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Loans | 9 Months Ended
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Sep. 30, 2019
Receivables |
Loans | Note 8 – Loans For a summary of the accounting policies related to loans, interest recognition and allowance for loan losses refer to Note 2 - Summary of significant accounting policies of the 2018 Form 10-K. As previously disclosed in Note 4, as a result of the Reliable Transaction completed on August 1, 2018, Popular Auto, LLC, acquired approximately $1.6 billion in retail auto loans and $341 million in primarily auto-related commercial loans. These loans are included in the information presented in this note. During the quarter and nine months ended September 30, 2019, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $81 million and $266 million, respectively; and of consumer loans of $64 million and $222 million, respectively. For the nine months ended September 30, 2019 the Corporation recorded purchases of commercial loans (including loan participations) amounting to $43 million. During the quarter and nine months ended September 30, 2018, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $147 million and $480 million, respectively; and of consumer loans of $48 million and $152 million, respectively. The Corporation performed whole-loan sales involving approximately $18 million and $46 million of residential mortgage loans during the quarter and nine months ended September 30, 2019, respectively (September 30, 2018 - $19 million and $45 million, respectively). Also, the Corporation securitized approximately $ 88 million and $ 247 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2019, respectively (September 30, 2018 - $ 110 million and $ 320 million, respectively). Furthermore, the Corporation securitized approximately $ 33 million and $ 84 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2019, respectively (September 30, 2018 - $ 26 million and $ 72 million, respectively). During the quarter and nine months ended September 30, 2019, the Corporation performed sales of commercial and construction loans, including loan participations amounting to $47 million and $81 million, respectively. Delinquency status The following table presents the composition of loans held-in-portfolio (“HIP”), net of unearned income, by past due status, and by loan class including those that are in non-performing status or that are accruing interest but are past due 90 days or more at September 30, 2019 and December 31, 2018
September 30, 2019
Puerto Rico
|  |  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  | days |  | days |  | or more |  | past due |  | Current |  | Loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | 331 |  | $ | - |  | $ | 1,824 |  | $ | 2,155 |  | $ | 146,395 |  | $ | 148,550 |  |  | $ | 1,784 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 25,497 |  |  | 3,449 |  |  | 47,692 |  |  | 76,638 |  |  | 2,020,511 |  |  | 2,097,149 |  |  |  | 43,349 |  |  | -
| Owner occupied |  |  | 9,284 |  |  | 2,682 |  |  | 90,507 |  |  | 102,473 |  |  | 1,514,624 |  |  | 1,617,097 |  |  |  | 75,513 |  |  | -
Commercial and industrial |  |  | 31,435 |  |  | 6,703 |  |  | 46,104 |  |  | 84,242 |  |  | 3,221,615 |  |  | 3,305,857 |  |  |  | 45,720 |  |  | 311
Construction |  |  | - |  |  | 263 |  |  | 274 |  |  | 537 |  |  | 123,535 |  |  | 124,072 |  |  |  | 274 |  |  | -
Mortgage |  |  | 287,578 |  |  | 142,727 |  |  | 876,960 |  |  | 1,307,265 |  |  | 4,928,311 |  |  | 6,235,576 |  |  |  | 296,025 |  |  | 459,704
Leasing |  |  | 10,906 |  |  | 2,745 |  |  | 2,733 |  |  | 16,384 |  |  | 1,006,100 |  |  | 1,022,484 |  |  |  | 2,733 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 10,099 |  |  | 7,080 |  |  | 16,459 |  |  | 33,638 |  |  | 1,002,579 |  |  | 1,036,217 |  |  |  | - |  |  | 16,459
| Home equity lines of credit |  |  | 15 |  |  | - |  |  | 887 |  |  | 902 |  |  | 4,981 |  |  | 5,883 |  |  |  | 887 |  |  | -
| Personal |  |  | 13,724 |  |  | 10,012 |  |  | 19,418 |  |  | 43,154 |  |  | 1,306,449 |  |  | 1,349,603 |  |  |  | 18,710 |  |  | 15
| Auto |  |  | 85,717 |  |  | 19,973 |  |  | 22,954 |  |  | 128,644 |  |  | 2,719,114 |  |  | 2,847,758 |  |  |  | 22,954 |  |  | -
| Other |  |  | 660 |  |  | 617 |  |  | 13,149 |  |  | 14,426 |  |  | 127,910 |  |  | 142,336 |  |  |  | 12,824 |  |  | 325
Total |  | $ | 475,246 |  | $ | 196,251 |  | $ | 1,138,961 |  | $ | 1,810,458 |  | $ | 18,122,124 |  | $ | 19,932,582 |  |  | $ | 520,773 |  | $ | 476,814
[1] | Loans HIP of $ 141 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
September 30, 2019
Popular U.S.
|  |  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  | days |  | days |  | or more |  | past due |  | Current |  | Loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | - |  | $ | - |  | $ | 2,097 |  | $ | 2,097 |  | $ | 1,598,517 |  | $ | 1,600,614 |  |  | $ | 2,097 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | - |  |  | - |  |  | 292 |  |  | 292 |  |  | 1,953,919 |  |  | 1,954,211 |  |  |  | 292 |  |  | -
| Owner occupied |  |  | 4,884 |  |  | 243 |  |  | 259 |  |  | 5,386 |  |  | 313,733 |  |  | 319,119 |  |  |  | 259 |  |  | -
Commercial and industrial |  |  | 2,449 |  |  | 76 |  |  | 48,563 |  |  | 51,088 |  |  | 1,114,764 |  |  | 1,165,852 |  |  |  | 683 |  |  | -
Construction |  |  | - |  |  | - |  |  | 10,060 |  |  | 10,060 |  |  | 619,924 |  |  | 629,984 |  |  |  | 10,060 |  |  | -
Mortgage |  |  | 1,159 |  |  | 4,049 |  |  | 9,517 |  |  | 14,725 |  |  | 918,318 |  |  | 933,043 |  |  |  | 9,517 |  |  | -
Legacy |  |  | 54 |  |  | 89 |  |  | 2,318 |  |  | 2,461 |  |  | 20,731 |  |  | 23,192 |  |  |  | 2,318 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 78 |  |  | 78 |  |  |  | - |  |  | -
| Home equity lines of credit |  |  | 685 |  |  | 894 |  |  | 10,117 |  |  | 11,696 |  |  | 112,806 |  |  | 124,502 |  |  |  | 10,117 |  |  | -
| Personal |  |  | 1,852 |  |  | 1,499 |  |  | 1,670 |  |  | 5,021 |  |  | 319,084 |  |  | 324,105 |  |  |  | 1,670 |  |  | -
| Other |  |  | 20 |  |  | - |  |  | 6 |  |  | 26 |  |  | 667 |  |  | 693 |  |  |  | 6 |  |  | -
Total |  | $ | 11,103 |  | $ | 6,850 |  | $ | 84,899 |  | $ | 102,852 |  | $ | 6,972,541 |  | $ | 7,075,393 |  |  | $ | 37,019 |  | $ | -
[1] | Loans HIP of $ 48 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
September 30, 2019
Popular, Inc.
|  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  | 30-59 |  | 60-89 |  | 90 days |  | Total |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) | days |  | days |  | or more |  | past due |  | Current |  | Loans HIP[3] [4] |  |  | loans |  | loans[5]
Commercial multi-family | $ | 331 |  | $ | - |  | $ | 3,921 |  | $ | 4,252 |  | $ | 1,744,912 |  | $ | 1,749,164 |  |  | $ | 3,881 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  | 25,497 |  |  | 3,449 |  |  | 47,984 |  |  | 76,930 |  |  | 3,974,430 |  |  | 4,051,360 |  |  |  | 43,641 |  |  | -
| Owner occupied |  | 14,168 |  |  | 2,925 |  |  | 90,766 |  |  | 107,859 |  |  | 1,828,357 |  |  | 1,936,216 |  |  |  | 75,772 |  |  | -
Commercial and industrial |  | 33,884 |  |  | 6,779 |  |  | 94,667 |  |  | 135,330 |  |  | 4,336,379 |  |  | 4,471,709 |  |  |  | 46,403 |  |  | 311
Construction |  | - |  |  | 263 |  |  | 10,334 |  |  | 10,597 |  |  | 743,459 |  |  | 754,056 |  |  |  | 10,334 |  |  | -
Mortgage[1] |  | 288,737 |  |  | 146,776 |  |  | 886,477 |  |  | 1,321,990 |  |  | 5,846,629 |  |  | 7,168,619 |  |  |  | 305,542 |  |  | 459,704
Leasing |  | 10,906 |  |  | 2,745 |  |  | 2,733 |  |  | 16,384 |  |  | 1,006,100 |  |  | 1,022,484 |  |  |  | 2,733 |  |  | -
Legacy[2] |  | 54 |  |  | 89 |  |  | 2,318 |  |  | 2,461 |  |  | 20,731 |  |  | 23,192 |  |  |  | 2,318 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  | 10,099 |  |  | 7,080 |  |  | 16,459 |  |  | 33,638 |  |  | 1,002,657 |  |  | 1,036,295 |  |  |  | - |  |  | 16,459
| Home equity lines of credit |  | 700 |  |  | 894 |  |  | 11,004 |  |  | 12,598 |  |  | 117,787 |  |  | 130,385 |  |  |  | 11,004 |  |  | -
| Personal |  | 15,576 |  |  | 11,511 |  |  | 21,088 |  |  | 48,175 |  |  | 1,625,533 |  |  | 1,673,708 |  |  |  | 20,380 |  |  | 15
| Auto |  | 85,717 |  |  | 19,973 |  |  | 22,954 |  |  | 128,644 |  |  | 2,719,114 |  |  | 2,847,758 |  |  |  | 22,954 |  |  | -
| Other |  | 680 |  |  | 617 |  |  | 13,155 |  |  | 14,452 |  |  | 128,577 |  |  | 143,029 |  |  |  | 12,830 |  |  | 325
Total | $ | 486,349 |  | $ | 203,101 |  | $ | 1,223,860 |  | $ | 1,913,310 |  | $ | 25,094,665 |  | $ | 27,007,975 |  |  | $ | 557,792 |  | $ | 476,814
[1] | It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured.
[2] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
[3] | Loans held-in-portfolio are net of $ 173 million in unearned income and exclude $ 56 million in loans held-for-sale.
[4] | Includes $6.7 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.6 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $2.1 billion at the Federal Reserve Bank ("FRB") for discount window borrowings.
[5] | Loans HIP of $189 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2018
Puerto Rico
|  |  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  |  | 30-59 |  |  | 60-89 |  |  | 90 days |  | Total |  |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  |  | days |  |  | days |  |  | or more |  | past due |  | Current |  | Loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | 1,441 |  | $ | 112 |  | $ | 598 |  | $ | 2,151 |  | $ | 143,477 |  | $ | 145,628 |  |  | $ | 546 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 92,075 |  |  | 839 |  |  | 45,691 |  |  | 138,605 |  |  | 2,183,996 |  |  | 2,322,601 |  |  |  | 39,257 |  |  | -
| Owner occupied |  |  | 6,681 |  |  | 10,839 |  |  | 99,235 |  |  | 116,755 |  |  | 1,605,498 |  |  | 1,722,253 |  |  |  | 88,069 |  |  | -
Commercial and industrial |  |  | 4,137 |  |  | 641 |  |  | 55,321 |  |  | 60,099 |  |  | 3,122,062 |  |  | 3,182,161 |  |  |  | 55,078 |  |  | 243
Construction |  |  | - |  |  | - |  |  | 1,788 |  |  | 1,788 |  |  | 84,167 |  |  | 85,955 |  |  |  | 1,788 |  |  | -
Mortgage |  |  | 275,367 |  |  | 128,104 |  |  | 1,043,607 |  |  | 1,447,078 |  |  | 4,986,245 |  |  | 6,433,323 |  |  |  | 323,565 |  |  | 595,525
Leasing |  |  | 7,663 |  |  | 1,827 |  |  | 3,313 |  |  | 12,803 |  |  | 921,970 |  |  | 934,773 |  |  |  | 3,313 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 9,504 |  |  | 7,391 |  |  | 16,035 |  |  | 32,930 |  |  | 1,014,343 |  |  | 1,047,273 |  |  |  | - |  |  | 16,035
| Home equity lines of credit |  |  | - |  |  | 97 |  |  | 165 |  |  | 262 |  |  | 5,089 |  |  | 5,351 |  |  |  | 11 |  |  | 154
| Personal |  |  | 13,069 |  |  | 7,907 |  |  | 18,515 |  |  | 39,491 |  |  | 1,211,134 |  |  | 1,250,625 |  |  |  | 17,887 |  |  | 35
| Auto |  |  | 52,204 |  |  | 9,862 |  |  | 24,177 |  |  | 86,243 |  |  | 2,522,542 |  |  | 2,608,785 |  |  |  | 24,050 |  |  | 127
| Other |  |  | 566 |  |  | 288 |  |  | 14,958 |  |  | 15,812 |  |  | 128,932 |  |  | 144,744 |  |  |  | 14,534 |  |  | 424
Total |  | $ | 462,707 |  | $ | 167,907 |  | $ | 1,323,403 |  | $ | 1,954,017 |  | $ | 17,929,455 |  | $ | 19,883,472 |  |  | $ | 568,098 |  | $ | 612,543
[1] | Non-covered loans HIP of $143 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2018
Popular U.S.
|  |  |  | Past due |  |  |  |  |  |  |  |  | Past due 90 days or more
|  |  |  | 30-59 |  |  | 60-89 |  |  | 90 days |  |  | Total |  |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  |  | days |  |  | days |  |  | or more |  |  | past due |  |  | Current |  |  | Loans HIP |  |  | loans |  | loans[1]
Commercial multi-family |  | $ | 3,163 |  | $ | - |  | $ | - |  | $ | 3,163 |  | $ | 1,398,377 |  | $ | 1,401,540 |  |  | $ | - |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  |  | 707 |  |  | 288 |  |  | 365 |  |  | 1,360 |  |  | 1,880,384 |  |  | 1,881,744 |  |  |  | 365 |  |  | -
| Owner occupied |  |  | 5,125 |  |  | 1,728 |  |  | 381 |  |  | 7,234 |  |  | 291,705 |  |  | 298,939 |  |  |  | 381 |  |  | -
Commercial and industrial |  |  | 2,354 |  |  | 995 |  |  | 73,726 |  |  | 77,075 |  |  | 1,011,078 |  |  | 1,088,153 |  |  |  | 330 |  |  | -
Construction |  |  | - |  |  | - |  |  | 12,060 |  |  | 12,060 |  |  | 681,434 |  |  | 693,494 |  |  |  | 12,060 |  |  | -
Mortgage |  |  | 13,615 |  |  | 3,197 |  |  | 11,033 |  |  | 27,845 |  |  | 774,090 |  |  | 801,935 |  |  |  | 11,033 |  |  | -
Legacy |  |  | 195 |  |  | 445 |  |  | 2,627 |  |  | 3,267 |  |  | 22,682 |  |  | 25,949 |  |  |  | 2,627 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  |  | 2 |  |  | - |  |  | - |  |  | 2 |  |  | 36 |  |  | 38 |  |  |  | - |  |  | -
| Home equity lines of credit |  |  | 886 |  |  | 464 |  |  | 13,579 |  |  | 14,929 |  |  | 128,123 |  |  | 143,052 |  |  |  | 13,579 |  |  | -
| Personal |  |  | 2,319 |  |  | 1,723 |  |  | 2,610 |  |  | 6,652 |  |  | 282,697 |  |  | 289,349 |  |  |  | 2,610 |  |  | -
| Other |  |  | - |  |  | - |  |  | 4 |  |  | 4 |  |  | 220 |  |  | 224 |  |  |  | 4 |  |  | -
Total |  | $ | 28,366 |  | $ | 8,840 |  | $ | 116,385 |  | $ | 153,591 |  | $ | 6,470,826 |  | $ | 6,624,417 |  |  | $ | 42,989 |  | $ | -
[1] | Non-covered loans HIP of $ 73 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
December 31, 2018
Popular, Inc.
|  |  | Past due |  |  |  |  |  |  |  | Past due 90 days or more
|  |  | 30-59 |  |  | 60-89 |  |  | 90 days |  |  | Total |  |  |  |  |  |  | Non-accrual |  |  | Accruing
(In thousands) |  | days |  |  | days |  |  | or more |  |  | past due |  | Current |  | Loans HIP[3] [4] |  |  | loans |  | loans[5]
Commercial multi-family | $ | 4,604 |  | $ | 112 |  | $ | 598 |  | $ | 5,314 |  | $ | 1,541,854 |  | $ | 1,547,168 |  |  | $ | 546 |  | $ | -
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-owner occupied |  | 92,782 |  |  | 1,127 |  |  | 46,056 |  |  | 139,965 |  |  | 4,064,380 |  |  | 4,204,345 |  |  |  | 39,622 |  |  | -
| Owner occupied |  | 11,806 |  |  | 12,567 |  |  | 99,616 |  |  | 123,989 |  |  | 1,897,203 |  |  | 2,021,192 |  |  |  | 88,450 |  |  | -
Commercial and industrial |  | 6,491 |  |  | 1,636 |  |  | 129,047 |  |  | 137,174 |  |  | 4,133,140 |  |  | 4,270,314 |  |  |  | 55,408 |  |  | 243
Construction |  | - |  |  | - |  |  | 13,848 |  |  | 13,848 |  |  | 765,601 |  |  | 779,449 |  |  |  | 13,848 |  |  | -
Mortgage[1] |  | 288,982 |  |  | 131,301 |  |  | 1,054,640 |  |  | 1,474,923 |  |  | 5,760,335 |  |  | 7,235,258 |  |  |  | 334,598 |  |  | 595,525
Leasing |  | 7,663 |  |  | 1,827 |  |  | 3,313 |  |  | 12,803 |  |  | 921,970 |  |  | 934,773 |  |  |  | 3,313 |  |  | -
Legacy[2] |  | 195 |  |  | 445 |  |  | 2,627 |  |  | 3,267 |  |  | 22,682 |  |  | 25,949 |  |  |  | 2,627 |  |  | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit cards |  | 9,506 |  |  | 7,391 |  |  | 16,035 |  |  | 32,932 |  |  | 1,014,379 |  |  | 1,047,311 |  |  |  | - |  |  | 16,035
| Home equity lines of credit |  | 886 |  |  | 561 |  |  | 13,744 |  |  | 15,191 |  |  | 133,212 |  |  | 148,403 |  |  |  | 13,590 |  |  | 154
| Personal |  | 15,388 |  |  | 9,630 |  |  | 21,125 |  |  | 46,143 |  |  | 1,493,831 |  |  | 1,539,974 |  |  |  | 20,497 |  |  | 35
| Auto |  | 52,204 |  |  | 9,862 |  |  | 24,177 |  |  | 86,243 |  |  | 2,522,542 |  |  | 2,608,785 |  |  |  | 24,050 |  |  | 127
| Other |  | 566 |  |  | 288 |  |  | 14,962 |  |  | 15,816 |  |  | 129,152 |  |  | 144,968 |  |  |  | 14,538 |  |  | 424
Total | $ | 491,073 |  | $ | 176,747 |  | $ | 1,439,788 |  | $ | 2,107,608 |  | $ | 24,400,281 |  | $ | 26,507,889 |  |  | $ | 611,087 |  | $ | 612,543
[1] | It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured.
[2] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
[3] | Loans held-in-portfolio are net of $ 156 million in unearned income and exclude $ 51 million in loans held-for-sale.
[4] | Includes $6.9 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $4.8 billion were pledged at the FHLB as collateral for borrowings and $2.1 billion at the FRB for discount window borrowings.
[5] | Non-covered loans HIP of $216 million accounted for under ASC Subtopic 310-30 are excluded from the above table as they are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis.
At September 30, 2019, mortgage loans held-in-portfolio include $1.4 billion of loans insured by the Federal Housing Administration (“FHA”), or guaranteed by the U.S. Department of Veterans Affairs (“VA”) of which $461 million are 90 days or more past due, including $99 million of loans rebooked under the GNMA buyback option, discussed below (December 31, 2018 - $1.4 billion, $598 million and $134 million, respectively). Within this portfolio, loans in a delinquency status of 90 days or more are reported as accruing loans as opposed to non-performing since the principal repayment is insured. These balances include $241 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of September 30, 2019 (December 31, 2018 - $283 million). Additionally, the Corporation has approximately $65 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at September 30, 2019 (December 31, 2018 - $69 million). Loans with a delinquency status of 90 days past due as of September 30, 2019 include $99 million in loans previously pooled into GNMA securities (December 31, 2018 - $134 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. Loans acquired with deteriorated credit quality accounted for under ASC 310-30 The following provides information of loans acquired with evidence of credit deterioration as of the acquisition date, accounted for under the guidance of ASC 310-30. The outstanding principal balance of acquired loans accounted pursuant to ASC Subtopic 310-30, amounted to $1.9 billion at September 30, 2019 (December 31, 2018 - $2.2 billion). The carrying amount of these loans consisted of loans determined to be impaired at the time of acquisition, which are accounted for in accordance with ASC Subtopic 310-30 (“credit impaired loans”), and loans that were considered to be performing at the acquisition date, accounted for by analogy to ASC Subtopic 310-30 (“non-credit impaired loans”). The following table provides the carrying amount of acquired loans accounted for under ASC 310-30 by portfolio at September 30, 2019 and December 31, 2018.
Carrying amount
(In thousands) |  | September 30, 2019 |  | December 31, 2018
Commercial real estate | $ | 683,046 | $ | 801,774
Commercial and industrial |  | 134,962 |  | 84,465
Mortgage |  | 871,803 |  | 982,821
Consumer |  | 12,563 |  | 14,496
Carrying amount |  | 1,702,374 |  | 1,883,556
Allowance for loan losses |  | (94,610) |  | (122,135)
Carrying amount, net of allowance | $ | 1,607,764 | $ | 1,761,421
At September 30, 2019, none of the acquired loans accounted for under ASC Subtopic 310-30 were considered non-performing loans. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans. Changes in the carrying amount and the accretable yield for the loans accounted pursuant to the ASC Subtopic 310-30, for the quarters and nine months ended September 30, 2019 and 2018, were as follows:
Carrying amount of acquired loans accounted for pursuant to ASC 310-30
|  | For the quarter ended |  | For the nine months ended
(In thousands) |  | September 30, 2019 |  | September 30, 2018 |  |  | September 30, 2019 |  | September 30, 2018
Beginning balance | $ | 1,789,237 | $ | 2,033,457 |  | $ | 1,883,556 | $ | 2,108,993
Additions |  | 11,891 |  | 3,062 |  |  | 27,639 |  | 8,334
Accretion |  | 35,502 |  | 38,886 |  |  | 111,083 |  | 121,752
Collections / loan sales / charge-offs |  | (134,256) |  | (84,783) |  |  | (319,904) |  | (248,457)
Ending balance[1] | $ | 1,702,374 | $ | 1,990,622 |  | $ | 1,702,374 | $ | 1,990,622
Allowance for loan losses |  | (94,610) |  | (168,559) |  |  | (94,610) |  | (168,559)
Ending balance, net of ALLL | $ | 1,607,764 | $ | 1,822,063 |  | $ | 1,607,764 | $ | 1,822,063
[1] | At September 30, 2019, includes $1.2 billion of loans considered non-credit impaired at the acquisition date (September 30, 2018 - $1.5 billion).
Activity in the accretable yield of acquired loans accounted for pursuant to ASC 310-30
|  | For the quarter ended |  | For the nine months ended
(In thousands) |  | September 30, 2019 |  | September 30, 2018 |  |  | September 30, 2019 |  | September 30, 2018
Beginning balance | $ | 1,042,407 | $ | 1,178,042 |  | $ | 1,092,504 | $ | 1,214,488
Additions |  | 7,711 |  | 315 |  |  | 19,577 |  | 3,752
Accretion |  | (35,502) |  | (38,886) |  |  | (111,083) |  | (121,752)
Change in expected cash flows |  | 5,043 |  | (16,739) |  |  | 18,661 |  | 26,244
Ending balance[1] | $ | 1,019,659 | $ | 1,122,732 |  | $ | 1,019,659 | $ | 1,122,732
[1] | At September 30, 2019, includes $ 0.7 billion of loans considered non-credit impaired at the acquisition date (September 30, 2018 - $ 0.8 billion).

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