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Allowance for loan losses

3 Months Ended

Mar. 31, 2015

Loans and Leases Receivable, Allowance [Abstract]

Note 12 – Allowance for loan losses

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

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

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

Base net loss rates, which are based on the moving average of annualized net loss rates computed over a 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, when these trends are higher than the respective base loss rates. The objective of this adjustment is to allow for a more recent loss trend to be captured and reflected in the ALLL estimation process. As part of the annual review of the components of the ALLL models, as discussed in the following paragraphs and implemented as of June 30, 2014, the Corporation eliminated the use of caps in the recent loss trend adjustment for the consumer and mortgage portfolios, among other enhancements. For the period ended December 31, 2013, 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, 2015, 59% (March 31, 2014 - 34%) 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 mortgage, leasing, credit cards, personal loans and revolving loan portfolio for 2015, and in the commercial multi-family, mortgage, personal and auto loan portfolios for 2014.
For the period ended March 31, 2015, 13% (March 31, 2014 - 23%)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 consumer loan portfolios for 2015 and in the commercial multi-family, commercial and industrial, construction and legacy loan portfolios for 2014.
Environmental factors, which include credit and macroeconomic indicators such as unemployment rate, economic activity index and delinquency rates, adopted to account for current market conditions that are likely to cause estimated credit losses to differ from historical losses. The Corporation reflects the effect of these environmental factors on each loan group as an adjustment that, as appropriate, increases the historical loss rate applied to each group. Environmental factors provide updated perspective on credit and economic conditions. Regression analysis is used to select these indicators and quantify the effect on the general reserve of the allowance for loan losses.

The following tables present the changes in the allowance for loan losses for the quarters ended March 31, 2015 and 2014.

For the quarter ended March 31, 2015
Puerto Rico - Non-covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	201,589	$	5,483	$	120,860	$	7,131	$	154,072	$	489,135
	Provision (reversal of provision)		(1,321)		(6,813)		16,192		846		23,009		31,913
	Charge-offs		(9,572)		-		(10,973)		(1,237)		(29,699)		(51,481)
	Recoveries		4,770		2,925		500		468		6,046		14,709
Ending balance		$	195,466	$	1,595	$	126,579	$	7,208	$	153,428	$	484,276

For the quarter ended March 31, 2015
Puerto Rico - Covered loans


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	30,871	$	7,202	$	40,948	$	-	$	3,052	$	82,073
	Provision (reversal of provision)		1,995		6,276		2,802		-		(749)		10,324
	Charge-offs		(14,239)		(9,046)		(3,386)		-		-		(26,671)
	Recoveries		2,640		3,275		105		-		727		6,747
Ending balance		$	21,267	$	7,707	$	40,469	$	-	$	3,030	$	72,473

For the quarter ended March 31, 2015
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	9,648	$	1,187	$	2,462	$	2,944	$	14,343	$	30,584
	Provision (reversal of provision)		299		662		(6,127)		(1,810)		4,774		(2,202)
	Charge-offs		(450)		-		(221)		(474)		(2,518)		(3,663)
	Recoveries		929		-		67		2,302		1,251		4,549
	Net recoveries (write-down)		-		-		6,081		-		(3,401)		2,680
Ending balance		$	10,426	$	1,849	$	2,262	$	2,962	$	14,449	$	31,948

For the quarter ended March 31, 2015
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Beginning balance		$	242,108	$	13,872	$	164,270	$	2,944	$	7,131	$	171,467	$	601,792
	Provision (reversal of provision)		973		125		12,867		(1,810)		846		27,034		40,035
	Charge-offs		(24,261)		(9,046)		(14,580)		(474)		(1,237)		(32,217)		(81,815)
	Recoveries		8,339		6,200		672		2,302		468		8,024		26,005
	Net recoveries (write-down)		-		-		6,081		-		-		(3,401)		2,680
Ending balance		$	227,159	$	11,151	$	169,310	$	2,962	$	7,208	$	170,907	$	588,697

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 - Continuing Operations


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	24,930	$	214	$	26,599	$	11,335	$	19,205	$	82,283
	Allowance transferred from discontinued operations		7,984		-		-		-		-		7,984
	Provision (reversal of provision)		578		(194)		(562)		(3,672)		4,057		207
	Charge-offs		(4,991)		-		(1,538)		(2,984)		(5,076)		(14,589)
	Recoveries		3,004		176		668		7,193		707		11,748
Ending balance		$	31,505	$	196	$	25,167	$	11,872	$	18,893	$	87,633


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


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Beginning balance		$	21,902	$	33	$	-	$	2,369	$	5,101	$	29,405
	Allowance transferred to continuing operations		(7,984)		-		-		-		-		(7,984)
	Provision (reversal of provision)		(2,831)		(226)		-		(1,812)		(1,895)		(6,764)
	Charge-offs		(2,995)		-		-		(557)		(900)		(4,452)
	Recoveries		8,283		220		-		1,400		94		9,997
Ending balance		$	16,375	$	27	$	-	$	1,400	$	2,400	$	20,202

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)		12,943		15,753		19,918		(5,484)		517		29,425		73,072
	Charge-offs		(38,071)		(23,397)		(11,920)		(3,541)		(967)		(34,877)		(112,773)
	Recoveries		18,551		4,079		878		8,593		311		7,082		39,494
Ending balance		$	210,603	$	21,268	$	201,811	$	13,272	$	10,483	$	182,911	$	640,348

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, 2015		March 31, 2014
Balance at beginning of period	$	78,846	$	93,915
Provision for loan losses		8,601		24,555
Net charge-offs		(19,061)		(28,099)
Balance at end of period	$	68,386	$	90,371

The following tables present information at March 31, 2015 and December 31, 2014 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, 2015
Puerto Rico


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	69,946	$	158	$	42,229	$	687	$	25,223	$	138,243
General ALLL non-covered loans			125,520		1,437		84,350		6,521		128,205		346,033
ALLL - non-covered loans			195,466		1,595		126,579		7,208		153,428		484,276
Specific ALLL covered loans			1,473		-		-		-		-		1,473
General ALLL covered loans			19,794		7,707		40,469		-		3,030		71,000
ALLL - covered loans			21,267		7,707		40,469		-		3,030		72,473
Total ALLL		$	216,733	$	9,302	$	167,048	$	7,208	$	156,458	$	556,749

Loans held-in-portfolio:
Impaired non-covered loans		$	417,377	$	9,838	$	445,506	$	2,924	$	114,416	$	990,061
Non-covered loans held-in-portfolio
	excluding impaired loans		5,984,132		88,868		5,725,741		578,195		3,237,790		15,614,726
Non-covered loans held-in-portfolio			6,401,509		98,706		6,171,247		581,119		3,352,206		16,604,787
Impaired covered loans			8,394		2,336		-		-		-		10,730
Covered loans held-in-portfolio
	excluding impaired loans		1,562,753		55,489		795,477		-		32,103		2,445,822
Covered loans held-in-portfolio			1,571,147		57,825		795,477		-		32,103		2,456,552
Total loans held-in-portfolio		$	7,972,656	$	156,531	$	6,966,724	$	581,119	$	3,384,309	$	19,061,339

At March 31, 2015
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Specific ALLL		$	-	$	-	$	341	$	-	$	381	$	722
General ALLL			10,426		1,849		1,921		2,962		14,068		31,226
Total ALLL		$	10,426	$	1,849	$	2,262	$	2,962	$	14,449	$	31,948

Loans held-in-portfolio:
Impaired loans		$	-	$	-	$	5,106	$	-	$	2,048	$	7,154
Loans held-in-portfolio,
	excluding impaired loans		2,252,052		592,022		1,012,874		77,675		466,366		4,400,989
Total loans held-in-portfolio		$	2,252,052	$	592,022	$	1,017,980	$	77,675	$	468,414	$	4,408,143

At March 31, 2015
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	69,946	$	158	$	42,570	$	-	$	687	$	25,604	$	138,965
General ALLL non-covered loans			135,946		3,286		86,271		2,962		6,521		142,273		377,259
ALLL - non-covered loans			205,892		3,444		128,841		2,962		7,208		167,877		516,224
Specific ALLL covered loans			1,473		-		-		-		-		-		1,473
General ALLL covered loans			19,794		7,707		40,469		-		-		3,030		71,000
ALLL - covered loans			21,267		7,707		40,469		-		-		3,030		72,473
Total ALLL		$	227,159	$	11,151	$	169,310	$	2,962	$	7,208	$	170,907	$	588,697

Loans held-in-portfolio:
Impaired non-covered loans		$	417,377	$	9,838	$	450,612	$	-	$	2,924	$	116,464	$	997,215
Non-covered loans held-in-portfolio
	excluding impaired loans		8,236,184		680,890		6,738,615		77,675		578,195		3,704,156		20,015,715
Non-covered loans held-in-portfolio			8,653,561		690,728		7,189,227		77,675		581,119		3,820,620		21,012,930
Impaired covered loans			8,394		2,336		-		-		-		-		10,730
Covered loans held-in-portfolio
	excluding impaired loans		1,562,753		55,489		795,477		-		-		32,103		2,445,822
Covered loans held-in-portfolio			1,571,147		57,825		795,477		-		-		32,103		2,456,552
Total loans held-in-portfolio		$	10,224,708	$	748,553	$	7,984,704	$	77,675	$	581,119	$	3,852,723	$	23,469,482

At December 31, 2014
Puerto Rico


(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	64,736	$	363	$	45,838	$	770	$	27,796	$	139,503
General ALLL non-covered loans			136,853		5,120		75,022		6,361		126,276		349,632
ALLL - non-covered loans			201,589		5,483		120,860		7,131		154,072		489,135
Specific ALLL covered loans			5		-		-		-		-		5
General ALLL covered loans			30,866		7,202		40,948		-		3,052		82,068
ALLL - covered loans			30,871		7,202		40,948		-		3,052		82,073
Total ALLL		$	232,460	$	12,685	$	161,808	$	7,131	$	157,124	$	571,208

Loans held-in-portfolio:
Impaired non-covered loans		$	356,911	$	13,268	$	431,569	$	3,023	$	115,759	$	920,530
Non-covered loans held-in-portfolio
	excluding impaired loans		6,017,892		146,116		5,018,932		561,366		3,273,278		15,017,584
Non-covered loans held-in-portfolio			6,374,803		159,384		5,450,501		564,389		3,389,037		15,938,114
Impaired covered loans			4,487		2,419		-		-		-		6,906
Covered loans held-in-portfolio
	excluding impaired loans		1,610,294		67,917		822,986		-		34,559		2,535,756
Covered loans held-in-portfolio			1,614,781		70,336		822,986		-		34,559		2,542,662
Total loans held-in-portfolio		$	7,989,584	$	229,720	$	6,273,487	$	564,389	$	3,423,596	$	18,480,776

At December 31, 2014
U.S. Mainland


(In thousands)		Commercial		Construction		Mortgage		Legacy		Consumer		Total
Allowance for credit losses:
Specific ALLL		$	-	$	-	$	273	$	-	$	365	$	638
General ALLL			9,648		1,187		2,189		2,944		13,978		29,946
Total ALLL		$	9,648	$	1,187	$	2,462	$	2,944	$	14,343	$	30,584

Loans held-in-portfolio:
Impaired loans		$	250	$	-	$	4,255	$	-	$	1,973	$	6,478
Loans held-in-portfolio,
	excluding impaired loans		1,759,214		92,436		1,048,130		80,818		479,261		3,459,859
Total loans held-in-portfolio		$	1,759,464	$	92,436	$	1,052,385	$	80,818	$	481,234	$	3,466,337

At December 31, 2014
Popular, Inc.


(In thousands)		Commercial		Construction		Mortgage		Legacy		Leasing		Consumer		Total
Allowance for credit losses:
Specific ALLL non-covered loans		$	64,736	$	363	$	46,111	$	-	$	770	$	28,161	$	140,141
General ALLL non-covered loans			146,501		6,307		77,211		2,944		6,361		140,254		379,578
ALLL - non-covered loans			211,237		6,670		123,322		2,944		7,131		168,415		519,719
Specific ALLL covered loans			5		-		-		-		-		-		5
General ALLL covered loans			30,866		7,202		40,948		-		-		3,052		82,068
ALLL - covered loans			30,871		7,202		40,948		-		-		3,052		82,073
Total ALLL		$	242,108	$	13,872	$	164,270	$	2,944	$	7,131	$	171,467	$	601,792

Loans held-in-portfolio:
Impaired non-covered loans		$	357,161	$	13,268	$	435,824	$	-	$	3,023	$	117,732	$	927,008
Non-covered loans held-in-portfolio
	excluding impaired loans		7,777,106		238,552		6,067,062		80,818		561,366		3,752,539		18,477,443
Non-covered loans held-in-portfolio			8,134,267		251,820		6,502,886		80,818		564,389		3,870,271		19,404,451
Impaired covered loans			4,487		2,419		-		-		-		-		6,906
Covered loans held-in-portfolio
	excluding impaired loans		1,610,294		67,917		822,986		-		-		34,559		2,535,756
Covered loans held-in-portfolio			1,614,781		70,336		822,986		-		-		34,559		2,542,662
Total loans held-in-portfolio		$	9,749,048	$	322,156	$	7,325,872	$	80,818	$	564,389	$	3,904,830	$	21,947,113

Impaired loans

The following tables present loans individually evaluated for impairment at March 31, 2015 and December 31, 2014.

March 31, 2015
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	$	551	$	551	$	18	$	-	$	-	$	551	$	551	$	18
Commercial real estate non-owner occupied		109,064		109,727		18,309		10,229		10,229		119,293		119,956		18,309
Commercial real estate owner occupied		109,604		127,531		11,902		17,274		20,884		126,878		148,415		11,902
Commercial and industrial		151,667		153,758		39,717		18,988		27,760		170,655		181,518		39,717
Construction		2,763		8,513		158		7,075		20,092		9,838		28,605		158
Mortgage		404,802		438,401		42,229		40,704		45,074		445,506		483,475		42,229
Leasing		2,924		2,924		687		-		-		2,924		2,924		687
Consumer:
Credit cards		41,197		41,197		7,756		-		-		41,197		41,197		7,756
Personal		70,657		70,657		17,054		-		-		70,657		70,657		17,054
Auto		2,036		2,036		314		-		-		2,036		2,036		314
Other		526		526		99		-		-		526		526		99
Covered loans		5,663		5,663		1,473		5,067		10,231		10,730		15,894		1,473
Total Puerto Rico	$	901,454	$	961,484	$	139,716	$	99,337	$	134,270	$	1,000,791	$	1,095,754	$	139,716

March 31, 2015
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
Mortgage	$	3,628	$	4,202	$	341	$	1,478	$	2,245	$	5,106	$	6,447	$	341
Consumer:
HELOCs		847		863		229		790		790		1,637		1,653		229
Personal		327		327		152		84		84		411		411		152
Total U.S. mainland	$	4,802	$	5,392	$	722	$	2,352	$	3,119	$	7,154	$	8,511	$	722

March 31, 2015
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	$	551	$	551	$	18	$	-	$	-	$	551	$	551	$	18
Commercial real estate non-owner occupied		109,064		109,727		18,309		10,229		10,229		119,293		119,956		18,309
Commercial real estate owner occupied		109,604		127,531		11,902		17,274		20,884		126,878		148,415		11,902
Commercial and industrial		151,667		153,758		39,717		18,988		27,760		170,655		181,518		39,717
Construction		2,763		8,513		158		7,075		20,092		9,838		28,605		158
Mortgage		408,430		442,603		42,570		42,182		47,319		450,612		489,922		42,570
Leasing		2,924		2,924		687		-		-		2,924		2,924		687
Consumer:
Credit cards		41,197		41,197		7,756		-		-		41,197		41,197		7,756
HELOCs		847		863		229		790		790		1,637		1,653		229
Personal		70,984		70,984		17,206		84		84		71,068		71,068		17,206
Auto		2,036		2,036		314		-		-		2,036		2,036		314
Other		526		526		99		-		-		526		526		99
Covered loans		5,663		5,663		1,473		5,067		10,231		10,730		15,894		1,473
Total Popular, Inc.	$	906,256	$	966,876	$	140,438	$	101,689	$	137,389	$	1,007,945	$	1,104,265	$	140,438

December 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 real estate non-owner occupied	$	50,324	$	53,154	$	5,182	$	7,929	$	7,929	$	58,253	$	61,083	$	5,182
Commercial real estate owner occupied		114,163		127,855		16,770		14,897		16,110		129,060		143,965		16,770
Commercial and industrial		145,633		148,204		42,784		23,965		31,722		169,598		179,926		42,784
Construction		2,575		7,980		363		10,693		28,994		13,268		36,974		363
Mortgage		395,911		426,502		45,838		35,658		39,248		431,569		465,750		45,838
Leasing		3,023		3,023		770		-		-		3,023		3,023		770
Consumer:
Credit cards		41,477		41,477		8,023		-		-		41,477		41,477		8,023
Personal		71,825		71,825		19,410		-		-		71,825		71,825		19,410
Auto		1,932		1,932		262		-		-		1,932		1,932		262
Other		525		525		101		-		-		525		525		101
Covered loans		2,419		7,500		5		4,487		4,487		6,906		11,987		5
Total Puerto Rico	$	829,807	$	889,977	$	139,508	$	97,629	$	128,490	$	927,436	$	1,018,467	$	139,508

December 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 and industrial	$	-	$	-	$	-	$	250	$	250	$	250	$	250	$	-
Mortgage		3,049		3,443		273		1,206		2,306		4,255		5,749		273
Consumer:
HELOCs		1,095		1,095		362		791		791		1,886		1,886		362
Other		3		3		3		84		-		87		3		3
Total U.S. mainland	$	4,147	$	4,541	$	638	$	2,331	$	3,347	$	6,478	$	7,888	$	638

December 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 real estate non-owner occupied	$	50,324	$	53,154	$	5,182	$	7,929	$	7,929	$	58,253	$	61,083	$	5,182
Commercial real estate owner occupied		114,163		127,855		16,770		14,897		16,110		129,060		143,965		16,770
Commercial and industrial		145,633		148,204		42,784		24,215		31,972		169,848		180,176		42,784
Construction		2,575		7,980		363		10,693		28,994		13,268		36,974		363
Mortgage		398,960		429,945		46,111		36,864		41,554		435,824		471,499		46,111
Leasing		3,023		3,023		770		-		-		3,023		3,023		770
Consumer:
Credit cards		41,477		41,477		8,023		-		-		41,477		41,477		8,023
HELOCs		1,095		1,095		362		791		791		1,886		1,886		362
Personal		71,825		71,825		19,410		-		-		71,825		71,825		19,410
Auto		1,932		1,932		262		-		-		1,932		1,932		262
Other		528		528		104		84		-		612		528		104
Covered loans		2,419		7,500		5		4,487		4,487		6,906		11,987		5
Total Popular, Inc.	$	833,954	$	894,518	$	140,146	$	99,960	$	131,837	$	933,914	$	1,026,355	$	140,146

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarters ended March 31, 2015 and 2014.

For the quarter ended March 31, 2015
	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	$	276	$	-	$	-	$	-	$	276	$	-
Commercial real estate non-owner occupied		88,773		1,140		-		-		88,773		1,140
Commercial real estate owner occupied		127,969		2,166		-		-		127,969		2,166
Commercial and industrial		170,127		4,432		125		-		170,252		4,432
Construction		11,553		-		-		-		11,553		-
Mortgage		438,538		4,453		4,681		13		443,219		4,466
Leasing		2,974		-		-		-		2,974		-
Consumer:
Credit cards		41,337		-		-		-		41,337		-
Helocs		-		-		1,762		-		1,762		-
Personal		71,241		-		206		-		71,447		-
Auto		1,984		-		-		-		1,984		-
Other		526		-		44		-		570		-
Covered loans		8,818		35		-		-		8,818		35
Total Popular, Inc.	$	964,116	$	12,226	$	6,818	$	13	$	970,934	$	12,239

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

Modifications

Troubled debt restructurings related to non-covered loan portfolios amounted to $ 1.2 billion at March 31, 2015 (December 31, 2014 - $ 1.1 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings amounted $4 million related to the commercial loan portfolio and $1 million related to the construction loan portfolio at March 31, 2015 (December 31, 2014 - $5 million and $1 million, 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, 2015 and December 31, 2014.

	Popular, Inc.
	Non-Covered Loans
	March 31, 2015						December 31, 2014
(In thousands)		Accruing		Non-Accruing		Total		Accruing		Non-Accruing		Total
Commercial	$	169,883	$	153,122	$	323,005	$	153,380	$	150,069	$	303,449
Construction		309		4,919		5,228		453		5,488		5,941
Mortgage		578,709		122,674		701,383		556,346		116,465		672,811
Leases		2,125		799		2,924		775		2,248		3,023
Consumer		106,574		14,610		121,184		107,530		14,848		122,378
Total	$	857,600	$	296,124	$	1,153,724	$	818,484	$	289,118	$	1,107,602

	Popular, Inc.
	Covered Loans
	March 31, 2015						December 31, 2014
(In thousands)		Accruing		Non-Accruing		Total		Accruing		Non-Accruing		Total
Commercial	$	2,632	$	2,877	$	5,509	$	1,689	$	3,257	$	4,946
Construction		-		2,336		2,336		-		2,419		2,419
Mortgage		4,174		5,195		9,369		3,629		3,990		7,619
Consumer		15		6		21		26		5		31
Total	$	6,821	$	10,414	$	17,235	$	5,344	$	9,671	$	15,015

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters ended March 31, 2015 and 2014.

Puerto Rico
For the quarter ended March 31, 2015
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Commercial multi-family	-	2	-	-
Commercial real estate non-owner occupied	2	1	-	-
Commercial real estate owner occupied	2	3	-	-
Commercial and industrial	5	5	-	-
Construction	1	-	-	-
Mortgage	13	19	98	15
Leasing	-	1	12	-
Consumer:
Credit cards	228	-	-	187
Personal	228	14	-	-
Auto	-	2	2	-
Other	11	-	-	-
Total	490	47	112	202

U.S. mainland
For the quarter ended March 31, 2015
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Mortgage	-	1	8	-
Consumer:
HELOCs	-	-	-	1
Total	-	1	8	1

Popular, Inc.
For the quarter ended March 31, 2015
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Commercial multi-family	-	2	-	-
Commercial real estate non-owner occupied	2	1	-	-
Commercial real estate owner occupied	2	3	-	-
Commercial and industrial	5	5	-	-
Construction	1	-	-	-
Mortgage	13	20	106	15
Leasing	-	1	12	-
Consumer:
Credit cards	228	-	-	187
HELOCs	-	-	-	1
Personal	228	14	-	-
Auto	-	2	2	-
Other	11	-	-	-
Total	490	48	120	203

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

The following tables present by class, quantitative information related to loans modified as TDRs during the quarters ended March 31, 2015 and 2014.

Puerto Rico
For the quarter ended March 31, 2015
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family	2	$	551	$	551	$	2
Commercial real estate non-owner occupied	3		18,000		17,998		2,986
Commercial real estate owner occupied	5		4,759		4,552		171
Commercial and industrial	10		5,534		5,889		224
Construction	1		268		259		(166)
Mortgage	145		15,902		16,766		1,339
Leasing	13		323		325		73
Consumer:
Credit cards	415		3,617		4,066		629
Personal	242		4,502		4,500		967
Auto	4		-		51		8
Other	11		29		29		5
Total	851	$	53,485	$	54,986	$	6,238

U.S. Mainland
For the quarter ended March 31, 2015
(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	9	$	468	$	1,465	$	82
Consumer:
HELOCs	1		-		92		9
Total	10	$	468	$	1,557	$	91

Popular, Inc.
For the quarter ended March 31, 2015
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family	2	$	551	$	551	$	2
Commercial real estate non-owner occupied	3		18,000		17,998		2,986
Commercial real estate owner occupied	5		4,759		4,552		171
Commercial and industrial	10		5,534		5,889		224
Construction	1		268		259		(166)
Mortgage	154		16,370		18,231		1,421
Leasing	13		323		325		73
Consumer:
Credit cards	415		3,617		4,066		629
HELOCs	1		-		92		9
Personal	242		4,502		4,500		967
Auto	4		-		51		8
Other	11		29		29		5
Total	861	$	53,953	$	56,543	$	6,329

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)
Consumer:
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

During the quarters ended March 31, 2015 and 2014, one loan with an aggregate unpaid principal balance of $883 thousand and one loan of $1.0 million, respectively, were restructured into multiple notes (“Note A / B split”). The Corporation recorded $173 thousand charge-offs as part of those loan restructurings during the quarter ended March 31, 2015 (March 31, 2014 - $0 million). The restructuring of those loans was made after analyzing the borrowers' capacity to repay the debt, collateral and ability to perform under the modified terms. The recorded investment on those commercial TDRs amounted to approximately $707 thousand at March 31, 2015 (March 31, 2014 - $1.1 million) with a related allowance for loan losses amounting to approximately $62 thousand (March 31, 2014 - $0 million).

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, 2015 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, 2015
(Dollars in thousands)	Loan count	Recorded investment as of first default date
Commercial real estate owner occupied	1	$	291
Commercial and industrial	1		90
Construction	2		1,192
Mortgage	22		1,695
Consumer:
Credit cards	153		1,792
Personal	22		178
Auto	5		96
Other	2		2
Total [1]	208	$	5,336
[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.

For U.S. mainland for the quarter ended March 31, 2015 there were no TDRs that were subject to payment default and that had been modified as a TDR during the twelve months preceding the default date.

Popular, Inc.
Defaulted during the quarter ended March 31, 2015
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate owner occupied	1	$	291
Commercial and industrial	1		90
Construction	2		1,192
Mortgage	22		1,695
Consumer:
Credit cards	153		1,792
Personal	22		178
Auto	5		96
Other	2		2
Total	208	$	5,336

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] 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, 2014
(Dollars In thousands)	Loan count	Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	907
Consumer:
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

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, 2015 and December 31, 2014.

March 31, 2015
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	4,840	$	1,137	$	3,892	$	-	$	-	$	9,869	$	79,664	$	89,533
Commercial real estate non-owner occupied			285,351		76,707		197,037		-		-		559,095		1,583,259		2,142,354
Commercial real estate owner occupied			170,835		146,356		301,616		3,904		-		622,711		806,978		1,429,689
Commercial and industrial			290,077		325,137		308,298		711		237		924,460		1,815,473		2,739,933
	Total Commercial		751,103		549,337		810,843		4,615		237		2,116,135		4,285,374		6,401,509
Construction			29		6,080		13,164		-		-		19,273		79,433		98,706
Mortgage			704,588		-		230,199		-		-		934,787		5,236,460		6,171,247
Leasing			-		-		2,507		-		-		2,507		578,612		581,119
Consumer:
	Credit cards		3,327		-		21,334		-		-		24,661		1,089,843		1,114,504
	HELOCs		-		-		10,527		-		-		10,527		1,636		12,163
	Personal		322		-		3,999		-		163		4,484		1,240,597		1,245,081
	Auto		-		-		11,003		-		105		11,108		771,440		782,548
	Other		1,634		-		1,507		-		1,055		4,196		193,714		197,910
	Total Consumer		5,283		-		48,370		-		1,323		54,976		3,297,230		3,352,206
Total Puerto Rico		$	1,461,003	$	555,417	$	1,105,083	$	4,615	$	1,560	$	3,127,678	$	13,477,109	$	16,604,787
U.S. mainland
Commercial multi-family		$	10,705	$	7,303	$	11,373	$	-	$	-	$	29,381	$	446,822	$	476,203
Commercial real estate non-owner occupied			20,198		6,971		13,601		-		-		40,770		617,549		658,319
Commercial real estate owner occupied			24,986		4,671		4,348		-		-		34,005		179,492		213,497
Commercial and industrial			67,028		2,567		15,677		-		-		85,272		818,761		904,033
	Total Commercial		122,917		21,512		44,999		-		-		189,428		2,062,624		2,252,052
Construction			-		-		7,798		-		-		7,798		584,224		592,022
Mortgage			-		-		8,462		-		-		8,462		1,009,518		1,017,980
Legacy			7,457		2,385		8,780		-		-		18,622		59,053		77,675
Consumer:
	Credit cards		-		-		-		-		-		-		14,107		14,107
	HELOCs		-		-		1,938		-		2,714		4,652		340,693		345,345
	Personal		-		-		304		-		936		1,240		107,273		108,513
	Auto		-		-		-		-		-		-		87		87
	Other		-		-		-		-		4		4		358		362
	Total Consumer		-		-		2,242		-		3,654		5,896		462,518		468,414
Total U.S. mainland		$	130,374	$	23,897	$	72,281	$	-	$	3,654	$	230,206	$	4,177,937	$	4,408,143
Popular, Inc.
Commercial multi-family		$	15,545	$	8,440	$	15,265	$	-	$	-	$	39,250	$	526,486	$	565,736
Commercial real estate non-owner occupied			305,549		83,678		210,638		-		-		599,865		2,200,808		2,800,673
Commercial real estate owner occupied			195,821		151,027		305,964		3,904		-		656,716		986,470		1,643,186
Commercial and industrial			357,105		327,704		323,975		711		237		1,009,732		2,634,234		3,643,966
	Total Commercial		874,020		570,849		855,842		4,615		237		2,305,563		6,347,998		8,653,561
Construction			29		6,080		20,962		-		-		27,071		663,657		690,728
Mortgage			704,588		-		238,661		-		-		943,249		6,245,978		7,189,227
Legacy			7,457		2,385		8,780		-		-		18,622		59,053		77,675
Leasing			-		-		2,507		-		-		2,507		578,612		581,119
Consumer:
	Credit cards		3,327		-		21,334		-		-		24,661		1,103,950		1,128,611
	HELOCs		-		-		12,465		-		2,714		15,179		342,329		357,508
	Personal		322		-		4,303		-		1,099		5,724		1,347,870		1,353,594
	Auto		-		-		11,003		-		105		11,108		771,527		782,635
	Other		1,634		-		1,507		-		1,059		4,200		194,072		198,272
	Total Consumer		5,283		-		50,612		-		4,977		60,872		3,759,748		3,820,620
Total Popular, Inc.		$	1,591,377	$	579,314	$	1,177,364	$	4,615	$	5,214	$	3,357,884	$	17,655,046	$	21,012,930

The following table presents the weighted average obligor risk rating at March 31, 2015 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							11.52								5.66
Commercial real estate non-owner occupied							11.40								6.82
Commercial real estate owner occupied							11.28								6.95
Commercial and industrial							11.43								6.99
	Total Commercial						11.37								6.91
Construction							11.80								7.56

U.S. mainland:						Substandard									Pass
Commercial multi-family							11.02								7.18
Commercial real estate non-owner occupied							11.00								6.87
Commercial real estate owner occupied							11.18								7.08
Commercial and industrial							11.52								6.26
	Total Commercial						11.20								6.72
Construction							11.00								7.09
Legacy							11.12								7.71

[1]

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

December 31, 2014
				Special										Pass/
(In thousands)		Watch		Mention		Substandard		Doubtful		Loss		Sub-total		Unrated		Total
Puerto Rico^[1]
Commercial multi-family		$	2,306	$	5,021	$	3,186	$	-	$	-	$	10,513	$	69,564	$	80,077
Commercial real estate non-owner occupied			171,771		144,104		169,900		-		-		485,775		1,527,804		2,013,579
Commercial real estate owner occupied			212,236		144,536		306,014		3,595		-		666,381		806,981		1,473,362
Commercial and industrial			421,332		367,834		272,880		849		255		1,063,150		1,744,635		2,807,785
	Total Commercial		807,645		661,495		751,980		4,444		255		2,225,819		4,148,984		6,374,803
Construction			4,612		6,204		16,908		-		-		27,724		131,660		159,384
Mortgage			-		-		218,680		-		-		218,680		5,231,821		5,450,501
Leasing			-		-		3,102		-		-		3,102		561,287		564,389
Consumer:
	Credit cards		-		-		21,070		-		-		21,070		1,119,094		1,140,164
	HELOCs		-		-		8,186		-		7		8,193		5,207		13,400
	Personal		-		-		8,380		-		77		8,457		1,254,076		1,262,533
	Auto		-		-		11,348		-		40		11,388		755,908		767,296
	Other		-		-		2,130		-		1,735		3,865		201,779		205,644
	Total Consumer		-		-		51,114		-		1,859		52,973		3,336,064		3,389,037
Total Puerto Rico		$	812,257	$	667,699	$	1,041,784	$	4,444	$	2,114	$	2,528,298	$	13,409,816	$	15,938,114
U.S. mainland
Commercial multi-family		$	11,283	$	6,818	$	13,653	$	-	$	-	$	31,754	$	375,449	$	407,203
Commercial real estate non-owner occupied			17,424		8,745		13,446		-		-		39,615		472,952		512,567
Commercial real estate owner occupied			24,284		4,707		4,672		-		-		33,663		160,242		193,905
Commercial and industrial			5,357		2,548		7,988		-		-		15,893		629,896		645,789
	Total Commercial		58,348		22,818		39,759		-		-		120,925		1,638,539		1,759,464
Construction			-		-		-		-		-		-		92,436		92,436
Mortgage			-		-		23,100		-		-		23,100		1,029,285		1,052,385
Legacy			7,902		2,491		9,204		-		-		19,597		61,221		80,818
Consumer:
	Credit cards		-		-		-		-		-		-		15,065		15,065
	HELOCs		-		-		2,457		-		1,632		4,089		348,673		352,762
	Personal		-		-		571		-		835		1,406		111,513		112,919
	Auto		-		-		-		-		-		-		73		73
	Other		-		-		7		-		-		7		408		415
	Total Consumer		-		-		3,035		-		2,467		5,502		475,732		481,234
Total U.S. mainland		$	66,250	$	25,309	$	75,098	$	-	$	2,467	$	169,124	$	3,297,213	$	3,466,337
Popular, Inc.
Commercial multi-family		$	13,589	$	11,839	$	16,839	$	-	$	-	$	42,267	$	445,013	$	487,280
Commercial real estate non-owner occupied			189,195		152,849		183,346		-		-		525,390		2,000,756		2,526,146
Commercial real estate owner occupied			236,520		149,243		310,686		3,595		-		700,044		967,223		1,667,267
Commercial and industrial			426,689		370,382		280,868		849		255		1,079,043		2,374,531		3,453,574
	Total Commercial		865,993		684,313		791,739		4,444		255		2,346,744		5,787,523		8,134,267
Construction			4,612		6,204		16,908		-		-		27,724		224,096		251,820
Mortgage			-		-		241,780		-		-		241,780		6,261,106		6,502,886
Legacy			7,902		2,491		9,204		-		-		19,597		61,221		80,818
Leasing			-		-		3,102		-		-		3,102		561,287		564,389
Consumer:
	Credit cards		-		-		21,070		-		-		21,070		1,134,159		1,155,229
	HELOCs		-		-		10,643		-		1,639		12,282		353,880		366,162
	Personal		-		-		8,951		-		912		9,863		1,365,589		1,375,452
	Auto		-		-		11,348		-		40		11,388		755,981		767,369
	Other		-		-		2,137		-		1,735		3,872		202,187		206,059
	Total Consumer		-		-		54,149		-		4,326		58,475		3,811,796		3,870,271
Total Popular, Inc.		$	878,507	$	693,008	$	1,116,882	$	4,444	$	4,581	$	2,697,422	$	16,707,029	$	19,404,451

The following table presents the weighted average obligor risk rating at December 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							11.69								5.63
Commercial real estate non-owner occupied							11.20								6.83
Commercial real estate owner occupied							11.28								6.96
Commercial and industrial							11.48								6.89
	Total Commercial						11.33								6.87
Construction							11.82								7.43

U.S. mainland:						Substandard									Pass
Commercial multi-family							11.00								7.24
Commercial real estate non-owner occupied							11.00								6.83
Commercial real estate owner occupied							11.17								7.04
Commercial and industrial							11.09								6.29
	Total Commercial						11.04								6.74
Construction							-								7.76
Legacy							11.11								7.70

[1]

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