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Allowance for loan losses
 6 Months Ended
Jun. 30, 2016
Receivables  
Allowance for loan losses

Note 10 – 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 evaluating decreases in expected cash flows after the acquisition date. 

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

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

For the period ended June 30, 2016, 51% (June 30, 2015 - 32%) of the ALLL for non-covered BPPR segment loan portfolios utilized the recent loss trend adjustment instead of the base loss. The effect of replacing the base loss with the recent loss trend adjustment was mainly concentrated in the other consumer, mortgage, commercial and industrial and commercial multi-family loan portfolios for 2016, and in the commercial multi-family, commercial and industrial, personal and auto loan portfolios for 2015.

For the period ended June 30, 2016, 1% (June 30, 2015 - 19%) of the ALLL for BPNA segment loan portfolios utilized the recent loss trend adjustment instead of the base loss. The effect of replacing the base loss with the recent loss trend adjustment was concentrated in the consumer loan portfolio for 2016 and in the commercial and industrial loan portfolio for 2015.

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

The following tables present the changes in the allowance for loan losses, loan ending balances and whether such loans and the allowance pertain to loans individually or collectively evaluated for impairment for the quarters and six months ended June 30, 2016 and 2015.

For the quarter ended June 30, 2016
Puerto Rico - Non-covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$197,590$4,237$124,500$11,035$135,785$473,147
Provision (reversal of provision)3,515(4,772)25,688(507)14,42738,351
Charge-offs(24,489)(1,531)(13,950)(879)(26,011)(66,860)
Recoveries18,8424,7574864456,10830,638
Net recoveries (write-downs)4,369914--1625,445
Ending balance$199,827$3,605$136,724$10,094$130,471$480,721
Specific ALLL$53,350$116$42,106$548$24,167$120,287
General ALLL$146,477$3,489$94,618$9,546$106,304$360,434
Loans held-in-portfolio:
Impaired non-covered loans$335,881$1,036$476,161$2,110$109,130$924,318
Non-covered loans held-in-portfolio
excluding impaired loans6,881,171102,6065,544,401661,9843,212,55216,402,714
Total non-covered loans held-in-portfolio$7,217,052$103,642$6,020,562$664,094$3,321,682$17,327,032

For the quarter ended June 30, 2016
Puerto Rico - Covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$-$-$29,822$-$223$30,045
Provision (reversal of provision)--828-(24)804
Charge-offs--(884)-427(457)
Recoveries--185-4189
Ending balance$-$-$29,951$-$630$30,581
Specific ALLL$-$-$-$-$-$-
General ALLL$-$-$29,951$-$630$30,581
Loans held-in-portfolio:
Impaired covered loans$-$-$-$-$-$-
Covered loans held-in-portfolio
excluding impaired loans--589,256-17,914607,170
Total covered loans held-in-portfolio$-$-$589,256$-$17,914$607,170

For the quarter ended June 30, 2016
U.S. Mainland
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$9,587$4,739$5,099$2,484$13,371$35,280
Provision (reversal of provision)(998)2,721(321)(1,525)1,4401,317
Charge-offs(390)-(132)(134)(2,662)(3,318)
Recoveries1,655-1161,0271,3414,139
Ending balance$9,854$7,460$4,762$1,852$13,490$37,418
Specific ALLL$-$-$1,803$-$731$2,534
General ALLL$9,854$7,460$2,959$1,852$12,759$34,884
Loans held-in-portfolio:
Impaired loans$-$-$8,564$-$2,480$11,044
Loans held-in-portfolio
excluding impaired loans3,142,763613,690834,99249,709561,4315,202,585
Total loans held-in-portfolio$3,142,763$613,690$843,556$49,709$563,911$5,213,629

For the quarter ended June 30, 2016
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$207,177$8,976$159,421$2,484$11,035$149,379$538,472
Provision (reversal of provision)2,517(2,051)26,195(1,525)(507)15,84340,472
Charge-offs(24,879)(1,531)(14,966)(134)(879)(28,246)(70,635)
Recoveries20,4974,7577871,0274457,45334,966
Net recoveries (write-downs) 4,369914---1625,445
Ending balance$209,681$11,065$171,437$1,852$10,094$144,591$548,720
Specific ALLL$53,350$116$43,909$-$548$24,898$122,821
General ALLL$156,331$10,949$127,528$1,852$9,546$119,693$425,899
Loans held-in-portfolio:
Impaired loans$335,881$1,036$484,725$-$2,110$111,610$935,362
Loans held-in-portfolio
excluding impaired loans10,023,934716,2966,968,64949,709661,9843,791,89722,212,469
Total loans held-in-portfolio$10,359,815$717,332$7,453,374$49,709$664,094$3,903,507$23,147,831

For the six months ended June 30, 2016
Puerto Rico - Non-covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$186,925$4,957$128,327$10,993$138,721$469,923
Provision (reversal of provision)16,884(5,181)36,5571,17332,78982,222
Charge-offs(33,457)(2,075)(29,922)(3,006)(53,390)(121,850)
Recoveries25,1064,9901,76293412,18944,981
Net recoveries (write-downs)4,369914--1625,445
Ending balance$199,827$3,605$136,724$10,094$130,471$480,721
Specific ALLL$53,350$116$42,106$548$24,167$120,287
General ALLL$146,477$3,489$94,618$9,546$106,304$360,434
Loans held-in-portfolio:
Impaired non-covered loans$335,881$1,036$476,161$2,110$109,130$924,318
Non-covered loans held-in-portfolio
excluding impaired loans6,881,171102,6065,544,401661,9843,212,55216,402,714
Total non-covered loans held-in-portfolio$7,217,052$103,642$6,020,562$664,094$3,321,682$17,327,032

For the six months ended June 30, 2016
Puerto Rico - Covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$-$-$33,967$-$209$34,176
Provision (reversal of provision)--(2,321)-20(2,301)
Charge-offs--(2,105)-394(1,711)
Recoveries--410-7417
Ending balance$-$-$29,951$-$630$30,581
Specific ALLL$-$-$-$-$-$-
General ALLL$-$-$29,951$-$630$30,581
Loans held-in-portfolio:
Impaired covered loans$-$-$-$-$-$-
Covered loans held-in-portfolio
excluding impaired loans--589,256-17,914607,170
Total covered loans held-in-portfolio$-$-$589,256$-$17,914$607,170

For the six months ended June 30, 2016
U.S. Mainland - Continuing Operations
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$9,908$3,912$4,985$2,687$11,520$33,012
Provision (reversal of provision)(1,114)3,54823(1,975)4,9045,386
Charge-offs(885)-(573)(243)(5,310)(7,011)
Recoveries1,945-3271,3832,3766,031
Ending balance$9,854$7,460$4,762$1,852$13,490$37,418
Specific ALLL$-$-$1,803$-$731$2,534
General ALLL$9,854$7,460$2,959$1,852$12,759$34,884
Loans held-in-portfolio:
Impaired loans$-$-$8,564$-$2,480$11,044
Loans held-in-portfolio
excluding impaired loans3,142,763613,690834,99249,709561,4315,202,585
Total loans held-in-portfolio$3,142,763$613,690$843,556$49,709$563,911$5,213,629

For the six months ended June 30, 2016
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$196,833$8,869$167,279$2,687$10,993$150,450$537,111
Provision (reversal of provision)15,770(1,633)34,259(1,975)1,17337,71385,307
Charge-offs(34,342)(2,075)(32,600)(243)(3,006)(58,306)(130,572)
Recoveries27,0514,9902,4991,38393414,57251,429
Net recoveries (write-downs)4,369914---1625,445
Ending balance$209,681$11,065$171,437$1,852$10,094$144,591$548,720
Specific ALLL$53,350$116$43,909$-$548$24,898$122,821
General ALLL$156,331$10,949$127,528$1,852$9,546$119,693$425,899
Loans held-in-portfolio:
Impaired loans$335,881$1,036$484,725$-$2,110$111,610$935,362
Loans held-in-portfolio
excluding impaired loans10,023,934716,2966,968,64949,709661,9843,791,89722,212,469
Total loans held-in-portfolio$10,359,815$717,332$7,453,374$49,709$664,094$3,903,507$23,147,831

For the quarter ended June 30, 2015
Puerto Rico - Non-covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$195,466$1,595$126,579$7,208$153,428$484,276
Provision (reversal of provision)50,2315,2609,7552,925(7,642)60,529
Charge-offs(23,323)(2,194)(11,361)(1,693)(24,182)(62,753)
Recoveries6,2644736227209,52817,607
Net write-down related to loans transferred to held-for-sale(29,996)----(29,996)
Allowance transferred from covered loans8,4531,424582-2,57813,037
Ending balance$207,095$6,558$126,177$9,160$133,710$482,700
Specific ALLL$68,456$725$43,749$607$24,615$138,152
General ALLL$138,639$5,833$82,428$8,553$109,095$344,548
Loans held-in-portfolio:
Impaired non-covered loans$337,577$3,627$450,789$2,554$112,733$907,280
Non-covered loans held-in-portfolio
excluding impaired loans7,231,433109,8195,793,594590,2623,282,29217,007,400
Total non-covered loans held-in-portfolio$7,569,010$113,446$6,244,383$592,816$3,395,025$17,914,680

For the quarter ended June 30, 2015
Puerto Rico - Covered Loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$21,267$7,707$40,469$-$3,030$72,473
Provision (reversal of provision)8,1208,874(1,734)-50615,766
Charge-offs(23,697)(16,040)(520)-(767)(41,024)
Recoveries3,8641,425342-885,719
Net recovery (write-down) related to loans transferred to held-for-sale(1,101)(542)(160)-(20)(1,823)
Allowance transferred to non-covered loans(8,453)(1,424)(582)-(2,578)(13,037)
Ending balance$-$-$37,815$-$259$38,074
Specific ALLL$-$-$-$-$-$-
General ALLL$-$-$37,815$-$259$38,074
Loans held-in-portfolio:
Impaired covered loans$-$-$-$-$-$-
Covered loans held-in-portfolio
excluding impaired loans3-671,074-18,573689,650
Total covered loans held-in-portfolio$3$-$671,074$-$18,573$689,650

For the quarter ended June 30, 2015
U.S. Mainland - Continuing Operations
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$10,426$1,849$2,262$2,962$14,449$31,948
Provision (reversal of provision)(2,680)5802,236383(580)(61)
Charge-offs(432)-(340)(480)(2,974)(4,226)
Recoveries1,311-1644501,0052,930
Net recovery (write-down) related to loans transferred to held-for-sale--(552)--(552)
Ending balance$8,625$2,429$3,770$3,315$11,900$30,039
Specific ALLL$-$-$413$34$412$859
General ALLL$8,625$2,429$3,357$3,281$11,488$29,180
Loans held-in-portfolio:
Impaired loans$-$-$5,045$1,357$2,144$8,546
Loans held-in-portfolio
excluding impaired loans2,435,706582,564976,39571,145446,1094,511,919
Total loans held-in-portfolio$2,435,706$582,564$981,440$72,502$448,253$4,520,465

For the quarter ended June 30, 2015
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$227,159$11,151$169,310$2,962$7,208$170,907$588,697
Provision (reversal of provision)55,67114,71410,2573832,925(7,716)76,234
Charge-offs(47,452)(18,234)(12,221)(480)(1,693)(27,923)(108,003)
Recoveries11,4391,8981,12845072010,62126,256
Net recovery (write-down) related to loans transferred to held-for-sale(31,097)(542)(712)--(20)(32,371)
Ending balance$215,720$8,987$167,762$3,315$9,160$145,869$550,813
Specific ALLL$68,456$725$44,162$34$607$25,027$139,011
General ALLL$147,264$8,262$123,600$3,281$8,553$120,842$411,802
Loans held-in-portfolio:
Impaired loans$337,577$3,627$455,834$1,357$2,554$114,877$915,826
Loans held-in-portfolio
excluding impaired loans9,667,142692,3837,441,06371,145590,2623,746,97422,208,969
Total loans held-in-portfolio$10,004,719$696,010$7,896,897$72,502$592,816$3,861,851$23,124,795

For the six months ended June 30, 2015
Puerto Rico - Non-covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$201,589$5,483$120,860$7,131$154,072$489,135
Provision (reversal of provision)48,910(1,553)25,9473,77115,36792,442
Charge-offs(32,895)(2,194)(22,334)(2,930)(53,881)(114,234)
Recoveries11,0343,3981,1221,18815,57432,316
Net write-downs related to transferred to held-for-sale(29,996)----(29,996)
Allowance transferred from covered loans8,4531,424582-2,57813,037
Ending balance$207,095$6,558$126,177$9,160$133,710$482,700
Specific ALLL$68,456$725$43,749$607$24,615$138,152
General ALLL$138,639$5,833$82,428$8,553$109,095$344,548
Loans held-in-portfolio:
Impaired non-covered loans$337,577$3,627$450,789$2,554$112,733$907,280
Non-covered loans held-in-portfolio
excluding impaired loans7,231,433109,8195,793,594590,2623,282,29217,007,400
Total non-covered loans held-in-portfolio$7,569,010$113,446$6,244,383$592,816$3,395,025$17,914,680

For the six months ended June 30, 2015
Puerto Rico - Covered Loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$30,871$7,202$40,948$-$3,052$82,073
Provision (reversal of provision)10,11515,1501,068-(243)26,090
Charge-offs(37,936)(25,086)(3,906)-(767)(67,695)
Recoveries6,5044,700447-81512,466
Net write-down related to loans transferred to held-for-sale(1,101)(542)(160)-(20)(1,823)
Allowance transferred to non-covered loans(8,453)(1,424)(582)-(2,578)(13,037)
Ending balance$-$-$37,815$-$259$38,074
Specific ALLL$-$-$-$-$-$-
General ALLL$-$-$37,815$-$259$38,074
Loans held-in-portfolio:
Impaired covered loans$-$-$-$-$-$-
Covered loans held-in-portfolio
excluding impaired loans3-671,074-18,573689,650
Total covered loans held-in-portfolio$3$-$671,074$-$18,573$689,650

For the six months ended June 30, 2015
U.S. Mainland - Continuing Operations
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$9,648$1,187$2,462$2,944$14,343$30,584
Provision (reversal of provision)(2,381)1,242(3,891)(1,427)4,194(2,263)
Charge-offs(882)-(561)(954)(5,492)(7,889)
Recoveries2,240-2312,7522,2567,479
Net (write-down) recovery related to loans transferred to held-for-sale--5,529-(3,401)2,128
Ending balance$8,625$2,429$3,770$3,315$11,900$30,039
Specific ALLL$-$-$413$34$412$859
General ALLL$8,625$2,429$3,357$3,281$11,488$29,180
Loans held-in-portfolio:
Impaired loans$-$-$5,045$1,357$2,144$8,546
Loans held-in-portfolio
excluding impaired loans2,435,706582,564976,39571,145446,1094,511,919
Total loans held-in-portfolio$2,435,706$582,564$981,440$72,502$448,253$4,520,465

For the six months ended June 30, 2015
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$242,108$13,872$164,270$2,944$7,131$171,467$601,792
Provision (reversal of provision)56,64414,83923,124(1,427)3,77119,318116,269
Charge-offs(71,713)(27,280)(26,801)(954)(2,930)(60,140)(189,818)
Recoveries19,7788,0981,8002,7521,18818,64552,261
Net write-down related to loans transferred to held-for-sale(31,097)(542)5,369--(3,421)(29,691)
Ending balance$215,720$8,987$167,762$3,315$9,160$145,869$550,813
Specific ALLL$68,456$725$44,162$34$607$25,027$139,011
General ALLL$147,264$8,262$123,600$3,281$8,553$120,842$411,802
Loans held-in-portfolio:
Impaired loans$337,577$3,627$455,834$1,357$2,554$114,877$915,826
Loans held-in-portfolio
excluding impaired loans9,667,142692,3837,441,06371,145590,2623,746,97422,208,969
Total loans held-in-portfolio$10,004,719$696,010$7,896,897$72,502$592,816$3,861,851$23,124,795

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

ASC 310-30
For the quarters endedFor the six months ended
(In thousands)June 30, 2016June 30, 2015June 30, 2016June 30, 2015
Balance at beginning of period$62,967$68,386$63,563$78,846
Provision (reversal of provision)(5,861)12,269(4,070)20,870
Net recoveries (charge-offs)9,889(33,606)7,502(52,667)
Balance at end of period$66,995$47,049$66,995$47,049

Impaired loans

The following tables present loans individually evaluated for impairment at June 30, 2016 and December 31, 2015.

June 30, 2016
Puerto Rico
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial real estate non-owner occupied$143,454$147,109$37,312$15,024$29,354$158,478$176,463$37,312
Commercial real estate owner occupied82,242103,39710,31538,31761,639120,559165,03610,315
Commercial and industrial38,73840,0425,72318,10621,75656,84461,7985,723
Construction1,0364,495116--1,0364,495116
Mortgage419,474462,46142,10656,68766,846476,161529,30742,106
Leasing2,1102,110548--2,1102,110548
Consumer:
Credit cards38,37738,3776,045--38,37738,3776,045
Personal 67,44967,44917,455--67,44967,44917,455
Auto 2,8792,879597--2,8792,879597
Other42542570--42542570
Total Puerto Rico$796,184$868,744$120,287$128,134$179,595$924,318$1,048,339$120,287

June 30, 2016
U.S. mainland
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Mortgage$5,067$5,993$1,803$3,497$4,492$8,564$10,485$1,803
Consumer:
HELOCs1,1741,1955017137131,8871,908501
Personal593593230--593593230
Total U.S. mainland$6,834$7,781$2,534$4,210$5,205$11,044$12,986$2,534

June 30, 2016
Popular, Inc.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial real estate non-owner occupied$143,454$147,109$37,312$15,024$29,354$158,478$176,463$37,312
Commercial real estate owner occupied82,242103,39710,31538,31761,639120,559165,03610,315
Commercial and industrial38,73840,0425,72318,10621,75656,84461,7985,723
Construction1,0364,495116--1,0364,495116
Mortgage424,541468,45443,90960,18471,338484,725539,79243,909
Leasing2,1102,110548--2,1102,110548
Consumer:
Credit Cards38,37738,3776,045--38,37738,3776,045
HELOCs1,1741,1955017137131,8871,908501
Personal68,04268,04217,685--68,04268,04217,685
Auto 2,8792,879597--2,8792,879597
Other42542570--42542570
Total Popular, Inc.$803,018$876,525$122,821$132,344$184,800$935,362$1,061,325$122,821

December 31, 2015
Puerto Rico
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial real estate non-owner occupied$102,199$106,466$30,980$13,779$23,896$115,978$130,362$30,980
Commercial real estate owner occupied118,253137,19312,56438,95563,383157,208200,57612,564
Commercial and industrial42,04343,6295,69921,90432,92263,94776,5515,699
Construction2,4817,878264--2,4817,878264
Mortgage424,885468,24042,96540,23245,881465,117514,12142,965
Leasing2,4042,404573--2,4042,404573
Consumer:
Credit cards38,73438,7346,675--38,73438,7346,675
Personal 68,50968,50916,365--68,50968,50916,365
Auto 1,8931,893338--1,8931,893338
Other524525100--524525100
Total Puerto Rico$801,925$875,471$116,523$114,870$166,082$916,795$1,041,553$116,523

December 31, 2015
U.S. mainland
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Mortgage$4,143$5,018$1,064$2,672$3,574$6,815$8,592$1,064
Consumer:
HELOCs7787962597837831,5611,579259
Personal5345342268181615615226
Total U.S. mainland$5,455$6,348$1,549$3,536$4,438$8,991$10,786$1,549

December 31, 2015
Popular, Inc.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial real estate non-owner occupied$102,199$106,466$30,980$13,779$23,896$115,978$130,362$30,980
Commercial real estate owner occupied118,253137,19312,56438,95563,383157,208200,57612,564
Commercial and industrial42,04343,6295,69921,90432,92263,94776,5515,699
Construction2,4817,878264--2,4817,878264
Mortgage429,028473,25844,02942,90449,455471,932522,71344,029
Leasing2,4042,404573--2,4042,404573
Consumer:
Credit Cards38,73438,7346,675--38,73438,7346,675
HELOCs7787962597837831,5611,579259
Personal69,04369,04316,591818169,12469,12416,591
Auto 1,8931,893338--1,8931,893338
Other524525100--524525100
Total Popular, Inc.$807,380$881,819$118,072$118,406$170,520$925,786$1,052,339$118,072

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarter and six months ended June 30, 2016 and 2015.

For the quarter ended June 30, 2016
Puerto RicoU.S. MainlandPopular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial real estate non-owner occupied$139,910$1,362$-$-$139,910$1,362
Commercial real estate owner occupied139,7221,316--139,7221,316
Commercial and industrial57,799491--57,799491
Construction1,52814--1,52814
Mortgage473,6723,3858,23764,913481,90968,298
Leasing2,251---2,251-
Consumer:
Credit cards38,078---38,078-
Helocs--1,762-1,762-
Personal 67,642-602-68,244-
Auto 3,371---3,371-
Other435---435-
Total Popular, Inc.$924,408$6,568$10,601$64,913$935,009$71,481

For the quarter ended June 30, 2015
Puerto RicoU.S. MainlandPopular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial multi-family$325$-$-$-$325$-
Commercial real estate non-owner occupied118,6631,307--118,6631,307
Commercial real estate owner occupied123,6561,211--123,6561,211
Commercial and industrial134,8342,369--134,8342,369
Construction6,733---6,733-
Mortgage448,1484,1125,07616453,2244,128
Legacy--679-679-
Leasing2,739---2,739-
Consumer:
Credit cards40,598---40,598-
Helocs--1,645-1,645-
Personal 70,309-452-70,761-
Auto 2,079---2,079-
Other590---590-
Covered loans5,36574--5,36574
Total Popular, Inc.$954,039$9,073$7,852$16$961,891$9,089

For the six months ended June 30, 2016
Puerto RicoU.S. MainlandPopular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial real estate non-owner occupied$131,933$2,591$-$-$131,933$2,591
Commercial real estate owner occupied145,5502,767--145,5502,767
Commercial and industrial59,8481,001--59,8481,001
Construction1,84635--1,84635
Mortgage470,8206,7737,76365,243478,58372,016
Leasing2,302---2,302-
Consumer:
Credit cards38,296---38,296-
HELOCs--1,695-1,695-
Personal 67,931-606-68,537-
Auto 2,878---2,878-
Other465---465-
Total Popular, Inc.$921,869$13,167$10,064$65,243$931,933$78,410

For the six months ended June 30, 2015
Puerto RicoU.S. MainlandPopular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial multi-family$217$-$-$-$217$-
Commercial real estate non-owner occupied98,5262,582--98,5262,582
Commercial real estate owner occupied125,4572,422--125,4572,422
Commercial and industrial146,4224,74983-146,5054,749
Construction8,911---8,911-
Mortgage442,6218,5654,80229447,4238,594
Legacy--452-452-
Leasing2,834---2,834-
Consumer:
Credit cards40,891---40,891-
HELOCs--1,725-1,725-
Personal 70,814-301-71,115-
Auto 2,030---2,030-
Other568-29-597-
Covered loans5,879153--5,879153
Total Popular, Inc.$945,170$18,471$7,392$29$952,562$18,500

Modifications

Troubled debt restructurings related to non-covered loan portfolios amounted to $ 1.2 billion at June 30, 2016 (December 31, 2015 - $ 1.2 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings amounted $8 million related to the commercial loan portfolio at June 30, 2016 (December 31, 2015 - $11 million).

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession. For a summary of the accounting policy related to TDRs, refer to the summary of significant accounting policies included in Note 2 of the 2015 Form 10-K.

The following tables present the non-covered and covered loans classified as TDRs according to their accruing status at June 30, 2016 and December 31, 2015.

Popular, Inc.
Non-Covered Loans
June 30, 2016 December 31, 2015
(In thousands)AccruingNon-AccruingTotalRelated AllowanceAccruingNon-AccruingTotalRelated Allowance
Commercial$167,202$86,784$253,986$44,667$166,415$88,117$254,532$37,355
Construction1678681,0351162212,2592,480264
Mortgage708,140117,475825,61543,909644,013130,483774,49644,029
Leases1,5325762,1085481,7916092,400573
Consumer102,52813,254115,78224,898104,63012,805117,43523,963
Total$979,569$218,957$1,198,526$114,138$917,070$234,273$1,151,343$106,184

Popular, Inc.
Covered Loans
June 30, 2016 December 31, 2015
(In thousands)AccruingNon-AccruingTotalRelated AllowanceAccruingNon-AccruingTotalRelated Allowance
Mortgage$3,121$2,432$5,553$-$3,328$3,268$6,596$-
Total$3,121$2,432$5,553$-$3,328$3,268$6,596$-

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters and six months ended June 30, 2016 and 2015.

Puerto Rico
For the quarter ended June 30, 2016For the six months ended June 30, 2016
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOtherReduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial real estate non-owner occupied1---21--
Commercial real estate owner occupied134--295--
Commercial and industrial81--141--
Mortgage182411235383422489
Consumer:
Credit cards210--199385--373
Personal2595-152010-1
Auto-52--74-
Other11---21---
Total520391142351,00958228463

U.S. Mainland
For the quarter ended June 30, 2016For the six months ended June 30, 2016
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOtherReduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Mortgage--7---181
Consumer:
HELOCs--11--21
Total--81--202

Popular, Inc.
For the quarter ended June 30, 2016For the six months ended June 30, 2016
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOtherReduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial real estate non-owner occupied1---21--
Commercial real estate owner occupied134--295--
Commercial and industrial81--141--
Mortgage182411935383424290
Consumer:
Credit cards210--199385--373
HELOCs--11--21
Personal2595-152010-1
Auto-52--74-
Other11---21---
Total520391222361,00958248465

Puerto Rico
For the quarter ended June 30, 2015For the six months ended June 30, 2015
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOtherReduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial multi-family-----2--
Commercial real estate non-owner occupied37--58--
Commercial real estate owner occupied86--109--
Commercial and industrial66--1111--
Construction----1---
Mortgage16118323293018138
Leasing-12--214-
Consumer:
Credit cards194--164422--351
Personal2744--50218--
Auto-31--53-
Other11---22---
Total51238861871,00285198389

U.S. Mainland
For the quarter ended June 30, 2015For the six months ended June 30, 2015
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOtherReduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Mortgage--2--110-
Consumer:
HELOCs-1-1-1-2
Personal-2---2--
Total-321-4102

Popular, Inc.
For the quarter ended June 30, 2015For the six months ended June 30, 2015
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOtherReduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial multi-family-----2--
Commercial real estate non-owner occupied37--58--
Commercial real estate owner occupied86--109--
Commercial and industrial66--1111--
Construction----1---
Mortgage16118523293119138
Leasing-12--214-
Consumer:
Credit cards194--164422--351
HELOCs-1-1-1-2
Personal2746--50220--
Auto-31--53-
Other11---22---
Total51241881881,00289208391

The following tables present by class, quantitative information related to loans modified as TDRs during the quarters and six months ended June 30, 2016 and 2015.

Puerto Rico
For the quarter ended June 30, 2016
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied1$197$197$7
Commercial real estate owner occupied177,7556,625201
Commercial and industrial91,0571,056(25)
Mortgage18917,97017,7141,188
Consumer:
Credit cards4093,7754,388651
Personal2654,1954,2371,044
Auto7616413
Other1132335
Total908$35,042$34,314$3,084

U.S. Mainland
For the quarter ended June 30, 2016
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Mortgage7$794$833$210
Consumer:
HELOCs2208251139
Total9$1,002$1,084$349

Popular, Inc.
For the quarter ended June 30, 2016
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied1$197$197$7
Commercial real estate owner occupied177,7556,625201
Commercial and industrial91,0571,056(25)
Mortgage19618,76418,5471,398
Consumer:
Credit cards4093,7754,388651
HELOCs2208251139
Personal2654,1954,2371,044
Auto7616413
Other1132335
Total917$36,044$35,398$3,433

Puerto Rico
For the quarter ended June 30, 2015
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied10$48,719$48,868$10,682
Commercial real estate owner occupied145,0314,484162
Commercial and industrial126,8346,997439
Mortgage1338,28413,146957
Leasing3999923
Consumer:
Credit cards3583,2653,687568
Personal2784,7514,7491,009
Auto460629
Other1127385
Total823$77,070$82,130$13,854

U.S. Mainland
For the quarter ended June 30, 2015
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Mortgage2$187$193$97
Consumer:
HELOCs2747516
Personal230303
Total6$291$298$116

Popular, Inc.
For the quarter ended June 30, 2015
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied10$48,719$48,868$10,682
Commercial real estate owner occupied145,0314,484162
Commercial and industrial126,8346,997439
Mortgage1358,47113,3391,054
Leasing3999923
Consumer:
Credit cards3583,2653,687568
HELOCs2747516
Personal2804,7814,7791,012
Auto460629
Other1127385
Total829$77,361$82,428$13,970

Puerto Rico
For the six months ended June 30, 2016
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied3$6,520$6,504$4,169
Commercial real estate owner occupied3410,8509,774337
Commercial and industrial153,5863,583(20)
Mortgage38542,37540,9582,994
Consumer:
Credit cards7587,0318,0531,227
Personal5318,6088,6481,931
Auto1113314025
Other21555710
Total1,758$79,158$77,717$10,673

U.S. mainland
For the six months ended June 30, 2016
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Mortgage19$1,961$2,063$633
Consumer:
HELOCs3355398216
Total22$2,316$2,461$849

Popular, Inc.
For the six months ended June 30, 2016
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial real estate non-owner occupied3$6,520$6,504$4,169
Commercial real estate owner occupied3410,8509,774337
Commercial and industrial153,5863,583(20)
Mortgage40444,33643,0213,627
Consumer:
Credit cards7587,0318,0531,227
HELOCs3355398216
Personal5318,6088,6481,931
Auto1113314025
Other21555710
Total1,780$81,474$80,178$11,522

Puerto Rico
For the six months ended June 30, 2015
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family2$551$551$2
Commercial real estate non-owner occupied1366,71966,86613,668
Commercial real estate owner occupied199,7909,036333
Commercial and industrial2212,36712,886662
Construction1268259(166)
Mortgage27824,18629,9122,296
Leasing1642242497
Consumer:
Credit cards7736,8827,7531,197
Personal5209,2539,2491,976
Auto86011317
Other2256679
Total1,674$130,554$137,116$20,091

U.S. mainland
For the six months ended June 30, 2015
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Mortgage11$655$1,657$179
Consumer:
HELOCs37416725
Personal230303
Total16$759$1,854$207

Popular, Inc.
For the six months ended June 30, 2015
(Dollars in thousands)Loan countPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentIncrease (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family2$551$551$2
Commercial real estate non-owner occupied1366,71966,86613,668
Commercial real estate owner occupied199,7909,036333
Commercial and industrial2212,36712,886662
Construction1268259(166)
Mortgage28924,84131,5692,475
Leasing1642242497
Consumer:
Credit cards7736,8827,7531,197
HELOCs37416725
Personal5229,2839,2791,979
Auto86011317
Other2256679
Total1,690$131,313$138,970$20,298

The following tables present by class, TDRs that were subject to payment default and that had been modified as a TDR during the twelve months preceding the default date. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment at June 30, 2016 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 June 30, 2016Defaulted during the six months ended June 30, 2016
(Dollars in thousands)Loan countRecorded investment as of first default dateLoan countRecorded investment as of first default date
Commercial real estate non-owner occupied-$-2$327
Commercial real estate owner occupied14772,503
Commercial and industrial227227
Mortgage555,501828,734
Leasing132563
Consumer:
Credit cards565941711,758
Personal37711641,473
Auto116233
Total153$6,928335$14,918

During the quarter and six months ended June 30, 2016, there were no U.S. mainland 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 June 30, 2016Defaulted during the six months ended June 30, 2016
(Dollars in thousands)Loan countRecorded investment as of first default dateLoan countRecorded investment as of first default date
Commercial real estate non-owner occupied-$-2$327
Commercial real estate owner occupied14772,503
Commercial and industrial227227
Mortgage555,501828,734
Leasing132563
Consumer:
Credit cards565941711,758
Personal37711641,473
Auto116233
Total153$6,928335$14,918

Puerto Rico
Defaulted during the quarter ended June 30, 2015Defaulted during the six months ended June 30, 2015
(Dollars in thousands)Loan countRecorded investment as of first default dateLoan countRecorded investment as of first default date
Commercial real estate owner occupied-$-1$291
Commercial and industrial1642154
Construction--21,192
Mortgage485,94112616,042
Leasing436543
Consumer:
Credit cards1381,2252402,341
Personal3147450692
Auto--478
Other1122
Total223$7,741432$20,835

During the quarter and six months ended June 30, 2015, there were no U.S. mainland 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 June 30, 2015Defaulted during the six months ended June 30, 2015
(Dollars in thousands)Loan countRecorded investment as of first default dateLoan countRecorded investment as of first default date
Commercial real estate owner occupied-$-1$291
Commercial and industrial1642154
Construction--21,192
Mortgage485,94112616,042
Leasing436543
Consumer:
Credit cards1381,2252402,341
Personal3147450692
Auto--478
Other1122
Total223$7,741432$20,835

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 June 30, 2016 and December 31, 2015.

June 30, 2016
SpecialPass/
(In thousands)WatchMentionSubstandardDoubtfulLossSub-totalUnratedTotal
Puerto Rico[1]
Commercial multi-family$2,790$1,087$6,481$-$-$10,358$165,153$175,511
Commercial real estate non-owner occupied310,305387,592372,370--1,070,2671,528,3642,598,631
Commercial real estate owner occupied320,190156,828388,0371,962-867,017949,8151,816,832
Commercial and industrial129,988149,177230,04660540509,8562,116,2222,626,078
Total Commercial763,273694,684996,9342,567402,457,4984,759,5547,217,052
Construction1,99213,3779,266--24,63579,007103,642
Mortgage3,6213,300206,948--213,8695,806,6936,020,562
Leasing--2,930-893,019661,075664,094
Consumer:
Credit cards--17,225--17,2251,097,2151,114,440
HELOCs--293--2939,2009,493
Personal1,1181,33220,891--23,3411,165,0251,188,366
Auto--11,048-7011,118818,739829,857
Other --17,391-73118,122161,404179,526
Total Consumer1,1181,33266,848-80170,0993,251,5833,321,682
Total Puerto Rico$770,004$712,693$1,282,926$2,567$930$2,769,120$14,557,912$17,327,032
U.S. mainland
Commercial multi-family$12,600$7,104$1,422$-$-$21,126$867,706$888,832
Commercial real estate non-owner occupied34,51419815,428--50,1401,043,7131,093,853
Commercial real estate owner occupied13,5321963,653--17,381265,171282,552
Commercial and industrial4,423971150,035--155,429722,097877,526
Total Commercial65,0698,469170,538--244,0762,898,6873,142,763
Construction-19,63239,098--58,730554,960613,690
Mortgage--14,389--14,389829,167843,556
Legacy1,0616795,318--7,05842,65149,709
Consumer:
Credit cards--535--535102637
HELOCs--1,428-2,4333,861275,590279,451
Personal--540-8041,344282,192283,536
Auto------1515
Other ------272272
Total Consumer--2,503-3,2375,740558,171563,911
Total U.S. mainland$66,130$28,780$231,846$-$3,237$329,993$4,883,636$5,213,629
Popular, Inc.
Commercial multi-family$15,390$8,191$7,903$-$-$31,484$1,032,859$1,064,343
Commercial real estate non-owner occupied344,819387,790387,798--1,120,4072,572,0773,692,484
Commercial real estate owner occupied333,722157,024391,6901,962-884,3981,214,9862,099,384
Commercial and industrial134,411150,148380,08160540665,2852,838,3193,503,604
Total Commercial828,342703,1531,167,4722,567402,701,5747,658,24110,359,815
Construction1,99233,00948,364--83,365633,967717,332
Mortgage3,6213,300221,337--228,2586,635,8606,864,118
Legacy1,0616795,318--7,05842,65149,709
Leasing--2,930-893,019661,075664,094
Consumer:
Credit cards--17,760--17,7601,097,3171,115,077
HELOCs--1,721-2,4334,154284,790288,944
Personal1,1181,33221,431-80424,6851,447,2171,471,902
Auto--11,048-7011,118818,754829,872
Other --17,391-73118,122161,676179,798
Total Consumer1,1181,33269,351-4,03875,8393,809,7543,885,593
Total Popular, Inc.$836,134$741,473$1,514,772$2,567$4,167$3,099,113$19,441,548$22,540,661
The following table presents the weighted average obligor risk rating at June 30, 2016 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]SubstandardPass
Commercial multi-family11.156.12
Commercial real estate non-owner occupied11.076.84
Commercial real estate owner occupied11.287.06
Commercial and industrial11.157.02
Total Commercial11.176.95
Construction11.267.49
U.S. mainland:SubstandardPass
Commercial multi-family11.267.27
Commercial real estate non-owner occupied11.026.86
Commercial real estate owner occupied11.207.05
Commercial and industrial11.536.10
Total Commercial11.486.81
Construction11.007.80
Legacy11.157.85

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

December 31, 2015
SpecialPass/
(In thousands)WatchMentionSubstandardDoubtfulLossSub-totalUnratedTotal
Puerto Rico[1]
Commercial multi-family$1,750$1,280$8,103$-$-$11,133$121,013$132,146
Commercial real estate non-owner occupied319,564423,095399,076--1,141,7351,527,3572,669,092
Commercial real estate owner occupied316,079162,395436,4421,915-916,831992,4131,909,244
Commercial and industrial187,620146,216256,82169029591,3762,066,3612,657,737
Total Commercial825,013732,9861,100,4422,605292,661,0754,707,1447,368,219
Construction7,2695,52219,806--32,59768,351100,948
Mortgage4,8102,794238,002--245,6065,881,8856,127,491
Leasing--3,009--3,009624,641627,650
Consumer:
Credit cards--19,098--19,0981,109,2471,128,345
HELOCs--394--39410,29410,688
Personal1,6061,44823,116--26,1701,176,6651,202,835
Auto--11,609-3011,639804,311815,950
Other --18,656-57519,231169,253188,484
Total Consumer1,6061,44872,873-60576,5323,269,7703,346,302
Total Puerto Rico$838,698$742,750$1,434,132$2,605$634$3,018,819$14,551,791$17,570,610
U.S. mainland
Commercial multi-family$14,129$7,189$427$-$-$21,745$672,188$693,933
Commercial real estate non-owner occupied57,4506,74116,646--80,837882,186963,023
Commercial real estate owner occupied11,9781,0742,967--16,019186,325202,344
Commercial and industrial10,8275,344131,933--148,104723,540871,644
Total Commercial94,38420,348151,973--266,7052,464,2392,730,944
Construction15,09116,94818,856--50,895529,263580,158
Mortgage--13,537--13,537895,053908,590
Legacy1,8231,9736,134--9,93054,50664,436
Consumer:
Credit cards------13,93513,935
HELOCs--1,550-2,6264,176300,308304,484
Personal--637-6031,240171,386172,626
Auto------2828
Other ----55299304
Total Consumer--2,187-3,2345,421485,956491,377
Total U.S. mainland$111,298$39,269$192,687$-$3,234$346,488$4,429,017$4,775,505
Popular, Inc.
Commercial multi-family$15,879$8,469$8,530$-$-$32,878$793,201$826,079
Commercial real estate non-owner occupied377,014429,836415,722--1,222,5722,409,5433,632,115
Commercial real estate owner occupied328,057163,469439,4091,915-932,8501,178,7382,111,588
Commercial and industrial198,447151,560388,75469029739,4802,789,9013,529,381
Total Commercial919,397753,3341,252,4152,605292,927,7807,171,38310,099,163
Construction22,36022,47038,662--83,492597,614681,106
Mortgage4,8102,794251,539--259,1436,776,9387,036,081
Legacy1,8231,9736,134--9,93054,50664,436
Leasing--3,009--3,009624,641627,650
Consumer:
Credit cards--19,098--19,0981,123,1821,142,280
HELOCs--1,944-2,6264,570310,602315,172
Personal1,6061,44823,753-60327,4101,348,0511,375,461
Auto--11,609-3011,639804,339815,978
Other --18,656-58019,236169,552188,788
Total Consumer1,6061,44875,060-3,83981,9533,755,7263,837,679
Total Popular, Inc.$949,996$782,019$1,626,819$2,605$3,868$3,365,307$18,980,808$22,346,115
The following table presents the weighted average obligor risk rating at December 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]SubstandardPass
Commercial multi-family11.136.04
Commercial real estate non-owner occupied11.096.67
Commercial real estate owner occupied11.237.08
Commercial and industrial11.157.13
Total Commercial11.166.95
Construction11.187.56
U.S. mainland:SubstandardPass
Commercial multi-family11.007.15
Commercial real estate non-owner occupied11.026.92
Commercial real estate owner occupied11.077.23
Commercial and industrial11.576.24
Total Commercial11.506.81
Construction11.007.79
Legacy11.117.78

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