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Allowance for loan losses

9 Months Ended

Sep. 30, 2013

Loans and Leases Receivable, Allowance [Abstract]

Note 8 – Allowance for loan losses

The Corporation's assessment of the allowance for loan losses is determined in accordance with accounting guidance, specifically loss contingencies guidance in ASC Subtopic 450-20 and loan impairment guidance in ASC Section 310-10-35.

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 3-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 for the commercial, construction and legacy loan portfolios and 6-month average loss rate for the consumer and mortgage loan portfolios, when these trends are higher than the respective base loss rates, up to a determined cap in the case of consumer and mortgage loan portfolios. The objective of this adjustment is to allow for a more recent loss trend to be captured and reflected in the ALLL estimation process, while limiting excessive pro-cyclicality on changing economic periods using caps for the consumer and mortgage portfolios given the shorter six month look back window. These caps are calibrated annually at the end of each year and consistently applied until the next annual review. As part of the periodic review of the adequacy of the ALLL models and related assumptions, management monitors and reviews the loan segments for which the caps are being utilized in order to assess the reasonability of the cap in light of current credit and loss trends. Management makes reserve adjustments if warranted upon the completion of these reviews. The caps are determined by measuring historic periods in which the recent loss trend adjustment rates were higher than the base loss rates and setting the cap at a percentile of the historic trend loss rates.

For the period ended September 30, 2013, 12% of the ALLL for our BPPR non-covered 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 multi-family, leasing, and auto loan portfolios. For the period ended September 30, 2013, 23% of the ALLL for our BPNA 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 multi-family, commercial real estate non-owner occupied, commercial and industrial, and legacy loan portfolios.

For the period ended December 31, 2012, 32% of the ALLL for our BPPR non-covered 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 multi-family, commercial and industrial, construction, credit cards, and personal loan portfolios. For the period ended December 31, 2012, 8% of the ALLL for our BPNA 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 construction and legacy loan portfolios.
Environmental factors, which include credit and macroeconomic indicators such as unemployment rate, economic activity index and delinquency rates, were 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 or decreases the historical loss rate applied to each group. Environmental factors provide updated perspective on credit and economic conditions. Regression analysis was used to select these indicators and quantify the effect on the general reserve of the allowance for loan losses.

During the second quarter of 2013, management revised the estimation process for evaluating the adequacy of the general reserve component of the allowance for loan losses. The enhancements to the ALLL methodology, which is described in the paragraphs below, was implemented as of June 30, 2013 and resulted in a net increase to the allowance for loan losses of $11.8 million for the non-covered portfolio and $7.5 million for the covered portfolio.

Management made the following principal changes to the methodology during the second quarter of 2013:

Incorporated risk ratings to establish a more granular stratification of the commercial, construction and legacy loan portfolios to enhance the homogeneity of the loan classes. Prior to the second quarter enhancements, the Corporation's loan segmentation was based on product type, line of business and legal entity. During the second quarter of 2013, lines of business were simplified and a regulatory classification level was added. These changes increase the homogeneity of each portfolio and capture the higher potential for loan loss in the criticized and substandard accruing categories.

These refinements resulted in a decrease to the allowance for loan losses of $42.9 million at June 30, 2013, which consisted of a $35.7 million decrease in the non-covered BPPR segment and a $7.2 million reduction in the BPNA segment.
Recalibration and enhancements of the environmental factors adjustment. The environmental factor adjustments are developed by performing regression analyses on selected credit and economic indicators for each applicable loan segment. Prior to the second quarter enhancements, these adjustments were applied in the form of a set of multipliers and weights assigned to credit and economic indicators. During the second quarter of 2013, the environmental factor models used to account for changes in current credit and macroeconomic conditions, were enhanced and recalibrated based on the latest applicable trends. Also, as part of these enhancements, environmental factors are directly applied to the adjusted base loss rates using regression models based on particular credit data for the segment and relevant economic factors. These enhancements results in a more precise adjustment by having recalibrated models with improved statistical analysis and eliminating the multiplier concept that ensures that environmental factors are sufficiently sensitive to changing economic conditions.

The combined effect of the aforementioned changes to the environmental factors adjustment resulted in an increase to the allowance for loan losses of $52.5 million at June 30, 2013, of which $56.1 million relate to the non-covered BPPR segment, offset in part by a $3.6 million reduction in the BPNA segment.

There were additional enhancements to the allowance for loan losses methodology which accounted for an increase of $9.7 million at June 30, 2013 at the BPPR segment. These enhancements included the elimination of the use of a cap for the commercial recent loss adjustment (12-month average), the incorporation of a minimum general reserve assumption for the commercial, construction and legacy portfolios with minimal or zero loss history, and the application of the enhanced ALLL framework to the covered loan portfolio.

The following tables present the changes in the allowance for loan losses for the quarters and nine months ended September 30, 2013 and 2012.

For the quarter ended September 30, 2013
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	112,152	$	9,072	$	122,915	$	8,923	$	140,514	$	393,576
	Provision (reversal of provision)		7,297		(4,672)		20,373		2,238		25,239		50,475
	Charge-offs		(21,431)		(1,456)		(11,504)		(1,098)		(28,796)		(64,285)
	Recoveries		5,286		6,362		111		628		7,220		19,607
	Net write-down related to loans sold		-		-		-		-		-		-
Ending balance		$	103,304	$	9,306	$	131,895	$	10,691	$	144,177	$	399,373

For the quarter ended September 30, 2013
Puerto Rico - Covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	65,557	$	7,353	$	27,001	$	-	$	6,546	$	106,457
	Provision (reversal of provision)		(4,528)		14,158		6,753		-		1,050		17,433
	Charge-offs		(3,186)		(7,395)		(1,632)		-		(65)		(12,278)
	Recoveries		653		4,502		53		-		8		5,216
Ending balance		$	58,496	$	18,618	$	32,175	$	-	$	7,539	$	116,828

For the quarter ended September 30, 2013
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	52,329	$	338	$	33,065	$	19,978	$	29,476	$	135,186
	Provision (reversal of provision)		6,222		(24)		(1,903)		(961)		1,421		4,755
	Charge-offs		(13,772)		-		(1,778)		(6,216)		(5,991)		(27,757)
	Recoveries		9,229		-		444		3,895		975		14,543
Ending balance		$	54,008	$	314	$	29,828	$	16,696	$	25,881	$	126,727

For the quarter ended September 30, 2013
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	230,038	$	16,763	$	182,981	$	19,978	$	8,923	$	176,536	$	635,219
	Provision (reversal of provision)		8,991		9,462		25,223		(961)		2,238		27,710		72,663
	Charge-offs		(38,389)		(8,851)		(14,914)		(6,216)		(1,098)		(34,852)		(104,320)
	Recoveries		15,168		10,864		608		3,895		628		8,203		39,366
	Net write-down related to loans sold		-		-		-		-		-		-		-
Ending balance		$	215,808	$	28,238	$	193,898	$	16,696	$	10,691	$	177,597	$	642,928

For the nine months ended September 30, 2013
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	217,615	$	5,862	$	119,027	$	2,894	$	99,899	$	445,297
	Provision (reversal of provision)		117,410		(1,555)		253,125		10,465		105,783		485,228
	Charge-offs		(89,146)		(5,276)		(42,013)		(4,485)		(83,403)		(224,323)
	Recoveries		18,722		12,121		1,258		1,817		21,898		55,816
	Net write-downs related to loans sold		(161,297)		(1,846)		(199,502)		-		-		(362,645)
Ending balance		$	103,304	$	9,306	$	131,895	$	10,691	$	144,177	$	399,373

For the nine months ended September 30, 2013
Puerto Rico - Covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	72,060	$	9,946	$	20,914	$	-	$	5,986	$	108,906
	Provision		612		36,712		17,146		-		6,019		60,489
	Charge-offs		(14,901)		(33,178)		(5,949)		-		(4,526)		(58,554)
	Recoveries		725		5,138		64		-		60		5,987
Ending balance		$	58,496	$	18,618	$	32,175	$	-	$	7,539	$	116,828

For the nine months ended September 30, 2013
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	80,067	$	1,567	$	30,348	$	33,102	$	31,320	$	176,404
	Provision (reversal of provision)		(2,849)		(1,253)		6,622		(13,872)		11,562		210
	Charge-offs		(44,308)		-		(9,172)		(18,500)		(20,029)		(92,009)
	Recoveries		21,098		-		2,030		15,966		3,028		42,122
Ending balance		$	54,008	$	314	$	29,828	$	16,696	$	25,881	$	126,727

For the nine months ended September 30, 2013
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	369,742	$	17,375	$	170,289	$	33,102	$	2,894	$	137,205	$	730,607
	Provision (reversal of provision)		115,173		33,904		276,893		(13,872)		10,465		123,364		545,927
	Charge-offs		(148,355)		(38,454)		(57,134)		(18,500)		(4,485)		(107,958)		(374,886)
	Recoveries		40,545		17,259		3,352		15,966		1,817		24,986		103,925
	Net write-down related to loans sold		(161,297)		(1,846)		(199,502)		-		-		-		(362,645)
Ending balance		$	215,808	$	28,238	$	193,898	$	16,696	$	10,691	$	177,597	$	642,928

For the quarter ended September 30, 2012
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	203,846	$	7,464	$	120,339	$	2,957	$	111,951	$	446,557
	Provision (reversal of provision)		34,597		(592)		17,182		(111)		18,662		69,738
	Charge-offs		(47,572)		(1,733)		(12,468)		(1,292)		(29,307)		(92,372)
	Recoveries		10,553		2,260		37		1,027		7,454		21,331
Ending balance		$	201,424	$	7,399	$	125,090	$	2,581	$	108,760	$	445,254

For the quarter ended September 30, 2012
Puerto Rico - Covered Loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	75,592	$	23,628	$	11,617	$	-	$	6,658	$	117,495
	Provision (reversal of provision)		11,041		11,078		2,005		-		(1,505)		22,619
	Charge-offs		(7,013)		(7,483)		(736)		-		(9)		(15,241)
	Recoveries		-		-		-		-		-		-
Ending balance		$	79,620	$	27,223	$	12,886	$	-	$	5,144	$	124,873

For the quarter ended September 30, 2012
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	92,918	$	1,678	$	29,483	$	44,011	$	33,888	$	201,978
	Provision (reversal of provision)		1,311		59		3,800		(188)		8,869		13,851
	Charge-offs		(15,809)		-		(3,757)		(8,502)		(8,642)		(36,710)
	Recoveries		6,198		-		216		4,550		996		11,960
	Net (write-down) recovery related to loans transferred to LHFS		(34)		-		-		-		-		(34)
Ending balance		$	84,584	$	1,737	$	29,742	$	39,871	$	35,111	$	191,045

For the quarter ended September 30, 2012
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	372,356	$	32,770	$	161,439	$	44,011	$	2,957	$	152,497	$	766,030
	Provision (reversal of provision)		46,949		10,545		22,987		(188)		(111)		26,026		106,208
	Charge-offs		(70,394)		(9,216)		(16,961)		(8,502)		(1,292)		(37,958)		(144,323)
	Recoveries		16,751		2,260		253		4,550		1,027		8,450		33,291
	Net (write-down) recovery related to loans transferred to LHFS		(34)		-		-		-		-		-		(34)
Ending balance		$	365,628	$	36,359	$	167,718	$	39,871	$	2,581	$	149,015	$	761,172

For the nine months ended September 30, 2012
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	255,453	$	5,850	$	72,322	$	4,651	$	115,126	$	453,402
	Provision (reversal of provision)		49,070		1,636		92,235		(1,643)		62,673		203,971
	Charge-offs		(134,339)		(3,046)		(41,438)		(3,418)		(92,020)		(274,261)
	Recoveries		31,240		2,959		1,971		2,991		22,981		62,142
Ending balance		$	201,424	$	7,399	$	125,090	$	2,581	$	108,760	$	445,254

For the nine months ended September 30, 2012
Puerto Rico - Covered Loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	94,472	$	20,435	$	5,310	$	-	$	4,728	$	124,945
	Provision		30,915		29,722		12,600		-		5,047		78,284
	Charge-offs		(45,767)		(22,934)		(5,024)		-		(4,631)		(78,356)
	Recoveries		-		-		-		-		-		-
Ending balance		$	79,620	$	27,223	$	12,886	$	-	$	5,144	$	124,873

For the nine months ended September 30, 2012
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	113,979	$	2,631	$	29,939	$	46,228	$	44,184	$	236,961
	Provision (reversal of provision)		8,249		(732)		11,943		6,612		17,803		43,875
	Charge-offs		(53,180)		(1,396)		(12,763)		(28,168)		(30,883)		(126,390)
	Recoveries		15,570		1,234		623		15,199		4,007		36,633
	Net (write-down) recovery related to loans transferred to LHFS		(34)		-		-		-		-		(34)
Ending balance		$	84,584	$	1,737	$	29,742	$	39,871	$	35,111	$	191,045

For the nine months ended September 30, 2012
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	463,904	$	28,916	$	107,571	$	46,228	$	4,651	$	164,038	$	815,308
	Provision (reversal of provision)		88,234		30,626		116,778		6,612		(1,643)		85,523		326,130
	Charge-offs		(233,286)		(27,376)		(59,225)		(28,168)		(3,418)		(127,534)		(479,007)
	Recoveries		46,810		4,193		2,594		15,199		2,991		26,988		98,775
	Net (write-down) recovery related to loans transferred to LHFS		(34)		-		-		-		-		-		(34)
Ending balance		$	365,628	$	36,359	$	167,718	$	39,871	$	2,581	$	149,015	$	761,172

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

	ASC 310-30 Covered loans
	For the quarters ended				For the nine months ended
(In thousands)	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
Balance at beginning of period	$	91,195	$	93,971	$	95,407	$	83,477
Provision for loan losses		23,316		17,881		54,924		57,472
Net charge-offs		(5,637)		(8,305)		(41,457)		(37,402)
Balance at end of period	$	108,874	$	103,547	$	108,874	$	103,547

The following tables present information at September 30, 2013 and December 31, 2012 regarding loan ending balances and the allowance for loan losses by portfolio segment and whether such loans and the allowance pertains to loans individually or collectively evaluated for impairment.

At September 30, 2013
Puerto Rico


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	20,836	$	588	$	36,227	$	1,197	$	31,338	$	90,186
General ALLL non-covered loans			82,468		8,718		95,668		9,494		112,839		309,187
ALLL - non-covered loans			103,304		9,306		131,895		10,691		144,177		399,373
Specific ALLL covered loans			1,683		1,944		-		-		-		3,627
General ALLL covered loans			56,813		16,674		32,175		-		7,539		113,201
ALLL - covered loans			58,496		18,618		32,175		-		7,539		116,828
Total ALLL		$	161,800	$	27,924	$	164,070	$	10,691	$	151,716	$	516,201

Loans held-in-portfolio:
Impaired non-covered loans		$	276,824	$	21,729	$	390,319	$	3,159	$	127,389	$	819,420
Non-covered loans held-in-portfolio
	excluding impaired loans		5,978,200		230,141		4,953,363		536,131		3,147,132		14,844,967
Non-covered loans held-in-portfolio			6,255,024		251,870		5,343,682		539,290		3,274,521		15,664,387
Impaired covered loans			35,264		-		-		-		-		35,264
Covered loans held-in-portfolio
	excluding impaired loans		1,818,587		201,437		965,779		-		54,942		3,040,745
Covered loans held-in-portfolio			1,853,851		201,437		965,779		-		54,942		3,076,009
Total loans held-in-portfolio		$	8,108,875	$	453,307	$	6,309,461	$	539,290	$	3,329,463	$	18,740,396

At September 30, 2013
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Specific ALLL		$	-	$	-	$	17,555	$	-	$	324	$	17,879
General ALLL			54,008		314		12,273		16,696		25,557		108,848
Total ALLL		$	54,008	$	314	$	29,828	$	16,696	$	25,881	$	126,727

Loans held-in-portfolio:
Impaired loans		$	62,005	$	5,763	$	52,867	$	11,597	$	2,470	$	134,702
Loans held-in-portfolio,
	excluding impaired loans		3,528,448		35,587		1,216,584		224,048		623,427		5,628,094
Total loans held-in-portfolio		$	3,590,453	$	41,350	$	1,269,451	$	235,645	$	625,897	$	5,762,796

At September 30, 2013
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	20,836	$	588	$	53,782	$	-	$	1,197	$	31,662	$	108,065
General ALLL non-covered loans			136,476		9,032		107,941		16,696		9,494		138,396		418,035
ALLL - non-covered loans			157,312		9,620		161,723		16,696		10,691		170,058		526,100
Specific ALLL covered loans			1,683		1,944		-		-		-		-		3,627
General ALLL covered loans			56,813		16,674		32,175		-		-		7,539		113,201
ALLL - covered loans			58,496		18,618		32,175		-		-		7,539		116,828
Total ALLL		$	215,808	$	28,238	$	193,898	$	16,696	$	10,691	$	177,597	$	642,928

Loans held-in-portfolio:
Impaired non-covered loans		$	338,829	$	27,492	$	443,186	$	11,597	$	3,159	$	129,859	$	954,122
Non-covered loans held-in-portfolio
	excluding impaired loans		9,506,648		265,728		6,169,947		224,048		536,131		3,770,559		20,473,061
Non-covered loans held-in-portfolio			9,845,477		293,220		6,613,133		235,645		539,290		3,900,418		21,427,183
Impaired covered loans			35,264		-		-		-		-		-		35,264
Covered loans held-in-portfolio
	excluding impaired loans		1,818,587		201,437		965,779		-		-		54,942		3,040,745
Covered loans held-in-portfolio			1,853,851		201,437		965,779		-		-		54,942		3,076,009
Total loans held-in-portfolio		$	11,699,328	$	494,657	$	7,578,912	$	235,645	$	539,290	$	3,955,360	$	24,503,192

At December 31, 2012
Puerto Rico


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	17,323	$	120	$	58,572	$	1,066	$	17,779	$	94,860
General ALLL non-covered loans			200,292		5,742		60,455		1,828		82,120		350,437
ALLL - non-covered loans			217,615		5,862		119,027		2,894		99,899		445,297
Specific ALLL covered loans			8,505		-		-		-		-		8,505
General ALLL covered loans			63,555		9,946		20,914		-		5,986		100,401
ALLL - covered loans			72,060		9,946		20,914		-		5,986		108,906
Total ALLL		$	289,675	$	15,808	$	139,941	$	2,894	$	105,885	$	554,203

Loans held-in-portfolio:
Impaired non-covered loans		$	447,779	$	35,849	$	557,137	$	4,881	$	130,663	$	1,176,309
Non-covered loans held-in-portfolio
	excluding impaired loans		5,848,505		176,418		4,391,787		535,642		3,103,666		14,056,018
Non-covered loans held-in-portfolio			6,296,284		212,267		4,948,924		540,523		3,234,329		15,232,327
Impaired covered loans			109,241		-		-		-		-		109,241
Covered loans held-in-portfolio
	excluding impaired loans		2,135,406		361,396		1,076,730		-		73,199		3,646,731
Covered loans held-in-portfolio			2,244,647		361,396		1,076,730		-		73,199		3,755,972
Total loans held-in-portfolio		$	8,540,931	$	573,663	$	6,025,654	$	540,523	$	3,307,528	$	18,988,299

At December 31, 2012
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Specific ALLL		$	25	$	-	$	16,095	$	-	$	107	$	16,227
General ALLL			80,042		1,567		14,253		33,102		31,213		160,177
Total ALLL		$	80,067	$	1,567	$	30,348	$	33,102	$	31,320	$	176,404

Loans held-in-portfolio:
Impaired loans		$	79,885	$	5,960	$	54,093	$	18,744	$	2,714	$	161,396
Loans held-in-portfolio,
	excluding impaired loans		3,482,033		34,630		1,075,490		365,473		631,843		5,589,469
Total loans held-in-portfolio		$	3,561,918	$	40,590	$	1,129,583	$	384,217	$	634,557	$	5,750,865

At December 31, 2012
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	17,348	$	120	$	74,667	$	-	$	1,066	$	17,886	$	111,087
General ALLL non-covered loans			280,334		7,309		74,708		33,102		1,828		113,333		510,614
ALLL - non-covered loans			297,682		7,429		149,375		33,102		2,894		131,219		621,701
Specific ALLL covered loans			8,505		-		-		-		-		-		8,505
General ALLL covered loans			63,555		9,946		20,914		-		-		5,986		100,401
ALLL - covered loans			72,060		9,946		20,914		-		-		5,986		108,906
Total ALLL		$	369,742	$	17,375	$	170,289	$	33,102	$	2,894	$	137,205	$	730,607

Loans held-in-portfolio:
Impaired non-covered loans		$	527,664	$	41,809	$	611,230	$	18,744	$	4,881	$	133,377	$	1,337,705
Non-covered loans held-in-portfolio
	excluding impaired loans		9,330,538		211,048		5,467,277		365,473		535,642		3,735,509		19,645,487
Non-covered loans held-in-portfolio			9,858,202		252,857		6,078,507		384,217		540,523		3,868,886		20,983,192
Impaired covered loans			109,241		-		-		-		-		-		109,241
Covered loans held-in-portfolio
	excluding impaired loans		2,135,406		361,396		1,076,730		-		-		73,199		3,646,731
Covered loans held-in-portfolio			2,244,647		361,396		1,076,730		-		-		73,199		3,755,972
Total loans held-in-portfolio		$	12,102,849	$	614,253	$	7,155,237	$	384,217	$	540,523	$	3,942,085	$	24,739,164

Impaired loans

The following tables present loans individually evaluated for impairment at September 30, 2013 and December 31, 2012.

September 30, 2013
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	$	4,819	$	4,819	$	3,173	$	3,312	$	3,312	$	8,131	$	8,131	$	3,173
Commercial real estate non-owner occupied		21,434		21,720		2,259		33,173		41,326		54,607		63,046		2,259
Commercial real estate owner occupied		62,282		78,180		5,806		53,655		77,680		115,937		155,860		5,806
Commercial and industrial		42,734		51,082		9,598		55,415		63,591		98,149		114,673		9,598
Construction		4,002		13,789		588		17,727		41,062		21,729		54,851		588
Mortgage		351,304		367,986		36,227		39,015		43,464		390,319		411,450		36,227
Leasing		3,159		3,159		1,197		-		-		3,159		3,159		1,197
Consumer:
Credit cards		44,652		44,652		9,072		-		-		44,652		44,652		9,072
Personal		81,016		81,016		22,012		-		-		81,016		81,016		22,012
Auto		1,173		1,173		142		-		-		1,173		1,173		142
Other		548		548		112		-		-		548		548		112
Covered loans		16,279		16,279		3,627		18,985		18,985		35,264		35,264		3,627
Total Puerto Rico	$	633,402	$	684,403	$	93,813	$	221,282	$	289,420	$	854,684	$	973,823	$	93,813

September 30, 2013
U.S. mainland
	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	$	-	$	-	$	-	$	8,915	$	13,511	$	8,915	$	13,511	$	-
Commercial real estate non-owner occupied		-		-		-		33,591		48,758		33,591		48,758		-
Commercial real estate owner occupied		-		-		-		18,659		23,836		18,659		23,836		-
Commercial and industrial		-		-		-		840		840		840		840		-
Construction		-		-		-		5,763		5,763		5,763		5,763		-
Mortgage		46,834		51,462		17,555		6,033		7,435		52,867		58,897		17,555
Legacy		-		-		-		11,597		17,023		11,597		17,023		-
Consumer:
HELOCs		-		-		-		199		199		199		199		-
Auto		-		-		-		89		89		89		89		-
Other		2,182		2,182		324		-		-		2,182		2,182		324
Total U.S. mainland	$	49,016	$	53,644	$	17,879	$	85,686	$	117,454	$	134,702	$	171,098	$	17,879

September 30, 2013
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	$	4,819	$	4,819	$	3,173	$	12,227	$	16,823	$	17,046	$	21,642	$	3,173
Commercial real estate non-owner occupied		21,434		21,720		2,259		66,764		90,084		88,198		111,804		2,259
Commercial real estate owner occupied		62,282		78,180		5,806		72,314		101,516		134,596		179,696		5,806
Commercial and industrial		42,734		51,082		9,598		56,255		64,431		98,989		115,513		9,598
Construction		4,002		13,789		588		23,490		46,825		27,492		60,614		588
Mortgage		398,138		419,448		53,782		45,048		50,899		443,186		470,347		53,782
Legacy		-		-		-		11,597		17,023		11,597		17,023		-
Leasing		3,159		3,159		1,197		-		-		3,159		3,159		1,197
Consumer:
Credit cards		44,652		44,652		9,072		-		-		44,652		44,652		9,072
HELOCs		-		-		-		199		199		199		199		-
Personal		81,016		81,016		22,012		-		-		81,016		81,016		22,012
Auto		1,173		1,173		142		89		89		1,262		1,262		142
Other		2,730		2,730		436		-		-		2,730		2,730		436
Covered loans		16,279		16,279		3,627		18,985		18,985		35,264		35,264		3,627
Total Popular, Inc.	$	682,418	$	738,047	$	111,692	$	306,968	$	406,874	$	989,386	$	1,144,921	$	111,692

December 31, 2012
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	$	271	$	288	$	6	$	13,080	$	19,969	$	13,351	$	20,257	$	6
Commercial real estate non-owner occupied		22,332		25,671		1,354		55,320		63,041		77,652		88,712		1,354
Commercial real estate owner occupied		100,685		149,342		12,614		121,476		167,639		222,161		316,981		12,614
Commercial and industrial		70,216		85,508		3,349		64,399		99,608		134,615		185,116		3,349
Construction		1,865		3,931		120		33,984		70,572		35,849		74,503		120
Mortgage		517,341		539,171		58,572		39,796		42,913		557,137		582,084		58,572
Leasing		4,881		4,881		1,066		-		-		4,881		4,881		1,066
Consumer:
Credit cards		42,514		42,514		1,666		-		-		42,514		42,514		1,666
Personal		86,884		86,884		16,022		-		-		86,884		86,884		16,022
Auto		772		772		79		-		-		772		772		79
Other		493		493		12		-		-		493		493		12
Covered loans		64,762		64,762		8,505		44,479		44,479		109,241		109,241		8,505
Total Puerto Rico	$	913,016	$	1,004,217	$	103,365	$	372,534	$	508,221	$	1,285,550	$	1,512,438	$	103,365

December 31, 2012
U.S. mainland
	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	$	1,327	$	1,479	$	25	$	6,316	$	9,898	$	7,643	$	11,377	$	25
Commercial real estate non-owner occupied		-		-		-		45,815		64,783		45,815		64,783		-
Commercial real estate owner occupied		-		-		-		20,369		22,968		20,369		22,968		-
Commercial and industrial		-		-		-		6,058		8,026		6,058		8,026		-
Construction		-		-		-		5,960		5,960		5,960		5,960		-
Mortgage		45,319		46,484		16,095		8,774		10,328		54,093		56,812		16,095
Legacy		-		-		-		18,744		29,972		18,744		29,972		-
Consumer:
HELOCs		201		201		11		-		-		201		201		11
Auto		91		91		2		-		-		91		91		2
Other		2,422		2,422		94		-		-		2,422		2,422		94
Total U.S. mainland	$	49,360	$	50,677	$	16,227	$	112,036	$	151,935	$	161,396	$	202,612	$	16,227

December 31, 2012
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	$	1,598	$	1,767	$	31	$	19,396	$	29,867	$	20,994	$	31,634	$	31
Commercial real estate non-owner occupied		22,332		25,671		1,354		101,135		127,824		123,467		153,495		1,354
Commercial real estate owner occupied		100,685		149,342		12,614		141,845		190,607		242,530		339,949		12,614
Commercial and industrial		70,216		85,508		3,349		70,457		107,634		140,673		193,142		3,349
Construction		1,865		3,931		120		39,944		76,532		41,809		80,463		120
Mortgage		562,660		585,655		74,667		48,570		53,241		611,230		638,896		74,667
Legacy		-		-		-		18,744		29,972		18,744		29,972		-
Leasing		4,881		4,881		1,066		-		-		4,881		4,881		1,066
Consumer:
Credit cards		42,514		42,514		1,666		-		-		42,514		42,514		1,666
HELOCs		201		201		11		-		-		201		201		11
Personal		86,884		86,884		16,022		-		-		86,884		86,884		16,022
Auto		863		863		81		-		-		863		863		81
Other		2,915		2,915		106		-		-		2,915		2,915		106
Covered loans		64,762		64,762		8,505		44,479		44,479		109,241		109,241		8,505
Total Popular, Inc.	$	962,376	$	1,054,894	$	119,592	$	484,570	$	660,156	$	1,446,946	$	1,715,050	$	119,592

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarter and nine months ended September 30, 2013 and 2012.

For the quarter ended September 30, 2013
	Puerto Rico				U.S. Mainland				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	$	8,262	$	127	$	7,540	$	69	$	15,802	$	196
Commercial real estate non-owner occupied		54,078		417		34,786		91		88,864		508
Commercial real estate owner occupied		114,033		495		19,642		-		133,675		495
Commercial and industrial		97,629		784		877		-		98,506		784
Construction		30,636		-		5,799		-		36,435		-
Mortgage		386,359		4,959		52,837		486		439,196		5,445
Legacy		-		-		12,483		-		12,483		-
Leasing		3,489		-		-		-		3,489		-
Consumer:
Credit cards		44,271		-		-		-		44,271		-
Helocs		-		-		199		-		199		-
Personal		81,685		-		-		-		81,685		-
Auto		1,014		-		89		-		1,103		-
Other		548		-		2,209		-		2,757		-
Covered loans		30,178		410		-		-		30,178		410
Total Popular, Inc.	$	852,182	$	7,192	$	136,461	$	646	$	988,643	$	7,838

For the quarter ended September 30, 2012
	Puerto Rico				U.S. Mainland				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	$	14,446	$	-	$	8,522	$	-	$	22,968	$	-
Commercial real estate non-owner occupied		64,968		240		59,932		151		124,900		391
Commercial real estate owner occupied		194,126		597		26,302		81		220,428		678
Commercial and industrial		117,979		499		9,855		-		127,834		499
Construction		42,380		98		12,072		-		54,452		98
Mortgage		482,041		6,911		53,509		515		535,550		7,426
Legacy		-		-		26,783		14		26,783		14
Leasing		5,231		-		-		-		5,231		-
Consumer:
Credit cards		38,718		-		-		-		38,718		-
Helocs		-		-		101		-		101		-
Personal		91,030		-		-		-		91,030		-
Auto		252		-		92		-		344		-
Other		1,984		-		2,355		-		4,339		-
Covered loans		98,603		949		-		-		98,603		949
Total Popular, Inc.	$	1,151,758	$	9,294	$	199,523	$	761	$	1,351,281	$	10,055

For the nine months ended September 30, 2013
	Puerto Rico				U.S. Mainland				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	$	9,594	$	259	$	7,449	$	107	$	17,043	$	366
Commercial real estate non-owner occupied		56,875		853		39,106		182		95,981		1,035
Commercial real estate owner occupied		133,970		1,194		19,875		99		153,845		1,293
Commercial and industrial		106,502		2,470		2,453		15		108,955		2,485
Construction		35,159		-		5,860		-		41,019		-
Mortgage		477,081		20,555		53,240		1,470		530,321		22,025
Legacy		-		-		14,685		-		14,685		-
Leasing		4,054		-		-		-		4,054		-
Consumer:
Credit cards		38,801		-		-		-		38,801		-
Helocs		-		-		200		-		200		-
Personal		83,740		-		-		-		83,740		-
Auto		915		-		90		-		1,005		-
Other		397		-		2,306		-		2,703		-
Covered loans		48,252		914		-		-		48,252		914
Total Popular, Inc.	$	995,340	$	26,245	$	145,264	$	1,873	$	1,140,604	$	28,118

For the nine months ended September 30, 2012
	Puerto Rico				U.S. Mainland				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	$	15,083	$	-	$	9,354	$	101	$	24,437	$	101
Commercial real estate non-owner occupied		60,972		597		61,907		965		122,879		1,562
Commercial real estate owner occupied		197,938		1,370		35,453		81		233,391		1,451
Commercial and industrial		123,062		1,119		21,416		37		144,478		1,156
Construction		46,383		205		19,808		-		66,191		205
Mortgage		423,571		18,751		52,613		1,492		476,184		20,243
Legacy		-		-		37,547		79		37,547		79
Leasing		5,494		-		-		-		5,494		-
Consumer:
Credit cards		38,839		-		-		-		38,839		-
Helocs		-		-		51		-		51		-
Personal		91,966		-		-		-		91,966		-
Auto		126		-		69		-		195		-
Other		3,394		-		2,399		-		5,793		-
Covered loans		89,965		2,849		-		-		89,965		2,849
Total Popular, Inc.	$	1,096,793	$	24,891	$	240,617	$	2,755	$	1,337,410	$	27,646

Modifications

Troubled debt restructurings related to non-covered loan portfolios amounted to $ 0.9 billion at September 30, 2013 (December 31, 2012 - $ 1.2 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings amounted $5 million related to the commercial loan portfolio at September 30, 2013 (December 31, 2012 - $4 million). There were no outstanding commitments to lend additional funds to debtors owing loans whose terms have been modified in troubled debt restructurings related to construction loan portfolio at September 30, 2013 (December 31, 2012 - $120 thousand).

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession.

Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting evergreen revolving credit lines to long-term loans. Commercial real estate (“CRE”), which includes multifamily, owner-occupied and non-owner occupied CRE, and construction loans modified in a TDR often involve reducing the interest rate for a limited period of time or the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or reductions in the payment plan. Construction loans modified in a TDR may also involve extending the interest-only payment period.

Residential mortgage loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for a period of time, normally five years to ten years. After the lowered monthly payment period ends, the borrower reverts back to paying principal and interest per the original terms with the maturity date adjusted accordingly.

Home equity loans modifications are made infrequently and are not offered if the Corporation also holds the first mortgage. Home equity loans modifications are uniquely designed to meet the specific needs of each borrower. Automobile loans modified in a TDR are primarily comprised of loans where the Corporation has lowered monthly payments by extending the term. Credit cards modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for a period of time, normally up to 24 months.

As part of its NPL reduction strategy and in order to expedite the resolution of delinquent construction and commercial loans, commencing in 2012, the Corporation routinely enters into liquidation agreements with borrowers and guarantors through the regular legal process, bankruptcy procedures and in certain occasions, out of Court transactions. These liquidation agreements, in general, contemplate the following conditions: (1) consent to judgment by the borrowers and guarantors; (2) acknowledgement by the borrower of the debt, its liquidity and maturity; (3) acknowledgment of the default in payments. The contractual interest rate is not reduced and continues to accrue during the term of the agreement. At the end of the period, borrower is obligated to remit all amounts due or be subject to the Corporation's exercise of its foreclosure rights and further collection efforts. Likewise, the borrower's failure to make stipulated payments will grant the Corporation the ability to exercise its foreclosure rights. This strategy procures to expedite the foreclosure process, resulting in a more effective and efficient collection process. Although in general, these liquidation agreements do not contemplate the forgiveness of principal or interest as debtor is required to cover all outstanding amounts when the agreement becomes due, it could be construed that the Corporation has granted a concession by temporarily accepting a payment schedule that is different from the contractual payment schedule. Accordingly, loans under these program agreements are considered TDRs.

Loans modified in a TDR that are not accounted pursuant to ASC 310-30 are typically already in non-accrual status at the time of the modification and partial charge-offs have in some cases already been taken against the outstanding loan balance. The TDR loan continues in non-accrual status until the borrower has demonstrated a willingness and ability to make the restructured loan payments (generally at least six months of sustained performance after the modification (or one year for loans providing for quarterly or semi-annual payments)) and management has concluded that it is probable that the borrower would not be in payment default in the foreseeable future.

Loans modified in a TDR may have the financial effect to the Corporation of increasing the specific allowance for loan losses associated with the loan. Consumer and residential mortgage loans modified under the Corporation's loss mitigation programs that are determined to be TDRs are individually evaluated for impairment based on an analysis of discounted cash flows.

For consumer and mortgage loans that are modified with regard to payment terms and which constitute TDRs, the discounted cash flow value method is used as the impairment valuation is more appropriately calculated based on the ongoing cash flow from the individuals rather than the liquidation of the asset. The computations give consideration to probability of defaults and loss-given-foreclosure on the related estimated cash flows.

Commercial and construction loans that have been modified as part of loss mitigation efforts are evaluated individually for impairment. The vast majority of the Corporation's modified commercial loans are measured for impairment using the estimated fair value of the collateral, as these are normally considered as collateral dependent loans. In very few instances, the Corporation measures modified commercial loans at their estimated realizable values determined by discounting the expected future cash flows. Construction loans that have been modified are also accounted for as collateral dependent loans. The Corporation determines the fair value measurement dependent upon its exit strategy for the particular asset(s) acquired in foreclosure.

The following tables present the non-covered and covered loans classified as TDRs according to their accruing status at September 30, 2013 and December 31, 2012.

	Popular, Inc.
	Non-Covered Loans
	September 30, 2013						December 31, 2012
(In thousands)		Accruing		Non-Accruing		Total		Accruing		Non-Accruing		Total
Commercial	$	111,645	$	77,558	$	189,203	$	105,648	$	208,119	$	313,767
Construction		449		11,542		11,991		2,969		10,310		13,279
Legacy		-		3,949		3,949		-		5,978		5,978
Mortgage		508,337		74,680		583,017		405,063		273,042		678,105
Leases		968		2,191		3,159		1,726		3,155		4,881
Consumer		119,204		10,333		129,537		125,955		8,981		134,936
Total	$	740,603	$	180,253	$	920,856	$	641,361	$	509,585	$	1,150,946

	Popular, Inc.
	Covered Loans
	September 30, 2013						December 31, 2012
(In thousands)		Accruing		Non-Accruing		Total		Accruing		Non-Accruing		Total
Commercial	$	7,412	$	9,142	$	16,554	$	46,142	$	4,071	$	50,213
Construction		-		5,241		5,241		-		7,435		7,435
Mortgage		147		189		336		149		220		369
Consumer		254		64		318		517		106		623
Total	$	7,813	$	14,636	$	22,449	$	46,808	$	11,832	$	58,640

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters and nine months ended September 30, 2013 and 2012.

	Puerto Rico
	For the quarter ended September 30, 2013				For the nine months ended September 30, 2013
	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	3	1	-	-	3	2	-	-
Commercial real estate owner occupied	2	2	-	12	4	3	-	45
Commercial and industrial	3	3	-	2	13	7	-	10
Mortgage	4	5	61	1	13	32	276	14
Leasing	-	6	3	-	-	18	16	-
Consumer:
Credit cards	246	-	-	279	806	-	-	761
Personal	248	4	-	1	703	18	-	4
Auto	-	8	-	-	-	10	-	-
Other	11	-	-	3	56	-	-	3
Total	517	29	64	298	1,598	90	292	837

	U.S. Mainland
	For the quarter ended September 30, 2013				For the nine months ended September 30, 2013
	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	-	-	1	-	-	2	3	-
Commercial real estate owner occupied	-	-	-	-	-	-	1	-
Mortgage	-	-	11	-	-	-	19	-
Consumer:
Total	-	-	12	-	-	2	23	-

	Popular, Inc.
	For the quarter ended September 30, 2013				For the nine months ended September 30, 2013
	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	3	1	1	-	3	4	3	-
Commercial real estate owner occupied	2	2	-	12	4	3	1	45
Commercial and industrial	3	3	-	2	13	7	-	10
Mortgage	4	5	72	1	13	32	295	14
Leasing	-	6	3	-	-	18	16	-
Consumer:
Credit cards	246	-	-	279	806	-	-	761
Personal	248	4	-	1	703	18	-	4
Auto	-	8	-	-	-	10	-	-
Other	11	-	-	3	56	-	-	3
Total	517	29	76	298	1,598	92	315	837

	Puerto Rico
	For the quarter ended September 30, 2012				For the nine months ended September 30, 2012
	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	2	-	-	-	5	4	-	-
Commercial real estate owner occupied	1	5	-	-	7	20	-	-
Commercial and industrial	1	8	-	-	27	61	-	-
Construction	7	-	-	-	8	1	-	-
Mortgage	272	42	406	40	433	125	1,200	150
Leasing	-	16	-	-	-	49	28	-
Consumer:
Credit cards	311	-	-	268	1,268	-	-	942
Personal	231	4	-	-	901	25	-	-
Auto	-	2	1	-	-	3	3	-
Other	14	-	-	-	39	-	-	-
Total	839	77	407	308	2,688	288	1,231	1,092

	U.S. Mainland
	For the quarter ended September 30, 2012				For the nine months ended September 30, 2012
	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	-	2	-	-	1	2	-	1
Commercial real estate owner occupied	-	-	-	1	-	-	-	1
Construction	-	-	-	-	-	-	-	1
Mortgage	1	1	16	-	4	1	64	-
Legacy	-	-	-	-	1	-	-	2
Consumer:
HELOCs	1	-	1	-	1	-	2	-
Total	2	3	17	1	7	3	66	5

	Popular, Inc.
	For the quarter ended September 30, 2012				For the nine months ended September 30, 2012
	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	2	2	-	-	6	6	-	1
Commercial real estate owner occupied	1	5	-	1	7	20	-	1
Commercial and industrial	1	8	-	-	27	61	-	-
Construction	7	-	-	-	8	1	-	1
Mortgage	273	43	422	40	437	126	1,264	150
Legacy	-	-	-	-	1	-	-	2
Leasing	-	16	-	-	-	49	28	-
Consumer:
Credit cards	311	-	-	268	1,268	-	-	942
HELOCs	1	-	1	-	1	-	2	-
Personal	231	4	-	-	901	25	-	-
Auto	-	2	1	-	-	3	3	-
Other	14	-	-	-	39	-	-	-
Total	841	80	424	309	2,695	291	1,297	1,097

The following tables present by class, quantitative information related to loans modified as TDRs during the quarter and nine months ended September 30, 2013 and 2012.

Puerto Rico
For the quarter ended September 30, 2013
(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	$	3,433	$	1,373	$	51
Commercial real estate owner occupied	16		13,486		3,472		(356)
Commercial and industrial	8		4,906		4,896		(138)
Mortgage	71		12,048		12,678		1,617
Leasing	9		184		178		58
Consumer:
Credit cards	525		4,399		5,255		905
Personal	253		4,251		4,257		991
Auto	8		64		139		11
Other	14		52		52		10
Total	908	$	42,823	$	32,300	$	3,149

U.S. Mainland
For the quarter ended September 30, 2013
(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	1	$	1,399	$	1,276	$	-
Mortgage	11		1,340		1,426		203
Total	12	$	2,739	$	2,702	$	203

Popular, Inc.
For the quarter ended September 30, 2013
(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	$	4,832	$	2,649	$	51
Commercial real estate owner occupied	16		13,486		3,472		(356)
Commercial and industrial	8		4,906		4,896		(138)
Mortgage	82		13,388		14,104		1,820
Leasing	9		184		178		58
Consumer:
Credit cards	525		4,399		5,255		905
Personal	253		4,251		4,257		991
Auto	8		64		139		11
Other	14		52		52		10
Total	920	$	45,562	$	35,002	$	3,352

Puerto Rico
For the quarter ended September 30, 2012
(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	2	$	4,813	$	4,813	$	368
Commercial real estate owner occupied	6		1,626		1,619		(6)
Commercial and industrial	9		13,692		3,873		(6,596)
Construction	7		5,025		4,230		(263)
Mortgage	760		98,555		116,854		5,775
Leasing	16		256		241		29
Consumer:
Credit cards	579		5,100		6,000		20
Personal	235		4,054		4,083		663
Auto	2		20		23		2
Other	14		54		54		-
Total	1,630	$	133,195	$	141,790	$	(8)

U.S. Mainland
For the quarter ended September 30, 2012
(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	2	$	3,968	$	3,921	$	-
Commercial real estate owner occupied	1		2,246		1,750		(106)
Mortgage	18		1,765		1,823		298
Consumer:
HELOCs	2		281		275		3
Total	23	$	8,260	$	7,769	$	195

Popular, Inc.
For the quarter ended September 30, 2012
(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	$	8,781	$	8,734	$	368
Commercial real estate owner occupied	7		3,872		3,369		(112)
Commercial and industrial	9		13,692		3,873		(6,596)
Construction	7		5,025		4,230		(263)
Mortgage	778		100,320		118,677		6,073
Leasing	16		256		241		29
Consumer:
Credit cards	579		5,100		6,000		20
HELOCs	2		281		275		3
Personal	235		4,054		4,083		663
Auto	2		20		23		2
Other	14		54		54		-
Total	1,653	$	141,455	$	149,559	$	187

Puerto Rico
For the nine months ended September 30, 2013
(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	$	4,681	$	2,114	$	41
Commercial real estate owner occupied	52		28,698		16,686		(857)
Commercial and industrial	30		8,649		8,680		(156)
Mortgage	335		54,992		58,659		5,922
Leasing	34		627		607		191
Consumer:
Credit cards	1,567		12,543		15,050		1,660
Personal	725		11,893		11,924		2,969
Auto	10		102		179		13
Other	59		221		219		29
Total	2,817	$	122,406	$	114,118	$	9,812

U.S. mainland
For the nine months ended September 30, 2013
(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	$	4,221	$	3,989	$	(2)
Commercial real estate owner occupied	1		381		287		(10)
Mortgage	19		2,268		2,385		275
Consumer:
Total	25	$	6,870	$	6,661	$	263

Popular, Inc.
For the nine months ended September 30, 2013
(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	10		8,902		6,103		39
Commercial real estate owner occupied	53		29,079		16,973		(867)
Commercial and industrial	30		8,649		8,680		(156)
Mortgage	354		57,260		61,044		6,197
Leasing	34		627		607		191
Consumer:
Credit cards	1,567		12,543		15,050		1,660
Personal	725		11,893		11,924		2,969
Auto	10		102		179		13
Other	59		221		219		29
Total	2,842	$	129,276	$	120,779	$	10,075

Puerto Rico
For the nine months ended September 30, 2012
(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	8	$	8,754	$	7,810	$	(606)
Commercial real estate owner occupied	27		9,319		8,901		(42)
Commercial and industrial	87		38,549		28,306		(6,352)
Construction	9		6,122		5,327		(211)
Mortgage	1,908		251,763		274,045		17,150
Leasing	78		1,265		1,208		132
Consumer:
Credit cards	2,210		18,621		21,347		64
Personal	926		13,132		13,162		2,165
Auto	5		68		50		1
Other	39		129		128		-
Total	5,297	$	347,722	$	360,284	$	12,301

U.S. mainland
For the nine months ended September 30, 2012
(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	$	9,765	$	9,457	$	184
Commercial real estate owner occupied	1		2,246		1,750		(106)
Construction	1		1,573		1,573		-
Mortgage	69		7,168		7,248		1,133
Legacy	3		1,272		1,267		(3)
Consumer:
HELOCs	3		431		409		3
Total	81	$	22,455	$	21,704	$	1,211

Popular, Inc.
For the nine months ended September 30, 2012
(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	12	$	18,519	$	17,267	$	(422)
Commercial real estate owner occupied	28		11,565		10,651		(148)
Commercial and industrial	87		38,549		28,306		(6,352)
Construction	10		7,695		6,900		(211)
Mortgage	1,977		258,931		281,293		18,283
Legacy	3		1,272		1,267		(3)
Leasing	78		1,265		1,208		132
Consumer:
Credit cards	2,210		18,621		21,347		64
HELOCs	3		431		409		3
Personal	926		13,132		13,162		2,165
Auto	5		68		50		1
Other	39		129		128		-
Total	5,378	$	370,177	$	381,988	$	13,512

During the nine months ended September 30, 2013 and 2012, five loan comprising a recorded investment of approximately $14.3 million and four loans of $27 million, respectively, was restructured into multiple notes (“Note A / B split”). The Corporation recorded approximately $3.5 million and $7.0 million in loan charge-offs as part of the loan restructuring during the nine months ended September 30, 2013 and 2012, respectively. The renegotiations of this loan were made after analyzing the borrowers' capacity to repay the debt, collateral and ability to perform under the modified terms. The recorded investment on these commercial TDRs amounted to approximately $1.9 million at September 30, 2013 (September 30, 2012 - $21 million) with a related allowance for loan losses amounting to approximately $401 thousand (September 30, 2012 - $357 thousand).

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 September 30, 2013 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.

Puerto Rico
	Defaulted during the quarter ended September 30, 2013			Defaulted during the nine months ended September 30, 2013
(Dollars in thousands)	Loan count	Recorded investment as of first default date		Loan count	Recorded investment as of first default date
Commercial real estate owner occupied	1		385	3	$	5,512
Commercial and industrial	1		5	3		1,441
Mortgage	37		6,896	179		28,922
Leasing	6		176	16		241
Consumer:
Credit cards	148		1,320	448		4,247
Personal	35		450	106		1,442
Auto	4		91	4		91
Other	2		21	2		21
Total	234	$	9,344	761	$	41,917

U.S. Mainland
	Defaulted during the quarter ended September 30, 2013			Defaulted during the nine months ended September 30, 2013
(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	2	$	1,415	3	$	2,554
Total	2	$	1,415	3	$	2,554

Popular, Inc.
	Defaulted during the quarter ended September 30, 2013				Defaulted during the nine months ended September 30, 2013
(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	2	$	1,415		3	$	2,554
Commercial real estate owner occupied	1		385		3		5,512
Commercial and industrial	1		5		3		1,441
Mortgage	37		6,896	-	179		28,922
Legacy	6		176		16		241
Consumer:
Credit cards	148		1,320		448		4,247
Personal	35		450		106		1,442
Auto	4		91		4		91
Other	2		21		2		21
Total	236	$	10,759		764	$	44,471

Puerto Rico
	Defaulted during the quarter ended September 30, 2012			Defaulted during the nine months ended September 30, 2012
(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	-	$	-	2	$	1,897
Commercial real estate owner occupied	7		3,274	20		8,206
Commercial and industrial	5		2,310	15		7,202
Mortgage	203		26,780	542		77,707
Leasing	9		163	26		440
Consumer:
Credit cards	282		2,413	332		2,930
Personal	77		547	111		990
Auto	2		32	3		48
Other	-		-	1		1
Total	585	$	35,519	1,052	$	99,421

U.S. Mainland
	Defaulted during the quarter ended September 30, 2012			Defaulted during the nine months ended September 30, 2012
(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	$	1,935
Mortgage	3		336	6		415
Consumer:
Total	3	$	336	7	$	2,350

Popular, Inc.
	Defaulted during the quarter ended September 30, 2012			Defaulted during the nine months ended September 30, 2012
(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	-	$	-	3	$	3,832
Commercial real estate owner occupied	7		3,274	20		8,206
Commercial and industrial	5		2,310	15		7,202
Mortgage	206		27,116	548		78,122
Leasing	9		163	26		440
Consumer:
Credit cards	282		2,413	332		2,930
Personal	77		547	111		990
Auto	2		32	3		48
Other	-		-	1		1
Total	588	$	35,855	1,059	$	101,771

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 non-covered loans held-in-portfolio based on the Corporation's assignment of obligor risk ratings as defined at September 30, 2013 and December 31, 2012.

September 30, 2013
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	2,580	$	1,118	$	14,396	$	-	$	-	$	18,094	$	67,186	$	85,280
Commercial real estate non-owner occupied			228,678		120,551		137,382		-		-		486,611		1,225,199		1,711,810
Commercial real estate owner occupied			206,791		134,747		349,075		-		-		690,613		977,603		1,668,216
Commercial and industrial			698,622		184,520		237,566		81		484		1,121,273		1,668,445		2,789,718
	Total Commercial		1,136,671		440,936		738,419		81		484		2,316,591		3,938,433		6,255,024
Construction			8,001		3,255		21,577		3,762		-		36,595		215,275		251,870
Mortgage			-		-		151,050		-		-		151,050		5,192,632		5,343,682
Leasing			-		-		3,597		-		119		3,716		535,574		539,290
Consumer:
	Credit cards		-		-		20,375		-		-		20,375		1,138,940		1,159,315
	Home equity lines of credit		-		-		976		-		2,669		3,645		11,873		15,518
	Personal		-		-		7,511		-		154		7,665		1,214,698		1,222,363
	Auto		-		-		9,166		-		285		9,451		648,827		658,278
	Other		-		-		1,941		-		3,231		5,172		213,875		219,047
	Total Consumer		-		-		39,969		-		6,339		46,308		3,228,213		3,274,521
Total Puerto Rico		$	1,144,672	$	444,191	$	954,612	$	3,843	$	6,942	$	2,554,260	$	13,110,127	$	15,664,387
U.S. mainland
Commercial multi-family		$	82,960	$	12,111	$	76,881	$	-	$	-	$	171,952	$	889,697	$	1,061,649
Commercial real estate non-owner occupied			92,892		33,598		165,435		-		-		291,925		878,224		1,170,149
Commercial real estate owner occupied			47,456		7,308		88,655		-		-		143,419		405,868		549,287
Commercial and industrial			14,368		16,272		46,491		-		-		77,131		732,237		809,368
	Total Commercial		237,676		69,289		377,462		-		-		684,427		2,906,026		3,590,453
Construction			-		-		20,985		-		-		20,985		20,365		41,350
Mortgage			-		-		25,386		-		-		25,386		1,244,065		1,269,451
Legacy			15,255		10,632		61,441		-		-		87,328		148,317		235,645
Consumer:
	Credit cards		-		-		458		-		24		482		14,533		15,015
	Home equity lines of credit		-		-		3,164		-		4,512		7,676		462,420		470,096
	Personal		-		-		596		-		735		1,331		137,646		138,977
	Auto		-		-		-		-		3		3		545		548
	Other		-		-		6		-		-		6		1,255		1,261
	Total Consumer		-		-		4,224		-		5,274		9,498		616,399		625,897
Total U.S. mainland		$	252,931	$	79,921	$	489,498	$	-	$	5,274	$	827,624	$	4,935,172	$	5,762,796
Popular, Inc.
Commercial multi-family		$	85,540	$	13,229	$	91,277	$	-	$	-	$	190,046	$	956,883	$	1,146,929
Commercial real estate non-owner occupied			321,570		154,149		302,817		-		-		778,536		2,103,423		2,881,959
Commercial real estate owner occupied			254,247		142,055		437,730		-		-		834,032		1,383,471		2,217,503
Commercial and industrial			712,990		200,792		284,057		81		484		1,198,404		2,400,682		3,599,086
	Total Commercial		1,374,347		510,225		1,115,881		81		484		3,001,018		6,844,459		9,845,477
Construction			8,001		3,255		42,562		3,762		-		57,580		235,640		293,220
Mortgage			-		-		176,436		-		-		176,436		6,436,697		6,613,133
Legacy			15,255		10,632		61,441		-		-		87,328		148,317		235,645
Leasing			-		-		3,597		-		119		3,716		535,574		539,290
Consumer:
	Credit cards		-		-		20,833		-		24		20,857		1,153,473		1,174,330
	Home equity lines of credit		-		-		4,140		-		7,181		11,321		474,293		485,614
	Personal		-		-		8,107		-		889		8,996		1,352,344		1,361,340
	Auto		-		-		9,166		-		288		9,454		649,372		658,826
	Other		-		-		1,947		-		3,231		5,178		215,130		220,308
	Total Consumer		-		-		44,193		-		11,613		55,806		3,844,612		3,900,418
Total Popular, Inc.		$	1,397,603	$	524,112	$	1,444,110	$	3,843	$	12,216	$	3,381,884	$	18,045,299	$	21,427,183

The following table presents the weighted average obligor risk rating at September 30, 2013 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							11.66								5.32
Commercial real estate non-owner occupied							11.33								6.64
Commercial real estate owner occupied							11.31								6.87
Commercial and industrial							11.34								6.51
	Total Commercial						11.33								6.63
Construction							11.60								7.95

U.S. mainland:						Substandard									Pass
Commercial multi-family							11.28								7.10
Commercial real estate non-owner occupied							11.33								6.95
Commercial real estate owner occupied							11.30								7.02
Commercial and industrial							11.13								6.56
	Total Commercial						11.29								6.91
Construction							11.27								7.78
Legacy							11.28								7.72

[1]

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

December 31, 2012
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	978	$	255	$	16,736	$	-	$	-	$	17,969	$	97,124	$	115,093
Commercial real estate non-owner occupied			120,608		156,853		252,068		-		-		529,529		820,904		1,350,433
Commercial real estate owner occupied			195,876		140,788		647,458		1,242		-		985,364		1,057,122		2,042,486
Commercial and industrial			438,758		201,660		410,026		4,162		682		1,055,288		1,732,984		2,788,272
	Total Commercial		756,220		499,556		1,326,288		5,404		682		2,588,150		3,708,134		6,296,284
Construction			645		31,789		41,278		-		-		73,712		138,555		212,267
Mortgage			-		-		569,334		-		-		569,334		4,379,590		4,948,924
Leasing			-		-		4,742		-		123		4,865		535,658		540,523
Consumer:
	Credit cards		-		-		22,965		-		-		22,965		1,160,107		1,183,072
	Home equity lines of credit		-		-		1,333		-		3,269		4,602		12,204		16,806
	Personal		-		-		8,203		-		77		8,280		1,237,502		1,245,782
	Auto		-		-		8,551		-		-		8,551		551,765		560,316
	Other		-		-		3,036		-		-		3,036		225,317		228,353
	Total Consumer		-		-		44,088		-		3,346		47,434		3,186,895		3,234,329
Total Puerto Rico		$	756,865	$	531,345	$	1,985,730	$	5,404	$	4,151	$	3,283,495	$	11,948,832	$	15,232,327
U.S. mainland
Commercial multi-family		$	78,490	$	22,050	$	71,658	$	-	$	-	$	172,198	$	734,489	$	906,687
Commercial real estate non-owner occupied			108,806		55,911		204,532		-		-		369,249		914,750		1,283,999
Commercial real estate owner occupied			22,423		6,747		113,161		-		-		142,331		423,633		565,964
Commercial and industrial			24,489		8,889		65,562		-		-		98,940		706,328		805,268
	Total Commercial		234,208		93,597		454,913		-		-		782,718		2,779,200		3,561,918
Construction			5,268		-		21,182		-		-		26,450		14,140		40,590
Mortgage			-		-		34,077		-		-		34,077		1,095,506		1,129,583
Legacy			26,176		15,225		109,470		-		-		150,871		233,346		384,217
Consumer:
	Credit cards		-		-		505		-		-		505		14,636		15,141
	Home equity lines of credit		-		-		3,150		-		4,304		7,454		466,775		474,229
	Personal		-		-		785		-		941		1,726		141,403		143,129
	Auto		-		-		-		-		4		4		764		768
	Other		-		-		3		-		-		3		1,287		1,290
	Total Consumer		-		-		4,443		-		5,249		9,692		624,865		634,557
Total U.S. mainland		$	265,652	$	108,822	$	624,085	$	-	$	5,249	$	1,003,808	$	4,747,057	$	5,750,865
Popular, Inc.
Commercial multi-family		$	79,468	$	22,305	$	88,394	$	-	$	-	$	190,167	$	831,613	$	1,021,780
Commercial real estate non-owner occupied			229,414		212,764		456,600		-		-		898,778		1,735,654		2,634,432
Commercial real estate owner occupied			218,299		147,535		760,619		1,242		-		1,127,695		1,480,755		2,608,450
Commercial and industrial			463,247		210,549		475,588		4,162		682		1,154,228		2,439,312		3,593,540
	Total Commercial		990,428		593,153		1,781,201		5,404		682		3,370,868		6,487,334		9,858,202
Construction			5,913		31,789		62,460		-		-		100,162		152,695		252,857
Mortgage			-		-		603,411		-		-		603,411		5,475,096		6,078,507
Legacy			26,176		15,225		109,470		-		-		150,871		233,346		384,217
Leasing			-		-		4,742		-		123		4,865		535,658		540,523
Consumer:
	Credit cards		-		-		23,470		-		-		23,470		1,174,743		1,198,213
	Home equity lines of credit		-		-		4,483		-		7,573		12,056		478,979		491,035
	Personal		-		-		8,988		-		1,018		10,006		1,378,905		1,388,911
	Auto		-		-		8,551		-		4		8,555		552,529		561,084
	Other		-		-		3,039		-		-		3,039		226,604		229,643
	Total Consumer		-		-		48,531		-		8,595		57,126		3,811,760		3,868,886
Total Popular, Inc.		$	1,022,517	$	640,167	$	2,609,815	$	5,404	$	9,400	$	4,287,303	$	16,695,889	$	20,983,192

The following table presents the weighted average obligor risk rating at December 31, 2012 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							11.94								5.68
Commercial real estate non-owner occupied							11.28								6.98
Commercial real estate owner occupied							11.51								6.93
Commercial and industrial							11.35								6.69
	Total Commercial						11.42								6.81
Construction							11.99								7.86

U.S. mainland:						Substandard									Pass
Commercial multi-family							11.26								7.12
Commercial real estate non-owner occupied							11.38								7.04
Commercial real estate owner occupied							11.28								6.64
Commercial and industrial							11.19								6.73
	Total Commercial						11.31								6.81
Construction							11.28								7.21
Legacy							11.30								7.48

[1]

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