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Allowance for loan losses
 3 Months Ended
Mar. 31, 2018
Receivables  
Allowance for loan losses

Note 8 – 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 March 31, 2018, 45% (March 31, 2017 - 55%) 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 mortgage, leasing, credit cards and auto loans portfolios for 2018 and in the mortgage, other consumer and commercial real estate owner occupied portfolios for 2017.

For the period ended March 31, 2018, 5.41% (March 31, 2017 - 0.35%) of our Popular U.S. segment loan portfolios utilized the recent loss trend adjustment instead of the base loss. The effect of replacing the base loss with the recent loss trend adjustment was concentrated in the consumer portfolios for 2018 and in the commercial multifamily loan and legacy portfolios for 2017.

  • 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 ended March 31, 2018 and 2017.

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

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

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

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

For the quarter ended March 31, 2017
Puerto Rico - Non-covered loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$189,686$1,353$143,320$7,662$125,963$467,984
Provision (reversal of provision)58346415,1721,04814,21131,478
Charge-offs(11,071)(3,587)(14,983)(1,341)(21,812)(52,794)
Recoveries8,4333,7311,4285285,72919,849
Ending balance$187,631$1,961$144,937$7,897$124,091$466,517
Specific ALLL$51,276$-$41,067$522$22,331$115,196
General ALLL$136,355$1,961$103,870$7,375$101,760$351,321
Loans held-in-portfolio:
Impaired non-covered loans$348,823$-$501,647$1,803$106,236$958,509
Non-covered loans held-in-portfolio
excluding impaired loans6,715,50795,4595,368,071717,8403,120,84316,017,720
Total non-covered loans held-in-portfolio$7,064,330$95,459$5,869,718$719,643$3,227,079$16,976,229

For the quarter ended March 31, 2017
Puerto Rico - Covered Loans
(In thousands)CommercialConstructionMortgageLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$-$-$30,159$-$191$30,350
Provision (reversal of provision)--(1,690)-331(1,359)
Charge-offs--(1,231)-(93)(1,324)
Recoveries--103-1104
Ending balance$-$-$27,341$-$430$27,771
Specific ALLL$-$-$-$-$-$-
General ALLL$-$-$27,341$-$430$27,771
Loans held-in-portfolio:
Impaired covered loans$-$-$-$-$-$-
Covered loans held-in-portfolio
excluding impaired loans--536,287-15,693551,980
Total covered loans held-in-portfolio$-$-$536,287$-$15,693$551,980

For the quarter ended March 31, 2017
Popular U.S.
(In thousands)CommercialConstructionMortgageLegacyConsumerTotal
Allowance for credit losses:
Beginning balance$12,968$8,172$4,614$1,343$15,220$42,317
Provision (reversal of provision)7,622(136)(436)(665)4,19410,579
Charge-offs(70)-(106)(41)(4,733)(4,950)
Recoveries533-2105299902,262
Ending balance$21,053$8,036$4,282$1,166$15,671$50,208
Specific ALLL$-$-$2,197$-$679$2,876
General ALLL$21,053$8,036$2,085$1,166$14,992$47,332
Loans held-in-portfolio:
Impaired loans$-$-$8,921$-$2,780$11,701
Loans held-in-portfolio
excluding impaired loans3,747,370735,846749,34840,688473,5395,746,791
Total loans held-in-portfolio$3,747,370$735,846$758,269$40,688$476,319$5,758,492

For the quarter ended March 31, 2017
Popular, Inc.
(In thousands)CommercialConstructionMortgageLegacyLeasingConsumerTotal
Allowance for credit losses:
Beginning balance$202,654$9,525$178,093$1,343$7,662$141,374$540,651
Provision (reversal of provision)8,20532813,046(665)1,04818,73640,698
Charge-offs(11,141)(3,587)(16,320)(41)(1,341)(26,638)(59,068)
Recoveries8,9663,7311,7415295286,72022,215
Ending balance$208,684$9,997$176,560$1,166$7,897$140,192$544,496
Specific ALLL$51,276$-$43,264$-$522$23,010$118,072
General ALLL$157,408$9,997$133,296$1,166$7,375$117,182$426,424
Loans held-in-portfolio:
Impaired loans$348,823$-$510,568$-$1,803$109,016$970,210
Loans held-in-portfolio
excluding impaired loans10,462,877831,3056,653,70640,688717,8403,610,07522,316,491
Total loans held-in-portfolio$10,811,700$831,305$7,164,274$40,688$719,643$3,719,091$23,286,701

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 Westernbank loans
For the quarters ended
(In thousands)March 31, 2018March 31, 2017
Balance at beginning of period$70,129$68,877
Provision for loan losses (reversal of provision)21,570(322)
Net charge-offs(1,936)(2,011)
Balance at end of period$89,763$66,544

Impaired loans

The following tables present loans individually evaluated for impairment at March 31, 2018 and December 31, 2017.

March 31, 2018
Puerto Rico
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$129$129$3$-$-$129$129$3
Commercial real estate non-owner occupied118,828119,54029,90414,95130,032133,779149,57229,904
Commercial real estate owner occupied130,676154,77511,65223,96253,495154,638208,27011,652
Commercial and industrial50,12353,1993,46913,39522,82363,51876,0223,469
Construction4,2934,293474--4,2934,293474
Mortgage457,759517,10644,41953,09067,730510,849584,83644,419
Leasing1,3611,361448--1,3611,361448
Consumer:
Credit cards33,26533,2655,892--33,26533,2655,892
Personal 61,00161,00116,467--61,00161,00116,467
Auto 1,7631,763355--1,7631,763355
Other1,7011,701241--1,7011,701241
Total Puerto Rico$860,899$948,133$113,324$105,398$174,080$966,297$1,122,213$113,324

March 31, 2018
Popular U.S.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Mortgage$6,851$8,533$2,496$2,222$3,155$9,073$11,688$2,496
Consumer:
HELOCs3,9523,9559591,1271,1505,079$5,105$959
Personal552553236222222774$775$236
Total Popular U.S.$11,355$13,041$3,691$3,571$4,527$14,926$17,568$3,691

March 31, 2018
Popular, Inc.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$129$129$3$-$-$129$129$3
Commercial real estate non-owner occupied118,828119,54029,90414,95130,032133,779149,57229,904
Commercial real estate owner occupied130,676154,77511,65223,96253,495154,638208,27011,652
Commercial and industrial50,12353,1993,46913,39522,82363,51876,0223,469
Construction4,2934,293474--4,2934,293474
Mortgage464,610525,63946,91555,31270,885519,922596,52446,915
Leasing1,3611,361448--1,3611,361448
Consumer:
Credit Cards33,26533,2655,892--33,26533,2655,892
HELOCs3,9523,9559591,1271,1505,0795,105959
Personal61,55361,55416,70322222261,77561,77616,703
Auto 1,7631,763355--1,7631,763355
Other1,7011,701241--1,7011,701241
Total Popular, Inc.$872,254$961,174$117,015$108,969$178,607$981,223$1,139,781$117,015

December 31, 2017
Puerto Rico
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$206$206$32$-$-$206$206$32
Commercial real estate non-owner occupied101,485102,26223,74411,45427,522112,939129,78423,744
Commercial real estate owner occupied127,634153,49510,22124,63457,219152,268210,71410,221
Commercial and industrial43,49346,9182,98514,54923,97758,04270,8952,985
Mortgage450,226504,00646,35458,80775,228509,033579,23446,354
Leasing1,4561,456475--1,4561,456475
Consumer:
Credit cards33,67633,6765,569--33,67633,6765,569
Personal 62,48862,48815,690--62,48862,48815,690
Auto 2,0072,007425--2,0072,007425
Other1,0091,009165--1,0091,009165
Total Puerto Rico$823,680$907,523$105,660$109,444$183,946$933,124$1,091,469$105,660

December 31, 2017
Popular U.S.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Mortgage$6,774$8,439$2,478$2,468$3,397$9,242$11,836$2,478
Consumer:
HELOCs3,5303,5427227617804,2914,322722
Personal542542231224224766766231
Total Popular U.S.$10,846$12,523$3,431$3,453$4,401$14,299$16,924$3,431

December 31, 2017
Popular, Inc.
Impaired Loans – With an Impaired Loans
AllowanceWith No AllowanceImpaired Loans - Total
UnpaidUnpaidUnpaid
RecordedprincipalRelatedRecordedprincipalRecordedprincipalRelated
(In thousands)investmentbalanceallowanceinvestmentbalanceinvestmentbalanceallowance
Commercial multi-family$206$206$32$-$-$206$206$32
Commercial real estate non-owner occupied101,485102,26223,74411,45427,522112,939129,78423,744
Commercial real estate owner occupied127,634153,49510,22124,63457,219152,268210,71410,221
Commercial and industrial43,49346,9182,98514,54923,97758,04270,8952,985
Mortgage457,000512,44548,83261,27578,625518,275591,07048,832
Leasing1,4561,456475--1,4561,456475
Consumer:
Credit Cards33,67633,6765,569--33,67633,6765,569
HELOCs3,5303,5427227617804,2914,322722
Personal63,03063,03015,92122422463,25463,25415,921
Auto 2,0072,007425--2,0072,007425
Other1,0091,009165--1,0091,009165
Total Popular, Inc.$834,526$920,046$109,091$112,897$188,347$947,423$1,108,393$109,091

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarters ended March 31, 2018 and 2017.

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

For the quarter ended March 31, 2017
Puerto RicoPopular U.S.Popular, Inc.
AverageInterestAverageInterestAverageInterest
recordedincomerecordedincomerecordedincome
(In thousands)investmentrecognizedinvestmentrecognizedinvestmentrecognized
Commercial multi-family$81$1$-$-$81$1
Commercial real estate non-owner occupied118,8361,375--118,8361,375
Commercial real estate owner occupied164,5121,598--164,5121,598
Commercial and industrial60,195497--60,195497
Mortgage499,5683,3698,89944508,4673,413
Leasing1,810---1,810-
Consumer:
Credit cards37,708---37,708-
Helocs--2,693-2,693-
Personal 65,833-117-65,950-
Auto 2,094---2,094-
Other792---792-
Total Popular, Inc.$951,429$6,840$11,709$44$963,138$6,884

Modifications

Troubled debt restructurings (“TDRs”) related to non-covered loan portfolios amounted to $ 1.3 billion at March 31, 2018 (December 31, 2017 - $ 1.3 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in TDRs amounted to $16 million related to the commercial loan portfolio at March 31, 2018 (December 31, 2017 - $8 million).

At March 31, 2018, the mortgage loan TDRs include $463 million guaranteed by U.S. sponsored entities at BPPR, compared to $449 million at December 31, 2017.

A modification of a loan constitutes a 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 3 to the 2017 Form 10-K.

The following tables present the non-covered and covered loans classified as TDRs according to their accruing status and the related allowance at March 31, 2018 and December 31, 2017.

Popular, Inc.
Non-Covered Loans
March 31, 2018 December 31, 2017
(In thousands)AccruingNon-AccruingTotalRelated AllowanceAccruingNon-AccruingTotalRelated Allowance
Commercial$227,254$57,951$285,205$40,293$161,220$59,626$220,846$32,472
Construction-4,2934,293474----
Mortgage811,361133,626944,98746,915803,278126,798930,07648,832
Leases1,0153461,3614488633931,256475
Consumer93,28014,364107,64424,15093,91612,233106,14922,802
Total$1,132,910$210,580$1,343,490$112,280$1,059,277$199,050$1,258,327$104,581

Popular, Inc.
Covered Loans
March 31, 2018 December 31, 2017
(In thousands)AccruingNon-AccruingTotalRelated AllowanceAccruingNon-AccruingTotalRelated Allowance
Mortgage$3,362$2,768$6,130$-$2,658$3,227$5,885$-
Total$3,362$2,768$6,130$-$2,658$3,227$5,885$-

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters ended March 31, 2018 and 2017. Loans modified as TDRs for the U.S. operations are considered insignificant to the Corporation.

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

Popular, Inc.
For the quarter ended March 31, 2017
Reduction in interest rateExtension of maturity dateCombination of reduction in interest rate and extension of maturity dateOther
Commercial real estate non-owner occupied-1--
Commercial real estate owner occupied21--
Commercial and industrial26--
Mortgage14610468
Leasing--3-
Consumer:
Credit cards126-1158
Personal2624-1
Auto-11-
Other8---
Total41419109227

The following tables present, by class, quantitative information related to loans modified as TDRs during the quarters ended March 31, 2018 and 2017.

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

Popular, Inc.
For the quarter ended March 31, 2017
(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$141$139$(11)
Commercial real estate owner occupied31,1571,14756
Commercial and industrial83192,388419
Mortgage19221,06819,5131,014
Leasing311411532
Consumer:
Credit cards2852,4022,643312
Personal2674,5984,5951,033
Auto236376
Other865659
Total769$29,900$30,642$2,870

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, 2018 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.

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

Popular, Inc.
Defaulted during the quarter ended March 31, 2017
(Dollars in thousands)Loan countRecorded investment as of first default date
Commercial real estate non-owner occupied1$262
Commercial real estate owner occupied1267
Commercial and industrial2544
Mortgage363,695
Leasing145
Consumer:
Credit cards1281,349
HELOCs197
Personal421,024
Auto257
Total214$7,340

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, 2018 and December 31, 2017.

March 31, 2018
SpecialPass/
(In thousands)WatchMentionSubstandardDoubtfulLossSub-totalUnratedTotal
Puerto Rico[1]
Commercial multi-family$1,357$1,717$7,241$-$-$10,315$140,774$151,089
Commercial real estate non-owner occupied479,890245,430322,409--1,047,7291,333,2982,381,027
Commercial real estate owner occupied273,456157,457414,0222,477-847,412921,0721,768,484
Commercial and industrial488,714110,852211,20438799811,2562,010,9402,822,196
Total Commercial1,243,417515,456954,8762,864992,716,7124,406,0847,122,796
Construction--5,819--5,81988,03993,858
Mortgage3,2222,930183,900--190,0526,165,6546,355,706
Leasing--3,801-1563,957834,426838,383
Consumer:
Credit cards--11,004--11,0041,043,8731,054,877
HELOCs--329--3295,1045,433
Personal48457522,864--23,9231,207,0181,230,941
Auto--13,216-14013,356873,118886,474
Other --15,602-18715,789135,423151,212
Total Consumer48457563,015-32764,4013,264,5363,328,937
Total Puerto Rico$1,247,123$518,961$1,211,411$2,864$582$2,980,941$14,758,739$17,739,680
Popular U.S.
Commercial multi-family$25,718$6,303$7,093$-$-$39,114$1,210,483$1,249,597
Commercial real estate non-owner occupied51,30411,58035,742--98,6261,692,9051,791,531
Commercial real estate owner occupied32,8353,2638,109--44,207224,476268,683
Commercial and industrial3,441104115,256--118,801917,0991,035,900
Total Commercial113,29821,250166,200--300,7484,044,9634,345,711
Construction44,19311,91956,539--112,651686,882799,533
Mortgage--11,647--11,647697,291708,938
Legacy5213863,017--3,92427,24331,167
Consumer:
Credit cards------7373
HELOCs--5,522-9,20914,731151,686166,417
Personal--1,648-9442,592293,614296,206
Other --7--7205212
Total Consumer--7,177-10,15317,330445,578462,908
Total Popular U.S.$158,012$33,555$244,580$-$10,153$446,300$5,901,957$6,348,257
Popular, Inc.
Commercial multi-family$27,075$8,020$14,334$-$-$49,429$1,351,257$1,400,686
Commercial real estate non-owner occupied531,194257,010358,151--1,146,3553,026,2034,172,558
Commercial real estate owner occupied306,291160,720422,1312,477-891,6191,145,5482,037,167
Commercial and industrial492,155110,956326,46038799930,0572,928,0393,858,096
Total Commercial1,356,715536,7061,121,0762,864993,017,4608,451,04711,468,507
Construction44,19311,91962,358--118,470774,921893,391
Mortgage3,2222,930195,547--201,6996,862,9457,064,644
Legacy5213863,017--3,92427,24331,167
Leasing--3,801-1563,957834,426838,383
Consumer:
Credit cards--11,004--11,0041,043,9461,054,950
HELOCs--5,851-9,20915,060156,790171,850
Personal48457524,512-94426,5151,500,6321,527,147
Auto--13,216-14013,356873,118886,474
Other --15,609-18715,796135,628151,424
Total Consumer48457570,192-10,48081,7313,710,1143,791,845
Total Popular, Inc.$1,405,135$552,516$1,455,991$2,864$10,735$3,427,241$20,660,696$24,087,937
The following table presents the weighted average obligor risk rating at March 31, 2018 for those classifications that consider a range of rating scales.
Weighted average obligor risk rating(Scales 11 and 12)(Scales 1 through 8)
Puerto Rico:[1]SubstandardPass
Commercial multi-family11.195.76
Commercial real estate non-owner occupied11.076.98
Commercial real estate owner occupied11.247.12
Commercial and industrial11.187.09
Total Commercial11.177.04
Construction11.747.80
Popular U.S. :SubstandardPass
Commercial multi-family11.007.27
Commercial real estate non-owner occupied11.016.63
Commercial real estate owner occupied11.057.30
Commercial and industrial11.856.24
Total Commercial11.606.77
Construction11.007.69
Legacy11.157.94

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

December 31, 2017
SpecialPass/
(In thousands)WatchMentionSubstandardDoubtfulLossSub-totalUnratedTotal
Puerto Rico[1]
Commercial multi-family$1,387$1,708$6,831$-$-$9,926$136,473$146,399
Commercial real estate non-owner occupied327,811335,011307,579--970,4011,434,1582,404,559
Commercial real estate owner occupied243,966215,652354,9902,124-816,7321,006,8821,823,614
Commercial and industrial453,546108,554241,695471126804,3922,086,9352,891,327
Total Commercial1,026,710660,925911,0952,5951262,601,4514,664,4487,265,899
Construction1104,1221,545--5,77789,59295,369
Mortgage2,7483,564155,074--161,3866,415,3936,576,779
Leasing--1,926-1,0482,974807,016809,990
Consumer:
Credit cards--18,227--18,2271,074,9941,093,221
HELOCs--257--2575,8306,087
Personal42965920,790--21,8781,200,4341,222,312
Auto--5,446-205,466845,347850,813
Other --16,324-44016,764140,824157,588
Total Consumer42965961,044-46062,5923,267,4293,330,021
Total Puerto Rico$1,029,997$669,270$1,130,684$2,595$1,634$2,834,180$15,243,878$18,078,058
Popular U.S.
Commercial multi-family$11,808$6,345$7,936$-$-$26,089$1,184,604$1,210,693
Commercial real estate non-owner occupied46,52316,56137,178--100,2621,588,0491,688,311
Commercial real estate owner occupied28,18330,8938,590--67,666251,309318,975
Commercial and industrial4,019603123,935--128,557876,4261,004,983
Total Commercial90,53354,402177,639--322,5743,900,3884,222,962
Construction36,8588,29454,276--99,428685,232784,660
Mortgage--14,852--14,852678,776693,628
Legacy6884263,302--4,41628,56432,980
Consumer:
Credit cards--11--1189100
HELOCs--6,084-8,91414,998167,087182,085
Personal--2,069-7042,773295,229298,002
Other ------319319
Total Consumer--8,164-9,61817,782462,724480,506
Total Popular U.S.$128,079$63,122$258,233$-$9,618$459,052$5,755,684$6,214,736
Popular, Inc.
Commercial multi-family$13,195$8,053$14,767$-$-$36,015$1,321,077$1,357,092
Commercial real estate non-owner occupied374,334351,572344,757--1,070,6633,022,2074,092,870
Commercial real estate owner occupied272,149246,545363,5802,124-884,3981,258,1912,142,589
Commercial and industrial457,565109,157365,630471126932,9492,963,3613,896,310
Total Commercial1,117,243715,3271,088,7342,5951262,924,0258,564,83611,488,861
Construction36,96812,41655,821--105,205774,824880,029
Mortgage2,7483,564169,926--176,2387,094,1697,270,407
Legacy6884263,302--4,41628,56432,980
Leasing--1,926-1,0482,974807,016809,990
Consumer:
Credit cards--18,238--18,2381,075,0831,093,321
HELOCs--6,341-8,91415,255172,917188,172
Personal42965922,859-70424,6511,495,6631,520,314
Auto--5,446-205,466845,347850,813
Other --16,324-44016,764141,143157,907
Total Consumer42965969,208-10,07880,3743,730,1533,810,527
Total Popular, Inc.$1,158,076$732,392$1,388,917$2,595$11,252$3,293,232$20,999,562$24,292,794
The following table presents the weighted average obligor risk rating at December 31, 2017 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-family11.165.89
Commercial real estate non-owner occupied11.066.99
Commercial real estate owner occupied11.287.14
Commercial and industrial11.167.11
Total Commercial11.177.06
Construction11.007.76
Popular U.S.:SubstandardPass
Commercial multi-family11.007.28
Commercial real estate non-owner occupied11.046.74
Commercial real estate owner occupied11.107.14
Commercial and industrial11.826.17
Total Commercial11.596.80
Construction11.007.70
Legacy11.117.93

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