XML 173 R16.htm IDEA: XBRL DOCUMENT

Allowance for loan losses

3 Months Ended

Mar. 31, 2014

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 (general reserve) and loan impairment guidance in ASC Section 310-10-35 (specific reserve).

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 triggered in order to assess the reasonability of the cap in light of the risk profile of the portfolio and current credit and loss trends. Upon the completion of these qualitative reviews, management may make reserve adjustments that may partially or fully override the effect of the caps, if warranted. 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 March 31, 2014, the recent loss trend adjustment caps for the consumer and mortgage portfolios were triggered in only one portfolio segment within the Puerto Rico consumer portfolio. Management assessed the impact of the applicable cap through a review of qualitative factors that specifically considered the drivers of recent loss trends and changes to the portfolio composition. The related effect of the aforementioned cap was immaterial for the overall level of the Allowance for Loan and Lease Losses for the Puerto Rico consumer portfolio.

For the period ended March 31, 2013, the recent loss trend adjustment caps for the consumer and mortgage portfolios were triggered in one consumer portfolio segment and one mortgage portfolio segment in the Puerto Rico region. Management assessed the adequacy of the applicable caps through a review of qualitative factors and recorded a $1.9 million qualitative offsetting adjustment that reversed the effect of the cap on the overall level of the Allowance for Loan and Lease Losses for the Puerto Rico consumer and mortgage portfolios. This offsetting adjustment considered the aforementioned review of qualitative factors, specifically, recent loss trends and changes to the portfolio composition.

At March 31, 2013, the impact of the use of recent loss trend adjustment caps on the overall level of Allowance for Loan and Lease Losses for the commercial portfolio was immaterial. The use of recent loss trend adjustment caps in the commercial portfolio was eliminated in the second quarter of 2013.

For the period ended March 31, 2014, 34% (March 31, 2013 - 51%) of the ALLL for 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, mortgage, personal and auto loan portfolios for 2014, and in the commercial multi-family, commercial real estate non-owner occupied, commercial real estate owner occupied, mortgage, leasing and auto loan portfolios for 2013.

For the period ended March 31, 2014, 23% (March 31, 2013 - 13 %) of the ALLL for 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 and industrial, construction and legacy loan portfolios for 2014 and in the commercial multi-family and consumer loan portfolios for 2013.
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.

The following tables present the changes in the allowance for loan losses for the quarters ended March 31, 2014 and 2013.

For the quarter ended March 31, 2014
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	128,150	$	5,095	$	130,330	$	10,622	$	152,578	$	426,775
	Provision (reversal of provision)		11,157		(1,394)		15,982		517		27,653		53,915
	Charge-offs		(22,117)		(416)		(8,726)		(967)		(29,196)		(61,422)
	Recoveries		6,944		1,794		210		311		6,213		15,472
Ending balance		$	124,134	$	5,079	$	137,796	$	10,483	$	157,248	$	434,740

For the quarter ended March 31, 2014
Puerto Rico - Covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	42,198	$	19,491	$	36,006	$	-	$	4,397	$	102,092
	Provision (reversal of provision)		4,039		17,567		4,498		-		(390)		25,714
	Charge-offs		(7,968)		(22,981)		(1,656)		-		295		(32,310)
	Recoveries		320		1,889		-		-		68		2,277
Ending balance		$	38,589	$	15,966	$	38,848	$	-	$	4,370	$	97,773

For the quarter ended March 31, 2014
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	46,832	$	247	$	26,599	$	13,704	$	24,306	$	111,688
	Provision (reversal of provision)		(2,643)		(200)		(562)		(5,314)		2,162		(6,557)
	Charge-offs		(8,082)		-		(1,538)		(3,445)		(5,976)		(19,041)
	Recoveries		11,773		176		668		8,327		801		21,745
Ending balance		$	47,880	$	223	$	25,167	$	13,272	$	21,293	$	107,835

For the quarter ended March 31, 2014
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	217,180	$	24,833	$	192,935	$	13,704	$	10,622	$	181,281	$	640,555
	Provision (reversal of provision)		12,553		15,973		19,918		(5,314)		517		29,425		73,072
	Charge-offs		(38,167)		(23,397)		(11,920)		(3,445)		(967)		(34,877)		(112,773)
	Recoveries		19,037		3,859		878		8,327		311		7,082		39,494
Ending balance		$	210,603	$	21,268	$	201,811	$	13,272	$	10,483	$	182,911	$	640,348

For the quarter ended March 31, 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		128,877		2,742		28,212		1,985		42,476		204,292
	Charge-offs		(32,446)		(1,629)		(17,759)		(1,543)		(27,360)		(80,737)
	Recoveries		8,134		1,274		986		559		7,359		18,312
	Net write-down related to loans sold		(161,297)		(1,846)		-		-		-		(163,143)
Ending balance		$	160,883	$	6,403	$	130,466	$	3,895	$	122,374	$	424,021

For the quarter ended March 31, 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		6,156		5,792		1,810		-		3,798		17,556
	Charge-offs		(10,565)		(9,759)		(2,062)		-		(4,567)		(26,953)
	Recoveries		30		314		11		-		3		358
Ending balance		$	67,681	$	6,293	$	20,673	$	-	$	5,220	$	99,867

For the quarter ended March 31, 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)		(3,219)		(531)		3,921		(1,197)		3,034		2,008
	Charge-offs		(13,140)		-		(4,017)		(6,341)		(7,197)		(30,695)
	Recoveries		4,279		-		1,227		5,213		1,044		11,763
Ending balance		$	67,987	$	1,036	$	31,479	$	30,777	$	28,201	$	159,480

For the quarter ended March 31, 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)		131,814		8,003		33,943		(1,197)		1,985		49,308		223,856
	Charge-offs		(56,151)		(11,388)		(23,838)		(6,341)		(1,543)		(39,124)		(138,385)
	Recoveries		12,443		1,588		2,224		5,213		559		8,406		30,433
	Net write-down related to loans sold		(161,297)		(1,846)		-		-		-		-		(163,143)
Ending balance		$	296,551	$	13,732	$	182,618	$	30,777	$	3,895	$	155,795	$	683,368

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
(In thousands)	March 31, 2014		March 31, 2013
Balance at beginning of period	$	93,915	$	95,407
Provision for loan losses		24,555		14,041
Net charge-offs		(28,099)		(17,875)
Balance at end of period	$	90,371	$	91,573

The following tables present information at March 31, 2014 and December 31, 2013 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 March 31, 2014
Puerto Rico


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	30,892	$	243	$	36,322	$	672	$	29,170	$	97,299
General ALLL non-covered loans			93,242		4,836		101,474		9,811		128,078		337,441
ALLL - non-covered loans			124,134		5,079		137,796		10,483		157,248		434,740
Specific ALLL covered loans			-		-		-		-		-		-
General ALLL covered loans			38,589		15,966		38,848		-		4,370		97,773
ALLL - covered loans			38,589		15,966		38,848		-		4,370		97,773
Total ALLL		$	162,723	$	21,045	$	176,644	$	10,483	$	161,618	$	532,513

Loans held-in-portfolio:
Impaired non-covered loans		$	304,531	$	22,011	$	406,053	$	2,455	$	122,291	$	857,341
Non-covered loans held-in-portfolio
	excluding impaired loans		6,138,467		119,592		5,018,808		544,425		3,284,286		15,105,578
Non-covered loans held-in-portfolio			6,442,998		141,603		5,424,861		546,880		3,406,577		15,962,919
Impaired covered loans			5,540		-		-		-		-		5,540
Covered loans held-in-portfolio
	excluding impaired loans		1,786,145		127,444		907,069		-		43,856		2,864,514
Covered loans held-in-portfolio			1,791,685		127,444		907,069		-		43,856		2,870,054
Total loans held-in-portfolio		$	8,234,683	$	269,047	$	6,331,930	$	546,880	$	3,450,433	$	18,832,973

At March 31, 2014
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Specific ALLL		$	-	$	-	$	17,594	$	-	$	243	$	17,837
General ALLL			47,880		223		7,573		13,272		21,050		89,998
Total ALLL		$	47,880	$	223	$	25,167	$	13,272	$	21,293	$	107,835

Loans held-in-portfolio:
Impaired loans		$	30,444	$	-	$	52,460	$	3,710	$	2,545	$	89,159
Loans held-in-portfolio,
	excluding impaired loans		3,541,279		35,163		1,192,055		193,454		597,748		5,559,699
Total loans held-in-portfolio		$	3,571,723	$	35,163	$	1,244,515	$	197,164	$	600,293	$	5,648,858

At March 31, 2014
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	30,892	$	243	$	53,916	$	-	$	672	$	29,413	$	115,136
General ALLL non-covered loans			141,122		5,059		109,047		13,272		9,811		149,128		427,439
ALLL - non-covered loans			172,014		5,302		162,963		13,272		10,483		178,541		542,575
Specific ALLL covered loans			-		-		-		-		-		-		-
General ALLL covered loans			38,589		15,966		38,848		-		-		4,370		97,773
ALLL - covered loans			38,589		15,966		38,848		-		-		4,370		97,773
Total ALLL		$	210,603	$	21,268	$	201,811	$	13,272	$	10,483	$	182,911	$	640,348

Loans held-in-portfolio:
Impaired non-covered loans		$	334,975	$	22,011	$	458,513	$	3,710	$	2,455	$	124,836	$	946,500
Non-covered loans held-in-portfolio
	excluding impaired loans		9,679,746		154,755		6,210,863		193,454		544,425		3,882,034		20,665,277
Non-covered loans held-in-portfolio			10,014,721		176,766		6,669,376		197,164		546,880		4,006,870		21,611,777
Impaired covered loans			5,540		-		-		-		-		-		5,540
Covered loans held-in-portfolio
	excluding impaired loans		1,786,145		127,444		907,069		-		-		43,856		2,864,514
Covered loans held-in-portfolio			1,791,685		127,444		907,069		-		-		43,856		2,870,054
Total loans held-in-portfolio		$	11,806,406	$	304,210	$	7,576,445	$	197,164	$	546,880	$	4,050,726	$	24,481,831

At December 31, 2013
Puerto Rico


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	16,409	$	177	$	38,034	$	1,053	$	29,920	$	85,593
General ALLL non-covered loans			111,741		4,918		92,296		9,569		122,658		341,182
ALLL - non-covered loans			128,150		5,095		130,330		10,622		152,578		426,775
Specific ALLL covered loans			153		140		-		-		-		293
General ALLL covered loans			42,045		19,351		36,006		-		4,397		101,799
ALLL - covered loans			42,198		19,491		36,006		-		4,397		102,092
Total ALLL		$	170,348	$	24,586	$	166,336	$	10,622	$	156,975	$	528,867

Loans held-in-portfolio:
Impaired non-covered loans		$	245,380	$	16,823	$	399,347	$	2,893	$	125,342	$	789,785
Non-covered loans held-in-portfolio
	excluding impaired loans		6,220,210		144,348		5,001,332		540,868		3,191,296		15,098,054
Non-covered loans held-in-portfolio			6,465,590		161,171		5,400,679		543,761		3,316,638		15,887,839
Impaired covered loans			20,945		-		-		-		-		20,945
Covered loans held-in-portfolio
	excluding impaired loans		1,791,859		190,127		934,373		-		47,123		2,963,482
Covered loans held-in-portfolio			1,812,804		190,127		934,373		-		47,123		2,984,427
Total loans held-in-portfolio		$	8,278,394	$	351,298	$	6,335,052	$	543,761	$	3,363,761	$	18,872,266

At December 31, 2013
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Specific ALLL		$	-	$	-	$	17,633	$	-	$	280	$	17,913
General ALLL			46,832		247		8,966		13,704		24,026		93,775
Total ALLL		$	46,832	$	247	$	26,599	$	13,704	$	24,306	$	111,688

Loans held-in-portfolio:
Impaired loans		$	52,136	$	5,663	$	52,726	$	6,045	$	2,361	$	118,931
Loans held-in-portfolio,
	excluding impaired loans		3,519,459		39,250		1,228,071		205,090		613,227		5,605,097
Total loans held-in-portfolio		$	3,571,595	$	44,913	$	1,280,797	$	211,135	$	615,588	$	5,724,028

At December 31, 2013
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	16,409	$	177	$	55,667	$	-	$	1,053	$	30,200	$	103,506
General ALLL non-covered loans			158,573		5,165		101,262		13,704		9,569		146,684		434,957
ALLL - non-covered loans			174,982		5,342		156,929		13,704		10,622		176,884		538,463
Specific ALLL covered loans			153		140		-		-		-		-		293
General ALLL covered loans			42,045		19,351		36,006		-		-		4,397		101,799
ALLL - covered loans			42,198		19,491		36,006		-		-		4,397		102,092
Total ALLL		$	217,180	$	24,833	$	192,935	$	13,704	$	10,622	$	181,281	$	640,555

Loans held-in-portfolio:
Impaired non-covered loans		$	297,516	$	22,486	$	452,073	$	6,045	$	2,893	$	127,703	$	908,716
Non-covered loans held-in-portfolio
	excluding impaired loans		9,739,669		183,598		6,229,403		205,090		540,868		3,804,523		20,703,151
Non-covered loans held-in-portfolio			10,037,185		206,084		6,681,476		211,135		543,761		3,932,226		21,611,867
Impaired covered loans			20,945		-		-		-		-		-		20,945
Covered loans held-in-portfolio
	excluding impaired loans		1,791,859		190,127		934,373		-		-		47,123		2,963,482
Covered loans held-in-portfolio			1,812,804		190,127		934,373		-		-		47,123		2,984,427
Total loans held-in-portfolio		$	11,849,989	$	396,211	$	7,615,849	$	211,135	$	543,761	$	3,979,349	$	24,596,294

Impaired loans

The following tables present loans individually evaluated for impairment at March 31, 2014 and December 31, 2013.

March 31, 2014
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	$	-	$	-	$	-	$	2,983	$	6,520	$	2,983	$	6,520	$	-
Commercial real estate non-owner occupied		32,833		33,200		4,789		43,135		48,271		75,968		81,471		4,789
Commercial real estate owner occupied		62,951		82,807		7,533		44,252		55,751		107,203		138,558		7,533
Commercial and industrial		95,926		98,220		18,570		22,451		32,578		118,377		130,798		18,570
Construction		4,650		12,013		243		17,361		37,220		22,011		49,233		243
Mortgage		354,876		373,052		36,322		51,177		57,640		406,053		430,692		36,322
Leasing		2,455		2,455		672		-		-		2,455		2,455		672
Consumer:
Credit cards		43,900		43,900		8,203		-		-		43,900		43,900		8,203
Personal		75,589		75,589		20,503		-		-		75,589		75,589		20,503
Auto		1,527		1,527		173		-		-		1,527		1,527		173
Other		1,275		1,275		291		-		-		1,275		1,275		291
Covered loans		-		-		-		5,540		10,381		5,540		10,381		-
Total Puerto Rico	$	675,982	$	724,038	$	97,299	$	186,899	$	248,361	$	862,881	$	972,399	$	97,299

March 31, 2014
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	$	-	$	-	$	-	$	3,655	$	4,278	$	3,655	$	4,278	$	-
Commercial real estate non-owner occupied		-		-		-		13,478		22,623		13,478		22,623		-
Commercial real estate owner occupied		-		-		-		11,722		14,986		11,722		14,986		-
Commercial and industrial		-		-		-		1,589		1,589		1,589		1,589		-
Mortgage		45,587		50,431		17,594		6,873		8,902		52,460		59,333		17,594
Legacy		-		-		-		3,710		6,234		3,710		6,234		-
Consumer:
HELOCs		2,254		2,254		243		198		198		2,452		2,452		243
Auto		-		-		-		87		87		87		87		-
Other		6		6		-		-		-		6		6		-
Total U.S. mainland	$	47,847	$	52,691	$	17,837	$	41,312	$	58,897	$	89,159	$	111,588	$	17,837

March 31, 2014
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	$	-	$	-	$	-	$	6,638	$	10,798	$	6,638	$	10,798	$	-
Commercial real estate non-owner occupied		32,833		33,200		4,789		56,613		70,894		89,446		104,094		4,789
Commercial real estate owner occupied		62,951		82,807		7,533		55,974		70,737		118,925		153,544		7,533
Commercial and industrial		95,926		98,220		18,570		24,040		34,167		119,966		132,387		18,570
Construction		4,650		12,013		243		17,361		37,220		22,011		49,233		243
Mortgage		400,463		423,483		53,916		58,050		66,542		458,513		490,025		53,916
Legacy		-		-		-		3,710		6,234		3,710		6,234		-
Leasing		2,455		2,455		672		-		-		2,455		2,455		672
Consumer:
Credit cards		43,900		43,900		8,203		-		-		43,900		43,900		8,203
HELOCs		2,254		2,254		243		198		198		2,452		2,452		243
Personal		75,589		75,589		20,503		-		-		75,589		75,589		20,503
Auto		1,527		1,527		173		87		87		1,614		1,614		173
Other		1,281		1,281		291		-		-		1,281		1,281		291
Covered loans		-		-		-		5,540		10,381		5,540		10,381		-
Total Popular, Inc.	$	723,829	$	776,729	$	115,136	$	228,211	$	307,258	$	952,040	$	1,083,987	$	115,136

December 31, 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	$	-	$	-	$	-	$	3,405	$	6,942	$	3,405	$	6,942	$	-
Commercial real estate non-owner occupied		19,120		19,407		2,368		47,245		55,397		66,365		74,804		2,368
Commercial real estate owner occupied		55,826		74,420		6,473		33,749		47,545		89,575		121,965		6,473
Commercial and industrial		30,370		33,152		7,568		55,665		68,141		86,035		101,293		7,568
Construction		2,324		9,047		177		14,499		36,951		16,823		45,998		177
Mortgage		358,437		376,393		38,034		40,910		45,181		399,347		421,574		38,034
Leasing		2,893		2,893		1,053		-		-		2,893		2,893		1,053
Consumer:
Credit cards		45,015		45,015		8,344		-		-		45,015		45,015		8,344
Personal		78,475		78,475		21,313		-		-		78,475		78,475		21,313
Auto		1,354		1,354		171		-		-		1,354		1,354		171
Other		498		498		92		-		-		498		498		92
Covered loans		12,837		17,538		293		8,108		10,063		20,945		27,601		293
Total Puerto Rico	$	607,149	$	658,192	$	85,886	$	203,581	$	270,220	$	810,730	$	928,412	$	85,886

December 31, 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	$	-	$	-	$	-	$	7,668	$	10,870	$	7,668	$	10,870	$	-
Commercial real estate non-owner occupied		-		-		-		27,016		37,393		27,016		37,393		-
Commercial real estate owner occupied		-		-		-		15,624		19,910		15,624		19,910		-
Commercial and industrial		-		-		-		1,828		1,828		1,828		1,828		-
Construction		-		-		-		5,663		5,663		5,663		5,663		-
Mortgage		46,192		50,570		17,633		6,534		8,513		52,726		59,083		17,633
Legacy		-		-		-		6,045		8,715		6,045		8,715		-
Consumer:
HELOCs		-		-		-		198		198		198		198		-
Auto		-		-		-		88		88		88		88		-
Other		2,075		2,075		280		-		-		2,075		2,075		280
Total U.S. mainland	$	48,267	$	52,645	$	17,913	$	70,664	$	93,178	$	118,931	$	145,823	$	17,913

December 31, 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	$	-	$	-	$	-	$	11,073	$	17,812	$	11,073	$	17,812	$	-
Commercial real estate non-owner occupied		19,120		19,407		2,368		74,261		92,790		93,381		112,197		2,368
Commercial real estate owner occupied		55,826		74,420		6,473		49,373		67,455		105,199		141,875		6,473
Commercial and industrial		30,370		33,152		7,568		57,493		69,969		87,863		103,121		7,568
Construction		2,324		9,047		177		20,162		42,614		22,486		51,661		177
Mortgage		404,629		426,963		55,667		47,444		53,694		452,073		480,657		55,667
Legacy		-		-		-		6,045		8,715		6,045		8,715		-
Leasing		2,893		2,893		1,053		-		-		2,893		2,893		1,053
Consumer:
Credit cards		45,015		45,015		8,344		-		-		45,015		45,015		8,344
HELOCs		-		-		-		198		198		198		198		-
Personal		78,475		78,475		21,313		-		-		78,475		78,475		21,313
Auto		1,354		1,354		171		88		88		1,442		1,442		171
Other		2,573		2,573		372		-		-		2,573		2,573		372
Covered loans		12,837		17,538		293		8,108		10,063		20,945		27,601		293
Total Popular, Inc.	$	655,416	$	710,837	$	103,799	$	274,245	$	363,398	$	929,661	$	1,074,235	$	103,799

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarters ended March 31, 2014 and 2013.

For the quarter ended March 31, 2014
	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	$	3,194	$	8	$	5,662	$	-	$	8,856	$	8
Commercial real estate non-owner occupied		71,167		483		20,247		-		91,414		483
Commercial real estate owner occupied		98,389		608		13,673		-		112,062		608
Commercial and industrial		102,206		742		1,709		-		103,915		742
Construction		19,417		-		2,832		-		22,249		-
Mortgage		402,700		5,183		52,593		507		455,293		5,690
Legacy		-		-		4,878		-		4,878		-
Leasing		2,674		-		-		-		2,674		-
Consumer:
Credit cards		44,458		-		-		-		44,458		-
Helocs		-		-		1,325		-		1,325		-
Personal		77,032		-		-		-		77,032		-
Auto		1,441		-		88		-		1,529		-
Other		887		-		1,041		-		1,928		-
Covered loans		13,243		140		-		-		13,243		140
Total Popular, Inc.	$	836,808	$	7,164	$	104,048	$	507	$	940,856	$	7,671

For the quarter ended March 31, 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	$	10,927	$	64	$	7,358	$	39	$	18,285	$	103
Commercial real estate non-owner occupied		59,673		400		43,426		35		103,099		435
Commercial real estate owner occupied		153,908		528		20,108		26		174,016		554
Commercial and industrial		115,375		584		4,029		15		119,404		599
Construction		39,682		391		5,922		-		45,604		391
Mortgage		567,804		7,734		53,643		502		621,447		8,236
Legacy		-		-		16,888		-		16,888		-
Leasing		4,620		-		-		-		4,620		-
Consumer:
Credit cards		33,332		-		-		-		33,332		-
Helocs		-		-		201		-		201		-
Personal		85,796		-		-		-		85,796		-
Auto		817		-		91		-		908		-
Other		247		-		2,404		-		2,651		-
Covered loans		66,327		59		-		-		66,327		59
Total Popular, Inc.	$	1,138,508	$	9,760	$	154,070	$	617	$	1,292,578	$	10,377

Modifications

Troubled debt restructurings related to non-covered loan portfolios amounted to $ 1.0 billion at March 31, 2014 (December 31, 2013 - $ 1.0 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings amounted $3 million related to the commercial loan portfolio and $895 thousand million related to the construction loan portfolio at March 31, 2014 (December 31, 2013 - $3 million and $0, respectively).

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; and (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, the 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 tends 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 Subtopic 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. The Corporation may also measure 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 March 31, 2014 and December 31, 2013.

	Popular, Inc.
	Non-Covered Loans
	March 31, 2014						December 31, 2013
(In thousands)		Accruing		Non-Accruing		Total		Accruing		Non-Accruing		Total
Commercial	$	107,905	$	64,319	$	172,224	$	109,462	$	80,140	$	189,602
Construction		401		14,283		14,684		425		10,865		11,290
Legacy		-		949		949		-		949		949
Mortgage		546,411		92,019		638,430		535,357		82,786		618,143
Leases		978		1,477		2,455		270		2,623		2,893
Consumer		113,902		11,101		125,003		116,719		10,741		127,460
Total	$	769,597	$	184,148	$	953,745	$	762,233	$	188,104	$	950,337

	Popular, Inc.
	Covered Loans
	March 31, 2014						December 31, 2013
(In thousands)		Accruing		Non-Accruing		Total		Accruing		Non-Accruing		Total
Commercial	$	14	$	2,631	$	2,645	$	7,389	$	10,017	$	17,406
Construction		-		3,232		3,232		-		3,464		3,464
Mortgage		211		157		368		146		189		335
Consumer		162		12		174		221		22		243
Total	$	387	$	6,032	$	6,419	$	7,756	$	13,692	$	21,448

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarter ended March 31, 2014 and 2013.

Puerto Rico
For the quarter ended March 31, 2014
	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	-	-
Commercial real estate owner occupied	9	2	-	-
Commercial and industrial	9	-	-	-
Construction	-	3	-	-
Mortgage	13	14	80	24
Leasing	-	4	6	-
Consumer:
Credit cards	274	-	-	155
Personal	216	17	-	1
Auto	-	2	-	-
Other	18	-	-	1
Total	541	43	86	181

U.S. mainland
For the quarter ended March 31, 2014
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Mortgage	-	-	6	-
Consumer:
Total	-	-	6	-

Popular, Inc.
For the quarter ended March 31, 2014
	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	-	-
Commercial real estate owner occupied	9	2	-	-
Commercial and industrial	9	-	-	-
Construction	-	3	-	-
Mortgage	13	14	86	24
Leasing	-	4	6	-
Consumer:
Credit cards	274	-	-	155
Personal	216	17	-	1
Auto	-	2	-	-
Other	18	-	-	1
Total	541	43	92	181

Puerto Rico
For the quarter ended March 31, 2013
	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	-	-
Commercial real estate owner occupied	1	1	-	-
Commercial and industrial	2	2	-	-
Mortgage	4	13	130	6
Leasing	-	10	8	-
Consumer:
Credit cards	288	-	-	236
Personal	232	8	-	-
Other	19	-	-	-
Total	546	35	138	242

U.S. mainland
For the quarter ended March 31, 2013
	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	-	-
Commercial real estate owner occupied	-	-	1	-
Mortgage	-	-	3	-
Consumer:
Total	-	2	4	-

Popular, Inc.
For the quarter ended March 31, 2013
	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	-	-
Commercial real estate owner occupied	1	1	1	-
Commercial and industrial	2	2	-	-
Mortgage	4	13	133	6
Leasing	-	10	8	-
Consumer:
Credit cards	288	-	-	236
Personal	232	8	-	-
Other	19	-	-	-
Total	546	37	142	242

The following tables present by class, quantitative information related to loans modified as TDRs during the quarters ended March 31, 2014 and 2013.

Puerto Rico
For the quarter ended March 31, 2014
(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	3	$	1,376	$	1,454	$	(63)
Commercial real estate owner occupied	11		1,629		1,617		(26)
Commercial and industrial	9		773		770		9
Construction	3		11,358		11,358		(570)
Mortgage	131		19,386		20,525		1,138
Leasing	10		206		207		63
Consumer:
Credit cards	429		3,583		4,091		627
Personal	234		4,075		4,074		912
Auto	2		32		33		1
Other	19		37		37		6
Total	851	$	42,455	$	44,166	$	2,097

U.S. Mainland
For the quarter ended March 31, 2014
(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
Mortgage	6	$	925	$	1,064	$	(5)
Total	6	$	925	$	1,064	$	(5)

Popular, Inc.
For the quarter ended March 31, 2014
(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	3	$	1,376	$	1,454	$	(63)
Commercial real estate owner occupied	11		1,629		1,617		(26)
Commercial and industrial	9		773		770		9
Construction	3		11,358		11,358		(570)
Mortgage	137		20,311		21,589		1,133
Leasing	10		206		207		63
Consumer:
Credit cards	429		3,583		4,091		627
Personal	234		4,075		4,074		912
Auto	2		32		33		1
Other	19		37		37		6
Total	857	$	43,380	$	45,230	$	2,092

Puerto Rico
For the quarter ended March 31, 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	$	1,248	$	741	$	(10)
Commercial real estate owner occupied	2		4,566		4,586		(340)
Commercial and industrial	4		160		161		(1)
Mortgage	153		24,898		26,789		3,427
Leasing	18		327		315		103
Consumer:
Credit cards	524		4,265		5,146		37
Personal	240		3,832		3,846		993
Other	19		49		48		-
Total	961	$	39,345	$	41,632	$	4,209

U.S. Mainland
For the quarter ended March 31, 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	2	$	1,594	$	1,559	$	(2)
Commercial real estate owner occupied	1		381		287		(10)
Mortgage	3		226		228		23
Consumer:
Total	6	$	2,201	$	2,074	$	11

Popular, Inc.
For the quarter ended March 31, 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	3	$	2,842	$	2,300	$	(12)
Commercial real estate owner occupied	3		4,947		4,873		(350)
Commercial and industrial	4		160		161		(1)
Mortgage	156		25,124		27,017		3,450
Leasing	18		327		315		103
Consumer:
Credit cards	524		4,265		5,146		37
Personal	240		3,832		3,846		993
Other	19		49		48		-
Total	967	$	41,546	$	43,706	$	4,220

During the quarters ended March 31, 2014 and 2013, one loan comprising a recorded investment of approximately $1.0 million and one loan of $1.2 million, respectively, were restructured into multiple notes (“Note A / B split”). The Corporation recorded no charge-offs as part of the loan restructuring during the quarter ended March 31, 2014 (March 31, 2013 - $0.5 million). The renegotiations of these loans 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 $1.1 million at March 31, 2014 (March 31, 2013 - $0.7 million) with no related allowance for loan losses (March 31, 2013 - $21 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 March 31, 2014 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 March 31, 2014
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	30
Commercial real estate owner occupied	2		333
Commercial and industrial	3		171
Mortgage	19		4,445
Leasing	2		64
Consumer:
Credit cards	178		1,642
Personal	37		443
Auto	5		118
Other	2		4
Total [1]	249	$	7,250
[1] Excludes loans for which the Corporation has entered into liquidation agreements with borrowers and guarantors and is accepting payments which differ from the contractual payment schedule. The Corporation considers these as defaulted loans and does not intent to return them to accrual status.

U.S. mainland
Defaulted during the quarter ended March 31, 2014
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	907
Total	1	$	907

Popular, Inc.
Defaulted during the quarter ended March 31, 2014
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate non-owner occupied	2	$	937
Commercial real estate owner occupied	2		333
Commercial and industrial	3		171
Mortgage	19		4,445
Leasing	2		64
Consumer:
Credit cards	178		1,642
Personal	37		443
Auto	5		118
Other	2		4
Total	250	$	8,157

Puerto Rico
Defaulted during the quarter ended March 31, 2013
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial and industrial	1	$	932
Mortgage	63		8,871
Leasing	7		44
Consumer:
Credit cards	131		1,120
Personal	41		577
Total [1]	243	$	11,544
[1] Exclude loans for which the Corporation has entered into liquidation agreements with borrowers and guarantors and is accepting payments which differ from the contractual payment schedule. The Corporation considers these as defaulted loans and does not intent to return them to accrual status.

U.S. mainland
Defaulted during the quarter ended March 31, 2013
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	1,139
Consumer:
Total	1	$	1,139

Popular, Inc.
Defaulted during the quarter ended March 31, 2013
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	1,139
Commercial and industrial	1		932
Mortgage	63		8,871
Leasing	7		44
Consumer:
Credit cards	131		1,120
Personal	41		577
Total	244	$	12,683

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 March 31, 2014 and December 31, 2013.

March 31, 2014
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	1,837	$	4,649	$	5,919	$	-	$	-	$	12,405	$	60,887	$	73,292
Commercial real estate non-owner occupied			207,030		193,584		96,775		-		99		497,488		1,432,197		1,929,685
Commercial real estate owner occupied			198,605		131,359		304,303		-		-		634,267		933,838		1,568,105
Commercial and industrial			706,868		193,590		201,593		69		344		1,102,464		1,769,452		2,871,916
	Total Commercial		1,114,340		523,182		608,590		69		443		2,246,624		4,196,374		6,442,998
Construction			2,929		1,906		12,666		2,250		-		19,751		121,852		141,603
Mortgage			-		-		185,433		-		-		185,433		5,239,428		5,424,861
Leasing			-		-		2,908		-		142		3,050		543,830		546,880
Consumer:
	Credit cards		-		-		21,954		-		-		21,954		1,126,596		1,148,550
	HELOCs		-		-		586		-		2,554		3,140		11,390		14,530
	Personal		-		-		6,837		-		99		6,936		1,285,676		1,292,612
	Auto		-		-		10,705		-		182		10,887		724,673		735,560
	Other		-		-		2,166		-		1,457		3,623		211,702		215,325
	Total Consumer		-		-		42,248		-		4,292		46,540		3,360,037		3,406,577
Total Puerto Rico		$	1,117,269	$	525,088	$	851,845	$	2,319	$	4,877	$	2,501,398	$	13,461,521	$	15,962,919
U.S. mainland
Commercial multi-family		$	74,723	$	7,571	$	54,047	$	-	$	-	$	136,341	$	965,273	$	1,101,614
Commercial real estate non-owner occupied			75,299		32,707		156,952		-		-		264,958		819,146		1,084,104
Commercial real estate owner occupied			61,891		18,072		63,764		-		-		143,727		398,008		541,735
Commercial and industrial			15,208		12,811		43,434		-		-		71,453		772,817		844,270
	Total Commercial		227,121		71,161		318,197		-		-		616,479		2,955,244		3,571,723
Construction			-		-		671		-		-		671		34,492		35,163
Mortgage			-		-		22,220		-		-		22,220		1,222,295		1,244,515
Legacy			14,585		10,315		37,871		-		-		62,771		134,393		197,164
Consumer:
	Credit cards		-		-		474		-		-		474		14,593		15,067
	HELOCs		-		-		2,000		-		4,976		6,976		445,277		452,253
	Personal		-		-		158		-		665		823		130,726		131,549
	Auto		-		-		-		-		2		2		414		416
	Other		-		-		-		-		-		-		1,008		1,008
	Total Consumer		-		-		2,632		-		5,643		8,275		592,018		600,293
Total U.S. mainland		$	241,706	$	81,476	$	381,591	$	-	$	5,643	$	710,416	$	4,938,442	$	5,648,858
Popular, Inc.
Commercial multi-family		$	76,560	$	12,220	$	59,966	$	-	$	-	$	148,746	$	1,026,160	$	1,174,906
Commercial real estate non-owner occupied			282,329		226,291		253,727		-		99		762,446		2,251,343		3,013,789
Commercial real estate owner occupied			260,496		149,431		368,067		-		-		777,994		1,331,846		2,109,840
Commercial and industrial			722,076		206,401		245,027		69		344		1,173,917		2,542,269		3,716,186
	Total Commercial		1,341,461		594,343		926,787		69		443		2,863,103		7,151,618		10,014,721
Construction			2,929		1,906		13,337		2,250		-		20,422		156,344		176,766
Mortgage			-		-		207,653		-		-		207,653		6,461,723		6,669,376
Legacy			14,585		10,315		37,871		-		-		62,771		134,393		197,164
Leasing			-		-		2,908		-		142		3,050		543,830		546,880
Consumer:
	Credit cards		-		-		22,428		-		-		22,428		1,141,189		1,163,617
	HELOCs		-		-		2,586		-		7,530		10,116		456,667		466,783
	Personal		-		-		6,995		-		764		7,759		1,416,402		1,424,161
	Auto		-		-		10,705		-		184		10,889		725,087		735,976
	Other		-		-		2,166		-		1,457		3,623		212,710		216,333
	Total Consumer		-		-		44,880		-		9,935		54,815		3,952,055		4,006,870
Total Popular, Inc.		$	1,358,975	$	606,564	$	1,233,436	$	2,319	$	10,520	$	3,211,814	$	18,399,963	$	21,611,777

The following table presents the weighted average obligor risk rating at March 31, 2014 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							11.74								5.41
Commercial real estate non-owner occupied							11.48								6.66
Commercial real estate owner occupied							11.36								6.86
Commercial and industrial							11.42								6.64
	Total Commercial						11.40								6.69
Construction							11.75								7.80

U.S. mainland:						Substandard									Pass
Commercial multi-family							11.18								7.07
Commercial real estate non-owner occupied							11.17								6.93
Commercial real estate owner occupied							11.29								7.02
Commercial and industrial							11.12								6.52
	Total Commercial						11.19								6.88
Construction							11.00								7.62
Legacy							11.22								7.71

[1]

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

December 31, 2013
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	2,477	$	4,453	$	2,343	$	-	$	-	$	9,273	$	73,130	$	82,403
Commercial real estate non-owner occupied			230,847		156,189		115,435		-		112		502,583		1,361,635		1,864,218
Commercial real estate owner occupied			231,705		134,577		305,565		-		-		671,847		934,656		1,606,503
Commercial and industrial			727,647		192,404		214,531		68		446		1,135,096		1,777,370		2,912,466
	Total Commercial		1,192,676		487,623		637,874		68		558		2,318,799		4,146,791		6,465,590
Construction			6,895		1,788		25,722		2,250		-		36,655		124,516		161,171
Mortgage			-		-		169,239		-		-		169,239		5,231,440		5,400,679
Leasing			-		-		3,495		-		-		3,495		540,266		543,761
Consumer:
	Credit cards		-		-		21,044		-		-		21,044		1,148,577		1,169,621
	HELOCs		-		-		665		-		2,426		3,091		12,087		15,178
	Personal		-		-		7,483		-		141		7,624		1,206,260		1,213,884
	Auto		-		-		10,407		-		155		10,562		688,929		699,491
	Other		-		-		2,019		-		3,531		5,550		212,914		218,464
	Total Consumer		-		-		41,618		-		6,253		47,871		3,268,767		3,316,638
Total Puerto Rico		$	1,199,571	$	489,411	$	877,948	$	2,318	$	6,811	$	2,576,059	$	13,311,780	$	15,887,839
U.S. mainland
Commercial multi-family		$	73,481	$	11,459	$	62,346	$	-	$	-	$	147,286	$	946,248	$	1,093,534
Commercial real estate non-owner occupied			75,094		29,442		160,001		-		-		264,537		841,750		1,106,287
Commercial real estate owner occupied			56,515		15,845		75,508		-		-		147,868		412,174		560,042
Commercial and industrial			11,657		11,822		46,307		-		-		69,786		741,945		811,731
	Total Commercial		216,747		68,568		344,162		-		-		629,477		2,942,117		3,571,594
Construction			-		-		20,885		-		-		20,885		24,028		44,913
Mortgage			-		-		26,292		-		-		26,292		1,254,505		1,280,797
Legacy			14,948		11,593		42,622		-		-		69,163		141,972		211,135
Consumer:
	Credit cards		-		-		486		-		-		486		15,165		15,651
	HELOCs		-		-		3,317		-		5,315		8,632		454,401		463,033
	Personal		-		-		1,005		-		569		1,574		133,661		135,235
	Auto		-		-		-		-		2		2		487		489
	Other		-		-		20		-		1		21		1,159		1,180
	Total Consumer		-		-		4,828		-		5,887		10,715		604,873		615,588
Total U.S. mainland		$	231,695	$	80,161	$	438,789	$	-	$	5,887	$	756,532	$	4,967,495	$	5,724,027
Popular, Inc.
Commercial multi-family		$	75,958	$	15,912	$	64,689	$	-	$	-	$	156,559	$	1,019,378	$	1,175,937
Commercial real estate non-owner occupied			305,941		185,631		275,436		-		112		767,120		2,203,385		2,970,505
Commercial real estate owner occupied			288,220		150,422		381,073		-		-		819,715		1,346,830		2,166,545
Commercial and industrial			739,304		204,226		260,838		68		446		1,204,882		2,519,315		3,724,197
	Total Commercial		1,409,423		556,191		982,036		68		558		2,948,276		7,088,908		10,037,184
Construction			6,895		1,788		46,607		2,250		-		57,540		148,544		206,084
Mortgage			-		-		195,531		-		-		195,531		6,485,945		6,681,476
Legacy			14,948		11,593		42,622		-		-		69,163		141,972		211,135
Leasing			-		-		3,495		-		-		3,495		540,266		543,761
Consumer:
	Credit cards		-		-		21,530		-		-		21,530		1,163,742		1,185,272
	HELOCs		-		-		3,982		-		7,741		11,723		466,488		478,211
	Personal		-		-		8,488		-		710		9,198		1,339,921		1,349,119
	Auto		-		-		10,407		-		157		10,564		689,416		699,980
	Other		-		-		2,039		-		3,532		5,571		214,073		219,644
	Total Consumer		-		-		46,446		-		12,140		58,586		3,873,640		3,932,226
Total Popular, Inc.		$	1,431,266	$	569,572	$	1,316,737	$	2,318	$	12,698	$	3,332,591	$	18,279,275	$	21,611,866

The following table presents the weighted average obligor risk rating at December 31, 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							11.33								5.31
Commercial real estate non-owner occupied							11.38								6.73
Commercial real estate owner occupied							11.31								6.89
Commercial and industrial							11.34								6.63
	Total Commercial						11.33								6.71
Construction							11.63								7.86

U.S. mainland:						Substandard									Pass
Commercial multi-family							11.34								7.08
Commercial real estate non-owner occupied							11.27								6.89
Commercial real estate owner occupied							11.31								7.04
Commercial and industrial							11.09								6.53
	Total Commercial						11.27								6.89
Construction							11.27								7.64
Legacy							11.24								7.72

[1]

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