XML 33 R16.htm IDEA: XBRL DOCUMENT

Allowance for loan losses

6 Months Ended

Jun. 30, 2018

Note 8 – Allowance for loan losses

The Corporation follows a systematic methodology to establish and evaluate the adequacy of the allowance for loan losses (“ALLL”) to provide for inherent losses in the loan portfolio. This methodology includes the consideration of factors such as current economic conditions, portfolio risk characteristics, prior loss experience and results of periodic credit reviews of individual loans. The provision for loan losses charged to current operations is based on this methodology. Loan losses are charged and recoveries are credited to the allowance for loan losses.

The Corporation’s assessment of the allowance for loan losses is determined in accordance with the guidance of loss contingencies in ASC Subtopic 450-20 and loan impairment guidance in ASC Section 310-10-35. Also, the Corporation determines the allowance for loan losses on purchased impaired loans and purchased loans accounted for under ASC Subtopic 310-30, by evaluating decreases in expected cash flows after the acquisition date.

The accounting guidance provides for the recognition of a loss allowance for groups of homogeneous loans. The determination for general reserves of the allowance for loan losses includes the following principal factors:

Base net loss rates, which are based on the moving average of annualized net loss rates computed over a 5-year historical loss period for the commercial and construction loan portfolios, and an 18-month period for the consumer and mortgage loan portfolios. The base net loss rates are applied by loan type and by legal entity.
Recent loss trend adjustment, which replaces the base loss rate with a 12-month average loss rate, when these trends are higher than the respective base loss rates. The objective of this adjustment is to allow for a more recent loss trend to be captured and reflected in the ALLL estimation process.

For the period ended June 30, 2018, 78% (June 30, 2017 - 39%) of the ALLL for non-covered BPPR segment loan portfolios utilized the recent loss trend adjustment instead of the base loss. The effect of replacing the base loss with the recent loss trend adjustment was mainly concentrated in the mortgage, leasing and overall consumer portfolios for 2018 and in the personal, other consumer and commercial and industrial portfolios for 2017.

For the period ended June 30, 2018, 6% (June 30, 2017 - 2 %) of our Popular U.S. segment loan portfolios utilized the recent loss trend adjustment instead of the base loss. The effect of replacing the base loss with the recent loss trend adjustment was concentrated in the consumer portfolios for 2018 and commercial multifamily and legacy portfolios for 2017.

Environmental factors, which include credit and macroeconomic indicators such as unemployment rate, economic activity index and delinquency rates, adopted to account for current market conditions that are likely to cause estimated credit losses to differ from historical losses. The Corporation reflects the effect of these environmental factors on each loan group as an adjustment that, as appropriate, increases the historical loss rate applied to each group. Environmental factors provide updated perspective on credit and economic conditions. Regression analysis is used to select these indicators and quantify the effect on the general reserve of the allowance for loan losses.

The following tables present the changes in the allowance for loan losses, loan ending balances and whether such loans and the allowance pertain to loans individually or collectively evaluated for impairment for the quarters and six months ended June 30, 2018 and 2017.

For the quarter ended June 30, 2018
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	188,522	$	2,657	$	153,301	$	12,912	$	176,203	$	533,595
	Provision (reversal of provision)		10,364		(2,193)		6,955		2,530		26,749		44,405
	Charge-offs		(11,502)		(18)		(12,847)		(1,803)		(31,151)		(57,321)
	Recoveries		3,542		319		1,272		646		7,077		12,856
	Allowance transferred from covered loans ^[1]		-		-		33,422		-		188		33,610
Ending balance		$	190,926	$	765	$	182,103	$	14,285	$	179,066	$	567,145
Specific ALLL		$	46,626	$	-	$	45,039	$	362	$	23,553	$	115,580
General ALLL		$	144,300	$	765	$	137,064	$	13,923	$	155,513	$	451,565
Loans held-in-portfolio:
Impaired non-covered loans		$	359,447	$	2,559	$	507,580	$	1,130	$	105,922	$	976,638
Non-covered loans held-in-portfolio
	excluding impaired loans		6,688,151		94,616		6,135,546		870,968		3,281,198		17,070,479
Total non-covered loans held-in-portfolio		$	7,047,598	$	97,175	$	6,643,126	$	872,098	$	3,387,120	$	18,047,117
[1] Represents the allowance transferred from covered to non-covered loans at June 30, 2018, due to the Termination Agreement with the FDIC.

For the quarter ended June 30, 2018
Puerto Rico - Covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	-	$	-	$	33,422	$	-	$	188	$	33,610
	Provision		-		-		-		-		-		-
	Charge-offs		-		-		-		-		-		-
	Recoveries		-		-		-		-		-		-
	Allowance transferred to non-covered loans		-		-		(33,422)		-		(188)		(33,610)
Ending balance		$	-	$	-	$	-	$	-	$	-	$	-
Specific ALLL		$	-	$	-	$	-	$	-	$	-	$	-
General ALLL		$	-	$	-	$	-	$	-	$	-	$	-
Loans held-in-portfolio:
Impaired covered loans		$	-	$	-	$	-	$	-	$	-	$	-
Covered loans held-in-portfolio
	excluding impaired loans		-		-		-		-		-		-
Total covered loans held-in-portfolio		$	-	$	-	$	-	$	-	$	-	$	-

For the quarter ended June 30, 2018
Popular U.S.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	47,859	$	7,092	$	4,727	$	652	$	13,043	$	73,373
	Provision (reversal of provision)		13,193		(155)		(346)		(229)		3,186		15,649
	Charge-offs		(11,247)		-		(61)		(14)		(4,998)		(16,320)
	Recoveries		1,115		-		43		291		1,722		3,171
Ending balance		$	50,920	$	6,937	$	4,363	$	700	$	12,953	$	75,873
Specific ALLL		$	-	$	-	$	2,476	$	-	$	1,283	$	3,759
General ALLL		$	50,920	$	6,937	$	1,887	$	700	$	11,670	$	72,114
Loans held-in-portfolio:
Impaired loans		$	-	$	17,901	$	9,728	$	-	$	6,563	$	34,192
Loans held-in-portfolio
	excluding impaired loans		4,542,395		784,247		723,857		29,250		447,458		6,527,207
Total loans held-in-portfolio		$	4,542,395	$	802,148	$	733,585	$	29,250	$	454,021	$	6,561,399

For the quarter ended June 30, 2018
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	236,381	$	9,749	$	191,450	$	652	$	12,912	$	189,434	$	640,578
	Provision (reversal of provision)		23,557		(2,348)		6,609		(229)		2,530		29,935		60,054
	Charge-offs		(22,749)		(18)		(12,908)		(14)		(1,803)		(36,149)		(73,641)
	Recoveries		4,657		319		1,315		291		646		8,799		16,027
Ending balance		$	241,846	$	7,702	$	186,466	$	700	$	14,285	$	192,019	$	643,018
Specific ALLL		$	46,626	$	-	$	47,515	$	-	$	362	$	24,836	$	119,339
General ALLL		$	195,220	$	7,702	$	138,951	$	700	$	13,923	$	167,183	$	523,679
Loans held-in-portfolio:
Impaired loans		$	359,447	$	20,460	$	517,308	$	-	$	1,130	$	112,485	$	1,010,830
Loans held-in-portfolio
	excluding impaired loans		11,230,546		878,863		6,859,403		29,250		870,968		3,728,656		23,597,686
Total loans held-in-portfolio		$	11,589,993	$	899,323	$	7,376,711	$	29,250	$	872,098	$	3,841,141	$	24,608,516

For the six months ended June 30, 2018
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	171,531	$	1,286	$	159,081	$	11,991	$	174,215	$	518,104
	Provision (reversal of provision)		31,298		(1,030)		14,419		5,444		50,992		101,123
	Charge-offs		(18,291)		30		(26,638)		(4,316)		(59,523)		(108,738)
	Recoveries		6,388		479		1,819		1,166		13,194		23,046
	Allowance transferred from covered loans ^[1]		-		-		33,422		-		188		33,610
Ending balance		$	190,926	$	765	$	182,103	$	14,285	$	179,066	$	567,145
Specific ALLL		$	46,626	$	-	$	45,039	$	362	$	23,553	$	115,580
General ALLL		$	144,300	$	765	$	137,064	$	13,923	$	155,513	$	451,565
Loans held-in-portfolio:
Impaired non-covered loans		$	359,447	$	2,559	$	507,580	$	1,130	$	105,922	$	976,638
Non-covered loans held-in-portfolio
	excluding impaired loans		6,688,151		94,616		6,135,546		870,968		3,281,198		17,070,479
Total non-covered loans held-in-portfolio		$	7,047,598	$	97,175	$	6,643,126	$	872,098	$	3,387,120	$	18,047,117
[1] Represents the allowance transferred from covered to non-covered loans at June 30, 2018, due to the Termination Agreement with the FDIC.

For the six months ended June 30, 2018
Puerto Rico - Covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	-	$	-	$	32,521	$	-	$	723	$	33,244
	Provision (reversal of provision)		-		-		2,265		-		(535)		1,730
	Charge-offs		-		-		(1,446)		-		(2)		(1,448)
	Recoveries		-		-		82		-		2		84
	Allowance transferred to non-covered loans		-		-		(33,422)		-		(188)		(33,610)
Ending balance		$	-	$	-	$	-	$	-	$	-	$	-
Specific ALLL		$	-	$	-	$	-	$	-	$	-	$	-
General ALLL		$	-	$	-	$	-	$	-	$	-	$	-
Loans held-in-portfolio:
Impaired covered loans		$	-	$	-	$	-	$	-	$	-	$	-
Covered loans held-in-portfolio
	excluding impaired loans		-		-		-		-		-		-
Total covered loans held-in-portfolio		$	-	$	-	$	-	$	-	$	-	$	-

For the six months ended June 30, 2018
Popular U.S.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	44,134	$	7,076	$	4,541	$	798	$	15,529	$	72,078
	Provision (reversal of provision)		23,748		(139)		(464)		(706)		5,825		28,264
	Charge-offs		(19,643)		-		(143)		(171)		(11,314)		(31,271)
	Recoveries		2,681		-		429		779		2,913		6,802
Ending balance		$	50,920	$	6,937	$	4,363	$	700	$	12,953	$	75,873
Specific ALLL		$	-	$	-	$	2,476	$	-	$	1,283	$	3,759
General ALLL		$	50,920	$	6,937	$	1,887	$	700	$	11,670	$	72,114
Loans held-in-portfolio:
Impaired loans		$	-	$	17,901	$	9,728	$	-	$	6,563	$	34,192
Loans held-in-portfolio
	excluding impaired loans		4,542,395		784,247		723,857		29,250		447,458		6,527,207
Total loans held-in-portfolio		$	4,542,395	$	802,148	$	733,585	$	29,250	$	454,021	$	6,561,399

For the six months ended June 30, 2018
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	215,665	$	8,362	$	196,143	$	798	$	11,991	$	190,467	$	623,426
	Provision (reversal of provision)		55,046		(1,169)		16,220		(706)		5,444		56,282		131,117
	Charge-offs		(37,934)		30		(28,227)		(171)		(4,316)		(70,839)		(141,457)
	Recoveries		9,069		479		2,330		779		1,166		16,109		29,932
Ending balance		$	241,846	$	7,702	$	186,466	$	700	$	14,285	$	192,019	$	643,018
Specific ALLL		$	46,626	$	-	$	47,515	$	-	$	362	$	24,836	$	119,339
General ALLL		$	195,220	$	7,702	$	138,951	$	700	$	13,923	$	167,183	$	523,679
Loans held-in-portfolio:
Impaired loans		$	359,447	$	20,460	$	517,308	$	-	$	1,130	$	112,485	$	1,010,830
Loans held-in-portfolio
	excluding impaired loans		11,230,546		878,863		6,859,403		29,250		870,968		3,728,656		23,597,686
Total loans held-in-portfolio		$	11,589,993	$	899,323	$	7,376,711	$	29,250	$	872,098	$	3,841,141	$	24,608,516

For the quarter ended June 30, 2017
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	187,631	$	1,961	$	144,937	$	7,897	$	124,091	$	466,517
	Provision (reversal of provision)		(1,697)		(2,858)		23,682		1,544		21,502		42,173
	Charge-offs		(21,575)		(68)		(21,493)		(1,956)		(28,002)		(73,094)
	Recoveries		9,830		2,438		740		518		5,313		18,839
Ending balance		$	174,189	$	1,473	$	147,866	$	8,003	$	122,904	$	454,435
Specific ALLL		$	41,982	$	-	$	47,954	$	487	$	21,999	$	112,422
General ALLL		$	132,207	$	1,473	$	99,912	$	7,516	$	100,905	$	342,013
Loans held-in-portfolio:
Impaired non-covered loans		$	333,936	$	-	$	505,244	$	1,668	$	103,798	$	944,646
Non-covered loans held-in-portfolio
	excluding impaired loans		6,822,150		96,904		5,313,039		741,935		3,157,991		16,132,019
Total non-covered loans held-in-portfolio		$	7,156,086	$	96,904	$	5,818,283	$	743,603	$	3,261,789	$	17,076,665

For the quarter ended June 30, 2017
Puerto Rico - Covered Loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	-	$	-	$	27,341	$	-	$	430	$	27,771
	Provision		-		-		2,405		-		109		2,514
	Charge-offs		-		-		(606)		-		(17)		(623)
	Recoveries		-		-		1,144		-		2		1,146
Ending balance		$	-	$	-	$	30,284	$	-	$	524	$	30,808
Specific ALLL		$	-	$	-	$	-	$	-	$	-	$	-
General ALLL		$	-	$	-	$	30,284	$	-	$	524	$	30,808
Loans held-in-portfolio:
Impaired covered loans		$	-	$	-	$	-	$	-	$	-	$	-
Covered loans held-in-portfolio
	excluding impaired loans		-		-		521,066		-		15,275		536,341
Total covered loans held-in-portfolio		$	-	$	-	$	521,066	$	-	$	15,275	$	536,341

For the quarter ended June 30, 2017
Popular U.S.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	21,053	$	8,036	$	4,282	$	1,166	$	15,671	$	50,208
	Provision (reversal of provision)		6,623		(1,508)		302		(471)		2,846		7,792
	Charge-offs		(151)		-		(845)		(542)		(4,786)		(6,324)
	Recoveries		794		-		383		840		1,078		3,095
Ending balance		$	28,319	$	6,528	$	4,122	$	993	$	14,809	$	54,771
Specific ALLL		$	-	$	-	$	2,194	$	-	$	694	$	2,888
General ALLL		$	28,319	$	6,528	$	1,928	$	993	$	14,115	$	51,883
Loans held-in-portfolio:
Impaired loans		$	-	$	-	$	8,896	$	-	$	3,229	$	12,125
Loans held-in-portfolio
	excluding impaired loans		3,891,273		687,485		725,617		39,067		486,039		5,829,481
Total loans held-in-portfolio		$	3,891,273	$	687,485	$	734,513	$	39,067	$	489,268	$	5,841,606

For the quarter ended June 30, 2017
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	208,684	$	9,997	$	176,560	$	1,166	$	7,897	$	140,192	$	544,496
	Provision (reversal of provision)		4,926		(4,366)		26,389		(471)		1,544		24,457		52,479
	Charge-offs		(21,726)		(68)		(22,944)		(542)		(1,956)		(32,805)		(80,041)
	Recoveries		10,624		2,438		2,267		840		518		6,393		23,080
Ending balance		$	202,508	$	8,001	$	182,272	$	993	$	8,003	$	138,237	$	540,014
Specific ALLL		$	41,982	$	-	$	50,148	$	-	$	487	$	22,693	$	115,310
General ALLL		$	160,526	$	8,001	$	132,124	$	993	$	7,516	$	115,544	$	424,704
Loans held-in-portfolio:
Impaired loans		$	333,936	$	-	$	514,140	$	-	$	1,668	$	107,027	$	956,771
Loans held-in-portfolio
	excluding impaired loans		10,713,423		784,389		6,559,722		39,067		741,935		3,659,305		22,497,841
Total loans held-in-portfolio		$	11,047,359	$	784,389	$	7,073,862	$	39,067	$	743,603	$	3,766,332	$	23,454,612

For the six months ended June 30, 2017
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	189,686	$	1,353	$	143,320	$	7,662	$	125,963	$	467,984
	Provision (reversal of provision)		(1,114)		(2,394)		38,854		2,592		35,713		73,651
	Charge-offs		(32,646)		(3,655)		(36,476)		(3,297)		(49,814)		(125,888)
	Recoveries		18,263		6,169		2,168		1,046		11,042		38,688
Ending balance		$	174,189	$	1,473	$	147,866	$	8,003	$	122,904	$	454,435
Specific ALLL		$	41,982	$	-	$	47,954	$	487	$	21,999	$	112,422
General ALLL		$	132,207	$	1,473	$	99,912	$	7,516	$	100,905	$	342,013
Loans held-in-portfolio:
Impaired non-covered loans		$	333,936	$	-	$	505,244	$	1,668	$	103,798	$	944,646
Non-covered loans held-in-portfolio
	excluding impaired loans		6,822,150		96,904		5,313,039		741,935		3,157,991		16,132,019
Total non-covered loans held-in-portfolio		$	7,156,086	$	96,904	$	5,818,283	$	743,603	$	3,261,789	$	17,076,665

For the six months ended June 30, 2017
Puerto Rico - Covered Loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	-	$	-	$	30,159	$	-	$	191	$	30,350
	Provision		-		-		715		-		440		1,155
	Charge-offs		-		-		(1,837)		-		(110)		(1,947)
	Recoveries		-		-		1,247		-		3		1,250
Ending balance		$	-	$	-	$	30,284	$	-	$	524	$	30,808
Specific ALLL		$	-	$	-	$	-	$	-	$	-	$	-
General ALLL		$	-	$	-	$	30,284	$	-	$	524	$	30,808
Loans held-in-portfolio:
Impaired covered loans		$	-	$	-	$	-	$	-	$	-	$	-
Covered loans held-in-portfolio
	excluding impaired loans		-		-		521,066		-		15,275		536,341
Total covered loans held-in-portfolio		$	-	$	-	$	521,066	$	-	$	15,275	$	536,341

For the six months ended June 30, 2017
Popular U.S.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	12,968	$	8,172	$	4,614	$	1,343	$	15,220	$	42,317
	Provision (reversal of provision)		14,245		(1,644)		(134)		(1,136)		7,040		18,371
	Charge-offs		(221)		-		(951)		(583)		(9,519)		(11,274)
	Recoveries		1,327		-		593		1,369		2,068		5,357
Ending balance		$	28,319	$	6,528	$	4,122	$	993	$	14,809	$	54,771
Specific ALLL		$	-	$	-	$	2,194	$	-	$	694	$	2,888
General ALLL		$	28,319	$	6,528	$	1,928	$	993	$	14,115	$	51,883
Loans held-in-portfolio:
Impaired loans		$	-	$	-	$	8,896	$	-	$	3,229	$	12,125
Loans held-in-portfolio
	excluding impaired loans		3,891,273		687,485		725,617		39,067		486,039		5,829,481
Total loans held-in-portfolio		$	3,891,273	$	687,485	$	734,513	$	39,067	$	489,268	$	5,841,606

For the six months ended June 30, 2017
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	202,654	$	9,525	$	178,093	$	1,343	$	7,662	$	141,374	$	540,651
	Provision (reversal of provision)		13,131		(4,038)		39,435		(1,136)		2,592		43,193		93,177
	Charge-offs		(32,867)		(3,655)		(39,264)		(583)		(3,297)		(59,443)		(139,109)
	Recoveries		19,590		6,169		4,008		1,369		1,046		13,113		45,295
Ending balance		$	202,508	$	8,001	$	182,272	$	993	$	8,003	$	138,237	$	540,014
Specific ALLL		$	41,982	$	-	$	50,148	$	-	$	487	$	22,693	$	115,310
General ALLL		$	160,526	$	8,001	$	132,124	$	993	$	7,516	$	115,544	$	424,704
Loans held-in-portfolio:
Impaired loans		$	333,936	$	-	$	514,140	$	-	$	1,668	$	107,027	$	956,771
Loans held-in-portfolio
	excluding impaired loans		10,713,423		784,389		6,559,722		39,067		741,935		3,659,305		22,497,841
Total loans held-in-portfolio		$	11,047,359	$	784,389	$	7,073,862	$	39,067	$	743,603	$	3,766,332	$	23,454,612

Impaired loans

The following tables present loans individually evaluated for impairment at June 30, 2018 and December 31, 2017.

June 30, 2018
Puerto Rico
	Impaired Loans – With an						Impaired Loans
	Allowance						With No Allowance				Impaired Loans - Total
			Unpaid						Unpaid				Unpaid
	Recorded		principal		Related		Recorded		principal		Recorded		principal			Related
(In thousands)	investment		balance		allowance		investment		balance		investment		balance			allowance
Commercial multi-family	$	698	$	698	$	5	$	-	$	-	$	698	$	698	$	5
Commercial real estate non-owner occupied		93,221		93,998		21,784		38,684		53,175		131,905		147,173		21,784
Commercial real estate owner occupied		130,312		178,448		7,253		21,064		28,347		151,376		206,795		7,253
Commercial and industrial		68,643		77,399		17,584		6,825		9,462		75,468		86,861		17,584
Construction		-		-		-		2,559		2,559		2,559		2,559		-
Mortgage		447,479		507,294		45,039		60,101		78,901		507,580		586,195		45,039
Leasing		1,130		1,130		362		-		-		1,130		1,130		362
Consumer:
Credit cards		33,321		33,321		5,363		-		-		33,321		33,321		5,363
Personal		70,591		70,591		17,847		-		-		70,591		70,591		17,847
Auto		1,035		1,035		200		-		-		1,035		1,035		200
Other		975		975		143		-		-		975		975		143
Total Puerto Rico	$	847,405	$	964,889	$	115,580	$	129,233	$	172,444	$	976,638	$	1,137,333	$	115,580

June 30, 2018
Popular U.S.
	Impaired Loans – With an						Impaired Loans
	Allowance						With No Allowance				Impaired Loans - Total
			Unpaid						Unpaid				Unpaid
	Recorded		principal		Related		Recorded		principal		Recorded		principal		Related
(In thousands)	investment		balance		allowance		investment		balance		investment		balance		allowance
Construction	$	-	$	-	$	-	$	17,901	$	18,128	$	17,901	$	18,128	$	-
Mortgage		7,520		8,264		2,476		2,208		2,404		9,728		10,668		2,476
Consumer:
HELOCs		4,670		4,685		1,043		1,122		1,147		5,792	$	5,832	$	1,043
Personal		550		550		240		221		221		771	$	771	$	240
Total Popular U.S.	$	12,740	$	13,499	$	3,759	$	21,452	$	21,900	$	34,192	$	35,399	$	3,759

June 30, 2018
Popular, Inc.
	Impaired Loans – With an						Impaired Loans
	Allowance						With No Allowance				Impaired Loans - Total
			Unpaid						Unpaid				Unpaid
	Recorded		principal		Related		Recorded		principal		Recorded		principal		Related
(In thousands)	investment		balance		allowance		investment		balance		investment		balance		allowance
Commercial multi-family	$	698	$	698	$	5	$	-	$	-	$	698	$	698	$	5
Commercial real estate non-owner occupied		93,221		93,998		21,784		38,684		53,175		131,905		147,173		21,784
Commercial real estate owner occupied		130,312		178,448		7,253		21,064		28,347		151,376		206,795		7,253
Commercial and industrial		68,643		77,399		17,584		6,825		9,462		75,468		86,861		17,584
Construction		-		-		-		20,460		20,687		20,460		20,687		-
Mortgage		454,999		515,558		47,515		62,309		81,305		517,308		596,863		47,515
Leasing		1,130		1,130		362		-		-		1,130		1,130		362
Consumer:
Credit Cards		33,321		33,321		5,363		-		-		33,321		33,321		5,363
HELOCs		4,670		4,685		1,043		1,122		1,147		5,792		5,832		1,043
Personal		71,141		71,141		18,087		221		221		71,362		71,362		18,087
Auto		1,035		1,035		200		-		-		1,035		1,035		200
Other		975		975		143		-		-		975		975		143
Total Popular, Inc.	$	860,145	$	978,388	$	119,339	$	150,685	$	194,344	$	1,010,830	$	1,172,732	$	119,339

December 31, 2017
Puerto Rico
	Impaired Loans – With an						Impaired Loans
	Allowance						With No Allowance				Impaired Loans - Total
			Unpaid						Unpaid				Unpaid
	Recorded		principal		Related		Recorded		principal		Recorded		principal			Related
(In thousands)	investment		balance		allowance		investment		balance		investment		balance			allowance
Commercial multi-family	$	206	$	206	$	32	$	-	$	-	$	206	$	206	$	32
Commercial real estate non-owner occupied		101,485		102,262		23,744		11,454		27,522		112,939		129,784		23,744
Commercial real estate owner occupied		127,634		153,495		10,221		24,634		57,219		152,268		210,714		10,221
Commercial and industrial		43,493		46,918		2,985		14,549		23,977		58,042		70,895		2,985
Mortgage		450,226		504,006		46,354		58,807		75,228		509,033		579,234		46,354
Leasing		1,456		1,456		475		-		-		1,456		1,456		475
Consumer:
Credit cards		33,676		33,676		5,569		-		-		33,676		33,676		5,569
Personal		62,488		62,488		15,690		-		-		62,488		62,488		15,690
Auto		2,007		2,007		425		-		-		2,007		2,007		425
Other		1,009		1,009		165		-		-		1,009		1,009		165
Total Puerto Rico	$	823,680	$	907,523	$	105,660	$	109,444	$	183,946	$	933,124	$	1,091,469	$	105,660

December 31, 2017
Popular U.S.
	Impaired Loans – With an						Impaired Loans
	Allowance						With No Allowance				Impaired Loans - Total
			Unpaid						Unpaid				Unpaid
	Recorded		principal		Related		Recorded		principal		Recorded		principal		Related
(In thousands)	investment		balance		allowance		investment		balance		investment		balance		allowance
Mortgage	$	6,774	$	8,439	$	2,478	$	2,468	$	3,397	$	9,242	$	11,836	$	2,478
Consumer:
HELOCs		3,530		3,542		722		761		780		4,291		4,322		722
Personal		542		542		231		224		224		766		766		231
Total Popular U.S.	$	10,846	$	12,523	$	3,431	$	3,453	$	4,401	$	14,299	$	16,924	$	3,431

December 31, 2017
Popular, Inc.
	Impaired Loans – With an						Impaired Loans
	Allowance						With No Allowance				Impaired Loans - Total
			Unpaid						Unpaid				Unpaid
	Recorded		principal		Related		Recorded		principal		Recorded		principal		Related
(In thousands)	investment		balance		allowance		investment		balance		investment		balance		allowance
Commercial multi-family	$	206	$	206	$	32	$	-	$	-	$	206	$	206	$	32
Commercial real estate non-owner occupied		101,485		102,262		23,744		11,454		27,522		112,939		129,784		23,744
Commercial real estate owner occupied		127,634		153,495		10,221		24,634		57,219		152,268		210,714		10,221
Commercial and industrial		43,493		46,918		2,985		14,549		23,977		58,042		70,895		2,985
Mortgage		457,000		512,445		48,832		61,275		78,625		518,275		591,070		48,832
Leasing		1,456		1,456		475		-		-		1,456		1,456		475
Consumer:
Credit Cards		33,676		33,676		5,569		-		-		33,676		33,676		5,569
HELOCs		3,530		3,542		722		761		780		4,291		4,322		722
Personal		63,030		63,030		15,921		224		224		63,254		63,254		15,921
Auto		2,007		2,007		425		-		-		2,007		2,007		425
Other		1,009		1,009		165		-		-		1,009		1,009		165
Total Popular, Inc.	$	834,526	$	920,046	$	109,091	$	112,897	$	188,347	$	947,423	$	1,108,393	$	109,091

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarters and six months ended June 30, 2018 and 2017.

For the quarter ended June 30, 2018
	Puerto Rico				Popular U.S.				Popular, Inc.
	Average		Interest		Average		Interest		Average		Interest
	recorded		income		recorded		income		recorded		income
(In thousands)	investment		recognized		investment		recognized		investment		recognized
Commercial multi-family	$	414	$	-	$	-	$	-	$	414	$	-
Commercial real estate non-owner occupied		132,842		1,681		-		-		132,842		1,681
Commercial real estate owner occupied		153,007		1,596		-		-		153,007		1,596
Commercial and industrial		69,493		702		-		-		69,493		702
Construction		3,426		-		8,951		-		12,377		-
Mortgage		509,215		3,789		9,401		43		518,616		3,832
Leasing		1,246		-		-		-		1,246		-
Consumer:
Credit cards		33,293		-		-		-		33,293		-
Helocs		-		-		5,436		-		5,436		-
Personal		65,796		115		773		-		66,569		115
Auto		1,399		-		-		-		1,399		-
Other		1,338		-		-		-		1,338		-
Total Popular, Inc.	$	971,469	$	7,883	$	24,561	$	43	$	996,030	$	7,926

For the quarter ended June 30, 2017
	Puerto Rico				Popular U.S.				Popular, Inc.
	Average		Interest		Average		Interest		Average		Interest
	recorded		income		recorded		income		recorded		income
(In thousands)	investment		recognized		investment		recognized		investment		recognized
Commercial multi-family	$	78	$	1	$	-	$	-	$	78	$	1
Commercial real estate non-owner occupied		117,744		1,341		-		-		117,744		1,341
Commercial real estate owner occupied		160,001		1,534		-		-		160,001		1,534
Commercial and industrial		63,558		502		-		-		63,558		502
Mortgage		503,446		4,814		8,909		22		512,355		4,836
Leasing		1,736		-		-		-		1,736		-
Consumer:
Credit cards		36,812		-		-		-		36,812		-
Helocs		-		-		2,570		-		2,570		-
Personal		65,394		-		435		-		65,829		-
Auto		2,075		-		-		-		2,075		-
Other		736		-		-		-		736		-
Total Popular, Inc.	$	951,580	$	8,192	$	11,914	$	22	$	963,494	$	8,214

For the six months ended June 30, 2018
	Puerto Rico				Popular U.S.				Popular, Inc.
	Average		Interest		Average		Interest		Average		Interest
	recorded		income		recorded		income		recorded		income
(In thousands)	investment		recognized		investment		recognized		investment		recognized
Commercial multi-family	$	344	$	-	$	-	$	-	$	344	$	-
Commercial real estate non-owner occupied		126,208		3,104		-		-		126,208		3,104
Commercial real estate owner occupied		152,761		3,195		-		-		152,761		3,195
Commercial and industrial		65,676		1,397		-		-		65,676		1,397
Construction		2,284		25		5,967		-		8,251		25
Mortgage		509,154		10,229		9,348		87		518,502		10,316
Leasing		1,316		-		-		-		1,316		-
Consumer:
Credit cards		33,421		-		-		-		33,421		-
HELOCs		-		-		5,054		-		5,054		-
Personal		64,693		254		770		-		65,463		254
Auto		1,602		-		-		-		1,602		-
Other		1,228		-		-		-		1,228		-
Total Popular, Inc.	$	958,687	$	18,204	$	21,139	$	87	$	979,826	$	18,291

For the six months ended June 30, 2017
	Puerto Rico				Popular U.S.				Popular, Inc.
	Average		Interest		Average		Interest		Average		Interest
	recorded		income		recorded		income		recorded		income
(In thousands)	investment		recognized		investment		recognized		investment		recognized
Commercial multi-family	$	79	$	3	$	-	$	-	$	79	$	3
Commercial real estate non-owner occupied		118,514		2,697		-		-		118,514		2,697
Commercial real estate owner occupied		161,199		3,198		-		-		161,199		3,198
Commercial and industrial		60,602		1,144		-		-		60,602		1,144
Mortgage		501,460		8,184		8,898		66		510,358		8,250
Leasing		1,763		-		-		-		1,763		-
Consumer:
Credit cards		37,029		-		-		-		37,029		-
HELOCs		-		-		2,620		-		2,620		-
Personal		65,610		-		329		-		65,939		-
Auto		2,089		-		-		-		2,089		-
Other		821		-		-		-		821		-
Total Popular, Inc.	$	949,166	$	15,226	$	11,847	$	66	$	961,013	$	15,292

Modifications

Troubled debt restructurings (“TDRs”) amounted to $1.4 billion at June 30, 2018 (December 31, 2017 - $1.3 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in TDRs amounted to $17 million related to the commercial loan portfolio at June 30, 2018 (December 31, 2017 - $8 million).

At June 30, 2018, the mortgage loan TDRs include $474 million guaranteed by U.S. sponsored entities at BPPR, compared to $449 million at December 31, 2017.

A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. For a summary of the accounting policy related to TDRs, refer to the Summary of Significant Accounting Policies included in Note 3 to the 2017 Form 10-K.

The following table presents the non-covered and covered loans classified as TDRs according to their accruing status and the related allowance at June 30, 2018 and December 31, 2017.

	Popular, Inc.
	June 30, 2018								December 31, 2017
(In thousands)		Accruing		Non-Accruing		Total		Related Allowance		Accruing		Non-Accruing		Total		Related Allowance
Non-covered loans held-in-portfolio:
Commercial	$	225,599	$	104,440	$	330,039	$	45,277	$	161,220	$	59,626	$	220,846	$	32,472
Construction		-		2,559		2,559		-		-		-		-		-
Mortgage		825,372		141,753		967,125		47,515		803,278		126,798		930,076		48,832
Leases		764		366		1,130		362		863		393		1,256		475
Consumer		95,308		13,768		109,076		23,989		93,916		12,233		106,149		22,802
Non-covered loans held-in-portfolio		1,147,043	$	262,886	$	1,409,929	$	117,143	$	1,059,277	$	199,050	$	1,258,327	$	104,581
Covered loans held-in-portfolio:
Mortgage	$	-	$	-	$	-	$	-	$	2,658	$	3,227	$	5,885	$	-
Covered loans held-in-portfolio	$	-	$	-	$	-	$	-	$	2,658	$	3,227	$	5,885	$	-

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters and six months ended June 30, 2018 and 2017. Loans modified as TDRs for the U.S. operations are considered insignificant to the Corporation.

	Popular, Inc.
	For the quarter ended June 30, 2018				For the six months ended June 30, 2018
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Commercial multi-family	-	1	-	-	-	1	-	-
Commercial real estate non-owner occupied	-	6	-	-	2	11	-	-
Commercial real estate owner occupied	3	23	-	-	3	42	-	-
Commercial and industrial	1	31	-	-	4	50	-	-
Construction	-	-	-	-	1	-	-	-
Mortgage	26	6	67	22	45	10	103	45
Leasing	-	-	1	-	-	-	1	-
Consumer:
Credit cards	180	-	3	160	311	-	3	310
HELOCs	-	7	3	-	-	12	7	-
Personal	468	1	-	-	628	3	-	-
Auto	-	2	1	-	-	2	2	-
Other	13	-	-	-	20	-	1	-
Total	691	77	75	182	1,014	131	117	355

	Popular, Inc.
	For the quarter ended June 30, 2017				For the six months ended June 30, 2017
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Commercial real estate non-owner occupied	4	-	-	-	4	1	-	-
Commercial real estate owner occupied	1	8	-	-	3	9	-	-
Commercial and industrial	-	15	-	-	2	21	-	-
Mortgage	18	15	114	32	32	21	218	100
Leasing	-	1	2	-	-	1	5	-
Consumer:
Credit cards	159	-	-	152	285	-	1	310
HELOCs	-	1	1	-	-	1	1	-
Personal	250	-	-	-	512	4	-	1
Auto	-	3	1	1	-	4	2	1
Other	8	1	-	1	16	1	-	1
Total	440	44	118	186	854	63	227	413

The following tables present by class, quantitative information related to loans modified as TDRs during the quarters and six months ended June 30, 2018 and 2017.

Popular, Inc.
For the quarter ended June 30, 2018
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family	1	$	567	$	567	$	43
Commercial real estate non-owner occupied	6		4,460		4,464		(46)
Commercial real estate owner occupied	26		15,096		14,639		845
Commercial and industrial	32		36,153		35,971		13,934
Mortgage	121		15,325		14,016		777
Leasing	1		23		23		7
Consumer:
Credit cards	343		3,478		3,503		398
HELOCs	10		860		817		107
Personal	469		7,253		7,251		1,720
Auto	3		60		59		10
Other	13		46		46		5
Total	1,025	$	83,321	$	81,356	$	17,800

Popular, Inc.
For the quarter ended June 30, 2017
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied	4	$	1,928	$	1,762	$	156
Commercial real estate owner occupied	9		1,546		1,535		87
Commercial and industrial	15		509		535		49
Mortgage	179		20,017		18,819		1,226
Leasing	3		122		120		34
Consumer:
Credit cards	311		2,502		2,757		332
HELOCs	2		486		483		13
Personal	250		4,436		4,443		998
Auto	5		1,965		1,920		348
Other	10		1,891		1,891		55
Total	788	$	35,402	$	34,265	$	3,298

Popular, Inc.
For the six months ended June 30, 2018
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family	1	$	567	$	567	$	43
Commercial real estate non-owner occupied	13		27,446		27,387		6,754
Commercial real estate owner occupied	45		20,070		18,908		983
Commercial and industrial	54		47,222		46,494		13,824
Construction	1		4,210		4,293		474
Mortgage	203		25,598		22,935		1,234
Leasing	1		23		23		7
Consumer:
Credit cards	624		6,404		6,804		852
HELOCs	19		1,725		1,673		374
Personal	631		10,325		10,321		2,730
Auto	4		194		191		33
Other	21		203		201		31
Total	1,617	$	143,987	$	139,797	$	27,339

Popular, Inc.
For the six months ended June 30, 2017
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied	5	$	2,069	$	1,901	$	145
Commercial real estate owner occupied	12		2,703		2,682		143
Commercial and industrial	23		828		2,923		468
Mortgage	371		41,085		38,332		2,240
Leasing	6		236		235		66
Consumer:
Credit cards	596		4,904		5,400		644
HELOCs	2		486		483		13
Personal	517		9,034		9,038		2,031
Auto	7		2,001		1,957		354
Other	18		1,956		1,956		64
Total	1,557	$	65,302	$	64,907	$	6,168

The following tables present by class, TDRs that were subject to payment default and that had been modified as a TDR during the twelve months preceding the default date. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment at June 30, 2018 is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported.

Popular, Inc.
	Defaulted during the quarter ended June 30, 2018			Defaulted during the six months ended June 30, 2018
(Dollars in thousands)	Loan count		Recorded investment as of first default date	Loan count		Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	17	1	$	17
Commercial real estate owner occupied	1		50	3		136
Commercial and industrial	1		4	6		76
Mortgage	15		1,668	32		4,240
Consumer:
Credit cards	102		1,073	125		2,155
Personal	38		578	55		1,438
Auto	1		22	1		22
Other	2		8	2		8
Total	161	$	3,420	225	$	8,092

Popular, Inc.
	Defaulted during the quarter ended June 30, 2017			Defaulted during the six months ended June 30, 2017
(Dollars in thousands)	Loan count		Recorded investment as of first default date	Loan count		Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	195	2	$	457
Commercial real estate owner occupied	2		1,483	3		1,749
Commercial and industrial	1		21	3		565
Mortgage	30		2,542	62		5,896
Consumer:
Credit cards	27		349	46		648
HELOCs	1		97	2		140
Personal	55		1,095	82		2,070
Auto	1		19	3		54
Other	1		9	1		9
Total	119	$	5,810	204	$	11,588

Commercial, consumer and mortgage loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Corporation evaluates the loan for possible further impairment. The allowance for loan losses may be increased or partial charge-offs may be taken to further write-down the carrying value of the loan.

Credit Quality

The following table presents the outstanding balance, net of unearned income, of loans held-in-portfolio based on the Corporation’s assignment of obligor risk ratings as defined at June 30, 2018 and December 31, 2017.

June 30, 2018
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico
Commercial multi-family		$	1,047	$	3,851	$	3,835	$	-	$	-	$	8,733	$	138,732	$	147,465
Commercial real estate non-owner occupied			445,886		289,659		347,391		-		-		1,082,936		1,230,536		2,313,472
Commercial real estate owner occupied			291,656		123,521		410,384		2,376		-		827,937		907,248		1,735,185
Commercial and industrial			614,880		110,201		209,893		375		92		935,441		1,916,035		2,851,476
	Total Commercial		1,353,469		527,232		971,503		2,751		92		2,855,047		4,192,551		7,047,598
Construction			-		889		3,896		-		-		4,785		92,390		97,175
Mortgage			4,104		2,481		198,249		-		-		204,834		6,438,292		6,643,126
Leasing			-		-		3,662		-		34		3,696		868,402		872,098
Consumer:
	Credit cards		-		-		29,024		-		-		29,024		1,050,510		1,079,534
	HELOCs		-		-		349		-		-		349		5,274		5,623
	Personal		480		444		20,846		-		-		21,770		1,217,365		1,239,135
	Auto		-		-		12,755		-		100		12,855		902,208		915,063
	Other		92		-		15,081		-		235		15,408		132,357		147,765
	Total Consumer		572		444		78,055		-		335		79,406		3,307,714		3,387,120
Total Puerto Rico		$	1,358,145	$	531,046	$	1,255,365	$	2,751	$	461	$	3,147,768	$	14,899,349	$	18,047,117
Popular U.S.
Commercial multi-family		$	41,569	$	6,260	$	6,749	$	-	$	-	$	54,578	$	1,265,820	$	1,320,398
Commercial real estate non-owner occupied			71,105		9,113		38,540		-		-		118,758		1,757,536		1,876,294
Commercial real estate owner occupied			37,527		7,691		8,459		-		-		53,677		231,005		284,682
Commercial and industrial			4,041		101		100,741		-		-		104,883		956,138		1,061,021
	Total Commercial		154,242		23,165		154,489		-		-		331,896		4,210,499		4,542,395
Construction			67,845		15,180		63,106		-		-		146,131		656,017		802,148
Mortgage			-		-		11,398		-		-		11,398		722,187		733,585
Legacy			600		368		2,737		-		-		3,705		25,545		29,250
Consumer:
	Credit cards		-		-		-		-		-		-		69		69
	HELOCs		-		-		4,243		-		11,657		15,900		141,893		157,793
	Personal		-		-		1,409		-		909		2,318		293,630		295,948
	Other		-		-		1		-		-		1		210		211
	Total Consumer		-		-		5,653		-		12,566		18,219		435,802		454,021
Total Popular U.S.		$	222,687	$	38,713	$	237,383	$	-	$	12,566	$	511,349	$	6,050,050	$	6,561,399
Popular, Inc.
Commercial multi-family		$	42,616	$	10,111	$	10,584	$	-	$	-	$	63,311	$	1,404,552	$	1,467,863
Commercial real estate non-owner occupied			516,991		298,772		385,931		-		-		1,201,694		2,988,072		4,189,766
Commercial real estate owner occupied			329,183		131,212		418,843		2,376		-		881,614		1,138,253		2,019,867
Commercial and industrial			618,921		110,302		310,634		375		92		1,040,324		2,872,173		3,912,497
	Total Commercial		1,507,711		550,397		1,125,992		2,751		92		3,186,943		8,403,050		11,589,993
Construction			67,845		16,069		67,002		-		-		150,916		748,407		899,323
Mortgage			4,104		2,481		209,647		-		-		216,232		7,160,479		7,376,711
Legacy			600		368		2,737		-		-		3,705		25,545		29,250
Leasing			-		-		3,662		-		34		3,696		868,402		872,098
Consumer:
	Credit cards		-		-		29,024		-		-		29,024		1,050,579		1,079,603
	HELOCs		-		-		4,592		-		11,657		16,249		147,167		163,416
	Personal		480		444		22,255		-		909		24,088		1,510,995		1,535,083
	Auto		-		-		12,755		-		100		12,855		902,208		915,063
	Other		92		-		15,082		-		235		15,409		132,567		147,976
	Total Consumer		572		444		83,708		-		12,901		97,625		3,743,516		3,841,141
Total Popular, Inc.		$	1,580,832	$	569,759	$	1,492,748	$	2,751	$	13,027	$	3,659,117	$	20,949,399	$	24,608,516

The following table presents the weighted average obligor risk rating at June 30, 2018 for those classifications that consider a range of rating scales.

Weighted average obligor risk rating					(Scales 11 and 12)								(Scales 1 through 8)
Puerto Rico:						Substandard									Pass
Commercial multi-family							11.21								5.76
Commercial real estate non-owner occupied							11.11								6.92
Commercial real estate owner occupied							11.21								7.19
Commercial and industrial							11.24								7.06
	Total Commercial						11.18								7.02
Construction							11.66								7.83

Popular U.S. :						Substandard									Pass
Commercial multi-family							11.00								7.29
Commercial real estate non-owner occupied							11.01								6.71
Commercial real estate owner occupied							11.17								7.42
Commercial and industrial							11.84								6.45
	Total Commercial						11.56								6.86
Construction							11.28								7.78
Legacy							11.15								7.94

December 31, 2017
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	1,387	$	1,708	$	6,831	$	-	$	-	$	9,926	$	136,473	$	146,399
Commercial real estate non-owner occupied			327,811		335,011		307,579		-		-		970,401		1,434,158		2,404,559
Commercial real estate owner occupied			243,966		215,652		354,990		2,124		-		816,732		1,006,882		1,823,614
Commercial and industrial			453,546		108,554		241,695		471		126		804,392		2,086,935		2,891,327
	Total Commercial		1,026,710		660,925		911,095		2,595		126		2,601,451		4,664,448		7,265,899
Construction			110		4,122		1,545		-		-		5,777		89,592		95,369
Mortgage			2,748		3,564		155,074		-		-		161,386		6,415,393		6,576,779
Leasing			-		-		1,926		-		1,048		2,974		807,016		809,990
Consumer:
	Credit cards		-		-		18,227		-		-		18,227		1,074,994		1,093,221
	HELOCs		-		-		257		-		-		257		5,830		6,087
	Personal		429		659		20,790		-		-		21,878		1,200,434		1,222,312
	Auto		-		-		5,446		-		20		5,466		845,347		850,813
	Other		-		-		16,324		-		440		16,764		140,824		157,588
	Total Consumer		429		659		61,044		-		460		62,592		3,267,429		3,330,021
Total Puerto Rico		$	1,029,997	$	669,270	$	1,130,684	$	2,595	$	1,634	$	2,834,180	$	15,243,878	$	18,078,058
Popular U.S.
Commercial multi-family		$	11,808	$	6,345	$	7,936	$	-	$	-	$	26,089	$	1,184,604	$	1,210,693
Commercial real estate non-owner occupied			46,523		16,561		37,178		-		-		100,262		1,588,049		1,688,311
Commercial real estate owner occupied			28,183		30,893		8,590		-		-		67,666		251,309		318,975
Commercial and industrial			4,019		603		123,935		-		-		128,557		876,426		1,004,983
	Total Commercial		90,533		54,402		177,639		-		-		322,574		3,900,388		4,222,962
Construction			36,858		8,294		54,276		-		-		99,428		685,232		784,660
Mortgage			-		-		14,852		-		-		14,852		678,776		693,628
Legacy			688		426		3,302		-		-		4,416		28,564		32,980
Consumer:
	Credit cards		-		-		11		-		-		11		89		100
	HELOCs		-		-		6,084		-		8,914		14,998		167,087		182,085
	Personal		-		-		2,069		-		704		2,773		295,229		298,002
	Other		-		-		-		-		-		-		319		319
	Total Consumer		-		-		8,164		-		9,618		17,782		462,724		480,506
Total Popular U.S.		$	128,079	$	63,122	$	258,233	$	-	$	9,618	$	459,052	$	5,755,684	$	6,214,736
Popular, Inc.
Commercial multi-family		$	13,195	$	8,053	$	14,767	$	-	$	-	$	36,015	$	1,321,077	$	1,357,092
Commercial real estate non-owner occupied			374,334		351,572		344,757		-		-		1,070,663		3,022,207		4,092,870
Commercial real estate owner occupied			272,149		246,545		363,580		2,124		-		884,398		1,258,191		2,142,589
Commercial and industrial			457,565		109,157		365,630		471		126		932,949		2,963,361		3,896,310
	Total Commercial		1,117,243		715,327		1,088,734		2,595		126		2,924,025		8,564,836		11,488,861
Construction			36,968		12,416		55,821		-		-		105,205		774,824		880,029
Mortgage			2,748		3,564		169,926		-		-		176,238		7,094,169		7,270,407
Legacy			688		426		3,302		-		-		4,416		28,564		32,980
Leasing			-		-		1,926		-		1,048		2,974		807,016		809,990
Consumer:
	Credit cards		-		-		18,238		-		-		18,238		1,075,083		1,093,321
	HELOCs		-		-		6,341		-		8,914		15,255		172,917		188,172
	Personal		429		659		22,859		-		704		24,651		1,495,663		1,520,314
	Auto		-		-		5,446		-		20		5,466		845,347		850,813
	Other		-		-		16,324		-		440		16,764		141,143		157,907
	Total Consumer		429		659		69,208		-		10,078		80,374		3,730,153		3,810,527
Total Popular, Inc.		$	1,158,076	$	732,392	$	1,388,917	$	2,595	$	11,252	$	3,293,232	$	20,999,562	$	24,292,794

The following table presents the weighted average obligor risk rating at December 31, 2017 for those classifications that consider a range of rating scales.

Weighted average obligor risk rating					(Scales 11 and 12)								(Scales 1 through 8)
Puerto Rico:^[1]						Substandard									Pass
Commercial multi-family							11.16								5.89
Commercial real estate non-owner occupied							11.06								6.99
Commercial real estate owner occupied							11.28								7.14
Commercial and industrial							11.16								7.11
	Total Commercial						11.17								7.06
Construction							11.00								7.76

Popular U.S.:						Substandard									Pass
Commercial multi-family							11.00								7.28
Commercial real estate non-owner occupied							11.04								6.74
Commercial real estate owner occupied							11.10								7.14
Commercial and industrial							11.82								6.17
	Total Commercial						11.59								6.80
Construction							11.00								7.70
Legacy							11.11								7.93

[1]

Excludes covered loans acquired in the Westernbank FDIC-assisted transaction.