Covered loans acquired in the Westernbank FDIC-assisted transaction, except for lines of credit with revolving privileges, are accounted for by the Corporation in accordance with ASC Subtopic 310-30. Under ASC Subtopic 310-30, the acquired loans were aggregated into pools based on similar characteristics. Each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. The covered loans which are accounted for under ASC Subtopic 310-30 by the Corporation are not considered non-performing and will continue to have an accretable yield as long as there is a reasonable expectation about the timing and amount of cash flows expected to be collected. The Corporation measures additional losses for this portfolio when it is probable the Corporation will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. Lines of credit with revolving privileges that were acquired as part of the Westernbank FDIC-assisted transaction are accounted for under the guidance of ASC Subtopic 310-20, which requires that any differences between the contractually required loan payment receivable in excess of the Corporation's initial investment in the loans be accreted into interest income. Loans accounted for under ASC Subtopic 310-20 are placed in non-accrual status when past due in accordance with the Corporation's non-accruing policy and any accretion of discount is discontinued.

The risks on loans acquired in the FDIC-assisted transaction are significantly different from the risks on loans not covered under the FDIC loss sharing agreements because of the loss protection provided by the FDIC. Accordingly, the Corporation presents loans subject to the loss sharing agreements as “covered loans” in the information below and loans that are not subject to the FDIC loss sharing agreements as “non-covered loans”.

For a summary of the accounting policy related to loans, interest recognition and allowance for loan losses refer to the summary of significant accounting policies included in Note 2 to these consolidated financial statements.

The following table presents the composition of non-covered loans held-in-portfolio (“HIP”), net of unearned income, at December 31, 2012 and December 31, 2011.


(In thousands)		December 31, 2012		December 31, 2011
Commercial multi-family		$	1,021,780	$	808,933
Commercial real estate non-owner occupied			2,634,432		2,665,499
Commercial real estate owner occupied			2,608,450		2,817,266
Commercial and industrial			3,593,540		3,681,629
Construction			252,857		239,939
Mortgage			6,078,507		5,518,460
Leasing			540,523		548,706
Legacy^[2]			384,217		648,409
Consumer:
	Credit cards		1,198,213		1,230,029
	Home equity lines of credit		491,035		557,894
	Personal		1,388,911		1,130,593
	Auto		561,084		518,476
	Other		229,643		236,763
Total loans held-in-portfolio^[1]		$	20,983,192	$	20,602,596

[1]	Non-covered loans held-in-portfolio at December 31, 2012 are net of $97 million in unearned income and exclude $354 million in loans held-for-sale (December 31, 2011 - $101 million in unearned income and $363 million in loans held-for-sale).

[2]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the
	Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.

The following table presents the composition of covered loans at December 31, 2012 and December 31, 2011.


(In thousands)	December 31, 2012		December 31, 2011
Commercial real estate	$	2,077,411	$	2,271,295
Commercial and industrial		167,236		241,447
Construction		361,396		546,826
Mortgage		1,076,730		1,172,954
Consumer		73,199		116,181
Total loans held-in-portfolio	$	3,755,972	$	4,348,703

The following table provides a breakdown of loans held-for-sale (“LHFS”) at December 31, 2012 and December 31, 2011 by main categories.

During the year ended December 31, 2012, the Corporation recorded purchases (including repurchases) of mortgage loans amounting $1.5 billion (2011 - $1.3 billion). Also, the Corporation recorded purchases of $265 million in consumer loans during the year ended December 31, 2012 (2011 - $131 million). In addition, during the year ended December 31, 2012, the Corporation recorded purchases of construction loans amounting to $1 million and none during 2011. The Corporation recorded purchases of commercial loans amounting to $18 million during the year ended December 31, 2012 and none during 2011.

The Corporation performed whole-loan sales involving approximately $315 million of residential mortgage loans during the year ended December 31, 2012 (2011- $374 million). Also, the Corporation securitized approximately $ 839 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the year ended December 31, 2012 (2011 - $ 907 million). Furthermore, the Corporation securitized approximately $ 454 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the year ended December 31, 2012 (2011- $ 206 million). Also, the Corporation securitized approximately $ 38 million of mortgage loans into Federal Home Loan Mortgage Corporation (“FHLMC”) mortgage-backed securities during the year ended December 31, 2012. There were no securitizations into FHLMC for the year ended December 31, 2011. The Corporation sold commercial and construction loans with a book value of approximately $60 million during the year ended December 31, 2012 (2011- $30 million). During the third quarter of 2011, other construction and commercial loans held-for-sale with a combined book value of $128 million were sold to a joint venture in which the Corporation holds minority interest. Refer to Note 28 to the consolidated financial statements for detail of this transaction.

The following tables present non-covered loans held-in-portfolio by loan class that are in non-performing status or are accruing interest but are past due 90 days or more at December 31, 2012 and 2011. Accruing loans past due 90 days or more consist primarily of credit cards, FHA / VA and other insured mortgage loans, and delinquent mortgage loans which are included in the Corporation's financial statements pursuant to GNMA's 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. Also, accruing loans past due 90 days or more include residential conventional loans purchased from another financial institution that, although delinquent, the Corporation has received timely payment from the seller / servicer, and, in some instances, have partial guarantees under recourse agreements. However, residential conventional loans purchased from another financial institution, which are in the process of foreclosure, are classified as non-performing mortgage loans.

At December 31, 2012
			Puerto Rico				U.S. mainland				Popular, Inc.

				Accruing				Accruing				Accruing
		Non-accrual		loans past-due		Non-accrual		loans past-due			Non-accrual	loans past-due
(In thousands)		loans		90 days or more		loans		90 days or more			loans	90 days or more
Commercial multi-family		$	15,816	$	-	$	18,435	$	-	$	34,251	$	-
Commercial real estate non-owner occupied			66,665		-		78,140		-		144,805		-
Commercial real estate owner occupied			315,534		-		31,931		-		347,465		-
Commercial and industrial			124,717		529		14,051		-		138,768		529
Construction			37,390		-		5,960		-		43,350		-
Mortgage			596,105		364,387		34,025		-		630,130		364,387
Leasing			4,865		-		-		-		4,865		-
Legacy			-		-		40,741		-		40,741		-
Consumer:
	Credit cards		-		22,184		505		-		505		22,184
	Home equity lines of credit		-		312		7,454		-		7,454		312
	Personal		19,300		23		1,905		-		21,205		23
	Auto		8,551		-		4		-		8,555		-
	Other		3,036		469		3		-		3,039		469
Total^[1]		$	1,191,979	$	387,904	$	233,154	$	-	$	1,425,133	$	387,904

[1] For purposes of this table non-performing loans exclude $ 96 million in non-performing loans held-for-sale.

At December 31, 2011
			Puerto Rico				U.S. mainland				Popular, Inc.

				Accruing				Accruing				Accruing
		Non-accrual		loans past-due		Non-accrual		loans past-due			Non-accrual	loans past-due
(In thousands)		loans		90 days or more		loans		90 days or more			loans	90 days or more
Commercial multi-family		$	15,396	$	-	$	13,935	$	-	$	29,331	$	-
Commercial real estate non-owner occupied			51,013		-		80,820		-		131,833		-
Commercial real estate owner occupied			385,303		-		59,726		-		445,029		-
Commercial and industrial			179,459		675		44,440		-		223,899		675
Construction			53,859		-		42,427		-		96,286		-
Mortgage			649,279		280,912		37,223		-		686,502		280,912
Leasing			5,642		-		-		-		5,642		-
Legacy			-		-		75,660		-		75,660		-
Consumer:
	Credit cards		-		25,748		735		-		735		25,748
	Home equity lines of credit		-		157		10,065		-		10,065		157
	Personal		19,317		-		1,516		-		20,833		-
	Auto		6,830		-		34		-		6,864		-
	Other		5,144		468		27		-		5,171		468
Total^[1]		$	1,371,242	$	307,960	$	366,608	$	-	$	1,737,850	$	307,960

[1] For purposes of this table non-performing loans exclude $ 262 million in non-performing loans held-for-sale.

The following tables present loans by past due status at December 31, 2012 and December 31, 2011 for non-covered loans held-in-portfolio (net of unearned income).

December 31, 2012
Puerto Rico

			Past due									Non - covered
		30-59		60-89		90 days		Total				loans HIP
(In thousands)		days		days		or more		past due		Current		Puerto Rico
Commercial multi-family		$	1,005	$	-	$	15,816	$	16,821	$	98,272	$	115,093
Commercial real estate non-owner occupied			10,580		4,454		66,665		81,699		1,268,734		1,350,433
Commercial real estate owner occupied			28,240		13,319		315,534		357,093		1,685,393		2,042,486
Commercial and industrial			27,977		5,922		125,246		159,145		2,629,127		2,788,272
Construction			1,243		-		37,390		38,633		173,634		212,267
Mortgage			241,930		121,175		960,492		1,323,597		3,625,327		4,948,924
Leasing			6,493		1,555		4,865		12,913		527,610		540,523
Consumer:
	Credit cards		14,521		10,614		22,184		47,319		1,135,753		1,183,072
	Home equity lines of credit		124		-		312		436		16,370		16,806
	Personal		13,208		7,392		19,323		39,923		1,205,859		1,245,782
	Auto		24,128		6,518		8,551		39,197		521,119		560,316
	Other		2,120		536		3,505		6,161		222,192		228,353
Total		$	371,569	$	171,485	$	1,579,883	$	2,122,937	$	13,109,390	$	15,232,327

December 31, 2012
U.S. mainland
			Past due
		30-59		60-89		90 days		Total				Loans HIP
(In thousands)		days		days		or more		past due		Current		U.S. mainland
Commercial multi-family		$	6,828	$	5,067	$	18,435	$	30,330	$	876,357	$	906,687
Commercial real estate non-owner occupied			19,032		1,309		78,140		98,481		1,185,518		1,283,999
Commercial real estate owner occupied			9,979		100		31,931		42,010		523,954		565,964
Commercial and industrial			12,885		1,975		14,051		28,911		776,357		805,268
Construction			5,268		-		5,960		11,228		29,362		40,590
Mortgage			29,909		10,267		34,025		74,201		1,055,382		1,129,583
Legacy			15,765		20,112		40,741		76,618		307,599		384,217
Consumer:
	Credit cards		305		210		505		1,020		14,121		15,141
	Home equity lines of credit		3,937		2,506		7,454		13,897		460,332		474,229
	Personal		2,757		1,585		1,905		6,247		136,882		143,129
	Auto		38		3		4		45		723		768
	Other		41		9		3		53		1,237		1,290
Total		$	106,744	$	43,143	$	233,154	$	383,041	$	5,367,824	$	5,750,865

December 31, 2012
Popular, Inc.

			Past due									Non-covered
		30-59		60-89		90 days		Total					loans HIP
(In thousands)		days		days		or more		past due		Current			Popular, Inc.
Commercial multi-family		$	7,833	$	5,067	$	34,251	$	47,151	$	974,629	$	1,021,780
Commercial real estate non-owner occupied			29,612		5,763		144,805		180,180		2,454,252		2,634,432
Commercial real estate owner occupied			38,219		13,419		347,465		399,103		2,209,347		2,608,450
Commercial and industrial			40,862		7,897		139,297		188,056		3,405,484		3,593,540
Construction			6,511		-		43,350		49,861		202,996		252,857
Mortgage			271,839		131,442		994,517		1,397,798		4,680,709		6,078,507
Leasing			6,493		1,555		4,865		12,913		527,610		540,523
Legacy			15,765		20,112		40,741		76,618		307,599		384,217
Consumer:
	Credit cards		14,826		10,824		22,689		48,339		1,149,874		1,198,213
	Home equity lines of credit		4,061		2,506		7,766		14,333		476,702		491,035
	Personal		15,965		8,977		21,228		46,170		1,342,741		1,388,911
	Auto		24,166		6,521		8,555		39,242		521,842		561,084
	Other		2,161		545		3,508		6,214		223,429		229,643
Total		$	478,313	$	214,628	$	1,813,037	$	2,505,978	$	18,477,214	$	20,983,192

December 31, 2011
Puerto Rico

			Past due									Non-covered
			30-59		60-89		90 days	Total				loans HIP
(In thousands)			days		days		or more	past due		Current		Puerto Rico
Commercial multi-family		$	435	$	121	$	15,396	$	15,952	$	107,164	$	123,116
Commercial real estate non-owner occupied			16,584		462		51,013		68,059		1,193,447		1,261,506
Commercial real estate owner occupied			39,578		21,003		385,303		445,884		1,785,542		2,231,426
Commercial and industrial			46,013		17,233		180,134		243,380		2,611,154		2,854,534
Construction			608		21,055		53,859		75,522		85,419		160,941
Mortgage			202,072		98,565		930,191		1,230,828		3,458,655		4,689,483
Leasing			7,927		2,301		5,642		15,870		532,836		548,706
Consumer:
	Credit cards		14,507		11,479		25,748		51,734		1,164,086		1,215,820
	Home equity lines of credit		155		395		157		707		19,344		20,051
	Personal		17,583		10,434		19,317		47,334		935,854		983,188
	Auto		22,677		5,883		6,830		35,390		480,874		516,264
	Other		1,740		1,442		5,612		8,794		226,310		235,104
Total		$	369,879	$	190,373	$	1,679,202	$	2,239,454	$	12,600,685	$	14,840,139

December 31, 2011
U.S. mainland
			Past due
			30-59		60-89		90 days		Total				Loans HIP
(In thousands)			days		days		or more		past due		Current		U.S. mainland
Commercial multi-family		$	14,582	$	-	$	13,935	$	28,517	$	657,300	$	685,817
Commercial real estate non-owner occupied			15,794		3,168		80,820		99,782		1,304,211		1,403,993
Commercial real estate owner occupied			14,004		449		59,726		74,179		511,661		585,840
Commercial and industrial			22,545		3,791		44,440		70,776		756,319		827,095
Construction			-		-		42,427		42,427		36,571		78,998
Mortgage			30,594		13,190		37,223		81,007		747,970		828,977
Legacy			30,712		7,536		75,660		113,908		534,501		648,409
Consumer:
	Credit cards		314		229		735		1,278		12,931		14,209
	Home equity lines of credit		7,090		3,587		10,065		20,742		517,101		537,843
	Personal		3,574		2,107		1,516		7,197		140,208		147,405
	Auto		106		37		34		177		2,035		2,212
	Other		29		10		27		66		1,593		1,659
Total		$	139,344	$	34,104	$	366,608	$	540,056	$	5,222,401	$	5,762,457

December 31, 2011
Popular, Inc.

			Past due									Non-covered
			30-59		60-89		90 days		Total			loans HIP
(In thousands)			days		days		or more		past due	Current		Popular, Inc.
Commercial multi-family		$	15,017	$	121	$	29,331	$	44,469	$	764,464	$	808,933
Commercial real estate non-owner occupied			32,378		3,630		131,833		167,841		2,497,658		2,665,499
Commercial real estate owner occupied			53,582		21,452		445,029		520,063		2,297,203		2,817,266
Commercial and industrial			68,558		21,024		224,574		314,156		3,367,473		3,681,629
Construction			608		21,055		96,286		117,949		121,990		239,939
Mortgage			232,666		111,755		967,414		1,311,835		4,206,625		5,518,460
Leasing			7,927		2,301		5,642		15,870		532,836		548,706
Legacy			30,712		7,536		75,660		113,908		534,501		648,409
Consumer:
	Credit cards		14,821		11,708		26,483		53,012		1,177,017		1,230,029
	Home equity lines of credit		7,245		3,982		10,222		21,449		536,445		557,894
	Personal		21,157		12,541		20,833		54,531		1,076,062		1,130,593
	Auto		22,783		5,920		6,864		35,567		482,909		518,476
	Other		1,769		1,452		5,639		8,860		227,903		236,763
Total		$	509,223	$	224,477	$	2,045,810	$	2,779,510	$	17,823,086	$	20,602,596

The following table provides a breakdown of loans held-for-sale (“LHFS”) in non-performing status at December 31, 2012 and December 31, 2011 by main categories.

The components of the net financing leases receivable at December 31, 2012 and 2011 were as follows:

(In thousands)			2012		2011
Total minimum lease payments		$	503,447	$	520,226
Estimated residual value of leased property			129,927		134,194
Deferred origination costs, net of fees			6,966		6,691
	Less - Unearned financing income		93,157		97,244
Net minimum lease payments			547,183		563,867
	Less - Allowance for loan losses		3,475		4,891
		$	543,708	$	558,976

At December 31, 2012, future minimum lease payments are expected to be received as follows:

The following table presents covered loans in non-performing status and accruing loans past-due 90 days or more by loan class at December 31, 2012 and December 31, 2011.

	December 31, 2012				December 31, 2011

	Non-accrual		Accruing loans past		Non-accrual		Accruing loans past
(In thousands)	loans		due 90 days or more		loans		due 90 days or more
Commercial real estate	$	14,628	$	-	$	14,241	$	125
Commercial and industrial		48,743		504		63,858		1,392
Construction		8,363		-		4,598		5,677
Mortgage		2,133		-		423		113
Consumer		543		265		516		377
Total^[1]	$	74,410	$	769	$	83,636	$	7,684

[1] Covered loans accounted for under ASC Subtopic 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.

The following tables present loans by past due status at December 31, 2012 and December 31, 2011 for covered loans held-in-portfolio. The information considers covered loans accounted for under ASC Subtopic 310-20 and ASC Subtopic 310-30.

December 31, 2012

		Past due
	30-59		60-89		90 days		Total				Covered
(In thousands)	days		days		or more		past due		Current		loans HIP
Commercial real estate	$	81,386	$	41,256	$	545,241	$	667,883	$	1,409,528	$	2,077,411
Commercial and industrial		3,242		551		59,554		63,347		103,889		167,236
Construction		13		-		296,837		296,850		64,546		361,396
Mortgage		38,307		28,206		182,376		248,889		827,841		1,076,730
Consumer		1,382		1,311		11,094		13,787		59,412		73,199
Total covered loans	$	124,330	$	71,324	$	1,095,102	$	1,290,756	$	2,465,216	$	3,755,972

December 31, 2011

		Past due
		30-59	60-89		90 days		Total				Covered
(In thousands)		days	days		or more		past due		Current		loans HIP
Commercial real estate	$	35,286	$	25,273	$	519,222	$	579,781	$	1,691,514	$	2,271,295
Commercial and industrial		4,438		1,390		99,555		105,383		136,064		241,447
Construction		997		625		434,661		436,283		110,543		546,826
Mortgage		32,371		28,238		196,541		257,150		915,804		1,172,954
Consumer		2,913		3,289		15,551		21,753		94,428		116,181
Total covered loans	$	76,005	$	58,815	$	1,265,530	$	1,400,350	$	2,948,353	$	4,348,703

The following table presents loans acquired as part of the Westernbank FDIC-assisted transaction accounted for pursuant to ASC Subtopic 310-30 at the April 30, 2010 acquisition date. The information presented includes loans determined to be impaired at the time of acquisition (“credit impaired loans”), and loans that were considered to be performing at the acquisition date accounted for by analogy to ASC Subtopic 310-30 (“non credit impaired loans” ). Refer to Note 2 in these consolidated financial statements for a description of the Corporation's significant accounting policies related to acquired loans and criteria considered by management to apply ASC 310-30 analogy to non-credit impaired loans.


	April 30, 2010
(In thousands)		Non-credit Impaired loans		Credit impaired loans		Total
Contractually-required principal and interest	$	7,855,033	$	1,995,580	$	9,850,613
Non-accretable difference		2,154,542		1,248,365		3,402,907
Cash flows expected to be collected		5,700,491		747,215		6,447,706
Accretable yield		1,487,634		50,425		1,538,059
Fair value of loans accounted for under ASC Subtopic 310-30	$	4,212,857	$	696,790	$	4,909,647

The cash flows expected to be collected consider the estimated remaining life of the underlying loans and include the effects of estimated prepayments. The unpaid principal balance of the acquired loans from the Westernbank FDIC-assisted transaction that are accounted for under ASC Subtopic 310-30 amounted to $8.1 billion at the April 30, 2010 transaction date.

The carrying amount of the covered loans consisted of loans determined to be impaired at the time of acquisition, which are accounted for in accordance with ASC Subtopic 310-30 (“credit impaired loans”), and loans that were considered to be performing at the acquisition date, accounted for by analogy to ASC Subtopic 310-30 (“non-credit impaired loans”), as detailed in the following table.

	December 31, 2012						December 31, 2011

	Carrying amount						Carrying amount
(In thousands)		Non-credit impaired loans		Credit impaired loans		Total		Non-credit impaired loans		Credit impaired loans		Total
Commercial real estate	$	1,778,594	$	185,386	$	1,963,980	$	1,920,141	$	215,560	$	2,135,701
Commercial and industrial		55,396		4,379		59,775		85,859		4,621		90,480
Construction		174,054		174,093		348,147		279,561		260,208		539,769
Mortgage		988,158		69,654		1,057,812		1,065,842		102,027		1,167,869
Consumer		55,762		6,283		62,045		95,048		7,604		102,652
Carrying amount		3,051,964		439,795		3,491,759		3,446,451		590,020		4,036,471
Allowance for loan losses		(48,365)		(47,042)		(95,407)		(62,951)		(20,526)		(83,477)
Carrying amount, net of allowance	$	3,003,599	$	392,753	$	3,396,352	$	3,383,500	$	569,494	$	3,952,994

The outstanding principal balance of covered loans accounted pursuant to ASC Subtopic 310-30, including amounts charged off by the Corporation, amounted to $4.8 billion at December 31, 2012 (2011 - $6.0 billion). At December 31, 2012, none of the acquired loans from the Westernbank FDIC-assisted transaction accounted for under ASC Subtopic 310-30 were considered non-performing loans. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

Changes in the carrying amount and the accretable yield for the covered loans accounted pursuant to the ASC Subtopic 310-30, for the years ended December 31, 2012 and 2011, were as follows:

	Accretable yield
	For the year ended
	December 31, 2012						December 31, 2011
		Non-credit		Credit				Non-credit		Credit
		impaired		impaired				impaired		impaired
(In thousands)		loans		loans		Total		loans		loans		Total
Beginning balance	$	1,428,764	$	41,495	$	1,470,259	$	1,307,927	$	23,181	$	1,331,108
Accretion		(258,901)		(21,695)		(280,596)		(271,760)		(80,641)		(352,401)
Change in expected cash flows		276,518		(14,512)		262,006		392,597		98,955		491,552
Ending balance	$	1,446,381	$	5,288	$	1,451,669	$	1,428,764	$	41,495	$	1,470,259

		Carrying amount of loans accounted for pursuant to ASC 310-30
		For the year ended
		December 31, 2012						December 31, 2011
			Non-credit		Credit				Non-credit		Credit
			impaired		impaired				impaired		impaired
(In thousands)			loans		loans		Total		loans		loans		Total
Beginning balance		$	3,446,451	$	590,020	$	4,036,471	$	3,894,379	$	645,549	$	4,539,928
Accretion			258,901		21,695		280,596		271,760		80,641		352,401
Collections and charge offs			(653,388)		(171,920)		(825,308)		(719,688)		(136,170)		(855,858)
Ending balance		$	3,051,964	$	439,795	$	3,491,759	$	3,446,451	$	590,020	$	4,036,471
Allowance for loan losses
	ASC 310-30 covered loans		(48,365)		(47,042)		(95,407)		(62,951)		(20,526)		(83,477)
		$	3,003,599	$	392,753	$	3,396,352	$	3,383,500	$	569,494	$	3,952,994

The Corporation accounts for lines of credit with revolving privileges under the accounting guidance of ASC Subtopic 310-20, which requires that any differences between the contractually required loans payment receivable in excess of the initial investment in the loans be accreted into interest income over the life of the loans, if the loan is accruing interest.

(In thousands)
Fair value of loans accounted under ASC Subtopic 310-20	$	290,810
Gross contractual amounts receivable (principal and interest)	$	457,201
Estimate of contractual cash flows not expected to be collected	$	164,427

The cash flow expected to be collected consider the estimated remaining life of the underlying loans and include the effects of estimated prepayments.

Covered loans accounted for under ASC Subtopic 310-20 amounted to $0.3 billion at December 31, 2012 (December 31, 2011 - $0.3 billion).