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Allowance for loan losses
 9 Months Ended
Sep. 30, 2019
Receivables  
Allowance for loan losses Note 9 – Allowance for loan losses

The Corporation follows a systematic methodology to establish and evaluate the adequacy of the allowance for loan losses (“ALLL”) 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 ALLL.

The Corporation’s assessment of the ALLL 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 ALLL 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 of the general ALLL 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 September 30, 2019, 24% (September 30, 2018 - 80%) of the ALLL for the 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 commercial real estate non-owner occupied portfolio for 2019 and in the mortgage, leasing and overall consumer portfolios for 2018.For the period ended September 30, 2019, 13% (September 30, 2018 - 6 %) of the 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 construction and commercial real estate owner occupied portfolios for 2019 and in the consumer portfolios for 2018.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 ALLL. The Corporation’s methodology also includes qualitative judgmental reserves based on stressed credit quality assumptions to provide for probable losses in the loan portfolios not embedded in the historical loss rates.

During the third quarter of 2019, management completed the recalibration analysis of the environmental factors adjustments. The environmental factors adjustments are developed by performing regression analyses on selected credit and economic indicators for each applicable loan segment. The environmental factor models used to account for changes in current credit and macroeconomic conditions were reviewed and recalibrated based on the latest applicable trends.

 

The effect of the recalibration resulted in an increase of $4.6 million to the environmental factors adjustments reserve at the Popular U.S. segment.

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 nine months ended September 30, 2019 and 2018.

For the quarter ended September 30, 2019

Puerto Rico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Leasing

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

190,227

 

$

2,996

 

$

127,930

 

$

6,907

 

$

148,131

 

$

476,191

 

Provision (reversal of provision)

 

(18,036)

 

 

(4,916)

 

 

6,494

 

 

3,739

 

 

47,198

 

 

34,479

 

Charge-offs

 

(15,419)

 

 

(27)

 

 

(13,886)

 

 

(4,040)

 

 

(46,398)

 

 

(79,770)

 

Recoveries

 

4,787

 

 

3,013

 

 

1,197

 

 

587

 

 

10,286

 

 

19,870

Ending balance

$

161,559

 

$

1,066

 

$

121,735

 

$

7,193

 

$

159,217

 

$

450,770

Specific ALLL

$

30,130

 

$

57

 

$

40,483

 

$

71

 

$

21,009

 

$

91,750

General ALLL

$

131,429

 

$

1,009

 

$

81,252

 

$

7,122

 

$

138,208

 

$

359,020

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

407,124

 

$

274

 

$

523,876

 

$

624

 

$

95,356

 

$

1,027,254

Loans held-in-portfolio excluding impaired loans

 

6,761,529

 

 

123,798

 

 

5,711,700

 

 

1,021,860

 

 

5,286,441

 

 

18,905,328

Total loans held-in-portfolio

$

7,168,653

 

$

124,072

 

$

6,235,576

 

$

1,022,484

 

$

5,381,797

 

$

19,932,582

For the quarter ended September 30, 2019

Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Legacy

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

35,302

 

$

6,887

 

$

4,586

 

$

774

 

$

19,926

 

$

67,475

 

Provision (reversal of provision)

 

(2,507)

 

 

2,826

 

 

288

 

 

(280)

 

 

1,733

 

 

2,060

 

Charge-offs

 

(5,912)

 

 

(2,215)

 

 

-

 

 

(2)

 

 

(4,619)

 

 

(12,748)

 

Recoveries

 

2,279

 

 

-

 

 

18

 

 

299

 

 

2,212

 

 

4,808

Ending balance

$

29,162

 

$

7,498

 

$

4,892

 

$

791

 

$

19,252

 

$

61,595

Specific ALLL

$

-

 

$

-

 

$

2,385

 

$

-

 

$

1,711

 

$

4,096

General ALLL

$

29,162

 

$

7,498

 

$

2,507

 

$

791

 

$

17,541

 

$

57,499

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

2,097

 

$

10,060

 

$

9,441

 

$

-

 

$

9,761

 

$

31,359

Loans held-in-portfolio excluding impaired loans

 

5,037,699

 

 

619,924

 

 

923,602

 

 

23,192

 

 

439,617

 

 

7,044,034

Total loans held-in-portfolio

$

5,039,796

 

$

629,984

 

$

933,043

 

$

23,192

 

$

449,378

 

$

7,075,393

For the quarter ended September 30, 2019

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Legacy

Leasing

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

225,529

 

$

9,883

 

$

132,516

 

$

774

$

6,907

 

$

168,057

 

$

543,666

 

Provision (reversal of provision)

 

(20,543)

 

 

(2,090)

 

 

6,782

 

 

(280)

 

3,739

 

 

48,931

 

 

36,539

 

Charge-offs

 

(21,331)

 

 

(2,242)

 

 

(13,886)

 

 

(2)

 

(4,040)

 

 

(51,017)

 

 

(92,518)

 

Recoveries

 

7,066

 

 

3,013

 

 

1,215

 

 

299

 

587

 

 

12,498

 

 

24,678

Ending balance

$

190,721

 

$

8,564

 

$

126,627

 

$

791

$

7,193

 

$

178,469

 

$

512,365

Specific ALLL

$

30,130

 

$

57

 

$

42,868

 

$

-

$

71

 

$

22,720

 

$

95,846

General ALLL

$

160,591

 

$

8,507

 

$

83,759

 

$

791

$

7,122

 

$

155,749

 

$

416,519

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

409,221

 

$

10,334

 

$

533,317

 

$

-

$

624

 

$

105,117

 

$

1,058,613

Loans held-in-portfolio excluding impaired loans

 

11,799,228

 

 

743,722

 

 

6,635,302

 

 

23,192

 

1,021,860

 

 

5,726,058

 

 

25,949,362

Total loans held-in-portfolio

$

12,208,449

 

$

754,056

 

$

7,168,619

 

$

23,192

$

1,022,484

 

$

5,831,175

 

$

27,007,975

For the nine months ended September 30, 2019

Puerto Rico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Leasing

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

207,214

 

$

886

 

$

142,978

 

$

11,486

 

$

144,594

 

$

507,158

 

Provision (reversal of provision)

 

(18,245)

 

 

(2,877)

 

 

11,342

 

 

2,276

 

 

102,412

 

 

94,908

 

Charge-offs

 

(40,275)

 

 

(79)

 

 

(37,056)

 

 

(8,467)

 

 

(120,187)

 

 

(206,064)

 

Recoveries

 

12,865

 

 

3,136

 

 

4,471

 

 

1,898

 

 

32,398

 

 

54,768

Ending balance

$

161,559

 

$

1,066

 

$

121,735

 

$

7,193

 

$

159,217

 

$

450,770

Specific ALLL

$

30,130

 

$

57

 

$

40,483

 

$

71

 

$

21,009

 

$

91,750

General ALLL

$

131,429

 

$

1,009

 

$

81,252

 

$

7,122

 

$

138,208

 

$

359,020

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

407,124

 

$

274

 

$

523,876

 

$

624

 

$

95,356

 

$

1,027,254

Loans held-in-portfolio excluding impaired loans

 

6,761,529

 

 

123,798

 

 

5,711,700

 

 

1,021,860

 

 

5,286,441

 

 

18,905,328

Total loans held-in-portfolio

$

7,168,653

 

$

124,072

 

$

6,235,576

 

$

1,022,484

 

$

5,381,797

 

$

19,932,582

For the nine months ended September 30, 2019

Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Legacy

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

31,901

 

$

6,538

 

$

4,434

 

$

969

 

$

18,348

 

$

62,190

 

Provision (reversal of provision)

 

9,519

 

 

3,167

 

 

899

 

 

(1,467)

 

 

11,529

 

 

23,647

 

Charge-offs

 

(15,737)

 

 

(2,215)

 

 

(594)

 

 

142

 

 

(15,879)

 

 

(34,283)

 

Recoveries

 

3,479

 

 

8

 

 

153

 

 

1,147

 

 

5,254

 

 

10,041

Ending balance

$

29,162

 

$

7,498

 

$

4,892

 

$

791

 

$

19,252

 

$

61,595

Specific ALLL

$

-

 

$

-

 

$

2,385

 

$

-

 

$

1,711

 

$

4,096

General ALLL

$

29,162

 

$

7,498

 

$

2,507

 

$

791

 

$

17,541

 

$

57,499

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

2,097

 

$

10,060

 

$

9,441

 

$

-

 

$

9,761

 

$

31,359

Loans held-in-portfolio excluding impaired loans

 

5,037,699

 

 

619,924

 

 

923,602

 

 

23,192

 

 

439,617

 

 

7,044,034

Total loans held-in-portfolio

$

5,039,796

 

$

629,984

 

$

933,043

 

$

23,192

 

$

449,378

 

$

7,075,393

For the nine months ended September 30, 2019

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Legacy

Leasing

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

239,115

 

$

7,424

 

$

147,412

 

$

969

$

11,486

 

$

162,942

 

$

569,348

 

Provision (reversal of provision)

 

(8,726)

 

 

290

 

 

12,241

 

 

(1,467)

 

2,276

 

 

113,941

 

 

118,555

 

Charge-offs

 

(56,012)

 

 

(2,294)

 

 

(37,650)

 

 

142

 

(8,467)

 

 

(136,066)

 

 

(240,347)

 

Recoveries

 

16,344

 

 

3,144

 

 

4,624

 

 

1,147

 

1,898

 

 

37,652

 

 

64,809

Ending balance

$

190,721

 

$

8,564

 

$

126,627

 

$

791

$

7,193

 

$

178,469

 

$

512,365

Specific ALLL

$

30,130

 

$

57

 

$

42,868

 

$

-

$

71

 

$

22,720

 

$

95,846

General ALLL

$

160,591

 

$

8,507

 

$

83,759

 

$

791

$

7,122

 

$

155,749

 

$

416,519

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

409,221

 

$

10,334

 

$

533,317

 

$

-

$

624

 

$

105,117

 

$

1,058,613

Loans held-in-portfolio excluding impaired loans

 

11,799,228

 

 

743,722

 

 

6,635,302

 

 

23,192

 

1,021,860

 

 

5,726,058

 

 

25,949,362

Total loans held-in-portfolio

$

12,208,449

 

$

754,056

 

$

7,168,619

 

$

23,192

$

1,022,484

 

$

5,831,175

 

$

27,007,975

For the quarter ended September 30, 2018

Puerto Rico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Leasing

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

190,926

 

$

765

 

$

182,103

 

$

14,285

 

$

179,066

 

$

567,145

 

Provision (reversal of provision)

 

21,548

 

 

(12)

 

 

10,145

 

 

(422)

 

 

20,618

 

 

51,877

 

Charge-offs

 

(7,335)

 

 

(21)

 

 

(23,526)

 

 

(2,088)

 

 

(42,180)

 

 

(75,150)

 

Recoveries

 

4,966

 

 

146

 

 

1,564

 

 

531

 

 

9,097

 

 

16,304

Ending balance

$

210,105

 

$

878

 

$

170,286

 

$

12,306

 

$

166,601

 

$

560,176

Specific ALLL

$

52,250

 

$

-

 

$

43,841

 

$

297

 

$

24,906

 

$

121,294

General ALLL

$

157,855

 

$

878

 

$

126,445

 

$

12,009

 

$

141,695

 

$

438,882

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

356,007

 

$

1,829

 

$

508,258

 

$

931

 

$

107,184

 

$

974,209

Loans held-in-portfolio excluding impaired loans

 

7,051,469

 

 

75,964

 

 

6,023,018

 

 

902,609

 

 

4,796,084

 

 

18,849,144

Total loans held-in-portfolio

$

7,407,476

 

$

77,793

 

$

6,531,276

 

$

903,540

 

$

4,903,268

 

$

19,823,353

For the quarter ended September 30, 2018

Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Legacy

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

50,920

 

$

6,937

 

$

4,363

 

$

700

 

$

12,953

 

$

75,873

 

Provision (reversal of provision)

 

(14,744)

 

 

7,305

 

 

(65)

 

 

(1,008)

 

 

11,022

 

 

2,510

 

Charge-offs

 

(2,792)

 

 

-

 

 

(17)

 

 

(81)

 

 

(5,015)

 

 

(7,905)

 

Recoveries

 

1,051

 

 

-

 

 

20

 

 

766

 

 

1,227

 

 

3,064

Ending balance

$

34,435

 

$

14,242

 

$

4,301

 

$

377

 

$

20,187

 

$

73,542

Specific ALLL

$

-

 

$

5,530

 

$

2,364

 

$

-

 

$

1,349

 

$

9,243

General ALLL

$

34,435

 

$

8,712

 

$

1,937

 

$

377

 

$

18,838

 

$

64,299

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

-

 

$

17,866

 

$

8,825

 

$

-

 

$

7,388

 

$

34,079

Loans held-in-portfolio excluding impaired loans

 

4,586,231

 

 

847,706

 

 

764,069

 

 

27,566

 

 

429,164

 

 

6,654,736

Total loans held-in-portfolio

$

4,586,231

 

$

865,572

 

$

772,894

 

$

27,566

 

$

436,552

 

$

6,688,815

For the quarter ended September 30, 2018

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

Construction

Mortgage

Legacy

Leasing

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

241,846

$

7,702

$

186,466

$

700

$

14,285

$

192,019

$

643,018

 

Provision (reversal of provision)

 

6,804

 

7,293

 

10,080

 

(1,008)

 

(422)

 

31,640

 

54,387

 

Charge-offs

 

(10,127)

 

(21)

 

(23,543)

 

(81)

 

(2,088)

 

(47,195)

 

(83,055)

 

Recoveries

 

6,017

 

146

 

1,584

 

766

 

531

 

10,324

 

19,368

Ending balance

$

244,540

$

15,120

$

174,587

$

377

$

12,306

$

186,788

$

633,718

Specific ALLL

$

52,250

$

5,530

$

46,205

$

-

$

297

$

26,255

$

130,537

General ALLL

$

192,290

$

9,590

$

128,382

$

377

$

12,009

$

160,533

$

503,181

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

356,007

$

19,695

$

517,083

$

-

$

931

$

114,572

$

1,008,288

Loans held-in-portfolio excluding impaired loans

 

11,637,700

 

923,670

 

6,787,087

 

27,566

 

902,609

 

5,225,248

 

25,503,880

Total loans held-in-portfolio

$

11,993,707

$

943,365

$

7,304,170

$

27,566

$

903,540

$

5,339,820

$

26,512,168

For the nine months ended September 30, 2018

Puerto Rico - Non-covered loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Leasing

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

171,531

 

$

1,286

 

$

159,081

 

$

11,991

 

$

174,215

 

$

518,104

 

Provision (reversal of provision)

 

52,846

 

 

(1,042)

 

 

24,564

 

 

5,022

 

 

71,610

 

 

153,000

 

Charge-offs

 

(25,626)

 

 

9

 

 

(50,164)

 

 

(6,404)

 

 

(101,703)

 

 

(183,888)

 

Recoveries

 

11,354

 

 

625

 

 

3,383

 

 

1,697

 

 

22,291

 

 

39,350

 

Allowance transferred from covered loans

 

-

 

 

-

 

 

33,422

 

 

-

 

 

188

 

 

33,610

Ending balance

$

210,105

 

$

878

 

$

170,286

 

$

12,306

 

$

166,601

 

$

560,176

Specific ALLL

$

52,250

 

$

-

 

$

43,841

 

$

297

 

$

24,906

 

$

121,294

General ALLL

$

157,855

 

$

878

 

$

126,445

 

$

12,009

 

$

141,695

 

$

438,882

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired non-covered loans

$

356,007

 

$

1,829

 

$

508,258

 

$

931

 

$

107,184

 

$

974,209

Non-covered loans held-in-portfolio excluding impaired loans

 

7,051,469

 

 

75,964

 

 

6,023,018

 

 

902,609

 

 

4,796,084

 

 

18,849,144

Total non-covered loans held-in-portfolio

$

7,407,476

 

$

77,793

 

$

6,531,276

 

$

903,540

 

$

4,903,268

 

$

19,823,353

For the nine months ended September 30, 2018

Puerto Rico - Covered Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Leasing

 

Consumer

 

Total

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

 

 

-

 

 

2

 

 

84

 

Allowance transferred to non-covered loans

 

-

 

 

-

 

 

(33,422)

 

 

-

 

 

(188)

 

 

(33,610)

Ending balance

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Specific ALLL

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

General ALLL

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired covered loans

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Covered loans held-in-portfolio excluding impaired loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Total covered loans held-in-portfolio

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

For the nine months ended September 30, 2018

Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Legacy

 

Consumer

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

44,134

 

$

7,076

 

$

4,541

 

$

798

 

$

15,529

 

$

72,078

 

Provision (reversal of provision)

 

9,004

 

 

7,166

 

 

(529)

 

 

(1,714)

 

 

16,847

 

 

30,774

 

Charge-offs

 

(22,435)

 

 

-

 

 

(160)

 

 

(252)

 

 

(16,329)

 

 

(39,176)

 

Recoveries

 

3,732

 

 

-

 

 

449

 

 

1,545

 

 

4,140

 

 

9,866

Ending balance

$

34,435

 

$

14,242

 

$

4,301

 

$

377

 

$

20,187

 

$

73,542

Specific ALLL

$

-

 

$

5,530

 

$

2,364

 

$

-

 

$

1,349

 

$

9,243

General ALLL

$

34,435

 

$

8,712

 

$

1,937

 

$

377

 

$

18,838

 

$

64,299

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

-

 

$

17,866

 

$

8,825

 

$

-

 

$

7,388

 

$

34,079

Loans held-in-portfolio excluding impaired loans

 

4,586,231

 

 

847,706

 

 

764,069

 

 

27,566

 

 

429,164

 

 

6,654,736

Total loans held-in-portfolio

$

4,586,231

 

$

865,572

 

$

772,894

 

$

27,566

 

$

436,552

 

$

6,688,815

For the nine months ended September 30, 2018

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Commercial

Construction

Mortgage

Legacy

Leasing

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

215,665

$

8,362

$

196,143

$

798

$

11,991

$

190,467

$

623,426

 

Provision (reversal of provision)

 

61,850

 

6,124

 

26,300

 

(1,714)

 

5,022

 

87,922

 

185,504

 

Charge-offs

 

(48,061)

 

9

 

(51,770)

 

(252)

 

(6,404)

 

(118,034)

 

(224,512)

 

Recoveries

 

15,086

 

625

 

3,914

 

1,545

 

1,697

 

26,433

 

49,300

Ending balance

$

244,540

$

15,120

$

174,587

$

377

$

12,306

$

186,788

$

633,718

Specific ALLL

$

52,250

$

5,530

$

46,205

$

-

$

297

$

26,255

$

130,537

General ALLL

$

192,290

$

9,590

$

128,382

$

377

$

12,009

$

160,533

$

503,181

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

$

356,007

$

19,695

$

517,083

$

-

$

931

$

114,572

$

1,008,288

Loans held-in-portfolio excluding impaired loans

 

11,637,700

 

923,670

 

6,787,087

 

27,566

 

902,609

 

5,225,248

 

25,503,880

Total loans held-in-portfolio

$

11,993,707

$

943,365

$

7,304,170

$

27,566

$

903,540

$

5,339,820

$

26,512,168

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

 

ASC 310-30

 

For the quarters ended

For the nine months ended

(In thousands)

September 30, 2019

 

September 30, 2018

September 30, 2019

September 30, 2018

Balance at beginning of period

$

120,818

 

$

156,328

$

122,135

$

119,505

Provision (reversal of provision)

 

(14,617)

 

 

17,854

 

(2,007)

 

78,317

Net charge-offs

 

(11,591)

 

 

(5,623)

 

(25,518)

 

(29,263)

Balance at end of period

$

94,610

 

$

168,559

$

94,610

$

168,559

Impaired loans

The following tables present loans individually evaluated for impairment at September 30, 2019 and December 31, 2018.

September 30, 2019

Puerto Rico

 

Impaired Loans – With an

Impaired Loans

 

 

 

 

 

 

 

Allowance

With No Allowance

Impaired Loans - Total

 

 

 

Unpaid

 

 

 

 

Unpaid

 

 

Unpaid

 

 

 

Recorded

principal

Related

Recorded

principal

Recorded

principal

 

Related

(In thousands)

investment

balance

allowance

investment

balance

investment

balance

 

allowance

Commercial multi-family

$

2,249

$

2,284

$

249

$

-

$

-

$

2,249

$

2,284

$

249

Commercial real estate non-owner occupied

 

76,055

 

88,496

 

14,012

 

110,859

 

121,418

 

186,914

 

209,914

 

14,012

Commercial real estate owner occupied

 

111,600

 

130,895

 

5,607

 

27,573

 

59,748

 

139,173

 

190,643

 

5,607

Commercial and industrial

 

50,024

 

51,327

 

10,262

 

28,764

 

51,037

 

78,788

 

102,364

 

10,262

Construction

 

274

 

274

 

57

 

-

 

-

 

274

 

274

 

57

Mortgage

 

419,665

 

477,034

 

40,483

 

104,211

 

139,550

 

523,876

 

616,584

 

40,483

Leasing

 

624

 

624

 

71

 

-

 

-

 

624

 

624

 

71

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

26,049

 

26,049

 

3,018

 

-

 

-

 

26,049

 

26,049

 

3,018

Personal

 

68,147

 

68,147

 

17,824

 

-

 

-

 

68,147

 

68,147

 

17,824

Auto

 

333

 

333

 

62

 

-

 

-

 

333

 

333

 

62

Other

 

827

 

827

 

105

 

-

 

-

 

827

 

827

 

105

Total Puerto Rico

$

755,847

$

846,290

$

91,750

$

271,407

$

371,753

$

1,027,254

$

1,218,043

$

91,750

September 30, 2019

Popular U.S.

 

Impaired Loans – With an

Impaired Loans

 

 

 

 

 

 

 

Allowance

With No Allowance

Impaired Loans - Total

 

 

 

Unpaid

 

 

 

 

Unpaid

 

 

Unpaid

 

 

 

Recorded

principal

Related

Recorded

principal

Recorded

principal

Related

(In thousands)

investment

balance

allowance

investment

balance

investment

balance

allowance

Commercial multi-family

$

-

$

-

$

-

$

2,097

$

2,539

$

2,097

$

2,539

$

-

Construction

 

-

 

-

 

-

 

10,060

 

18,127

 

10,060

 

18,127

 

-

Mortgage

 

6,961

 

7,313

 

2,385

 

2,480

 

2,844

 

9,441

 

10,157

 

2,385

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HELOCs

 

7,575

 

7,575

 

1,708

 

2,085

 

2,169

 

9,660

 

9,744

 

1,708

Personal

 

27

 

27

 

3

 

74

 

74

 

101

 

101

 

3

Total Popular U.S.

$

14,563

$

14,915

$

4,096

$

16,796

$

25,753

$

31,359

$

40,668

$

4,096

September 30, 2019

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

$

2,249

$

2,284

$

249

$

2,097

$

2,539

$

4,346

$

4,823

$

249

Commercial real estate non-owner occupied

 

76,055

 

88,496

 

14,012

 

110,859

 

121,418

 

186,914

 

209,914

 

14,012

Commercial real estate owner occupied

 

111,600

 

130,895

 

5,607

 

27,573

 

59,748

 

139,173

 

190,643

 

5,607

Commercial and industrial

 

50,024

 

51,327

 

10,262

 

28,764

 

51,037

 

78,788

 

102,364

 

10,262

Construction

 

274

 

274

 

57

 

10,060

 

18,127

 

10,334

 

18,401

 

57

Mortgage

 

426,626

 

484,347

 

42,868

 

106,691

 

142,394

 

533,317

 

626,741

 

42,868

Leasing

 

624

 

624

 

71

 

-

 

-

 

624

 

624

 

71

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Cards

 

26,049

 

26,049

 

3,018

 

-

 

-

 

26,049

 

26,049

 

3,018

HELOCs

 

7,575

 

7,575

 

1,708

 

2,085

 

2,169

 

9,660

 

9,744

 

1,708

Personal

 

68,174

 

68,174

 

17,827

 

74

 

74

 

68,248

 

68,248

 

17,827

Auto

 

333

 

333

 

62

 

-

 

-

 

333

 

333

 

62

Other

 

827

 

827

 

105

 

-

 

-

 

827

 

827

 

105

Total Popular, Inc.

$

770,410

$

861,205

$

95,846

$

288,203

$

397,506

$

1,058,613

$

1,258,711

$

95,846

December 31, 2018

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

$

932

$

932

$

4

$

-

$

-

$

932

$

932

$

4

Commercial real estate non-owner occupied

 

85,583

 

86,282

 

27,494

 

96,005

 

138,378

 

181,588

 

224,660

 

27,494

Commercial real estate owner occupied

 

113,592

 

132,677

 

7,857

 

26,474

 

60,485

 

140,066

 

193,162

 

7,857

Commercial and industrial

 

65,208

 

67,094

 

16,835

 

10,724

 

20,968

 

75,932

 

88,062

 

16,835

Construction

 

1,788

 

1,788

 

56

 

-

 

-

 

1,788

 

1,788

 

56

Mortgage

 

408,767

 

458,010

 

38,760

 

100,701

 

135,084

 

509,468

 

593,094

 

38,760

Leasing

 

1,099

 

1,099

 

320

 

-

 

-

 

1,099

 

1,099

 

320

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

28,829

 

28,829

 

4,571

 

-

 

-

 

28,829

 

28,829

 

4,571

Personal

 

72,989

 

72,989

 

19,098

 

-

 

-

 

72,989

 

72,989

 

19,098

Auto

 

1,161

 

1,161

 

228

 

-

 

-

 

1,161

 

1,161

 

228

Other

 

1,256

 

1,256

 

186

 

-

 

-

 

1,256

 

1,256

 

186

Total Puerto Rico

$

781,204

$

852,117

$

115,409

$

233,904

$

354,915

$

1,015,108

$

1,207,032

$

115,409

December 31, 2018

Popular U.S.

 

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

Construction

$

-

$

-

$

-

$

12,060

$

18,127

$

12,060

$

18,127

$

-

Mortgage

 

7,237

 

8,899

 

2,451

 

2,183

 

3,127

 

9,420

 

12,026

 

2,451

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HELOCs

 

6,236

 

6,285

 

1,558

 

1,498

 

1,572

 

7,734

 

7,857

 

1,558

Personal

 

631

 

631

 

252

 

142

 

143

 

773

 

774

 

252

Total Popular U.S.

$

14,104

$

15,815

$

4,261

$

15,883

$

22,969

$

29,987

$

38,784

$

4,261

December 31, 2018

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

$

932

$

932

$

4

$

-

$

-

$

932

$

932

$

4

Commercial real estate non-owner occupied

 

85,583

 

86,282

 

27,494

 

96,005

 

138,378

 

181,588

 

224,660

 

27,494

Commercial real estate owner occupied

 

113,592

 

132,677

 

7,857

 

26,474

 

60,485

 

140,066

 

193,162

 

7,857

Commercial and industrial

 

65,208

 

67,094

 

16,835

 

10,724

 

20,968

 

75,932

 

88,062

 

16,835

Construction

 

1,788

 

1,788

 

56

 

12,060

 

18,127

 

13,848

 

19,915

 

56

Mortgage

 

416,004

 

466,909

 

41,211

 

102,884

 

138,211

 

518,888

 

605,120

 

41,211

Leasing

 

1,099

 

1,099

 

320

 

-

 

-

 

1,099

 

1,099

 

320

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Cards

 

28,829

 

28,829

 

4,571

 

-

 

-

 

28,829

 

28,829

 

4,571

HELOCs

 

6,236

 

6,285

 

1,558

 

1,498

 

1,572

 

7,734

 

7,857

 

1,558

Personal

 

73,620

 

73,620

 

19,350

 

142

 

143

 

73,762

 

73,763

 

19,350

Auto

 

1,161

 

1,161

 

228

 

-

 

-

 

1,161

 

1,161

 

228

Other

 

1,256

 

1,256

 

186

 

-

 

-

 

1,256

 

1,256

 

186

Total Popular, Inc.

$

795,308

$

867,932

$

119,670

$

249,787

$

377,884

$

1,045,095

$

1,245,816

$

119,670

The following tables present the average recorded investment and interest income recognized on impaired loans for the quarters and nine months ended September 30, 2019 and 2018.

For the quarter ended September 30, 2019

 

Puerto Rico

 

Popular U.S.

 

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

$

1,641

 

$

12

 

$

2,309

 

$

-

 

$

3,950

 

$

12

Commercial real estate non-owner occupied

 

182,078

 

 

2,561

 

 

-

 

 

-

 

 

182,078

 

 

2,561

Commercial real estate owner occupied

 

138,325

 

 

1,698

 

 

720

 

 

-

 

 

139,045

 

 

1,698

Commercial and industrial

 

74,674

 

 

888

 

 

-

 

 

-

 

 

74,674

 

 

888

Construction

 

1,031

 

 

-

 

 

11,060

 

 

-

 

 

12,091

 

 

-

Mortgage

 

522,567

 

 

4,399

 

 

9,417

 

 

155

 

 

531,984

 

 

4,554

Leasing

 

745

 

 

-

 

 

-

 

 

-

 

 

745

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

26,346

 

 

-

 

 

-

 

 

-

 

 

26,346

 

 

-

HELOCs

 

-

 

 

-

 

 

9,749

 

 

-

 

 

9,749

 

 

-

Personal

 

69,103

 

 

64

 

 

107

 

 

-

 

 

69,210

 

 

64

Auto

 

742

 

 

-

 

 

-

 

 

-

 

 

742

 

 

-

Other

 

939

 

 

-

 

 

-

 

 

-

 

 

939

 

 

-

Total Popular, Inc.

$

1,018,191

 

$

9,622

 

$

33,362

 

$

155

 

$

1,051,553

 

$

9,777

For the quarter ended September 30, 2018

 

Puerto Rico

 

Popular U.S.

 

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

$

1,100

 

$

9

 

$

-

 

$

-

 

$

1,100

 

$

9

Commercial real estate non-owner occupied

 

132,927

 

 

1,371

 

 

-

 

 

-

 

 

132,927

 

 

1,371

Commercial real estate owner occupied

 

148,931

 

 

1,636

 

 

-

 

 

-

 

 

148,931

 

 

1,636

Commercial and industrial

 

74,770

 

 

1,053

 

 

-

 

 

-

 

 

74,770

 

 

1,053

Construction

 

2,194

 

 

-

 

 

17,884

 

 

-

 

 

20,078

 

 

-

Mortgage

 

507,919

 

 

3,561

 

 

9,277

 

 

43

 

 

517,196

 

 

3,604

Leasing

 

1,031

 

 

-

 

 

-

 

 

-

 

 

1,031

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

31,998

 

 

-

 

 

-

 

 

-

 

 

31,998

 

 

-

HELOCs

 

-

 

 

-

 

 

6,208

 

 

-

 

 

6,208

 

 

-

Personal

 

72,353

 

 

65

 

 

768

 

 

-

 

 

73,121

 

 

65

Auto

 

1,067

 

 

-

 

 

-

 

 

-

 

 

1,067

 

 

-

Other

 

1,136

 

 

-

 

 

-

 

 

-

 

 

1,136

 

 

-

Total Popular, Inc.

$

975,426

 

$

7,695

 

$

34,137

 

$

43

 

$

1,009,563

 

$

7,738

For the nine months ended September 30, 2019

 

Puerto Rico

 

Popular U.S.

 

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

$

1,284

 

$

36

 

$

1,155

 

$

-

 

$

2,439

 

$

36

Commercial real estate non-owner occupied

 

180,401

 

 

6,987

 

 

-

 

 

-

 

 

180,401

 

 

6,987

Commercial real estate owner occupied

 

139,086

 

 

4,831

 

 

783

 

 

-

 

 

139,869

 

 

4,831

Commercial and industrial

 

72,668

 

 

2,744

 

 

-

 

 

-

 

 

72,668

 

 

2,744

Construction

 

1,410

 

 

-

 

 

11,560

 

 

-

 

 

12,970

 

 

-

Mortgage

 

517,492

 

 

12,423

 

 

9,423

 

 

296

 

 

526,915

 

 

12,719

Leasing

 

902

 

 

-

 

 

-

 

 

-

 

 

902

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

27,350

 

 

-

 

 

-

 

 

-

 

 

27,350

 

 

-

HELOCs

 

-

 

 

-

 

 

8,855

 

 

-

 

 

8,855

 

 

-

Personal

 

70,700

 

 

208

 

 

447

 

 

-

 

 

71,147

 

 

208

Auto

 

952

 

 

-

 

 

-

 

 

-

 

 

952

 

 

-

Other

 

1,093

 

 

-

 

 

-

 

 

-

 

 

1,093

 

 

-

Total Popular, Inc.

$

1,013,338

 

$

27,229

 

$

32,223

 

$

296

 

$

1,045,561

 

$

27,525

For the nine months ended September 30, 2018

 

Puerto Rico

 

Popular U.S.

 

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

$

634

 

$

28

 

$

-

 

$

-

 

$

634

 

$

28

Commercial real estate non-owner occupied

 

128,143

 

 

4,278

 

 

-

 

 

-

 

 

128,143

 

 

4,278

Commercial real estate owner occupied

 

151,192

 

 

4,786

 

 

-

 

 

-

 

 

151,192

 

 

4,786

Commercial and industrial

 

67,775

 

 

2,793

 

 

-

 

 

-

 

 

67,775

 

 

2,793

Construction

 

2,170

 

 

25

 

 

8,942

 

 

-

 

 

11,112

 

 

25

Mortgage

 

508,930

 

 

13,790

 

 

9,217

 

 

130

 

 

518,147

 

 

13,920

Leasing

 

1,220

 

 

-

 

 

-

 

 

-

 

 

1,220

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

32,734

 

 

-

 

 

-

 

 

-

 

 

32,734

 

 

-

HELOCs

 

-

 

 

-

 

 

5,446

 

 

-

 

 

5,446

 

 

-

Personal

 

67,049

 

 

320

 

 

769

 

 

-

 

 

67,818

 

 

320

Auto

 

1,476

 

 

-

 

 

-

 

 

-

 

 

1,476

 

 

-

Other

 

1,246

 

 

-

 

 

-

 

 

-

 

 

1,246

 

 

-

Total Popular, Inc.

$

962,569

 

$

26,020

 

$

24,374

 

$

130

 

$

986,943

 

$

26,150

Modifications

A modification of a loan constitutes a troubled debt restructuring when a borrower is experiencing financial difficulty and the modification constitutes a concession. For a summary of the accounting policy related to troubled debt restructurings (“TDRs”), refer to the Summary of Significant Accounting Policies included in Note 2 to the 2018 Form 10-K.

TDRs amounted to $ 1.6 billion at September 30, 2019 (December 31, 2018 - $ 1.5 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 September 30, 2019 (December 31, 2018 - $16 million).

At September 30, 2019, the mortgage loan TDRs include $614 million guaranteed by U.S. sponsored entities at BPPR, compared to $543 million at December 31, 2018.

The following table presents the loans classified as TDRs according to their accruing status and the related allowance at September 30, 2019 and December 31, 2018.

 

September 30, 2019

 

 

December 31, 2018

(In thousands)

 

Accruing

 

Non-Accruing

 

Total

 

Related Allowance

 

 

 

Accruing

 

Non-Accruing

 

Total

 

Related Allowance

Loans held-in-portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

234,214

$

116,508

$

350,722

$

15,971

 

 

$

229,758

$

130,921

$

360,679

$

46,889

Construction

 

-

 

274

 

274

 

57

 

 

 

-

 

1,788

 

1,788

 

56

Mortgage

 

996,000

 

132,755

 

1,128,755

 

42,029

 

 

 

906,712

 

135,758

 

1,042,470

 

41,211

Leases

 

343

 

245

 

588

 

71

 

 

 

668

 

440

 

1,108

 

320

Consumer

 

86,115

 

15,914

 

102,029

 

22,260

 

 

 

94,193

 

15,651

 

109,844

 

24,523

Loans held-in-portfolio

$

1,316,672

$

265,696

$

1,582,368

$

80,388

 

 

$

1,231,331

$

284,558

$

1,515,889

$

112,999

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters and nine months ended September 30, 2019 and 2018. Loans modified as TDRs for the U.S. operations are considered insignificant to the Corporation.

 

Popular, Inc.

 

For the quarter ended September 30, 2019

 

For the nine months ended September 30, 2019

 

Reduction in interest rate

Extension of maturity date

Combination of reduction in interest rate and extension of maturity date

Other

 

Reduction in interest rate

Extension of maturity date

Combination of reduction in interest rate and extension of maturity date

Other

Commercial multi-family

-

-

-

-

 

-

1

-

-

Commercial real estate non-owner occupied

-

3

-

-

 

-

6

-

-

Commercial real estate owner occupied

-

4

-

-

 

1

19

-

-

Commercial and industrial

2

7

-

-

 

2

41

-

-

Mortgage

2

43

207

3

 

33

98

494

5

Leasing

-

1

1

-

 

-

1

2

-

Consumer:

 

 

 

 

 

 

 

 

 

Credit cards

111

-

1

41

 

394

-

2

161

HELOCs

-

2

2

-

 

-

14

11

-

Personal

183

1

-

-

 

527

4

-

1

Auto

-

1

-

-

 

-

5

1

-

Other

7

-

-

-

 

22

-

-

-

Total

305

62

211

44

 

979

189

510

167

 

Popular, Inc.

 

For the quarter ended September 30, 2018

 

For the nine months ended September 30, 2018

 

Reduction in interest rate

Extension of maturity date

Combination of reduction in interest rate and extension of maturity date

Other

 

Reduction in interest rate

Extension of maturity date

Combination of reduction in interest rate and extension of maturity date

Other

Commercial multi-family

-

1

-

-

 

-

2

-

-

Commercial real estate non-owner occupied

1

3

-

-

 

3

14

-

-

Commercial real estate owner occupied

1

12

-

-

 

4

54

-

-

Commercial and industrial

2

25

-

-

 

6

75

-

-

Construction

-

-

-

-

 

1

-

-

-

Mortgage

28

7

70

11

 

73

17

173

56

Leasing

-

-

3

-

 

-

-

4

-

Consumer:

 

 

 

 

 

 

 

 

 

Credit cards

115

-

-

72

 

426

-

3

382

HELOCs

-

8

1

1

 

-

20

8

1

Personal

511

1

-

-

 

1,139

4

-

-

Auto

-

4

1

-

 

-

6

2

-

Other

1

-

1

-

 

21

-

2

-

Total

659

61

76

84

 

1,673

192

192

439

The following tables present by class, quantitative information related to loans modified as TDRs during the quarters and nine months ended September 30, 2019 and 2018.

For the quarter ended September 30, 2019

(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

$

16,822

$

16,822

$

(86)

Commercial real estate owner occupied

4

 

2,966

 

2,959

 

(48)

Commercial and industrial

9

 

1,436

 

1,384

 

103

Mortgage

255

 

23,583

 

21,907

 

746

Leasing

2

 

237

 

238

 

-

Consumer:

 

 

 

 

 

 

 

Credit cards

153

 

1,375

 

1,355

 

109

HELOCs

4

 

276

 

246

 

25

Personal

184

 

2,546

 

2,544

 

677

Auto

1

 

7

 

7

 

1

Other

7

 

31

 

31

 

2

Total

622

$

49,279

$

47,493

$

1,529

For the quarter ended September 30, 2018

(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

1

$

810

$

808

$

63

Commercial real estate non-owner occupied

4

 

1,523

 

1,521

 

100

Commercial real estate owner occupied

13

 

7,578

 

7,525

 

160

Commercial and industrial

27

 

2,411

 

2,388

 

139

Mortgage

116

 

15,143

 

13,507

 

640

Leasing

3

 

75

 

73

 

23

Consumer:

 

 

 

 

 

 

 

Credit cards

187

 

1,693

 

1,838

 

234

HELOCs

10

 

913

 

906

 

66

Personal

512

 

8,026

 

8,025

 

2,660

Auto

5

 

63

 

63

 

11

Other

2

 

392

 

392

 

67

Total

880

$

38,627

$

37,046

$

4,163

Popular, Inc.

For the nine months ended September 30, 2019

(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

1

$

154

$

116

$

(5)

Commercial real estate non-owner occupied

6

 

19,389

 

19,379

 

721

Commercial real estate owner occupied

20

 

6,378

 

6,110

 

9

Commercial and industrial

43

 

9,749

 

10,219

 

888

Mortgage

630

 

64,533

 

58,818

 

2,104

Leasing

3

 

264

 

266

 

7

Consumer:

 

 

 

 

 

 

 

Credit cards

557

 

4,690

 

4,823

 

466

HELOCs

25

 

2,359

 

2,256

 

345

Personal

532

 

8,836

 

8,839

 

2,312

Auto

6

 

70

 

73

 

13

Other

22

 

177

 

177

 

27

Total

1,845

$

116,599

$

111,076

$

6,887

Popular, Inc.

For the nine months ended September 30, 2018

(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

$

1,377

$

1,375

$

106

Commercial real estate non-owner occupied

17

 

28,969

 

28,908

 

6,854

Commercial real estate owner occupied

58

 

27,648

 

26,433

 

1,143

Commercial and industrial

81

 

49,633

 

48,882

 

13,963

Construction

1

 

4,210

 

4,293

 

474

Mortgage

319

 

40,741

 

36,442

 

1,874

Leasing

4

 

98

 

96

 

30

Consumer:

 

 

 

 

 

 

 

Credit cards

811

 

8,097

 

8,642

 

1,086

HELOCs

29

 

2,638

 

2,579

 

440

Personal

1,143

 

18,351

 

18,346

 

5,390

Auto

8

 

139

 

122

 

21

Other

23

 

595

 

593

 

98

Total

2,496

$

182,496

$

176,711

$

31,479

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 as of period end 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 endedSeptember 30, 2019

 

Defaulted during the nine months ended September 30, 2019

(Dollars in thousands)

Loan count

 

Recorded investment as of first default date

 

Loan count

 

Recorded investment as of first default date

Commercial real estate non-owner occupied

-

$

-

 

1

$

47

Commercial real estate owner occupied

1

 

68

 

3

 

495

Commercial and industrial

1

 

34

 

4

 

7,082

Mortgage

32

 

2,099

 

31

 

3,148

Leasing

-

 

-

 

1

 

22

Consumer:

 

 

 

 

 

 

 

Credit cards

68

 

551

 

222

 

2,063

Personal

62

 

1,144

 

163

 

4,768

Auto

2

 

24

 

2

 

24

Other

1

 

5

 

2

 

7

Total

167

$

3,925

 

429

$

17,656

Popular, Inc.

 

Defaulted during the quarter endedSeptember 30, 2018

 

Defaulted during the nine months ended September 30, 2018

(Dollars in thousands)

Loan count

 

Recorded investment as of first default date

 

Loan count

 

Recorded investment as of first default date

Commercial real estate non-owner occupied

-

$

-

 

1

$

17

Commercial real estate owner occupied

1

 

255

 

4

 

392

Commercial and industrial

1

 

5

 

7

 

81

Mortgage

42

 

5,280

 

74

 

9,520

Consumer:

 

 

 

 

 

 

 

Credit cards

86

 

707

 

150

 

2,301

HELOCs

1

 

144

 

1

 

144

Personal

27

 

362

 

67

 

1,656

Auto

-

 

-

 

3

 

79

Other

1

 

3

 

2

 

10

Total

159

$

6,756

 

309

$

14,200

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 loans held-in-portfolio based on the Corporation’s assignment of obligor risk ratings as defined at September 30, 2019 and December 31, 2018. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 9 to the Consolidated Financial Statements included in the Corporation’s Form 10K for the year ended December 31, 2018.

September 30, 2019

 

 

 

 

Special

 

 

 

 

 

 

 

 

Pass/

 

 

(In thousands)

Watch

Mention

Substandard

Doubtful

Loss

Sub-total

Unrated

Total

Puerto Rico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial multi-family

$

2,262

$

3,604

$

2,062

$

-

$

-

$

7,928

$

140,622

$

148,550

Commercial real estate non-owner occupied

 

530,310

 

107,723

 

272,491

 

12,046

 

-

 

922,570

 

1,174,579

 

2,097,149

Commercial real estate owner occupied

 

201,442

 

218,294

 

202,055

 

1,711

 

-

 

623,502

 

993,595

 

1,617,097

Commercial and industrial

 

660,142

 

100,309

 

121,777

 

8,113

 

9

 

890,350

 

2,415,507

 

3,305,857

 

Total Commercial

 

1,394,156

 

429,930

 

598,385

 

21,870

 

9

 

2,444,350

 

4,724,303

 

7,168,653

Construction

 

947

 

-

 

20,535

 

-

 

-

 

21,482

 

102,590

 

124,072

Mortgage

 

2,239

 

1,547

 

137,220

 

-

 

-

 

141,006

 

6,094,570

 

6,235,576

Leasing

 

-

 

-

 

2,690

 

-

 

43

 

2,733

 

1,019,751

 

1,022,484

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

-

 

-

 

16,459

 

-

 

-

 

16,459

 

1,019,758

 

1,036,217

 

HELOCs

 

-

 

-

 

727

 

-

 

171

 

898

 

4,985

 

5,883

 

Personal

 

82

 

-

 

18,741

 

-

 

-

 

18,823

 

1,330,780

 

1,349,603

 

Auto

 

-

 

-

 

22,736

 

-

 

217

 

22,953

 

2,824,805

 

2,847,758

 

Other

 

492

 

11

 

14,067

 

-

 

-

 

14,570

 

127,766

 

142,336

 

Total Consumer

 

574

 

11

 

72,730

 

-

 

388

 

73,703

 

5,308,094

 

5,381,797

Total Puerto Rico

$

1,397,916

$

431,488

$

831,560

$

21,870

$

440

$

2,683,274

$

17,249,308

$

19,932,582

Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial multi-family

$

70,392

$

13,906

$

8,591

$

-

$

-

$

92,889

$

1,507,725

$

1,600,614

Commercial real estate non-owner occupied

 

82,184

 

36,279

 

101,886

 

-

 

-

 

220,349

 

1,733,862

 

1,954,211

Commercial real estate owner occupied

 

31,949

 

14,542

 

7,133

 

-

 

-

 

53,624

 

265,495

 

319,119

Commercial and industrial

 

23,671

 

366

 

50,251

 

-

 

-

 

74,288

 

1,091,564

 

1,165,852

 

Total Commercial

 

208,196

 

65,093

 

167,861

 

-

 

-

 

441,150

 

4,598,646

 

5,039,796

Construction

 

31,892

 

22,881

 

56,613

 

-

 

-

 

111,386

 

518,598

 

629,984

Mortgage

 

-

 

-

 

9,517

 

-

 

-

 

9,517

 

923,526

 

933,043

Legacy

 

454

 

209

 

1,837

 

-

 

-

 

2,500

 

20,692

 

23,192

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

-

 

-

 

-

 

-

 

-

 

-

 

78

 

78

 

HELOCs

 

-

 

-

 

2,246

 

-

 

7,872

 

10,118

 

114,384

 

124,502

 

Personal

 

-

 

-

 

1,379

 

-

 

291

 

1,670

 

322,435

 

324,105

 

Other

 

-

 

-

 

6

 

-

 

-

 

6

 

687

 

693

 

Total Consumer

 

-

 

-

 

3,631

 

-

 

8,163

 

11,794

 

437,584

 

449,378

Total Popular U.S.

$

240,542

$

88,183

$

239,459

$

-

$

8,163

$

576,347

$

6,499,046

$

7,075,393

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial multi-family

$

72,654

$

17,510

$

10,653

$

-

$

-

$

100,817

$

1,648,347

$

1,749,164

Commercial real estate non-owner occupied

 

612,494

 

144,002

 

374,377

 

12,046

 

-

 

1,142,919

 

2,908,441

 

4,051,360

Commercial real estate owner occupied

 

233,391

 

232,836

 

209,188

 

1,711

 

-

 

677,126

 

1,259,090

 

1,936,216

Commercial and industrial

 

683,813

 

100,675

 

172,028

 

8,113

 

9

 

964,638

 

3,507,071

 

4,471,709

 

Total Commercial

 

1,602,352

 

495,023

 

766,246

 

21,870

 

9

 

2,885,500

 

9,322,949

 

12,208,449

Construction

 

32,839

 

22,881

 

77,148

 

-

 

-

 

132,868

 

621,188

 

754,056

Mortgage

 

2,239

 

1,547

 

146,737

 

-

 

-

 

150,523

 

7,018,096

 

7,168,619

Legacy

 

454

 

209

 

1,837

 

-

 

-

 

2,500

 

20,692

 

23,192

Leasing

 

-

 

-

 

2,690

 

-

 

43

 

2,733

 

1,019,751

 

1,022,484

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

-

 

-

 

16,459

 

-

 

-

 

16,459

 

1,019,836

 

1,036,295

 

HELOCs

 

-

 

-

 

2,973

 

-

 

8,043

 

11,016

 

119,369

 

130,385

 

Personal

 

82

 

-

 

20,120

 

-

 

291

 

20,493

 

1,653,215

 

1,673,708

 

Auto

 

-

 

-

 

22,736

 

-

 

217

 

22,953

 

2,824,805

 

2,847,758

 

Other

 

492

 

11

 

14,073

 

-

 

-

 

14,576

 

128,453

 

143,029

 

Total Consumer

 

574

 

11

 

76,361

 

-

 

8,551

 

85,497

 

5,745,678

 

5,831,175

Total Popular, Inc.

$

1,638,458

$

519,671

$

1,071,019

$

21,870

$

8,603

$

3,259,621

$

23,748,354

$

27,007,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents the weighted average obligor risk rating at September 30, 2019 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:

 

 

 

 

Substandard

 

 

 

 

 

 

Pass

 

 

Commercial multi-family

 

 

 

 

 

11.87

 

 

 

 

 

 

 

6.02

 

 

Commercial real estate non-owner occupied

 

 

 

 

 

11.15

 

 

 

 

 

 

 

6.81

 

 

Commercial real estate owner occupied

 

 

 

 

 

11.35

 

 

 

 

 

 

 

7.27

 

 

Commercial and industrial

 

 

 

 

 

11.29

 

 

 

 

 

 

 

7.14

 

 

 

Total Commercial

 

 

 

 

 

11.25

 

 

 

 

 

 

 

7.07

 

 

Construction

 

 

 

 

 

11.01

 

 

 

 

 

 

 

7.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Popular U.S. :

 

 

 

 

Substandard

 

 

 

 

 

 

Pass

 

 

Commercial multi-family

 

 

 

 

 

11.24

 

 

 

 

 

 

 

7.36

 

 

Commercial real estate non-owner occupied

 

 

 

 

 

11.00

 

 

 

 

 

 

 

6.93

 

 

Commercial real estate owner occupied

 

 

 

 

 

11.04

 

 

 

 

 

 

 

7.47

 

 

Commercial and industrial

 

 

 

 

 

11.01

 

 

 

 

 

 

 

6.60

 

 

 

Total Commercial

 

 

 

 

 

11.02

 

 

 

 

 

 

 

7.02

 

 

Construction

 

 

 

 

 

11.18

 

 

 

 

 

 

 

7.72

 

 

Legacy

 

 

 

 

 

11.34

 

 

 

 

 

 

 

7.95

 

 

December 31, 2018

 

 

 

 

Special

 

 

 

 

 

 

 

 

Pass/

 

 

(In thousands)

Watch

Mention

Substandard

Doubtful

Loss

Sub-total

Unrated

Total

Puerto Rico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial multi-family

$

1,634

$

4,548

$

3,590

$

-

$

-

$

9,772

$

135,856

$

145,628

Commercial real estate non-owner occupied

 

470,506

 

233,173

 

342,962

 

-

 

-

 

1,046,641

 

1,275,960

 

2,322,601

Commercial real estate owner occupied

 

262,476

 

174,510

 

291,468

 

2,078

 

-

 

730,532

 

991,721

 

1,722,253

Commercial and industrial

 

655,092

 

130,641

 

156,515

 

177

 

73

 

942,498

 

2,239,663

 

3,182,161

 

Total Commercial

 

1,389,708

 

542,872

 

794,535

 

2,255

 

73

 

2,729,443

 

4,643,200

 

7,372,643

Construction

 

147

 

634

 

1,788

 

-

 

-

 

2,569

 

83,386

 

85,955

Mortgage

 

3,057

 

2,182

 

154,506

 

-

 

-

 

159,745

 

6,273,578

 

6,433,323

Leasing

 

-

 

-

 

3,301

 

-

 

12

 

3,313

 

931,460

 

934,773

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

-

 

-

 

16,035

 

-

 

-

 

16,035

 

1,031,238

 

1,047,273

 

HELOCs

 

-

 

-

 

165

 

-

 

-

 

165

 

5,186

 

5,351

 

Personal

 

849

 

19

 

18,827

 

-

 

-

 

19,695

 

1,230,930

 

1,250,625

 

Auto

 

-

 

-

 

24,093

 

-

 

84

 

24,177

 

2,584,608

 

2,608,785

 

Other

 

-

 

-

 

14,743

 

-

 

215

 

14,958

 

129,786

 

144,744

 

Total Consumer

 

849

 

19

 

73,863

 

-

 

299

 

75,030

 

4,981,748

 

5,056,778

Total Puerto Rico

$

1,393,761

$

545,707

$

1,027,993

$

2,255

$

384

$

2,970,100

$

16,913,372

$

19,883,472

Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial multi-family

$

85,901

$

7,123

$

6,979

$

-

$

-

$

100,003

$

1,301,537

$

1,401,540

Commercial real estate non-owner occupied

 

152,635

 

9,839

 

46,555

 

-

 

-

 

209,029

 

1,672,715

 

1,881,744

Commercial real estate owner occupied

 

49,415

 

23,963

 

2,394

 

-

 

-

 

75,772

 

223,167

 

298,939

Commercial and industrial

 

5,825

 

1,084

 

76,459

 

-

 

-

 

83,368

 

1,004,785

 

1,088,153

 

Total Commercial

 

293,776

 

42,009

 

132,387

 

-

 

-

 

468,172

 

4,202,204

 

4,670,376

Construction

 

35,375

 

37,741

 

58,005

 

-

 

-

 

131,121

 

562,373

 

693,494

Mortgage

 

-

 

-

 

11,032

 

-

 

-

 

11,032

 

790,903

 

801,935

Legacy

 

534

 

224

 

2,409

 

-

 

-

 

3,167

 

22,782

 

25,949

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

-

 

-

 

-

 

-

 

-

 

-

 

38

 

38

 

HELOCs

 

-

 

-

 

2,615

 

-

 

10,964

 

13,579

 

129,473

 

143,052

 

Personal

 

-

 

-

 

1,910

 

-

 

701

 

2,611

 

286,738

 

289,349

 

Other

 

-

 

-

 

4

 

-

 

-

 

4

 

220

 

224

 

Total Consumer

 

-

 

-

 

4,529

 

-

 

11,665

 

16,194

 

416,469

 

432,663

Total Popular U.S.

$

329,685

$

79,974

$

208,362

$

-

$

11,665

$

629,686

$

5,994,731

$

6,624,417

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial multi-family

$

87,535

$

11,671

$

10,569

$

-

$

-

$

109,775

$

1,437,393

$

1,547,168

Commercial real estate non-owner occupied

 

623,141

 

243,012

 

389,517

 

-

 

-

 

1,255,670

 

2,948,675

 

4,204,345

Commercial real estate owner occupied

 

311,891

 

198,473

 

293,862

 

2,078

 

-

 

806,304

 

1,214,888

 

2,021,192

Commercial and industrial

 

660,917

 

131,725

 

232,974

 

177

 

73

 

1,025,866

 

3,244,448

 

4,270,314

 

Total Commercial

 

1,683,484

 

584,881

 

926,922

 

2,255

 

73

 

3,197,615

 

8,845,404

 

12,043,019

Construction

 

35,522

 

38,375

 

59,793

 

-

 

-

 

133,690

 

645,759

 

779,449

Mortgage

 

3,057

 

2,182

 

165,538

 

-

 

-

 

170,777

 

7,064,481

 

7,235,258

Legacy

 

534

 

224

 

2,409

 

-

 

-

 

3,167

 

22,782

 

25,949

Leasing

 

-

 

-

 

3,301

 

-

 

12

 

3,313

 

931,460

 

934,773

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

-

 

-

 

16,035

 

-

 

-

 

16,035

 

1,031,276

 

1,047,311

 

HELOCs

 

-

 

-

 

2,780

 

-

 

10,964

 

13,744

 

134,659

 

148,403

 

Personal

 

849

 

19

 

20,737

 

-

 

701

 

22,306

 

1,517,668

 

1,539,974

 

Auto

 

-

 

-

 

24,093

 

-

 

84

 

24,177

 

2,584,608

 

2,608,785

 

Other

 

-

 

-

 

14,747

 

-

 

215

 

14,962

 

130,006

 

144,968

 

Total Consumer

 

849

 

19

 

78,392

 

-

 

11,964

 

91,224

 

5,398,217

 

5,489,441

Total Popular, Inc.

$

1,723,446

$

625,681

$

1,236,355

$

2,255

$

12,049

$

3,599,786

$

22,908,103

$

26,507,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents the weighted average obligor risk rating at December 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:

 

 

 

 

Substandard

 

 

 

 

 

 

Pass

 

 

Commercial multi-family

 

 

 

 

 

11.20

 

 

 

 

 

 

 

6.02

 

 

Commercial real estate non-owner occupied

 

 

 

 

 

11.11

 

 

 

 

 

 

 

6.93

 

 

Commercial real estate owner occupied

 

 

 

 

 

11.29

 

 

 

 

 

 

 

7.25

 

 

Commercial and industrial

 

 

 

 

 

11.33

 

 

 

 

 

 

 

7.15

 

 

 

Total Commercial

 

 

 

 

 

11.22

 

 

 

 

 

 

 

7.09

 

 

Construction

 

 

 

 

 

12.00

 

 

 

 

 

 

 

7.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Popular U.S.:

 

 

 

 

Substandard

 

 

 

 

 

 

Pass

 

 

Commercial multi-family

 

 

 

 

 

11.00

 

 

 

 

 

 

 

7.39

 

 

Commercial real estate non-owner occupied

 

 

 

 

 

11.01

 

 

 

 

 

 

 

6.82

 

 

Commercial real estate owner occupied

 

 

 

 

 

11.16

 

 

 

 

 

 

 

7.55

 

 

Commercial and industrial

 

 

 

 

 

11.96

 

 

 

 

 

 

 

7.26

 

 

 

Total Commercial

 

 

 

 

 

11.56

 

 

 

 

 

 

 

7.14

 

 

Construction

 

 

 

 

 

11.21

 

 

 

 

 

 

 

7.85

 

 

Legacy

 

 

 

 

 

11.17

 

 

 

 

 

 

 

7.94