59 Days 60-89 Days 90+ Days Total Past Still Past Due Past Due Past Due Due Current 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 79,407 90,707 - Year 2005 - 1,952 4,306 6,258 43,751 50,009 - Year 2006 506 2,905 6,261 9,672 59,628 69,300 - Years 2007, 2008 and 2009 409 1,439 11,732 13,580 63,149 76,729 398 Years 2010, 2011, 2012, 2013 349 1,772 10,417 12,538 127,322 139,860 583 Years 2014, 2015 and 2016 47 123 1,357 1,527 106,672 108,199 - 1,663 14,239 44,716 60,618 524,471 585,089 1,139 Non-traditional - 498 4,730 5,228 17,631 22,859 - Loss mitigation program 8,911 7,205 16,541 32,657 70,871 103,528 1,724 10,574 21,942 65,987 98,503 612,973 711,476 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 75,668 108,184 613,310 721,494 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 3,379 231,602 234,981 - Retail 154 350 6,594 7,098 242,630 249,728 - Floor plan - - - - 2,989 2,989 - Real estate - - - - 16,395 16,395 - 154 410 10,167 10,731 762,932 773,663 - Other commercial and industrial: Corporate - - - - 136,438 136,438 - Institutional - - - - 180,285 180,285 - Middle market - - - - 81,633 81,633 - Retail 930 100 969 1,999 71,706 73,705 - Floor plan 8 - 61 69 32,073 32,142 - 938 100 1,030 2,068 502,135 504,203 - 1,092 510 11,197 12,799 1,265,067 1,277,866 - December 31, 2016 Loans 90+ Days Past Due and 30-59 Days 60-89 Days 90+ Days Total Past Still Past Due Past Due Past Due Due Current 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 5,044 241,228 246,272 - Cash collateral personal loans 240 20 4 264 15,010 15,274 - 3,298 1,808 1,647 6,753 283,762 290,515 - Auto and leasing 42,714 19,014 8,173 69,901 686,494 756,395 - Total $ 57,678 $ 43,274 $ 96,685 $ 197,637 $ 2,848,633 $ 3,046,270 $ 2,863 At September 30 , 2017 and December 31 , 2016 , Oriental had carryin g balance of $ 94.9 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 as to r ate 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, Oriental entered into an agre ement 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 $ 3 3.7 million, and included a principal payment of $ 4.8 million received by Oriental o n July 1, 2017 . The sale transaction settled o n July 5, 2017 . 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) Cre dit 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 under the guidance of ASC 310-20, which requires that any contractually required loan payme nt receivable in excess of Oriental ’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 Oriental ’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 September 30 , 2017 and December 31, 2016 , by class of lo ans: September 30, 2017 Loans 90+ Days Past Due and 30-59 Days 60-89 Days 90+ Days Total Past Still Past Due Past Due Past Due Due Current Total Loans Accruing (In thousands) Commercial Commercial secured by real estate Retail $ - $ - $ 95 $ 95 $ 26 $ 121 $ - Floor plan - - 936 936 393 1,329 - - - 1,031 1,031 419 1,450 - Other commercial and industrial Retail 296 71 82 449 2,711 3,160 - Floor plan - - 2 2 - 2 - 296 71 84 451 2,711 3,162 - 296 71 1,115 1,482 3,130 4,612 - Consumer Credit cards 977 567 467 2,011 24,797 26,808 - Personal loans 75 8 39 122 2,534 2,656 - 1,052 575 506 2,133 27,331 29,464 - Auto 1,635 1,141 453 3,229 23,333 26,562 - Total $ 2,983 $ 1,787 $ 2,074 $ 6,844 $ 53,794 $ 60,638 $ - December 31, 2016 Loans 90+ Days Past Due and 30-59 Days 60-89 Days 90+ Days Total Past Still Past Due Past Due Past Due Due Current Total Loans Accruing (In thousands) Commercial Commercial secured by real estate Retail $ 33 $ - $ 110 $ 143 $ - $ 143 $ - Floor plan - - 219 219 2,171 2,390 - 33 - 329 362 2,171 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 4,946 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 47,502 53,026 - Total $ 4,566 $ 1,772 $ 1,797 $ 8,135 $ 83,315 $ 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 Oriental 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 , 2017 and December 31 , 2016 is as follows: September 30, December 31, 2017 2016 (In thousands) Contractual required payments receivable: $ 1,503,630 $ 1,669,602 Less: Non-accretable discount 364,548 363,107 Cash expected to be collected 1,139,082 1,306,495 Less: Accretable yield 310,919 354,701 Carrying amount, gross 828,163 951,794 Less: allowance for loan and lease losses 40,110 31,056 Carrying amount, net $ 788,053 $ 920,738 At September 30 , 2017 and December 31, 2016 , Oriental ha d $ 49.7 millio n 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 secure d municipal general obligations and funds recovered under a Puerto Rico escheat law . During the third quarter of 2017, Oriental received the scheduled payments of principal from the municipal general obligations and settled the loa n payable from funds recovered under the escheat law that was in default. T he 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 nine-month perio ds ended September 30 , 2017 , and 2016 Quarter Ended September 30, 2017 Mortgage Commercial Auto Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 270,148 $ 56,038 $ 4,853 $ 1,486 $ 332,525 Accretion (7,434) (7,114) (1,350) (384) (16,282) Change in expected cash flows - 3,716 13 37 3,766 Transfer (to) from non-accretable discount (6,158) (2,950) (8) 26 (9,090) Balance at end of period $ 256,556 $ 49,690 $ 3,508 $ 1,165 $ 310,919 Non-Accretable Discount Activity: Balance at beginning of period $ 306,504 $ 16,867 $ 23,960 $ 19,431 $ 366,762 Change in actual and expected losses (2,310) (8,679) (191) (124) (11,304) Transfer from (to) accretable yield 6,158 2,950 8 (26) 9,090 Balance at end of period $ 310,352 $ 11,138 $ 23,777 $ 19,281 $ 364,548 Nine-Month Period Ended September 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 (23,018) (16,608) (5,273) (1,542) (46,441) Change in expected cash flows 2 19,907 163 123 20,195 Transfer (to) from non-accretable discount (12,543) (3,975) 80 (1,098) (17,536) Balance at end of period $ 256,556 $ 49,690 $ 3,508 $ 1,165 $ 310,919 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 (7,806) (9,802) 1,450 63 (16,095) Transfer from (to) accretable yield 12,543 3,975 (80) 1,098 17,536 Balance at end of period $ 310,352 $ 11,138 $ 23,777 $ 19,281 $ 364,548 Quarter Ended September 30, 2016 Mortgage Commercial Auto Consumer Total (In thousands) Accretable Yield Activity: Balance at beginning of period $ 283,823 $ 52,307 $ 14,103 $ 4,885 $ 355,118 Accretion (8,197) (6,686) (3,107) (662) (18,652) Change in actual and expected losses (1) 1,763 618 (241) 2,139 Transfer from (to) non-accretable discount 24,056 (1,013) (525) 233 22,751 Balance at end of period $ 299,681 $ 46,371 $ 11,089 $ 4,215 $ 361,356 Non-Accretable Discount Activity: Balance at beginning of period $ 336,153 $ 18,001 $ 22,121 $ 18,225 $ 394,500 Change in actual and expected losses (2,591) (1,216) (309) 121 (3,995) Transfer (to) from accretable yield (24,056) 1,013 525 (233) (22,751) Balance at end of period $ 309,506 $ 17,798 $ 22,337 $ 18,113 $ 367,754 Nine-Month Period Ended September 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 (24,798) (20,973) (10,934) (2,470) (59,175) Change in actual and expected losses (1) 4,745 1,249 (242) 5,751 Transfer (to) from non-accretable discount 55,686 (2,427) (804) 637 53,092 Balance at end of period $ 299,681 $ 46,371 $ 11,089 $ 4,215 $ 361,356 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 (9,580) (3,174) (506) (84) (13,344) Transfer from (to) accretable yield (55,686) 2,427 804 (637) (53,092) Balance at end of period $ 309,506 $ 17,798 $ 22,337 $ 18,113 $ 367,754 Acquired Eurobank Loans The carrying amount of acquired Eurobank loans at September 30 , 2017 and December 31 , 2016 is as follows: September 30 December 31 2017 2016 (In thousands) Contractual required payments receivable: $ 182,562 $ 232,698 Less: Non-accretable discount 6,935 12,340 Cash expected to be collected 175,627 220,358 Less: Accretable yield 52,383 64,508 Carrying amount, gross 123,244 155,850 Less: Allowance for loan and lease losses 23,146 21,281 Carrying amount, net $ 100,098 $ 134,569 The following tables describe the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarters and nine -month period s ended September 30 , 2017 , and 2016 : Quarter Ended September 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 $ 43,012 9,157 1,906 - - 54,075 Accretion (1,736) (2,480) (39) (11) (73) (4,339) Change in expected cash flows 18 106 39 (49) 346 460 Transfer from (to) non-accretable discount 1,094 1,448 (142) 60 (273) 2,187 Balance at end of period $ 42,388 $ 8,231 $ 1,764 $ - $ - $ 52,383 Non-Accretable Discount Activity: Balance at beginning of period $ 6,687 2,010 299 - 14 9,010 Change in actual and expected losses 20 126 (39) 60 (55) 112 Transfer from (to) accretable yield (1,094) (1,448) 142 (60) 273 (2,187) Balance at end of period $ 5,613 $ 688 $ 402 $ - $ 232 $ 6,935 Nine-Month Period Ended September 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 (5,564) (11,051) (82) (22) (268) (16,987) Change in expected cash flows 119 1,427 82 (214) 730 2,144 Transfer from (to) non-accretable discount 1,994 1,380 (430) 236 (462) 2,718 Balance at end of period $ 42,388 $ 8,231 $ 1,764 $ - $ - $ 52,383 Non-Accretable Discount Activity: Balance at beginning of period $ 8,441 $ 3,880 $ 11 $ - $ 8 $ 12,340 Change in actual and expected losses (834) (1,812) (39) 236 (238) (2,687) Transfer from (to) accretable yield (1,994) (1,380) 430 (236) 462 (2,718) Balance at end of period $ 5,613 $ 688 $ 402 $ - $ 232 $ 6,935 Quarter Ended September 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 $ 48,336 $ 29,142 $ 2,204 - $ - $ 79,682 Accretion (2,217) (6,570) - (62) (490) (9,339) Change in actual and expected losses 646 1,719 (8) 62 490 2,909 Transfer from (to) non-accretable discount 3,737 (188) (146) - - 3,403 Balance at end of period $ 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 (to) from 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 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 cash flows (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 Non-accrual Loans The following table presents the recorded investment in loans in non-accrual status by class of loans as of September 30 , 2017 and December 31 , 2016 : September 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 $ 2,789 $ 3,336 Years 2003 and 2004 6,107 7,668 Year 2005 3,367 4,487 Year 2006 5,537 6,746 Years 2007, 2008 and 2009 8,110 11,526 Years 2010, 2011, 2012, 2013 6,858 10,089 Years 2014, 2015, 2016 and 2017 1,248 1,404 34,016 45,256 Non-traditional 3,529 4,730 Loss mitigation program 17,365 20,744 54,910 70,730 Home equity secured personal loans 12 - 54,922 70,730 Commercial Commercial secured by real estate Institutional 254 - Middle market 3,848 4,682 Retail 14,358 11,561 18,460 16,243 Other commercial and industrial Middle market 968 1,278 Retail 2,220 1,950 Floor plan 53 61 3,241 3,289 21,701 19,532 Consumer Credit cards 565 525 Overdrafts 19 - Personal lines of credit 9 32 Personal loans 1,834 1,420 Cash collateral personal loans 18 4 2,445 1,981 Auto and leasing 11,811 9,052 Total non-accrual originated loans $ 90,879 $ 101,295 September 30, December 31, 2017 2016 (In thousands) Acquired BBVAPR loans accounted for under ASC 310-20 Commercial Commercial secured by real estate Retail $ 121 $ 143 Floor plan 936 1,149 1,057 1,292 Other commercial and industrial Retail 82 121 Floor plan 2 2 84 123 1,141 1,415 Consumer Credit cards 467 708 Personal loans 39 120 506 828 Auto 481 552 Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20 2,128 2,795 Total non-accrual loans $ 93,007 $ 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 September 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 $ 10 9. 8 million and $ 98 .1 million, respectively, as they are performing under their new terms. Impaired Loans Oriental 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 $ 67.8 million and $ 54.3 million at September 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-debt restr ucturings . The allowance for loan and lease losses for these impaired commercial loans amounted to $ 5.2 million and $ 1.8 million at September 30 , 2017 and December 31 , 2016 , respectively. The total investment in impaired mortgage loans that were individual ly evaluated for impairment was $ 86.5 million and $ 91.6 million at September 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 allowan ce for loan losses for these impaired mortgage loans amounted to $ 9.5 million and $ 7.8 million at September 30 , 2017 and December 31 , 2016 , respectively. Originated and Other Loans and Leases Held for Investment Oriental ’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 September 30 , 2017 and December 31 , 2016 are as follows: September 30, 2017 Unpaid Recorded Related Principal Investment Allowance Coverage (In thousands) Impaired loans with specific allowance: Commercial $ 33,159 $ 30,465 $ 5,223 17% Residential impaired and troubled-debt restructuring 95,680 86,511 9,524 11% Impaired loans with no specific allowance: Commercial 42,520 36,574 N/A 0% Total investment in impaired loans $ 171,359 $ 153,550 $ 14,747 10% 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) Oriental ’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 , 2017 and December 31 , 2016 are as follows: September 30, 2017 Unpaid Recorded Related Principal Investment Allowance Coverage (In thousands) Impaired loans with specific allowance Commercial $ 926 $ 748 $ 12 2% Impaired loans with no specific allowance Commercial $ - $ - N/A 0% Total investment in impaired loans $ 926 $ 748 $ 12 2% 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) Oriental ’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 , 2017 and December 31 , 2016 are as follows : September 30, 2017 Coverage Unpaid Recorded to Recorded Principal Investment Allowance Investment (In thousands) Impaired loan pools with specific allowance: Mortgage $ 554,175 $ 532,948 $ 8,931 2% Commercial 254,006 242,334 23,941 10% Auto 49,347 49,258 7,238 15% Total investment in impaired loan pools $ 857,528 $ 824,540 $ 40,110 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 Oriental ’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their related allowance for loan and lease losses as of September 30 , 2017 and December 31 , 2016 are as follows : September 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 $ 81,679 $ 68,996 $ 14,219 21% Commercial 58,043 51,523 8,922 17% Consumer 15 1,220 5 0% Total investment in impaired loan pools $ 139,737 $ 121,739 $ 23,146 19% 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 nine -month periods ended September 30 , 2017 and 2016 : Quarter Ended September 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 $ 306 $ 24,178 $ 162 $ 73,729 Residential troubled-debt restructuring 576 86,694 765 91,345 Impaired loans with no specific allowance Commercial 675 36,133 259 62,946 1,557 147,005 1,186 228,020 Acquired loans accounted for under ASC 310-20: Impaired loans with specific allowance Commercial - 751 15 323 Impaired loans with no specific allowance Commercial - - - 952 Total interest income from impaired loans $ 1,557 $ 147,756 $ 1,201 $ 229,295 Nine-Month Period Ended September 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 $ 612 $ 17,298 $ 202 $ 155,094 Residential troubled-debt restructuring 1,685 87,951 2,321 90,881 Impaired loans with no specific allowance Commercial 1,350 41,519 749 42,050 Total interest income from impaired loans $ 3,647 $ 146,768 $ 3,272 $ 288,025 Acquired loans accounted for under ASC 310-20: Impaired loans with specific allowance Commercial $ - $ 810 $ 45 $ 108 Impaired loans with no specific allowance Commercial - - - 736 Total interest income from impaired loans $ 3,647 $ 147,578 $ 3,317 $ 288,869 Modifications The following tables present the troubled-debt restructurings in all loan portfolios during the quarters and nine -month periods ended September 30 , 2017 and 2016 . Quarter Ended September 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 A |