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Allowance for loan losses
 3 Months Ended
Mar. 31, 2019
Receivables  
Allowance for loan losses

Note 9 – 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 ALLL.

The Corporation’s assessment of the ALLL 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 ALLL 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 of the general ALLL 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 March 31, 2019, 41% (March 31, 2018 - 45%) of the ALLL for the 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 commercial and personal loans portfolios for 2019 and in the mortgage, leasing, credit cards and auto loans portfolios for 2018.

For the period ended March 31, 2019, 23% (March 31, 2018 - 5%) of the 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 portfolio for 2019 and 2018.

  • 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 ALLL. The Corporation’s methodology also includes qualitative judgmental reserves based on stressed credit quality assumptions to provide for probable losses in the loan portfolios not embedded in the historical loss rates.

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 ended March 31, 2019 and 2018.

For the quarter ended March 31, 2019
Puerto Rico
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$207,214$886$142,978$11,486$144,594$507,158
Provision (reversal of provision)(1,689)(81)6,061(891)28,05431,454
Charge-offs(19,461)(22)(13,174)(2,096)(35,869)(70,622)
Recoveries2,867391,99161010,88616,393
Ending balance$188,931$822$137,856$9,109$147,665$484,383
Specific ALLL$33,253$19$40,779$321$23,350$97,722
General ALLL$155,678$803$97,077$8,788$124,315$386,661
Loans held-in-portfolio:
Impaired non-covered loans$381,803$1,788$515,365$1,018$101,887$1,001,861
Non-covered loans held-in-portfolio
excluding impaired loans7,009,31989,5845,860,223962,2145,073,14918,994,489
Total loans held-in-portfolio$7,391,122$91,372$6,375,588$963,232$5,175,036$19,996,350

For the quarter ended March 31, 2019
Popular U.S.
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$31,901$6,538$4,434$969$18,348$62,190
Provision (reversal of provision)6,491128237(855)4,37010,371
Charge-offs(3,481)-(251)164(5,651)(9,219)
Recoveries6478225511,6752,903
Ending balance$35,558$6,674$4,442$829$18,742$66,245
Specific ALLL$223$-$2,360$-$1,653$4,236
General ALLL$35,335$6,674$2,082$829$17,089$62,009
Loans held-in-portfolio:
Impaired loans$1,691$12,060$9,438$-$8,987$32,176
Loans held-in-portfolio
excluding impaired loans4,665,497687,888822,15424,404419,2396,619,182
Total loans held-in-portfolio$4,667,188$699,948$831,592$24,404$428,226$6,651,358

For the quarter ended March 31, 2019
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$239,115$7,424$147,412$969$11,486$162,942$569,348
Provision (reversal of provision)4,802476,298(855)(891)32,42441,825
Charge-offs(22,942)(22)(13,425)164(2,096)(41,520)(79,841)
Recoveries3,514472,01355161012,56119,296
Ending balance$224,489$7,496$142,298$829$9,109$166,407$550,628
Specific ALLL$33,476$19$43,139$-$321$25,003$101,958
General ALLL$191,013$7,477$99,159$829$8,788$141,404$448,670
Loans held-in-portfolio:
Impaired loans$383,494$13,848$524,803$-$1,018$110,874$1,034,037
Loans held-in-portfolio
excluding impaired loans11,674,816777,4726,682,37724,404962,2145,492,38825,613,671
Total loans held-in-portfolio$12,058,310$791,320$7,207,180$24,404$963,232$5,603,262$26,647,708

For the quarter ended March 31, 2018
Puerto Rico - Non-covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$171,531$1,286$159,081$11,991$174,215$518,104
Provision20,9341,1637,4642,91424,24356,718
Charge-offs(6,789)48(13,791)(2,513)(28,372)(51,417)
Recoveries2,8461605475206,11710,190
Ending balance$188,522$2,657$153,301$12,912$176,203$533,595
Specific ALLL$45,028$474$44,419$448$22,955$113,324
General ALLL$143,494$2,183$108,882$12,464$153,248$420,271
Loans held-in-portfolio:
Impaired non-covered loans$352,064$4,293$510,849$1,361$97,730$966,297
Non-covered loans held-in-portfolio
excluding impaired loans6,770,73289,5655,844,857837,0223,231,20716,773,383
Total non-covered loans held-in-portfolio$7,122,796$93,858$6,355,706$838,383$3,328,937$17,739,680

For the quarter ended March 31, 2018
Puerto Rico - Covered Loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$-$-$32,521$-$723$33,244
Provision (reversal of provision)--2,265-(535)1,730
Charge-offs--(1,446)-(2)(1,448)
Recoveries--82-284
Ending balance$-$-$33,422$-$188$33,610
Specific ALLL$-$-$-$-$-$-
General ALLL$-$-$33,422$-$188$33,610
Loans held-in-portfolio:
Impaired covered loans$-$-$-$-$-$-
Covered loans held-in-portfolio
excluding impaired loans--500,683-13,928514,611
Total covered loans held-in-portfolio$-$-$500,683$-$13,928$514,611

For the quarter ended March 31, 2018
Popular U.S.
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$44,134$7,076$4,541$798$15,529$72,078
Provision (reversal of provision)10,55516(118)(477)2,63912,615
Charge-offs(8,396)-(82)(157)(6,316)(14,951)
Recoveries1,566-3864881,1913,631
Ending balance$47,859$7,092$4,727$652$13,043$73,373
Specific ALLL$-$-$2,496$-$1,195$3,691
General ALLL$47,859$7,092$2,231$652$11,848$69,682
Loans held-in-portfolio:
Impaired loans$-$-$9,073$-$5,853$14,926
Loans held-in-portfolio
excluding impaired loans4,345,711799,533699,86531,167457,0556,333,331
Total loans held-in-portfolio$4,345,711$799,533$708,938$31,167$462,908$6,348,257

For the quarter ended March 31, 2018
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$215,665$8,362$196,143$798$11,991$190,467$623,426
Provision (reversal of provision)31,4891,1799,611(477)2,91426,34771,063
Charge-offs(15,185)48(15,319)(157)(2,513)(34,690)(67,816)
Recoveries4,4121601,0154885207,31013,905
Ending balance$236,381$9,749$191,450$652$12,912$189,434$640,578
Specific ALLL$45,028$474$46,915$-$448$24,150$117,015
General ALLL$191,353$9,275$144,535$652$12,464$165,284$523,563
Loans held-in-portfolio:
Impaired loans$352,064$4,293$519,922$-$1,361$103,583$981,223
Loans held-in-portfolio
excluding impaired loans11,116,443889,0987,045,40531,167837,0223,702,19023,621,325
Total loans held-in-portfolio$11,468,507$893,391$7,565,327$31,167$838,383$3,805,773$24,602,548

The following table provides the activity in the allowance for loan losses related to loans accounted for pursuant to ASC Subtopic 310-30.

ASC 310-30
For the quarters ended
(In thousands)March 31, 2019March 31, 2018
Balance at beginning of period$122,135$119,505
Provision7,72637,335
Net charge-offs(5,714)(10,720)
Balance at end of period$124,147$146,120

Impaired loans

The following tables present loans individually evaluated for impairment at March 31, 2019 and December 31, 2018.

March 31, 2019
Puerto Rico
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$924$924$4$-$-$924$924$4
Commercial real estate non-owner occupied72,89173,58922,536102,971149,106175,862222,69522,536
Commercial real estate owner occupied112,326131,7937,46227,30059,652139,626191,4457,462
Commercial and industrial55,49668,9233,2519,89520,13965,39189,0623,251
Construction1,7881,78819--1,7881,78819
Mortgage414,984466,87840,779100,381135,035515,365601,91340,779
Leasing1,0181,018321--1,0181,018321
Consumer:
Credit cards27,87927,8794,200--27,87927,8794,200
Personal 71,60771,60718,751--71,60771,60718,751
Auto 1,1631,163229--1,1631,163229
Other1,2381,238170--1,2381,238170
Total Puerto Rico$761,314$846,800$97,722$240,547$363,932$1,001,861$1,210,732$97,722

March 31, 2019
Popular U.S.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial real estate owner occupied$1,691$1,713$223$-$-$1,691$1,713$223
Construction---12,06018,12712,06018,127-
Mortgage6,9148,5262,3602,5243,5489,43812,0742,360
Consumer:
HELOCs6,8306,9141,3931,3581,4528,1888,3661,393
Personal631632260168231799863260
Total Popular U.S.$16,066$17,785$4,236$16,110$23,358$32,176$41,143$4,236

March 31, 2019
Popular, Inc.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$924$924$4$-$-$924$924$4
Commercial real estate non-owner occupied72,89173,58922,536102,971149,106175,862222,69522,536
Commercial real estate owner occupied114,017133,5067,68527,30059,652141,317193,1587,685
Commercial and industrial55,49668,9233,2519,89520,13965,39189,0623,251
Construction1,7881,7881912,06018,12713,84819,91519
Mortgage421,898475,40443,139102,905138,583524,803613,98743,139
Leasing1,0181,018321--1,0181,018321
Consumer:
Credit Cards27,87927,8794,200--27,87927,8794,200
HELOCs6,8306,9141,3931,3581,4528,1888,3661,393
Personal72,23872,23919,01116823172,40672,47019,011
Auto 1,1631,163229--1,1631,163229
Other1,2381,238170--1,2381,238170
Total Popular, Inc.$777,380$864,585$101,958$256,657$387,290$1,034,037$1,251,875$101,958

December 31, 2018
Puerto Rico
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$932$932$4$-$-$932$932$4
Commercial real estate non-owner occupied85,58386,28227,49496,005138,378181,588224,66027,494
Commercial real estate owner occupied113,592132,6777,85726,47460,485140,066193,1627,857
Commercial and industrial65,20867,09416,83510,72420,96875,93288,06216,835
Construction1,7881,78856--1,7881,78856
Mortgage408,767458,01038,760100,701135,084509,468593,09438,760
Leasing1,0991,099320--1,0991,099320
Consumer:
Credit cards28,82928,8294,571--28,82928,8294,571
Personal 72,98972,98919,098--72,98972,98919,098
Auto 1,1611,161228--1,1611,161228
Other1,2561,256186--1,2561,256186
Total Puerto Rico$781,204$852,117$115,409$233,904$354,915$1,015,108$1,207,032$115,409

December 31, 2018
Popular U.S.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Construction$-$-$-$12,060$18,127$12,060$18,127$-
Mortgage7,2378,8992,4512,1833,1279,42012,0262,451
Consumer:
HELOCs6,2366,2851,5581,4981,5727,7347,8571,558
Personal631631252142143773774252
Total Popular U.S.$14,104$15,815$4,261$15,883$22,969$29,987$38,784$4,261

December 31, 2018
Popular, Inc.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$932$932$4$-$-$932$932$4
Commercial real estate non-owner occupied85,58386,28227,49496,005138,378181,588224,66027,494
Commercial real estate owner occupied113,592132,6777,85726,47460,485140,066193,1627,857
Commercial and industrial65,20867,09416,83510,72420,96875,93288,06216,835
Construction1,7881,7885612,06018,12713,84819,91556
Mortgage416,004466,90941,211102,884138,211518,888605,12041,211
Leasing1,0991,099320--1,0991,099320
Consumer:
Credit Cards28,82928,8294,571--28,82928,8294,571
HELOCs6,2366,2851,5581,4981,5727,7347,8571,558
Personal73,62073,62019,35014214373,76273,76319,350
Auto 1,1611,161228--1,1611,161228
Other1,2561,256186--1,2561,256186
Total Popular, Inc.$795,308$867,932$119,670$249,787$377,884$1,045,095$1,245,816$119,670

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarters ended March 31, 2019 and 2018.

For the quarter ended March 31, 2019
Puerto RicoPopular U.S.Popular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial multi-family$928$12$-$-$928$12
Commercial real estate non-owner occupied178,7251,712--178,7251,712
Commercial real estate owner occupied139,8461,458846-140,6921,458
Commercial and industrial70,662745--70,662745
Construction1,788-12,060-13,848-
Mortgage512,4174,0269,42940521,8464,066
Leasing1,059---1,059-
Consumer:
Credit cards28,354---28,354-
HELOCs--7,962-7,962-
Personal 72,29869786-73,08469
Auto 1,162---1,162-
Other1,247---1,247-
Total Popular, Inc.$1,008,486$8,022$31,083$40$1,039,569$8,062

For the quarter ended March 31, 2018
Puerto RicoPopular U.S.Popular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial multi-family$168$2$-$-$168$2
Commercial real estate non-owner occupied123,3591,366--123,3591,366
Commercial real estate owner occupied153,4531,486--153,4531,486
Commercial and industrial60,780582--60,780582
Construction2,147---2,147-
Mortgage509,9416,5809,15843519,0996,623
Leasing1,409---1,409-
Consumer:
Credit cards33,471---33,471-
HELOCs--4,685-4,685-
Personal 61,745-771-62,516-
Auto 1,885---1,885-
Other1,355---1,355-
Total Popular, Inc.$949,713$10,016$14,614$43$964,327$10,059

Modifications

A modification of a loan constitutes a troubled debt restructuring when a borrower is experiencing financial difficulty and the modification constitutes a concession. For a summary of the accounting policy related to troubled debt restructurings (“TDRs”), refer to the Summary of Significant Accounting Policies included in Note 2 to the 2018 Form 10-K.

TDRs amounted to $1.5 billion at March 31, 2019 (December 31, 2018 - $1.5 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in TDRs amounted to $12 million related to the commercial loan portfolio at March 31, 2019 (December 31, 2018 - $16 million).

At March 31, 2019, the mortgage loan TDRs include $570 million guaranteed by U.S. sponsored entities at BPPR, compared to $543 million at December 31, 2018.

The following table presents the loans classified as TDRs according to their accruing status and the related allowance at March 31, 2019 and December 31, 2018.

March 31, 2019 December 31, 2018
(In thousands)AccruingNon-AccruingTotalRelated AllowanceAccruingNon-AccruingTotalRelated Allowance
Loans held-in-portfolio:
Commercial$224,648$120,371$345,019$29,274$229,758$130,921$360,679$46,889
Construction-1,7881,78819-1,7881,78856
Mortgage939,985134,5171,074,50241,913906,712135,7581,042,47041,211
Leases7053131,0183216684401,108320
Consumer92,13115,557107,68824,49494,19315,651109,84424,523
Loans held-in-portfolio$1,257,469$272,546$1,530,015$96,021$1,231,331$284,558$1,515,889$112,999

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters ended March 31, 2019 and 2018. Loans modified as TDRs for the U.S. operations are considered insignificant to the Corporation.

For the quarter ended March 31, 2019
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial real estate non-owner occupied-1--
Commercial real estate owner occupied-10--
Commercial and industrial-16--
Mortgage627157-
Consumer:
Credit cards122-166
HELOCs-64-
Personal1522--
Auto-2--
Other6---
Total2866416266

For the quarter ended March 31, 2018
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial real estate non-owner occupied25--
Commercial real estate owner occupied-19--
Commercial and industrial319--
Construction1---
Mortgage1943623
Consumer:
Credit cards131--150
HELOCs-54-
Personal1602--
Auto--1-
Other7-1-
Total3235442173

The following tables present, by class, quantitative information related to loans modified as TDRs during the quarters ended March 31, 2019 and 2018.

For the quarter ended March 31, 2019
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied1$314$311$18
Commercial real estate owner occupied102,0191,97319
Commercial and industrial163,9434,479314
Mortgage19020,73218,591671
Consumer:
Credit cards1891,5431,530171
HELOCs1069462155
Personal1543,1473,153805
Auto225234
Other613132
Total578$32,430$30,694$2,059

For the quarter ended March 31, 2018
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied7$22,986$22,923$6,800
Commercial real estate owner occupied194,9744,269138
Commercial and industrial2211,06910,523(110)
Construction14,2104,293474
Mortgage8210,2738,919457
Consumer:
Credit cards2812,9263,301454
HELOCs9865856267
Personal1623,0723,0701,010
Auto113413223
Other815715526
Total592$60,666$58,441$9,539

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 as of period end 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.

Defaulted during the quarter ended March 31, 2019
(Dollars in thousands)Loan countRecorded investment as of first default date
Commercial real estate non-owner occupied1$47
Commercial real estate owner occupied2427
Commercial and industrial150
Mortgage8745
Leasing122
Consumer:
Credit cards1041,087
Personal681,352
Total185$3,730

Defaulted during the quarter ended March 31, 2018
(Dollars in thousands)Loan countRecorded investment as of first default date
Commercial real estate owner occupied2$86
Commercial and industrial572
Mortgage172,572
Consumer:
Credit cards481,342
Personal30889
Total102$4,961

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 March 31, 2019 and December 31, 2018. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 9 to the Consolidated Financial Statements included in the Corporation’s Form 10K for the year ended December 31, 2018.

March 31, 2019
SpecialPass/
(In thousands)WatchMentionSubstandardDoubtfulLossSub-totalUnratedTotal
Puerto Rico
Commercial multi-family$1,570$4,498$3,660$-$-$9,728$143,534$153,262
Commercial real estate non-owner occupied497,509176,551336,67512,929-1,023,6641,277,1142,300,778
Commercial real estate owner occupied250,970168,665282,7661,967-704,368986,8111,691,179
Commercial and industrial644,293107,703153,79617669906,0372,339,8663,245,903
Total Commercial1,394,342457,417776,89715,072692,643,7974,747,3257,391,122
Construction-5151,788--2,30389,06991,372
Mortgage2,4561,415148,860--152,7316,222,8576,375,588
Leasing--2,387-1382,525960,707963,232
Consumer:
Credit cards--16,639--16,639998,9491,015,588
HELOCs------4,8994,899
Personal5261718,057--18,6001,253,0241,271,624
Auto--25,007-16625,1732,716,9222,742,095
Other 92-14,851-19615,139125,691140,830
Total Consumer6181774,554-36275,5515,099,4855,175,036
Total Puerto Rico$1,397,416$459,364$1,004,486$15,072$569$2,876,907$17,119,443$19,996,350
Popular U.S.
Commercial multi-family$63,208$7,073$1,878$-$-$72,159$1,319,861$1,392,020
Commercial real estate non-owner occupied117,68522,15570,373--210,2131,643,2821,853,495
Commercial real estate owner occupied48,39346,8117,039--102,243211,304313,547
Commercial and industrial9,88369773,464--84,0441,024,0821,108,126
Total Commercial239,16976,736152,754--468,6594,198,5294,667,188
Construction25,82628,07458,515--112,415587,533699,948
Mortgage--9,807--9,807821,785831,592
Legacy366-1,079--1,44522,95924,404
Consumer:
Credit cards--2--23335
HELOCs--2,462-9,62512,087120,795132,882
Personal--1,419-3901,809293,299295,108
Other ------201201
Total Consumer--3,883-10,01513,898414,328428,226
Total Popular U.S.$265,361$104,810$226,038$-$10,015$606,224$6,045,134$6,651,358
Popular, Inc.
Commercial multi-family$64,778$11,571$5,538$-$-$81,887$1,463,395$1,545,282
Commercial real estate non-owner occupied615,194198,706407,04812,929-1,233,8772,920,3964,154,273
Commercial real estate owner occupied299,363215,476289,8051,967-806,6111,198,1152,004,726
Commercial and industrial654,176108,400227,26017669990,0813,363,9484,354,029
Total Commercial1,633,511534,153929,65115,072693,112,4568,945,85412,058,310
Construction25,82628,58960,303--114,718676,602791,320
Mortgage2,4561,415158,667--162,5387,044,6427,207,180
Legacy366-1,079--1,44522,95924,404
Leasing--2,387-1382,525960,707963,232
Consumer:
Credit cards--16,641--16,641998,9821,015,623
HELOCs--2,462-9,62512,087125,694137,781
Personal5261719,476-39020,4091,546,3231,566,732
Auto--25,007-16625,1732,716,9222,742,095
Other 92-14,851-19615,139125,892141,031
Total Consumer6181778,437-10,37789,4495,513,8135,603,262
Total Popular, Inc.$1,662,777$564,174$1,230,524$15,072$10,584$3,483,131$23,164,577$26,647,708
The following table presents the weighted average obligor risk rating at March 31, 2019 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:SubstandardPass
Commercial multi-family11.186.02
Commercial real estate non-owner occupied11.226.91
Commercial real estate owner occupied11.287.25
Commercial and industrial11.277.07
Total Commercial11.257.05
Construction12.007.64
Popular U.S. :SubstandardPass
Commercial multi-family11.007.37
Commercial real estate non-owner occupied11.006.90
Commercial real estate owner occupied11.297.38
Commercial and industrial11.016.85
Total Commercial11.027.06
Construction11.217.83
Legacy11.247.99

December 31, 2018
SpecialPass/
(In thousands)WatchMentionSubstandardDoubtfulLossSub-totalUnratedTotal
Puerto Rico
Commercial multi-family$1,634$4,548$3,590$-$-$9,772$135,856$145,628
Commercial real estate non-owner occupied470,506233,173342,962--1,046,6411,275,9602,322,601
Commercial real estate owner occupied262,476174,510291,4682,078-730,532991,7211,722,253
Commercial and industrial655,092130,641156,51517773942,4982,239,6633,182,161
Total Commercial1,389,708542,872794,5352,255732,729,4434,643,2007,372,643
Construction1476341,788--2,56983,38685,955
Mortgage3,0572,182154,506--159,7456,273,5786,433,323
Leasing--3,301-123,313931,460934,773
Consumer:
Credit cards--16,035--16,0351,031,2381,047,273
HELOCs--165--1655,1865,351
Personal8491918,827--19,6951,230,9301,250,625
Auto--24,093-8424,1772,584,6082,608,785
Other --14,743-21514,958129,786144,744
Total Consumer8491973,863-29975,0304,981,7485,056,778
Total Puerto Rico$1,393,761$545,707$1,027,993$2,255$384$2,970,100$16,913,372$19,883,472
Popular U.S.
Commercial multi-family$85,901$7,123$6,979$-$-$100,003$1,301,537$1,401,540
Commercial real estate non-owner occupied152,6359,83946,555--209,0291,672,7151,881,744
Commercial real estate owner occupied49,41523,9632,394--75,772223,167298,939
Commercial and industrial5,8251,08476,459--83,3681,004,7851,088,153
Total Commercial293,77642,009132,387--468,1724,202,2044,670,376
Construction35,37537,74158,005--131,121562,373693,494
Mortgage--11,032--11,032790,903801,935
Legacy5342242,409--3,16722,78225,949
Consumer:
Credit cards------3838
HELOCs--2,615-10,96413,579129,473143,052
Personal--1,910-7012,611286,738289,349
Other --4--4220224
Total Consumer--4,529-11,66516,194416,469432,663
Total Popular U.S.$329,685$79,974$208,362$-$11,665$629,686$5,994,731$6,624,417
Popular, Inc.
Commercial multi-family$87,535$11,671$10,569$-$-$109,775$1,437,393$1,547,168
Commercial real estate non-owner occupied623,141243,012389,517--1,255,6702,948,6754,204,345
Commercial real estate owner occupied311,891198,473293,8622,078-806,3041,214,8882,021,192
Commercial and industrial660,917131,725232,974177731,025,8663,244,4484,270,314
Total Commercial1,683,484584,881926,9222,255733,197,6158,845,40412,043,019
Construction35,52238,37559,793--133,690645,759779,449
Mortgage3,0572,182165,538--170,7777,064,4817,235,258
Legacy5342242,409--3,16722,78225,949
Leasing--3,301-123,313931,460934,773
Consumer:
Credit cards--16,035--16,0351,031,2761,047,311
HELOCs--2,780-10,96413,744134,659148,403
Personal8491920,737-70122,3061,517,6681,539,974
Auto--24,093-8424,1772,584,6082,608,785
Other --14,747-21514,962130,006144,968
Total Consumer8491978,392-11,96491,2245,398,2175,489,441
Total Popular, Inc.$1,723,446$625,681$1,236,355$2,255$12,049$3,599,786$22,908,103$26,507,889
The following table presents the weighted average obligor risk rating at December 31, 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:SubstandardPass
Commercial multi-family11.206.02
Commercial real estate non-owner occupied11.116.93
Commercial real estate owner occupied11.297.25
Commercial and industrial11.337.15
Total Commercial11.227.09
Construction12.007.64
Popular U.S.:SubstandardPass
Commercial multi-family11.007.39
Commercial real estate non-owner occupied11.016.82
Commercial real estate owner occupied11.167.55
Commercial and industrial11.967.26
Total Commercial11.567.14
Construction11.217.85
Legacy11.177.94