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Loans
12 Months Ended
Dec. 31, 2015
Receivables  
Loans

Note 12 Loans

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 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”. The FDIC loss sharing agreements expired on June 30, 2015 for commercial (including construction) and consumer loans, and expires on June 30, 2020 for single-family residential mortgage loans, as explained in Note 14.

As a result of the expiration of the shared-loss arrangement under the commercial loss share agreement on June 30, 2015, approximately $1.5 billion in loans and $18 million in OREOs were reclassified as “non-covered” in the accompanying statement of financial condition during the quarter ended June 30, 2015, because they are no longer subject to the shared-loss payments by the FDIC. However, included in these balances were loans with carrying amount at June 30, 2015 of approximately $248.7 million that are subject to the resolution of several arbitration proceedings currently ongoing with the FDIC related primarily to (i) the FDIC’s denial of reimbursements for certain charge-offs claimed by BPPR with respect to certain loans and the treatment of those loans as “shared-loss assets” under the commercial loss share agreement; and (ii) the denial by the FDIC of portfolio sale proposals submitted by BPPR pursuant to the applicable commercial shared loss agreement provision governing portfolio sales. Until the disputes described above are finally resolved, the terms of the commercial loss share agreement will remain in effect with respect to any such items under dispute. Refer to additional information of these disputes on Note 30, Commitment and Contingencies.

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.

Change in non-accrual accounting policy for guaranteed residential mortgage loans

During the quarter ended September 30, 2015, the Corporation changed its policy on interest income recognition for residential mortgage loans guaranteed by the Federal Housing Administration (“FHA”) or the Veterans Administration (“VA”). Previously, the Corporation discontinued the recognition of interest income on these loans when they were 18-months delinquent as to principal or interest. The Corporation modified its policy to discontinue the recognition of interest when 15-months delinquent as to principal or interest. This change in estimate was based on an analysis of historical collections from these agencies. This change in policy resulted in the reversal of previously accrued interest amounting to approximately $1.9 million during the year ended December 31, 2015.

The following table presents the composition of non-covered loans held-in-portfolio (“HIP”), net of unearned income, at December 31, 2015 and 2014.

(In thousands)December 31, 2015 December 31, 2014
Commercial multi-family$826,079$487,280
Commercial real estate non-owner occupied3,632,1152,526,146
Commercial real estate owner occupied2,111,5881,667,267
Commercial and industrial3,529,3813,453,574
Construction681,106251,820
Mortgage7,036,0816,502,886
Leasing627,650564,389
Legacy[2]64,43680,818
Consumer:
Credit cards1,142,2801,155,229
Home equity lines of credit315,172366,162
Personal1,375,4611,375,452
Auto815,978767,369
Other188,788206,059
Total loans held-in-portfolio[1]$22,346,115$19,404,451

[1]Non-covered loans held-in-portfolio at December 31, 2015 are net of $108 million in unearned income and exclude $137 million in loans held-for-sale (December 31, 2014 - $94 million in unearned income and $106 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 segment.

The following table presents the composition of covered loans at December 31, 2015 and 2014.

(In thousands)December 31, 2015December 31, 2014
Commercial real estate$-$1,511,472
Commercial and industrial-103,309
Construction-70,336
Mortgage627,102822,986
Consumer19,01334,559
Total covered loans held-in-portfolio$646,115$2,542,662

The following table provides a breakdown of loans held-for-sale (“LHFS”) at December 31, 2015 and 2014 by main categories.

(In thousands)December 31, 2015December 31, 2014
Commercial $45,074$309
Construction95-
Legacy-319
Mortgage91,831100,166
Consumer-5,310
Total loans held-for-sale$137,000$106,104

Excluding the impact of the Doral Bank Transaction, during the year ended December 31, 2015, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $588 million (2014 - $574 million). Also, the Corporation purchased consumer loans amounting to $72 million during 2015 (2014 - $92 million). Purchases of commercial loans amounted to $55 million for the year 2015 (2014 - $24 million).

The Corporation performed whole-loan sales involving approximately $98 million of residential mortgage loans during the year ended December 31, 2015 (December 31, 2014 - $185 million). Also, during the year ended December 31, 2015, the Corporation securitized approximately $869 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities and $219 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities, compared to $675 million and $225 million, respectively, during the year ended December 31, 2014. The Corporation sold commercial and construction loans with a book value of approximately $43 million during the year ended December 31, 2015 (December 31, 2014 - $260 million).

Non-covered loans

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, 2015 and 2014. 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.

At December 31, 2015
Puerto RicoU.S. mainlandPopular, Inc.
Accruing loansAccruing Accruing loans
Non-accrual past-due 90Non-accrual loans past-dueNon-accrual past-due 90
(In thousands)loans days or more [1]loans90 days or more [1]loansdays or more
Commercial multi-family$1,062$-$-$-$1,062$-
Commercial real estate non-owner occupied33,720-253-33,973-
Commercial real estate owner occupied106,449-221-106,670-
Commercial and industrial36,6715553,440-40,111555
Construction3,550---3,550-
Mortgage[3]337,933426,09413,538-351,471426,094
Leasing3,009---3,009-
Legacy--3,649-3,649-
Consumer:
Credit cards-19,098437-43719,098
Home equity lines of credit-3944,176-4,176394
Personal22,1025231,240-23,342523
Auto11,640-6-11,646-
Other18,698615-18,70361
Total[2]$574,834$446,725$26,965$-$601,799$446,725

[1] Non-covered loans of $268 million 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 analysis.

[2] For purposes of this table non-performing loans exclude $ 45 million in non-performing loans held-for-sale.

[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $164 million of residential mortgage loans in Puerto Rico insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2015. Furthermore, the Corporation has approximately $70 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets.

At December 31, 2014
Puerto RicoU.S. mainlandPopular, Inc.
Accruing loansAccruing Accruing loans
Non-accrual past-due 90 Non-accrual loans past-dueNon-accrual past-due 90
(In thousands)loansdays or more [1]loans90 days or moreloans days or more
Commercial multi-family$2,199$-$-$-$2,199$-
Commercial real estate non-owner occupied33,452---33,452-
Commercial real estate owner occupied92,648-805-93,453-
Commercial and industrial129,6114941,510-131,121494
Construction13,812---13,812-
Mortgage[3]295,629426,3879,284-304,913426,387
Leasing3,102---3,102-
Legacy--1,545-1,545-
Consumer:
Credit cards-20,368449-44920,368
Home equity lines of credit-214,090-4,09021
Personal25,678101,410-27,08810
Auto11,387---11,387-
Other3,8656827-3,872682
Total[2]$611,383$447,962$19,100$-$630,483$447,962

[1] Non-covered loans by $59 million 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 analysis.

[2] For purposes of this table non-performing loans exclude $ 19 million in non-performing loans held-for-sale.

[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $125 million of residential mortgage loans in Puerto Rico insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2014. Furthermore, the Corporation has approximately $66 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets.

The following tables present loans by past due status at December 31, 2015 and 2014 for non-covered loans held-in-portfolio (net of unearned income).

December 31, 2015
Puerto Rico
Past dueNon-covered
30-5960-8990 daysTotal loans HIP
(In thousands)daysdaysor morepast dueCurrentPuerto Rico
Commercial multi-family$459$217$1,316$1,992$130,154$132,146
Commercial real estate non-owner occupied166,73212,52084,982264,2342,404,8582,669,092
Commercial real estate owner occupied14,2455,624138,778158,6471,750,5971,909,244
Commercial and industrial6,0106,05938,46450,5332,607,2042,657,737
Construction23825313,73814,22986,719100,948
Mortgage344,858162,341863,8691,371,0684,756,4236,127,491
Leasing7,8441,6303,00912,483615,167627,650
Consumer:
Credit cards11,0789,41419,09839,5901,088,7551,128,345
Home equity lines of credit1862923948729,81610,688
Personal13,7567,88922,62544,2701,158,5651,202,835
Auto33,5547,50011,64052,694763,256815,950
Other1,06929819,23220,599167,885188,484
Total$600,029$214,037$1,217,145$2,031,211$15,539,399$17,570,610

December 31, 2015
U.S. mainland
Past due
30-5960-8990 daysTotal Loans HIP
(In thousands)daysdaysor morepast dueCurrentU.S. mainland
Commercial multi-family$33$253$-$286$693,647$693,933
Commercial real estate non-owner occupied160-253413962,610963,023
Commercial real estate owner occupied1,4904292212,140200,204202,344
Commercial and industrial13,6471,52675,57590,748780,896871,644
Construction----580,158580,158
Mortgage18,9573,42413,53835,919872,671908,590
Legacy1,1606623,6495,47158,96564,436
Consumer:
Credit cards32713443789813,03713,935
Home equity lines of credit3,1491,1144,1768,439296,045304,484
Personal1,8366901,2403,766168,860172,626
Auto--662228
Other-10515289304
Total$40,759$8,242$99,100$148,101$4,627,404$4,775,505

December 31, 2015
Popular, Inc.
Past dueNon-covered
30-5960-8990 daysTotalloans HIP
(In thousands)daysdaysor morepast dueCurrentPopular, Inc.
Commercial multi-family$492$470$1,316$2,278$823,801$826,079
Commercial real estate non-owner occupied166,89212,52085,235264,6473,367,4683,632,115
Commercial real estate owner occupied15,7356,053138,999160,7871,950,8012,111,588
Commercial and industrial19,6577,585114,039141,2813,388,1003,529,381
Construction23825313,73814,229666,877681,106
Mortgage363,815165,765877,4071,406,9875,629,0947,036,081
Leasing7,8441,6303,00912,483615,167627,650
Legacy1,1606623,6495,47158,96564,436
Consumer:
Credit cards11,4059,54819,53540,4881,101,7921,142,280
Home equity lines of credit3,3351,4064,5709,311305,861315,172
Personal15,5928,57923,86548,0361,327,4251,375,461
Auto33,5547,50011,64652,700763,278815,978
Other1,06930819,23720,614168,174188,788
Total$640,788$222,279$1,316,245$2,179,312$20,166,803$22,346,115

December 31, 2014
Puerto Rico
Past dueNon-covered
30-5960-8990 days Totalloans HIP
(In thousands) days daysor morepast dueCurrentPuerto Rico
Commercial multi-family$221$69$2,199$2,489$77,588$80,077
Commercial real estate non-owner occupied9,82812133,45243,4011,970,1782,013,579
Commercial real estate owner occupied8,9547,70992,648109,3111,364,0511,473,362
Commercial and industrial18,4985,269130,105153,8722,653,9132,807,785
Construction2,497-13,81216,309143,075159,384
Mortgage304,319167,219780,6781,252,2164,198,2855,450,501
Leasing6,7791,2463,10211,127553,262564,389
Consumer:
Credit cards13,7159,29020,36843,3731,096,7911,140,164
Home equity lines of credit1371592131713,08313,400
Personal13,4796,64625,68845,8131,216,7201,262,533
Auto34,2388,39711,38754,022713,274767,296
Other1,0092094,5475,765199,879205,644
Total$413,674$206,334$1,118,007$1,738,015$14,200,099$15,938,114

December 31, 2014
U.S. mainland
Past due
30-5960-8990 days TotalLoans HIP
(In thousands) days daysor morepast dueCurrentU.S. mainland
Commercial multi-family$87$376$-$463$406,740$407,203
Commercial real estate non-owner occupied1,478--1,478511,089512,567
Commercial real estate owner occupied453,6318054,481189,424193,905
Commercial and industrial1,1331231,5102,766643,023645,789
Construction810--81091,62692,436
Mortgage29,5828,6469,28447,5121,004,8731,052,385
Legacy9291,9311,5454,40576,41380,818
Consumer:
Credit cards3142464491,00914,05615,065
Home equity lines of credit5,0361,0254,09010,151342,611352,762
Personal 2,4768931,4104,779108,140112,919
Auto----7373
Other104721394415
Total$41,900$16,875$19,100$77,875$3,388,462$3,466,337

December 31, 2014
Popular, Inc.
Past dueNon-covered
30-5960-8990 days Totalloans HIP
(In thousands) days daysor morepast dueCurrentPopular, Inc.
Commercial multi-family$308$445$2,199$2,952$484,328$487,280
Commercial real estate non-owner occupied11,30612133,45244,8792,481,2672,526,146
Commercial real estate owner occupied8,99911,34093,453113,7921,553,4751,667,267
Commercial and industrial19,6315,392131,615156,6383,296,9363,453,574
Construction3,307-13,81217,119234,701251,820
Mortgage333,901175,865789,9621,299,7285,203,1586,502,886
Leasing6,7791,2463,10211,127553,262564,389
Legacy9291,9311,5454,40576,41380,818
Consumer:
Credit cards14,0299,53620,81744,3821,110,8471,155,229
Home equity lines of credit5,1731,1844,11110,468355,694366,162
Personal15,9557,53927,09850,5921,324,8601,375,452
Auto34,2388,39711,38754,022713,347767,369
Other1,0192134,5545,786200,273206,059
Total$455,574$223,209$1,137,107$1,815,890$17,588,561$19,404,451

The following table provides a breakdown of loans held-for-sale (“LHFS”) in non-performing status at December 31, 2015 and 2014 by main categories.

(In thousands)December 31, 2015December 31, 2014
Commercial $45,074$309
Construction95-
Mortgage-14,041
Consumer-4,549
Total$45,169$18,899

The following table presents loans acquired as part of the Doral Bank Transaction accounted for under ASC subtopic 310-20 as of the February 27, 2015 acquisition date:

(In thousands)
Fair value of loans accounted under ASC Subtopic 310-20$1,178,543
Gross contractual amounts receivable (principal and interest)$1,666,695
Estimate of contractual cash flows not expected to be collected $34,646

The components of the net financing leases receivable at December 31, 2015 and 2014 were as follows:

(In thousands)20152014
Total minimum lease payments$548,438$497,895
Estimated residual value of leased property175,458149,079
Deferred origination costs, net of fees8,5538,727
Less - Unearned financing income103,43389,552
Net minimum lease payments629,016566,149
Less - Allowance for loan losses11,0227,184
Net minimum lease payments, net of allowance for loan losses$617,994$558,965

At December 31, 2015, future minimum lease payments are expected to be received as follows:

(In thousands)
2016$130,801
2017120,298
2018106,723
201975,846
2020 and thereafter114,770
Total$548,438

Covered loans

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, 2015 and 2014.

December 31, 2015December 31, 2014
Non-accrualAccruing loans pastNon-accrualAccruing loans past
(In thousands)loansdue 90 days or moreloansdue 90 days or more
Commercial real estate$-$-$8,810$-
Commercial and industrial--1,142-
Construction--2,770-
Mortgage3,790-4,37628
Consumer97-735-
Total[1]$3,887$-$17,833$28

[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, 2015 and 2014 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, 2015
Past due
30-5960-8990 daysTotalCovered
(In thousands)daysdaysor morepast dueCurrentloans HIP
Mortgage$31,413$16,593$83,132$131,138$495,964$627,102
Consumer1,2464441,2832,97316,04019,013
Total covered loans$32,659$17,037$84,415$134,111$512,004$646,115

December 31, 2014
Past due
30-5960-8990 daysTotalCovered
(In thousands)daysdaysor morepast dueCurrentloans HIP
Commercial real estate$98,559$12,597$291,010$402,166$1,109,306$1,511,472
Commercial and industrial51277,7568,27595,034103,309
Construction-38458,66559,04911,28770,336
Mortgage45,76423,531143,140212,435610,551822,986
Consumer1,8847472,5325,16329,39634,559
Total covered loans$146,719$37,266$503,103$687,088$1,855,574$2,542,662

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. Covered loans accounted for under ASC Subtopic 310-20 amounted to $10 million at December 31, 2015 (December 31, 2014 - $0.1 billion).

Loans acquired with deteriorated credit quality accounted for under ASC 310-30

The following provides information of loans acquired with evidence of credit deterioration as of the acquisition date, accounted for under the guidance of ASC 310-30.

Loans acquired from Westernbank as part of an FDIC-assisted transaction

The carrying amount of the Westernbank 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, 2015 [1]December 31, 2014
Carrying amountCarrying amount
(In thousands)Non-credit impaired loansCredit impaired loansTotalNon-credit impaired loansCredit impaired loansTotal
Commercial real estate$1,114,368$35,393$1,149,761$1,392,482$90,202$1,482,684
Commercial and industrial84,76551985,28457,0592,19759,256
Construction8,9436,02714,97032,83632,40965,245
Mortgage667,02333,090700,113764,14845,829809,977
Consumer23,0471,32624,37325,6171,39327,010
Carrying amount1,898,14676,3551,974,5012,272,142172,0302,444,172
Allowance for loan losses(59,753)(3,810)(63,563)(52,798)(26,048)(78,846)
Carrying amount, net of allowance$1,838,393$72,545$1,910,938$2,219,344$145,982$2,365,326
[1] The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remains subject to the loss sharing agreement with the FDIC amounted to approximately $636 million as of December 31,2015.

The outstanding principal balance of Westernbank loans accounted pursuant to ASC Subtopic 310-30, amounted to $2.4 billion at December 31, 2015 (December 31, 2014 - $3.1 billion). At December 31, 2015, 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 Westernbank loans accounted pursuant to the ASC Subtopic 310-30, for the years ended December 31, 2015 and 2014, were as follows:

Activity in the accretable yield
Westernbank loans ASC 310-30
For the years ended
December 31, 2015December 31, 2014
Non-creditCreditNon-creditCredit
impairedimpairedimpairedimpaired
(In thousands)loansloansTotalloansloansTotal
Beginning balance$1,265,752$5,585$1,271,337$1,297,725$11,480$1,309,205
Accretion(192,826)(10,140)(202,966)(268,063)(16,409)(284,472)
Change in expected cash flows32,80611,28144,087236,09010,514246,604
Ending balance$1,105,732$6,726$1,112,458$1,265,752$5,585$1,271,337

Carrying amount of Westernbank loans accounted for pursuant to ASC 310-30
For the years ended
December 31, 2015 [1]December 31, 2014
Non-creditCreditNon-creditCredit
impairedimpairedimpairedimpaired
(In thousands)loansloansTotalloansloansTotal
Beginning balance$2,272,142$172,030$2,444,172$2,509,075$318,872$2,827,947
Accretion192,82610,140202,966268,06316,409284,472
Collections and charge offs(566,822)(105,815)(672,637)(504,996)(163,251)(668,247)
Ending balance$1,898,146$76,355$1,974,501$2,272,142$172,030$2,444,172
Allowance for loan losses
ASC 310-30 Westernbank loans(59,753)(3,810)(63,563)(52,798)(26,048)(78,846)
Ending balance, net of ALLL$1,838,393$72,545$1,910,938$2,219,344$145,982$2,365,326
[1] The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss sharing agreement with the FDIC amounted to approximately $636 million as of December 31, 2015.

Other loans acquired with deteriorated credit quality

The outstanding principal balance of other acquired loans accounted pursuant to ASC Subtopic 310-30, amounted to $710 million at December 31, 2015 (December 31, 2014 - $243 million). At December 31, 2015, none of the other acquired loans accounted 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 other acquired loans accounted pursuant to the ASC Subtopic 310-30, for the years ended December 31, 2015 and 2014 were as follows:

Activity in the accretable yield - Other acquired loans ASC 310-30
For the years ended
(In thousands)December 31, 2015December 31, 2014
Beginning balance$116,304$49,398
Additions132,27319,190
Accretion(29,277)(10,074)
Change in expected cash flows1,82857,790
Ending balance$221,128$116,304

Carrying amount of other acquired loans accounted for pursuant to ASC 310-30
For the years ended
(In thousands)December 31, 2015December 31, 2014
Beginning balance$212,763$173,659
Additions386,67958,799
Accretion 29,27710,074
Collections and charge-offs(64,669)(29,769)
Ending balance$564,050$212,763
Allowance for loan losses ASC 310-30 non-covered loans(19,276)(16,159)
Ending balance, net of allowance for loan losses$544,774$196,604

The following table presents loans acquired as part of the Doral Bank Transaction accounted for pursuant to ASC Subtopic 310-30 at the February 27, 2015 acquisition date.

(In thousands)
Contractually-required principal and interest$560,833
Non-accretable difference107,446
Cash flows expected to be collected 453,387
Accretable yield113,977
Fair value of loans accounted for under ASC Subtopic 310-30$339,410