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LOANS HELD FOR INVESTMENT

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

LOANS HELD FOR INVESTMENT [Text Block]

NOTE 7 – LOANS HELD FOR INVESTMENT

The following provides information about the loan portfolio held for investment as of the indicated dates:

		As ofSeptember 30,			As of December 31,
		2021			2020
(In thousands)
Residential mortgage loans, mainly secured by first mortgages		$	3,095,015		$	3,521,954
Construction loans			170,208			212,500
Commercial mortgage loans			2,136,502			2,230,602
C&I loans (1) (2)			2,932,712			3,202,590
Consumer loans			2,806,145			2,609,643
	Loans held for investment (3)		11,140,582			11,777,289
ACL on loans and finance leases			(288,360)			(385,887)
Loans held for investment, net		$	10,852,222		$	11,391,402
(1)	As of September 30, 2021 and December 31, 2020, includes $218.4 million and $406.0 million, respectively, of SBA PPP loans.
(2)	As of September 30, 2021 and December 31, 2020, includes $970.0 million and $1.0 billion, respectively, of commercial loans that were secured by real estate but are not dependent upon the real estate for repayment.
(3)	Includes accretable fair value net purchase discounts of $37.6 million and $48.0 million as of September 30, 2021 and December 31, 2020, respectively.

The following tables present by portfolio classes the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing as of September 30, 2021 and the interest income recognized on nonaccrual loans for the quarters and nine-month periods ended September 30, 2021 and 2020:
				As of September 30, 2021												Quarter Ended September 30, 2021			Quarter Ended September 30, 2020			Nine-Month Period Ended September 30, 2021			Nine-Month Period Ended September 30, 2020
Puerto Rico and Virgin Islands region				Nonaccrual Loans with No ACL			Nonaccrual Loans with ACL			Total Nonaccrual Loans (2)			Loans Past Due 90 days or more and Still Accruing (2)(3)			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans		`	Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans
(In thousands)
Residential mortgage loans, mainly secured
	by first mortgages:
		FHA\VA government-guaranteed		$	-		$	-		$	-		$	76,376		$	-		$	-		$	-		$	-
		Conventional residential mortgage loans			4,284			47,516			51,800			31,368			197			269			1,032			835
Construction loans					4,109			1,984			6,093			2			16			19			48			61
Commercial mortgage loans					9,626			17,186			26,812			19,593			49			35			151			142
C&I loans					11,820			6,394			18,214			17,785			36			24			83			67
Consumer Loans:
		Auto loans			3,137			2,971			6,108			-			26			17			79			138
		Finance leases			251			447			698			-			-			2			1			23
		Personal loans			1			991			992			-			17			8			71			36
		Credit cards			-			-			-			2,708			-			-			-			-
		Other consumer loans			16			1,483			1,499			-			2			-			3			5
			Total loans held for investment (1)	$	33,244		$	78,972		$	112,216		$	147,832		$	343		$	374		$	1,468		$	1,307
(1)		Nonaccrual loans exclude $369.9 million of troubled debt restructuring (“TDR”) loans that were in compliance with modified terms and in accrual status as of September 30, 2021.
(2)		Nonaccrual loans exclude PCD loans previously accounted for under ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC Subtopic 310-30”) for which the Corporation made the accounting policy election for maintaining pools of loans accounted for under ASC Subtopic 310-30 as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans accrete interest income based on the effective interest rate of the loan pools determined at the time of adoption of CECL and will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The amortized cost of such loans as of September 30, 2021 was $120.7 million. The portion of such loans contractually past due 90 days or more is presented in the loans past due 90 days or more and still accruing category in the table above.
(3)		These include rebooked loans, which were previously pooled into GNMA securities, amounting to $8.5 million as of September 30, 2021. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. During the nine-month period ended September 30, 2021, the Corporation repurchased, pursuant to the aforementioned repurchase option, $0.4 million of loans previously sold to GNMA.

				As of September 30, 2021												Quarter Ended September 30, 2021			Quarter Ended September 30, 2020			Nine-Month Period Ended September 30, 2021			Nine-Month Period Ended September 30, 2020
Florida region				Nonaccrual Loans with No ACL			Nonaccrual Loans with ACL			Total Nonaccrual Loans			Loans Past Due 90 days or more and Still Accruing			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans
(In thousands)
Residential mortgage loans, mainly secured
	by first mortgages:
		FHA\VA government-guaranteed		$	-		$	-		$	-		$	250		$	-		$	-		$	-		$	-
		Conventional residential mortgage loans			-			8,789			8,789			-			47			19			171			134
Construction loans					-			-			-			-			-			-			-			-
Commercial mortgage loans					-			-			-			-			-			-			-			-
C&I loans					491			285			776			-			15			19			53			52
Consumer Loans:
		Auto loans			-			49			49			-			-			-			-			-
		Finance leases			-			-			-			-			-			-			-			-
		Personal loans			-			-			-			-			-			-			-			-
		Credit cards			-			-			-			-			-			-			-			-
		Other consumer loans			-			311			311			-			1			-			8			4
			Total loans held for investment (1)	$	491		$	9,434		$	9,925		$	250		$	63		$	38		$	232		$	190
(1)		Nonaccrual loans exclude $5.8 million of TDR loans that were in compliance with modified terms and in accrual status as of September 30, 2021.

				As of September 30, 2021												Quarter Ended September 30, 2021			Quarter Ended September 30, 2020			Nine-Month Period Ended September 30, 2021			Nine-Month Period Ended September 30, 2020
Total				Nonaccrual Loans with No ACL			Nonaccrual Loans with ACL			Total Nonaccrual Loans (2)			Loans Past Due 90 days or more and Still Accruing (2)(3)			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans			Interest Income Recognized on Nonaccrual Loans
(In thousands)
Residential mortgage loans, mainly secured
	by first mortgages:
		FHA\VA government-guaranteed		$	-		$	-		$	-		$	76,626		$	-		$	-		$	-		$	-
		Conventional residential mortgage loans			4,284			56,305			60,589			31,368			244			288			1,203			969
Construction loans					4,109			1,984			6,093			2			16			19			48			61
Commercial mortgage loans					9,626			17,186			26,812			19,593			49			35			151			142
C&I loans					12,311			6,679			18,990			17,785			51			43			136			119
Consumer Loans:
		Auto loans			3,137			3,020			6,157			-			26			17			79			138
		Finance leases			251			447			698			-			-			2			1			23
		Personal loans			1			991			992			-			17			8			71			36
		Credit cards			-			-			-			2,708			-			-			-			-
		Other consumer loans			16			1,794			1,810			-			3			-			11			9
			Total loans held for investment (1)	$	33,735		$	88,406		$	122,141		$	148,082		$	406		$	412		$	1,700		$	1,497
(1)		Nonaccrual loans exclude $375.7 million of TDR loans that were in compliance with modified terms and in accrual status as of September 30, 2021.
(2)		Nonaccrual loans exclude PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election for maintaining pools of loans accounted for under ASC Subtopic 310-30 as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans accrete interest income based on the effective interest rate of the loan pools determined at the time of adoption of CECL and will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The amortized cost of such loans as of September 30, 2021 was $120.7 million. The portion of such loans contractually past due 90 days or more is presented in the loans past due 90 days or more and still accruing category in the table above.
(3)		These include rebooked loans, which were previously pooled into GNMA securities, amounting to $8.5 million as of September 30, 2021. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. During the nine-month period ended September 30, 2021, the Corporation repurchased, pursuant to the aforementioned repurchase option, $0.4 million of loans previously sold to GNMA.

The following tables present by portfolio classes the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing as of December 31, 2020:
				As of December 31, 2020
Puerto Rico and Virgin Islands region				Nonaccrual Loans with No ACL			Nonaccrual Loans with ACL			Total Nonaccrual Loans (2)			Loans Past Due 90 days or more and Still Accruing (3)
(In thousands)
Residential mortgage loans, mainly secured
	by first mortgages:
		FHA\VA government-guaranteed		$	-		$	-		$	-		$	98,993
		Conventional residential mortgage loans			12,418			98,527			110,945			38,834
Construction loans					4,546			8,425			12,971			-
Commercial mortgage loans					11,777			17,834			29,611			3,252
C&I loans					14,824			5,496			20,320			2,246
Consumer Loans:
		Auto loans			26			8,638			8,664			-
		Finance leases			-			1,466			1,466			-
		Personal loans			-			1,623			1,623			-
		Credit cards			-			-			-			1,520
		Other consumer loans			-			3,682			3,682			-
			Total loans held for investment (1)	$	43,591		$	145,691		$	189,282		$	144,845
(1)		Nonaccrual loans exclude $386.7 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2020.
(2)		Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election for maintaining pools of loans accounted for under ASC Subtopic 310-30 as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans accrete interest income based on the effective interest rate of the loan pools determined at the time of adoption of CECL and will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The amortized cost of such loans as of December 31, 2020 was $130.9 million.
(3)		These include rebooked loans, which were previously pooled into GNMA securities, amounting to $10.7 million as of December 31, 2020. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

				As of December 31, 2020
Florida region				Nonaccrual Loans with No ACL			Nonaccrual Loans with ACL			Total Nonaccrual Loans			Loans Past Due 90 days or more and Still Accruing
(In thousands)
Residential mortgage loans, mainly secured
	by first mortgages:
		FHA\VA government-guaranteed		$	-		$	-		$	-		$	250
		Conventional residential mortgage loans			2,584			11,838			14,422			-
Construction loans					-			-			-			-
Commercial mortgage loans					-			-			-			-
C&I loans					561			-			561			-
Consumer Loans:
		Auto loans			-			223			223			-
		Finance leases			-			-			-			-
		Personal loans			-			-			-			-
		Credit cards			-			-			-			-
		Other consumer loans			-			601			601			-
			Total loans held for investment (1)	$	3,145		$	12,662		$	15,807		$	250
(1)		Nonaccrual loans exclude $6.6 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2020.

				As of December 31, 2020
Total				Nonaccrual Loans with No ACL			Nonaccrual Loans with ACL			Total Nonaccrual Loans (2)			Loans Past Due 90 days or more and Still Accruing (3)
(In thousands)
Residential mortgage loans, mainly secured
	by first mortgages:
		FHA\VA government-guaranteed		$	-		$	-		$	-		$	99,243
		Conventional residential mortgage loans			15,002			110,365			125,367			38,834
Construction loans					4,546			8,425			12,971			-
Commercial mortgage loans					11,777			17,834			29,611			3,252
C&I loans					15,385			5,496			20,881			2,246
Consumer Loans:
		Auto loans			26			8,861			8,887			-
		Finance leases			-			1,466			1,466			-
		Personal loans			-			1,623			1,623			-
		Credit cards			-			-			-			1,520
		Other consumer loans			-			4,283			4,283			-
			Total loans held for investment (1)	$	46,736		$	158,353		$	205,089		$	145,095
(1)		Nonaccrual loans exclude $393.3 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2020.
(2)		Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election for maintaining pools of loans accounted for under ASC Subtopic 310-30 as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans accrete interest income based on the effective interest rate of the loan pools determined at the time of adoption of CECL and will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The amortized cost of such loans as of December 31, 2020 was $130.9 million.
(3)		These include rebooked loans, which were previously pooled into GNMA securities, amounting to $10.7 million as of December 31, 2020. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

When a loan is placed on nonaccrual status, any accrued but uncollected interest income is reversed and charged against interest income and the amortization of any net deferred fees is suspended. The amount of accrued interest reversed against interest income totaled $0.4 million and $1.7 million for the quarter and nine-month period ended September 30, 2021, respectively ($0.4 million and $1.1 million for the quarter and nine-month period ended September 30, 2020, respectively).

As of September 30, 2021, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $96.3 million, including $50.6 million of loans insured by the FHA or guaranteed by the VA, and $15.5 million of PCD loans acquired prior to the adoption, on January 1, 2020, of CECL and for which the Corporation made the accounting policy election of maintaining pools of loans previously accounted for under ASC 310-30 as “units of account.” The Corporation commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent, in accordance with the requirements of the Consumer Financial Protection Bureau (“CFPB”). Foreclosure procedures and timelines vary depending on whether the property is located in a judicial or non-judicial state. Judicial states (i.e., Puerto Rico, Florida and the USVI) require the foreclosure to be processed through the state’s court while foreclosure in non-judicial states (i.e., the BVI) is processed without court intervention. Foreclosure timelines vary according to local jurisdiction law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediations, bankruptcy, court delays and title issues. In Puerto Rico, Florida, and the USVI, and following the actions taken by federal agencies and GSEs (i.e., FHA, FNMA and FHLMC), the COVID-19-related moratorium on foreclosures from properties financed by federally-backed residential mortgage loans was extended through July 31, 2021 and the forbearance enrollment window through September, 30, 2021, and provided up to three months of additional forbearance for certain borrowers. In addition, on July 30, 2021, the FHA, FNMA, and FHLMC extended the moratorium on single-family REO evictions until September 30, 2021. Similarly, on August 3, 2021, the U.S. Center for Disease and Control (“CDC”) issued an order that extended until October 3, 2021 the moratorium on renters evictions.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes as of September 30, 2021 is as follows:
As of September 30, 2021
Puerto Rico and Virgin Islands region			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due (1) (2) (3)			Total Past Due			Current			Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
	FHA/VA government-guaranteed loans (2) (3) (4)		$	-		$	2,803		$	76,376		$	79,179		$	54,233		$	133,412
	Conventional residential mortgage loans (4)			-			32,352			83,168			115,520			2,392,231			2,507,751
Commercial loans:
	Construction loans (4)			-			108			6,095			6,203			43,934			50,137
	Commercial mortgage loans (4)			6,314			2,800			46,405			55,519			1,653,779			1,709,298
	C&I loans			7,888			7,791			35,999			51,678			1,909,873			1,961,551
Consumer loans:
	Auto loans			22,090			3,608			6,108			31,806			1,463,867			1,495,673
	Finance leases			5,344			738			698			6,780			542,057			548,837
	Personal loans			2,674			1,241			992			4,907			322,443			327,350
	Credit cards			2,993			1,577			2,708			7,278			280,740			288,018
	Other consumer loans			1,066			756			1,499			3,321			125,135			128,456
		Total loans held for investment	$	48,369		$	53,774		$	260,048		$	362,191		$	8,788,292		$	9,150,483
(1)		Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.
(2)		It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $52.5 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.
(3)		As of September 30, 2021, includes $8.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.
(4)		According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days, but less than two payments in arrears, as of September 30, 2021 amounted to $5.0 million, $64.7 million, $8.3 million, and $1.4 million, respectively.

As of September 30, 2021
Florida region			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due (1) (2)			Total Past Due			Current			Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
	FHA/VA government-guaranteed loans (2)		$	-		$	-		$	250		$	250		$	623		$	873
	Conventional residential mortgage loans (3)			-			1,122			8,789			9,911			443,068			452,979
Commercial loans:
	Construction loans			-			-			-			-			120,071			120,071
	Commercial mortgage loans (3)			-			-			-			-			427,204			427,204
	C&I loans			3,460			195			776			4,431			966,730			971,161
Consumer loans:
	Auto loans			341			63			49			453			10,213			10,666
	Finance leases			-			-			-			-			-			-
	Personal loans			-			-			-			-			125			125
	Credit cards			-			-			-			-			-			-
	Other consumer loans			6			-			311			317			6,703			7,020
		Total loans held for investment	$	3,807		$	1,380		$	10,175		$	15,362		$	1,974,737		$	1,990,099
(1)		Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans).
(2)		It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. No residential mortgage loans insured by the FHA in the Florida region were over 15 months delinquent as of September 30, 2021.
(3)		According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. Conventional residential mortgage loans past due 30-59 days, but less than two payments in arrears, as of September 30, 2021 amounted to $4.9 million.

As of September 30, 2021
Total			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due (1) (2) (3)			Total Past Due			Current			Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
	FHA/VA government-guaranteed loans (2) (3) (4)		$	-		$	2,803		$	76,626		$	79,429		$	54,856		$	134,285
	Conventional residential mortgage loans (4)			-			33,474			91,957			125,431			2,835,299			2,960,730
Commercial loans:
	Construction loans (4)			-			108			6,095			6,203			164,005			170,208
	Commercial mortgage loans (4)			6,314			2,800			46,405			55,519			2,080,983			2,136,502
C&I loans				11,348			7,986			36,775			56,109			2,876,603			2,932,712
Consumer loans:
	Auto loans			22,431			3,671			6,157			32,259			1,474,080			1,506,339
	Finance leases			5,344			738			698			6,780			542,057			548,837
	Personal loans			2,674			1,241			992			4,907			322,568			327,475
	Credit cards			2,993			1,577			2,708			7,278			280,740			288,018
	Other consumer loans			1,072			756			1,810			3,638			131,838			135,476
		Total loans held for investment	$	52,176		$	55,154		$	270,223		$	377,553		$	10,763,029		$	11,140,582
(1)		Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.
(2)		It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $52.5 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.
(3)		As of September 30, 2021, includes $8.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.
(4)		According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days, but less than two payments in arrears, as of September 30, 2021 amounted to $5.0 million, $69.6 million, $8.3 million, and $1.4 million, respectively.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes as of December 31, 2020 is as follows:
As of December 31, 2020
Puerto Rico and Virgin Islands region			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due (1) (2) (3)			Total Past Due			Current			Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
	FHA/VA government-guaranteed loans (2) (3) (4)		$	-		$	2,223		$	98,993		$	101,216		$	48,348		$	149,564
	Conventional residential mortgage loans (4)			-			61,040			149,779			210,819			2,641,820			2,852,639
Commercial loans:
	Construction loans (4)			-			19			12,971			12,990			72,026			85,016
	Commercial mortgage loans (4)			5,071			6,588			32,863			44,522			1,808,702			1,853,224
	C&I loans			3,283			10,692			22,566			36,541			2,228,190			2,264,731
Consumer loans:
	Auto loans			24,025			5,992			8,664			38,681			1,239,445			1,278,126
	Finance leases			5,059			1,086			1,466			7,611			465,378			472,989
	Personal loans			4,034			1,981			1,623			7,638			364,373			372,011
	Credit cards			3,528			5,842			1,518			10,888			308,936			319,824
	Other consumer loans			2,143			993			3,684			6,820			133,162			139,982
		Total loans held for investment	$	47,143		$	96,456		$	334,127		$	477,726		$	9,310,380		$	9,788,106
(1)		Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.
(2)		It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $57.9 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.
(3)		As of December 31, 2020, includes $10.7 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.
(4)		According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days, but less than two payments in arrears, as of December 31, 2020 amounted to $5.9 million, $105.2 million, $5.0 million, and $0.1 million, respectively.

As of December 31, 2020
Florida region			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due (1) (2)			Total Past Due			Current			Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
	FHA/VA government-guaranteed loans (2) (3)		$	-		$	-		$	250		$	250		$	920		$	1,170
	Conventional residential mortgage loans (2) (3)			-			3,237			14,422			17,659			500,922			518,581
Commercial loans:
	Construction loans			-			-			-			-			127,484			127,484
	Commercial mortgage loans (3)			-			-			-			-			377,378			377,378
	C&I loans			218			-			561			779			937,080			937,859
Consumer loans:
	Auto loans			710			297			223			1,230			17,068			18,298
	Finance leases			-			-			-			-			-			-
	Personal loans			-			-			-			-			157			157
	Credit cards			-			-			-			-			-			-
	Other consumer loans			58			-			601			659			7,597			8,256
		Total loans held for investment	$	986		$	3,534		$	16,057		$	20,577		$	1,968,606		$	1,989,183
(1)		Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans).
(2)		It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. No residential mortgage loans insured by the FHA in the Florida region were over 15 months delinquent as of December 31, 2020.
(3)		According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans and conventional residential mortgage loans past due 30-59 days, but less than two payments in arrears, as of December 31, 2020 amounted to $0.2 million and $6.6 million, respectively.

As of December 31, 2020
Total			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due (1) (2) (3)			Total Past Due			Current			Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
	FHA/VA government-guaranteed loans (2) (3) (4)		$	-		$	2,223		$	99,243		$	101,466		$	49,268		$	150,734
	Conventional residential mortgage loans (4)			-			64,277			164,201			228,478			3,142,742			3,371,220
Commercial loans:
	Construction loans (4)			-			19			12,971			12,990			199,510			212,500
	Commercial mortgage loans (4)			5,071			6,588			32,863			44,522			2,186,080			2,230,602
	C&I loans			3,501			10,692			23,127			37,320			3,165,270			3,202,590
Consumer loans:
	Auto loans			24,735			6,289			8,887			39,911			1,256,513			1,296,424
	Finance leases			5,059			1,086			1,466			7,611			465,378			472,989
	Personal loans			4,034			1,981			1,623			7,638			364,530			372,168
	Credit cards			3,528			5,842			1,518			10,888			308,936			319,824
	Other consumer loans			2,201			993			4,285			7,479			140,759			148,238
		Total loans held for investment	$	48,129		$	99,990		$	350,184		$	498,303		$	11,278,986		$	11,777,289
(1)		Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.
(2)		It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $57.9 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.
(3)		As of December 31, 2020, includes $10.7 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.
(4)		According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days, but less than two payments in arrears, as of December 31, 2020 amounted to $6.1 million, $111.8 million, $5.0 million, and $0.1 million, respectively.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes non-homogeneous loans, such as commercial mortgage, commercial and industrial, and construction loans individually to classify the loans’ credit risk. As mentioned above, the Corporation periodically reviews its commercial and construction loans to evaluate if they are properly classified. The frequency of these reviews will depend on the amount of the aggregate outstanding debt, and the risk rating classification of the obligor. In addition, during the renewal and annual review process of applicable credit facilities, the Corporation evaluates the corresponding loan grades. The Corporation uses the same definition for risk ratings as those described for Puerto Rico municipal bonds accounted for as held-to-maturity securities, as discussed in Note 5 – Investment Securities, above.

For residential mortgage and consumer loans, the Corporation also evaluates credit quality based on credit scores and loan-to-value ratios, if applicable.

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by origination year based on the internal credit-risk category as of September 30, 2021 and the amortized cost of commercial and construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2020 was as follows:

						As of September 30, 2021
Puerto Rico and Virgin Islands region						Term Loans																								As of December 31, 2020
						Amortized Cost Basis by Origination Year (1)
						2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
CONSTRUCTION
	Risk Ratings:
		Pass				$	1,656		$	17,334		$	15,318		$	1,627		$	197		$	4,906		$	-		$	41,038		$	68,836
		Criticized:
			Special Mention				-			-			768			-			-			-			-			768			776
			Substandard				-			-			-			4,533			-			3,798			-			8,331			15,404
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total construction loans		$	1,656		$	17,334		$	16,086		$	6,160		$	197		$	8,704		$	-		$	50,137		$	85,016
COMMERCIAL MORTGAGE
	Risk Ratings:
		Pass				$	128,617		$	368,540		$	217,763		$	225,524		$	75,701		$	380,192		$	42		$	1,396,379		$	1,511,827
		Criticized:
			Special Mention				-			10,671			90,723			-			119,255			21,467			-			242,116			292,736
			Substandard				1,851			-			-			20,867			2,213			45,872			-			70,803			48,661
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total commercial mortgage loans		$	130,468		$	379,211		$	308,486		$	246,391		$	197,169		$	447,531		$	42		$	1,709,298		$	1,853,224
COMMERCIAL AND INDUSTRIAL
	Risk Ratings:
		Pass				$	239,801		$	225,254		$	356,671		$	207,988		$	164,783		$	223,753		$	430,148		$	1,848,398		$	2,155,226
		Criticized:
			Special Mention				-			-			924			-			-			20,423			8,018			29,365			59,421
			Substandard				1,296			1,507			14,684			2,372			17,847			28,162			17,920			83,788			50,084
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total commercial and industrial loans		$	241,097		$	226,761		$	372,279		$	210,360		$	182,630		$	272,338		$	456,086		$	1,961,551		$	2,264,731
(1) Excludes accrued interest receivable.

												As of September 30, 2021
												Term Loans																		As of December 31, 2020
Florida region												Amortized Cost Basis by Origination Year (1)
						2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
CONSTRUCTION
	Risk Ratings:
		Pass				$	11,940		$	69,278		$	3,620		$	35,233		$	-		$	-		$	-		$	120,071		$	127,484
		Criticized:
			Special Mention				-			-			-			-			-			-			-			-			-
			Substandard				-			-			-			-			-			-			-			-			-
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total construction loans		$	11,940		$	69,278		$	3,620		$	35,233		$	-		$	-		$	-		$	120,071		$	127,484
COMMERCIAL MORTGAGE
	Risk Ratings:
		Pass				$	73,510		$	40,048		$	73,180		$	62,117		$	38,221		$	36,696		$	21,644		$	345,416		$	291,627
		Criticized:
			Special Mention				-			16,812			22,359			6,782			5,352			27,898			2,267			81,470			85,427
			Substandard				-			-			-			-			-			318			-			318			324
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total commercial mortgage loans		$	73,510		$	56,860		$	95,539		$	68,899		$	43,573		$	64,912		$	23,911		$	427,204		$	377,378
COMMERCIAL AND INDUSTRIAL
	Risk Ratings:
		Pass				$	200,314		$	125,320		$	240,500		$	83,335		$	64,992		$	32,258		$	95,463		$	842,182		$	823,124
		Criticized:
			Special Mention				-			-			27,206			-			-			4,770			17,965			49,941			73,974
			Substandard				-			27,429			34,494			12,073			-			4,707			335			79,038			40,761
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total commercial and industrial loans		$	200,314		$	152,749		$	302,200		$	95,408		$	64,992		$	41,735		$	113,763		$	971,161		$	937,859
(1) Excludes accrued interest receivable.

						As of September 30, 2021
Total						Term Loans																								As of December 31, 2020
						Amortized Cost Basis by Origination Year (1)
						2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
CONSTRUCTION
	Risk Ratings:
		Pass				$	13,596		$	86,612		$	18,938		$	36,860		$	197		$	4,906		$	-		$	161,109		$	196,320
		Criticized:
			Special Mention				-			-			768			-			-			-			-			768			776
			Substandard				-			-			-			4,533			-			3,798			-			8,331			15,404
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total construction loans		$	13,596		$	86,612		$	19,706		$	41,393		$	197		$	8,704		$	-		$	170,208		$	212,500
COMMERCIAL MORTGAGE
	Risk Ratings:
		Pass				$	202,127		$	408,588		$	290,943		$	287,641		$	113,922		$	416,888		$	21,686		$	1,741,795		$	1,803,454
		Criticized:
			Special Mention				-			27,483			113,082			6,782			124,607			49,365			2,267			323,586			378,163
			Substandard				1,851			-			-			20,867			2,213			46,190			-			71,121			48,985
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total commercial mortgage loans		$	203,978		$	436,071		$	404,025		$	315,290		$	240,742		$	512,443		$	23,953		$	2,136,502		$	2,230,602
COMMERCIAL AND INDUSTRIAL
	Risk Ratings:
		Pass				$	440,115		$	350,574		$	597,171		$	291,323		$	229,775		$	256,011		$	525,611		$	2,690,580		$	2,978,350
		Criticized:
			Special Mention				-			-			28,130			-			-			25,193			25,983			79,306			133,395
			Substandard				1,296			28,936			49,178			14,445			17,847			32,869			18,255			162,826			90,845
			Doubtful				-			-			-			-			-			-			-			-			-
			Loss				-			-			-			-			-			-			-			-			-
				Total commercial and industrial loans		$	441,411		$	379,510		$	674,479		$	305,768		$	247,622		$	314,073		$	569,849		$	2,932,712		$	3,202,590
(1) Excludes accrued interest receivable.

The following table presents the amortized cost of residential mortgage loans by origination year based on the original loan-to-value-ratio (LTV) and original credit scores as of September 30, 2021 and the amortized cost of residential mortgage loans by original LTV and original credit scores as of December 31, 2020:

								As of September 30, 2021																								As of December 31, 2020
								Term Loans
RESIDENTIAL MORTGAGES								Amortized Cost Basis by Origination Year (1)
								2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
Puerto Rico and Virgin Islands region:
	FHA/VA government-guaranteed loans							$	-		$	359		$	1,090		$	2,168		$	4,134		$	125,661		$	-		$	133,412		$	149,564
	Conventional residential mortgage loans:
		Original LTV:
			Less than or equal to 90 percent						48,455			33,546			53,445			79,273			58,300			1,518,623			-			1,791,642			2,029,177
			Greater than 90 percent but less than
				or equal to 100 percent					641			1,644			6,945			7,385			4,739			604,488			-			625,842			725,049
			Greater than 100 percent						2,115			-			929			3,375			2,540			81,308			-			90,267			98,413
					Total residential mortgages in
						Puerto Rico and Virgin Islands region		$	51,211		$	35,549		$	62,409		$	92,201		$	69,713		$	2,330,080		$	-		$	2,641,163		$	3,002,203
Florida region:
	FHA/VA government-guaranteed loans							$	-		$	-		$	-		$	-		$	-		$	873		$	-		$	873		$	1,170
	Conventional residential mortgage loans:
		Original LTV:
			Less than or equal to 90 percent						37,508			34,510			45,207			52,252			62,149			205,854			-			437,480			497,410
			Greater than 90 percent but less than
				or equal to 100 percent					2,413			3,851			1,194			1,491			3,624			2,926			-			15,499			21,171
			Greater than 100 percent						-			-			-			-			-			-			-			-			-
						Total residential mortgages in Florida region		$	39,921		$	38,361		$	46,401		$	53,743		$	65,773		$	209,653		$	-		$	453,852		$	519,751
Total:
	FHA/VA government-guaranteed loans							$	-		$	359		$	1,090		$	2,168		$	4,134		$	126,534		$	-		$	134,285		$	150,734
	Conventional residential mortgage loans:
		Original LTV:
			Less than or equal to 90 percent						85,963			68,056			98,652			131,525			120,449			1,724,477			-			2,229,122			2,526,587
			Greater than 90 percent but less than
				or equal to 100 percent					3,054			5,495			8,139			8,876			8,363			607,414			-			641,341			746,220
			Greater than 100 percent						2,115			-			929			3,375			2,540			81,308			-			90,267			98,413
						Total residential mortgages		$	91,132		$	73,910		$	108,810		$	145,944		$	135,486		$	2,539,733		$	-		$	3,095,015		$	3,521,954
(1) Excludes accrued interest receivable.

								As of September 30, 2021																								As of December 31, 2020
								Term Loans
RESIDENTIAL MORTGAGES								Amortized Cost Basis by Origination Year (1)
								2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
Puerto Rico and Virgin Islands region:
	FHA/VA government-guaranteed loans							$	-		$	359		$	1,090		$	2,168		$	4,134		$	125,661		$	-		$	133,412		$	149,564
	Conventional residential mortgage loans:
		Original FICO Score:
			Less than 620						-			42			76			459			52			284,532			-			285,161			326,190
			Greater than or equal to 620 and less than 680						2,232			1,374			2,529			5,537			6,312			453,544			-			471,528			541,309
			Greater than or equal to 680 and less than 740						13,493			13,862			23,139			33,794			22,308			636,765			-			743,361			841,797
			Greater than or equal to 740						35,486			19,912			35,575			50,243			36,907			829,578			-			1,007,701			1,143,343
					Total residential mortgages in
						Puerto Rico and Virgin Islands region		$	51,211		$	35,549		$	62,409		$	92,201		$	69,713		$	2,330,080		$	-		$	2,641,163		$	3,002,203
Florida region:
	FHA/VA government-guaranteed loans							$	-		$	-		$	-		$	-		$	-		$	873		$	-		$	873		$	1,170
	Conventional residential mortgage loans:
		Original FICO Score:
			Less than 620						-			-			-			2,054			-			512			-			2,566			3,330
			Greater than or equal to 620 and less than 680						3,810			3,549			4,224			2,625			7,091			23,054			-			44,353			48,420
			Greater than or equal to 680 and less than 740						13,104			10,716			13,119			11,892			18,866			49,899			-			117,596			139,197
			Greater than or equal to 740						23,007			24,096			29,058			37,172			39,816			135,315			-			288,464			327,634
					Total residential mortgages in Florida region			$	39,921		$	38,361		$	46,401		$	53,743		$	65,773		$	209,653		$	-		$	453,852		$	519,751
Total:
	FHA/VA government-guaranteed loans							$	-		$	359		$	1,090		$	2,168		$	4,134		$	126,534		$	-		$	134,285		$	150,734
	Conventional residential mortgage loans:
		Original FICO Score:
			Less than 620						-			42			76			2,513			52			285,044			-			287,727			329,520
			Greater than or equal to 620 and less than 680						6,042			4,923			6,753			8,162			13,403			476,598			-			515,881			589,729
			Greater than or equal to 680 and less than 740						26,597			24,578			36,258			45,686			41,174			686,664			-			860,957			980,994
			Greater than or equal to 740						58,493			44,008			64,633			87,415			76,723			964,893			-			1,296,165			1,470,977
						Total residential mortgages		$	91,132		$	73,910		$	108,810		$	145,944		$	135,486		$	2,539,733		$	-		$	3,095,015		$	3,521,954
(1) Excludes accrued interest receivable.

The following tables present the amortized cost of consumer loans by origination year based on original credit scores as of September 30, 2021 and the amortized cost of consumer loans based on original credit scores as of December 31, 2020:

CONSUMER						As of September 30, 2021
						Term Loans																								As of December 31, 2020
Puerto Rico and Virgin Islands region						Amortized Cost Basis by Origination Year (1)
						2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
Auto loans
	Original FICO score:
		Less than 620				$	39,276		$	33,827		$	35,917		$	17,541		$	7,442		$	5,952		$	-		$	139,955		$	135,006
		Greater than or equal to 620 and less than 680					135,752			113,664			114,259			66,959			26,579			13,907			-			471,120			430,434
		Greater than or equal to 680 and less than 740					160,067			116,867			101,389			55,879			23,465			11,958			-			469,625			392,871
		Greater than or equal to 740					159,991			111,023			78,437			37,252			18,496			9,774			-			414,973			319,815
			Total auto loans			$	495,086		$	375,381		$	330,002		$	177,631		$	75,982		$	41,591		$	-		$	1,495,673		$	1,278,126
Finance leases
	Original FICO score:
		Less than 620				$	3,725		$	2,623		$	4,093		$	2,920		$	1,261		$	381		$	-		$	15,003		$	15,182
		Greater than or equal to 620 and less than 680					30,976			25,603			30,101			20,717			8,289			3,374			-			119,060			111,180
		Greater than or equal to 680 and less than 740					67,172			47,971			49,158			35,427			12,851			7,300			-			219,879			191,846
		Greater than or equal to 740					70,173			44,977			41,534			25,656			6,632			5,923			-			194,895			154,781
			Total finance leases			$	172,046		$	121,174		$	124,886		$	84,720		$	29,033		$	16,978		$	-		$	548,837		$	472,989
Personal loans
	Original FICO score:
		Less than 620				$	1,625		$	1,263		$	1,811		$	1,473		$	896		$	2,357		$	-		$	9,425		$	10,950
		Greater than or equal to 620 and less than 680					8,052			7,209			17,379			6,675			2,447			1,277			-			43,039			49,665
		Greater than or equal to 680 and less than 740					29,594			26,907			47,361			21,324			10,680			7,180			-			143,046			160,480
		Greater than or equal to 740					25,259			23,695			41,176			21,949			10,331			6,450			-			128,860			146,622
		Unscorable					-			562			1,417			417			232			352			-			2,980			4,294
			Total personal loans			$	64,530		$	59,636		$	109,144		$	51,838		$	24,586		$	17,616		$	-		$	327,350		$	372,011
Credit cards
	Original FICO score:
		Less than 620				$	-		$	-		$	-		$	-		$	-		$	-		$	11,840		$	11,840		$	12,978
		Greater than or equal to 620 and less than 680					-			-			-			-			-			-			55,848			55,848			60,961
		Greater than or equal to 680 and less than 740					-			-			-			-			-			-			126,225			126,225			137,563
		Greater than or equal to 740					-			-			-			-			-			-			94,105			94,105			103,938
		Unscorable					-			-			-			-			-			-			-			-			4,384
			Total credit cards			$	-		$	-		$	-		$	-		$	-		$	-		$	288,018		$	288,018		$	319,824
Other consumer loans
	Original FICO score:
		Less than 620				$	4,534		$	2,687		$	6,430		$	1,746		$	896		$	1,704		$	3,502		$	21,499		$	23,740
		Greater than or equal to 620 and less than 680					20,492			9,045			14,043			4,279			2,012			4,983			1,660			56,514			61,667
		Greater than or equal to 680 and less than 740					14,441			8,190			8,030			3,483			1,182			882			2,774			38,982			38,602
		Greater than or equal to 740					3,638			2,766			2,420			711			291			81			1,381			11,288			11,535
		Unscorable					-			-			-			-			-			-			173			173			4,438
			Total other consumer loans			$	43,105		$	22,688		$	30,923		$	10,219		$	4,381		$	7,650		$	9,490		$	128,456		$	139,982
				Total consumer loans in Puerto Rico and Virgin Islands region		$	774,767		$	578,879		$	594,955		$	324,408		$	133,982		$	83,835		$	297,508		$	2,788,334		$	2,582,932
(1) Excludes accrued interest receivable.

CONSUMER						As of September 30, 2021
						Term Loans																								As of December 31, 2020
Florida region						Amortized Cost Basis by Origination Year (1)
						2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
Auto loans
	Original FICO score:
		Less than 620				$	-		$	-		$	7		$	510		$	368		$	309		$	-		$	1,194		$	2,269
		Greater than or equal to 620 and less than 680					-			-			339			2,414			1,726			742			-			5,221			9,042
		Greater than or equal to 680 and less than 740					-			-			224			1,832			757			229			-			3,042			5,094
		Greater than or equal to 740					-			-			178			831			164			36			-			1,209			1,893
			Total auto loans			$	-		$	-		$	748		$	5,587		$	3,015		$	1,316		$	-		$	10,666		$	18,298
Finance leases
	Original FICO score:
		Less than 620				$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
		Greater than or equal to 620 and less than 680					-			-			-			-			-			-			-			-			-
		Greater than or equal to 680 and less than 740					-			-			-			-			-			-			-			-			-
		Greater than or equal to 740					-			-			-			-			-			-			-			-			-
			Total finance leases			$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Personal loans
	Original FICO score:
		Less than 620				$	9		$	20		$	1		$	-		$	-		$	-		$	-		$	30		$	107
		Greater than or equal to 620 and less than 680					-			5			-			-			-			-			-			5			8
		Greater than or equal to 680 and less than 740					-			-			17			-			-			-			-			17			38
		Greater than or equal to 740					-			73			-			-			-			-			-			73			4
			Total personal loans			$	9		$	98		$	18		$	-		$	-		$	-		$	-		$	125		$	157
Credit cards
	Original FICO score:
		Less than 620				$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
		Greater than or equal to 620 and less than 680					-			-			-			-			-			-			-			-			-
		Greater than or equal to 680 and less than 740					-			-			-			-			-			-			-			-			-
		Greater than or equal to 740					-			-			-			-			-			-			-			-			-
			Total credit cards			$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Other consumer loans
	Original FICO score:
		Less than 620				$	-		$	-		$	-		$	-		$	-		$	-		$	30		$	30		$	164
		Greater than or equal to 620 and less than 680					-			184			-			-			-			375			69			628			1,023
		Greater than or equal to 680 and less than 740					-			174			-			41			48			1,224			198			1,685			2,180
		Greater than or equal to 740					240			128			-			-			24			2,196			2,089			4,677			4,889
			Total other consumer loans			$	240		$	486		$	-		$	41		$	72		$	3,795		$	2,386		$	7,020		$	8,256
				Total consumer loans in Florida region		$	249		$	584		$	766		$	5,628		$	3,087		$	5,111		$	2,386		$	17,811		$	26,711
(1) Excludes accrued interest receivable.

CONSUMER						As of September 30, 2021
						Term Loans																								As of December 31, 2020
	Total					Amortized Cost Basis by Origination Year (1)
						2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Total			Total
(In thousands)
Auto loans
	Original FICO score:
		Less than 620				$	39,276		$	33,827		$	35,924		$	18,051		$	7,810		$	6,261		$	-		$	141,149		$	137,275
		Greater than or equal to 620 and less than 680					135,752			113,664			114,598			69,373			28,305			14,649			-			476,341			439,476
		Greater than or equal to 680 and less than 740					160,067			116,867			101,613			57,711			24,222			12,187			-			472,667			397,965
		Greater than or equal to 740					159,991			111,023			78,615			38,083			18,660			9,810			-			416,182			321,708
			Total auto loans			$	495,086		$	375,381		$	330,750		$	183,218		$	78,997		$	42,907		$	-		$	1,506,339		$	1,296,424
Finance leases
	Original FICO score:
		Less than 620				$	3,725		$	2,623		$	4,093		$	2,920		$	1,261		$	381		$	-		$	15,003		$	15,182
		Greater than or equal to 620 and less than 680					30,976			25,603			30,101			20,717			8,289			3,374			-			119,060			111,180
		Greater than or equal to 680 and less than 740					67,172			47,971			49,158			35,427			12,851			7,300			-			219,879			191,846
		Greater than or equal to 740					70,173			44,977			41,534			25,656			6,632			5,923			-			194,895			154,781
			Total finance leases			$	172,046		$	121,174		$	124,886		$	84,720		$	29,033		$	16,978		$	-		$	548,837		$	472,989
Personal loans
	Original FICO score:
		Less than 620				$	1,634		$	1,283		$	1,812		$	1,473		$	896		$	2,357		$	-		$	9,455		$	11,057
		Greater than or equal to 620 and less than 680					8,052			7,214			17,379			6,675			2,447			1,277			-			43,044			49,673
		Greater than or equal to 680 and less than 740					29,594			26,907			47,378			21,324			10,680			7,180			-			143,063			160,518
		Greater than or equal to 740					25,259			23,768			41,176			21,949			10,331			6,450			-			128,933			146,626
		Unscorable					-			562			1,417			417			232			352			-			2,980			4,294
			Total personal loans			$	64,539		$	59,734		$	109,162		$	51,838		$	24,586		$	17,616		$	-		$	327,475		$	372,168
Credit cards
	Original FICO score:
		Less than 620				$	-		$	-		$	-		$	-		$	-		$	-		$	11,840		$	11,840		$	12,978
		Greater than or equal to 620 and less than 680					-			-			-			-			-			-			55,848			55,848			60,961
		Greater than or equal to 680 and less than 740					-			-			-			-			-			-			126,225			126,225			137,563
		Greater than or equal to 740					-			-			-			-			-			-			94,105			94,105			103,938
		Unscorable					-			-			-			-			-			-			-			-			4,384
			Total credit cards			$	-		$	-		$	-		$	-		$	-		$	-		$	288,018		$	288,018		$	319,824
Other consumer loans
	Original FICO score:
		Less than 620				$	4,534		$	2,687		$	6,430		$	1,746		$	896		$	1,704		$	3,532		$	21,529		$	23,904
		Greater than or equal to 620 and less than 680					20,492			9,229			14,043			4,279			2,012			5,358			1,729			57,142			62,690
		Greater than or equal to 680 and less than 740					14,441			8,364			8,030			3,524			1,230			2,106			2,972			40,667			40,782
		Greater than or equal to 740					3,878			2,894			2,420			711			315			2,277			3,470			15,965			16,424
		Unscorable					-			-			-			-			-			-			173			173			4,438
			Total other consumer loans			$	43,345		$	23,174		$	30,923		$	10,260		$	4,453		$	11,445		$	11,876		$	135,476		$	148,238
				Total consumer loans		$	775,016		$	579,463		$	595,721		$	330,036		$	137,069		$	88,946		$	299,894		$	2,806,145		$	2,609,643
(1) Excludes accrued interest receivable.

Accrued interest receivable on loans totaled $45.9 million as of September 30, 2021 ($57.2 million as of December 31, 2020), was reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition, and is excluded from the estimate of credit losses.

The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of September 30, 2021 and December 31, 2020:

September 30, 2021
			Collateral Dependent Loans - With Allowance					Collateral Dependent Loans - With No Related Allowance			Collateral Dependent Loans - Total
Puerto Rico and Virgin Islands region		Amortized Cost			Related Allowance			Amortized Cost			Amortized Cost			Related Allowance
(In thousands)
Residential mortgage loans:
	FHA/VA government-guaranteed loans	$	-		$	-		$	-		$	-		$	-
	Conventional residential mortgage loans		51,489			3,889			431			51,920			3,889
Commercial loans:
	Construction loans		-			-			5,490			5,490			-
	Commercial mortgage loans		15,309			1,552			50,611			65,920			1,552
	C&I loans		5,810			1,016			38,608			44,418			1,016
Consumer loans:
	Auto loans		-			-			-			-			-
	Finance leases		-			-			-			-			-
	Personal loans		145			2			-			145			2
	Credit cards		-			-			-			-			-
	Other consumer loans		907			125			-			907			125
		$	73,660		$	6,584		$	95,140		$	168,800		$	6,584

September 30, 2021
			Collateral Dependent Loans - With Allowance					Collateral Dependent Loans - With No Related Allowance			Collateral Dependent Loans - Total
Florida region		Amortized Cost			Related Allowance			Amortized Cost			Amortized Cost			Related Allowance
(In thousands)
Residential mortgage loans:
	FHA/VA government-guaranteed loans	$	-		$	-		$	-		$	-		$	-
	Conventional residential mortgage loans		5,112			564			-			5,112			564
Commercial loans:
	Construction loans		-			-			-			-			-
	Commercial mortgage loans		-			-			2,280			2,280			-
	C&I loans		-			-			491			491			-
Consumer loans:
	Auto loans		-			-			-			-			-
	Finance leases		-			-			-			-			-
	Personal loans		-			-			-			-			-
	Credit cards		-			-			-			-			-
	Other consumer loans		-			-			-			-			-
		$	5,112		$	564		$	2,771		$	7,883		$	564

September 30, 2021
			Collateral Dependent Loans - With Allowance					Collateral Dependent Loans - With No Related Allowance			Collateral Dependent Loans - Total
Total		Amortized Cost			Related Allowance			Amortized Cost			Amortized Cost			Related Allowance
(In thousands)
Residential mortgage loans:
	FHA/VA government-guaranteed loans	$	-		$	-		$	-		$	-		$	-
	Conventional residential mortgage loans		56,601			4,453			431			57,032			4,453
Commercial loans:
	Construction loans		-			-			5,490			5,490			-
	Commercial mortgage loans		15,309			1,552			52,891			68,200			1,552
	C&I loans		5,810			1,016			39,099			44,909			1,016
Consumer loans:
	Auto loans		-			-			-			-			-
	Finance leases		-			-			-			-			-
	Personal loans		145			2			-			145			2
	Credit cards		-			-			-			-			-
	Other consumer loans		907			125			-			907			125
		$	78,772		$	7,148		$	97,911		$	176,683		$	7,148

December 31, 2020
			Collateral Dependent Loans - With Allowance					Collateral Dependent Loans - With No Related Allowance			Collateral Dependent Loans - Total
Puerto Rico and Virgin Islands region		Amortized Cost			Related Allowance			Amortized Cost			Amortized Cost			Related Allowance
(In thousands)
Residential mortgage loans:
	FHA/VA government-guaranteed loans	$	-		$	-		$	-		$	-		$	-
	Conventional residential mortgage loans		100,950			9,582			7,145			108,095			9,582
Commercial loans:
	Construction loans		6,036			500			6,125			12,161			500
	Commercial mortgage loans		17,882			1,923			49,241			67,123			1,923
	C&I loans		21,933			880			24,728			46,661			880
Consumer loans:
	Auto loans		-			-			-			-			-
	Finance leases		-			-			-			-			-
	Personal loans		146			2			-			146			2
	Credit cards		-			-			-			-			-
	Other consumer loans		857			113			-			857			113
		$	147,804		$	13,000		$	87,239		$	235,043		$	13,000

December 31, 2020
			Collateral Dependent Loans - With Allowance					Collateral Dependent Loans - With No Related Allowance			Collateral Dependent Loans - Total
Florida region		Amortized Cost			Related Allowance			Amortized Cost			Amortized Cost			Related Allowance
(In thousands)
Residential mortgage loans:
	FHA/VA government-guaranteed loans	$	-		$	-		$	-		$	-		$	-
	Conventional residential mortgage loans		6,224			988			2,400			8,624			988
Commercial loans:
	Construction loans		-			-			-			-			-
	Commercial mortgage loans		-			-			2,327			2,327			-
	C&I loans		-			-			561			561			-
Consumer loans:
	Auto loans		-			-			-			-			-
	Finance leases		-			-			-			-			-
	Personal loans		-			-			-			-			-
	Credit cards		-			-			-			-			-
	Other consumer loans		248			83			-			248			83
		$	6,472		$	1,071		$	5,288		$	11,760		$	1,071

December 31, 2020
			Collateral Dependent Loans - With Allowance					Collateral Dependent Loans - With No Related Allowance			Collateral Dependent Loans - Total
Total		Amortized Cost			Related Allowance			Amortized Cost			Amortized Cost			Related Allowance
(In thousands)
Residential mortgage loans:
	FHA/VA government-guaranteed loans	$	-		$	-		$	-		$	-		$	-
	Conventional residential mortgage loans		107,174			10,570			9,545			116,719			10,570
Commercial loans:
	Construction loans		6,036			500			6,125			12,161			500
	Commercial mortgage loans		17,882			1,923			51,568			69,450			1,923
	C&I loans		21,933			880			25,289			47,222			880
Consumer loans:
	Auto loans		-			-			-			-			-
	Finance leases		-			-			-			-			-
	Personal loans		146			2			-			146			2
	Credit cards		-			-			-			-			-
	Other consumer loans		1,105			196			-			1,105			196
		$	154,276		$	14,071		$	92,527		$	246,803		$	14,071

The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models. The underlying collateral for residential mortgage and consumer collateral dependent loans consisted of single-family residential properties, and for commercial and construction loans consisted primarily of office buildings, multifamily residential properties, and retail establishments. The weighted-average loan-to-value coverage for collateral dependent loans as of September 30, 2021 was 76%. There were no significant changes in the extent to which collateral secured the Corporation’s collateral dependent financial assets during the third quarter and first nine months of 2021.

Purchases and Sales of Loans

In the ordinary course of business, the Corporation sells residential mortgage loans (originated or purchased) to GNMA and GSEs, such as FNMA and FHLMC, which generally securitize the transferred loans into MBS for sale into the secondary market. During the first nine months of 2021, the Corporation sold $148.2 million of FHA/VA mortgage loans to GNMA, which packaged them into MBS, compared to sales of $156.8 million for the first nine months of 2020. Also, during the first nine months of 2021, the Corporation sold approximately $259.6 million of performing residential mortgage loans to FNMA and FHLMC, compared to sales of $162.6 million during the first nine months of 2020. The Corporation’s continuing involvement with the loans that it sells consists primarily of servicing the loans. In addition, the Corporation agrees to repurchase loans if it breaches any of the representations and warranties included in the sale agreement. These representations and warranties are consistent with the GSEs’ selling and servicing guidelines (i.e., ensuring that the mortgage was properly underwritten according to established guidelines).

For loans sold to GNMA, the Corporation holds an option to repurchase individual delinquent loans issued on or after January 1, 2003 when the borrower fails to make any payment for three consecutive months. This option gives the Corporation the ability, but not the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA.

Under ASC Topic 860, “Transfer and Servicing,” once the Corporation has the unilateral ability to repurchase the delinquent loan, it is considered to have regained effective control over the loan and is required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of the Corporation’s intent to repurchase the loan. As of September 30, 2021 and December 31, 2020, rebooked GNMA delinquent loans that were included in the residential mortgage loan portfolio amounted to $8.5 million and $10.7 million, respectively.

During the first nine months of 2021 and 2020, the Corporation repurchased, pursuant to the aforementioned repurchase option, $0.4 million and $55.0 million, respectively, of loans previously sold to GNMA. The principal balance of these loans is fully guaranteed and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent interest payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA, which are computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA. On May 14, 2020, in response to the national emergency declared by the U.S. President related to the COVID-19 pandemic, GNMA announced a temporary relief that excludes any new borrower delinquencies, occurring on or after April 2020, from the calculation of delinquency and default ratios established in the GNMA MBS guide. This exclusion was extended automatically to issuers that were compliant with GNMA delinquency rate thresholds as reflected by their April 2020 investor accounting report, reflecting March 2020 servicing data. The exemptions and delinquent loan exclusions will automatically expire on July 31, 2022, unless earlier rescinded or extended by GNMA, or the end of the national emergency, whichever comes earlier. Historically, losses for violations of representations and warranties, and on optional repurchases of GNMA delinquent loans, have been immaterial and no provision has been made at the time of sale.

Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation repurchased at par loans previously sold to FNMA and FHLMC in the amount of $303 thousand and $42 thousand during the first nine months of 2021 and 2020, respectively. The Corporation’s risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing loans with documentation deficiencies.

During the first nine months of 2021, three criticized commercial loan participations in the Florida region totaling $28.0 million were sold. In addition, during the first nine months of 2021, the Corporation purchased five commercial and industrial loans participations in the Florida region totaling $78.1 million.

Bulk Sale of Non-performing Residential Mortgage Loans

During the third quarter of 2021, the Corporation sold $52.5 million of non-performing residential mortgage loans and related servicing advances of $2.0 million. The Corporation received $31.5 million, or 58% of book value before reserves, for the $54.5 million of non-performing loans and related servicing advances. Approximately $20.9 million of reserves had been allocated to the loans sold. The transaction resulted in total net charge-offs of $23.1 million and an additional loss of approximately $2.1 million recorded as a charge to the provision for credit losses in the third quarter of 2021.

Loan Portfolio Concentration

The Corporation’s primary lending area is Puerto Rico. The Corporation’s banking subsidiary, FirstBank, also lends in the USVI and BVI markets and in the United States (principally in the state of Florida). Of the total gross loans held for investment portfolio of $11.1 billion as of September 30, 2021, credit risk concentration was approximately 78% in Puerto Rico, 18% in the United States, and 4% in the USVI and BVI.

As of September 30, 2021, the Corporation had $181.1 million outstanding in loans extended to the Puerto Rico government, its municipalities and public corporations, compared to $201.3 million as of December 31, 2020. As of September 30, 2021, approximately $100.4 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by assigned property tax revenues, and $32.2 million consisted of municipal special obligation bonds. The vast majority of revenues of the municipalities included in the Corporation’s loan portfolio are independent of budgetary subsidies provided by the Puerto Rico central government. These municipalities are required by law to levy special property taxes in such amounts as are required to satisfy the payment of all of their respective general obligation bonds and notes. Late in 2015, the Government Development Bank for Puerto Rico (“GDB”) and the Municipal Revenue Collection Center (“CRIM”) signed and perfected a deed of trust. Through this deed, the Puerto Rico Fiscal Agency and Financial Advisory Authority, as fiduciary, is bound to keep the CRIM funds separate from any other deposits and must distribute the funds pursuant to applicable law. The CRIM funds are deposited at another commercial depository financial institution in Puerto Rico. In addition to loans extended to municipalities, the Corporation’s exposure to the Puerto Rico government as of September 30, 2021 included $13.1 million in loans granted to an affiliate of the Puerto Rico Electric Power Authority (“PREPA”) and $35.4 million in loans to an agency of the Puerto Rico central government.

In addition, as of September 30, 2021, the Corporation had $96.5 million in exposure to residential mortgage loans that are guaranteed by the PRHFA, a governmental instrumentality that has been designated as a covered entity under PROMESA (December 31, 2020 – $106.5 million). Residential mortgage loans guaranteed by the PRHFA are secured by the underlying properties and the guarantees serve to cover shortfalls in collateral in the event of a borrower default. The Puerto Rico government guarantees up to $75 million of the principal for all loans under the mortgage loan insurance program. According to the most recently-released audited financial statements of the PRHFA, as of June 30, 2018, the PRHFA’s mortgage loans insurance program covered loans in an aggregate amount of approximately $536 million. The regulations adopted by the PRHFA, requires the establishment of adequate reserves to guarantee the solvency of the mortgage loans insurance program. As of June 30, 2018, the most recent date as of which information is available, the PRHFA had an unrestricted deficit of approximately $5.9 million with respect to required reserves for the mortgage loan insurance program.

The Corporation cannot predict at this time the ultimate effect on the Puerto Rico economy, the Corporation’s clients, and the Corporation’s financial condition and results of operations of the financial situation of the Commonwealth of Puerto Rico, the uncertainty about the ultimate outcomes of the debt restructuring process, and the various legislative and other measures adopted and to be adopted by the Puerto Rico government and the PROMESA oversight board in response to such fiscal situation.

The Corporation also has credit exposure to USVI government entities. As of September 30, 2021, the Corporation had $62.5 million in loans to USVI government instrumentalities and public corporations, compared to $61.8 million as of December 31, 2020. Of the amount outstanding as of September 30, 2021, public corporations of the USVI owed approximately $39.3 million and an independent instrumentality of the USVI government owed approximately $23.2 million. As of September 30, 2021, all loans were currently performing and up to date on principal and interest payments. The USVI has been experiencing a number of fiscal and economic challenges that could adversely affect the ability of its public corporations and instrumentalities to service their outstanding debt obligations.

Troubled Debt Restructurings

The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program in Puerto Rico that is similar to the U.S. government’s Home Affordable Modification Program guidelines. Depending upon the nature of a borrower’s financial condition, restructurings or loan modifications through this program, as well as other restructurings of individual C&I, commercial mortgage, construction, and residential mortgage loans, fit the definition of a TDR. A restructuring of a debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Modifications involve changes in one or more of the loan terms that bring a defaulted loan current and provide sustainable affordability. Changes may include, among others, the extension of the maturity of the loan and modifications of the loan rate. As of September 30, 2021, the Corporation’s total TDR loans held for investment of $428.6 million consisted of $264.3 million of residential mortgage loans, $76.3 million of C&I loans, $69.6 million of commercial mortgage loans, $3.0 million of construction loans, and $15.4 million of consumer loans. As of September 30, 2021, the Corporation has committed to lend up to an additional $41 thousand on these loans.

The Corporation’s loss mitigation programs for residential mortgage and consumer loans can provide for one or a combination of the following: movement of interest past due to the end of the loan; extension of the loan term; deferral of principal payments; and reduction of interest rates either permanently or for a period of up to six years (increasing back in step-up rates). Additionally, in certain cases, the restructuring may provide for the forgiveness of contractually-due principal or interest. Uncollected interest is added to the principal at the end of the loan term at the time of the restructuring and not recognized as income until collected or when the loan is paid off. These programs are available only to those borrowers who have defaulted, or are likely to default, permanently on their loans and would lose their homes in a foreclosure action absent some lender concession. Nevertheless, if the Corporation is not reasonably assured that the borrower will comply with its contractual commitment, the property is foreclosed.

Prior to permanently modifying a loan, the Corporation may enter into trial modifications with certain borrowers. Trial modifications generally represent a six-month period during which the borrower makes monthly payments under the anticipated modified payment terms prior to a formal modification. Upon successful completion of a trial modification, the Corporation and the borrower enter into a permanent modification. TDR loans that are participating in or that have been offered a binding trial modification are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification. As of September 30, 2021, the Corporation included as TDRs $0.3 million of residential mortgage loans that were participating in or had been offered a trial modification.

For the commercial real estate, commercial and industrial, and construction loan portfolios, at the time of a restructuring, the Corporation determines, on a loan-by-loan basis, whether a concession was granted for economic or legal reasons related to the borrower’s financial difficulty. Concessions granted for loans in these portfolios could include: reductions in interest rates to rates that are considered below market; extension of repayment schedules and maturity dates beyond the original contractual terms; waivers of borrower covenants; forgiveness of principal or interest; or other contractual changes that are considered to be concessions. The Corporation mitigates loan defaults for these loan portfolios through its collection function. The function’s objective is to minimize both early stage delinquencies and losses upon default of loans in these portfolios. In the case of the commercial and industrial, commercial mortgage, and construction loan portfolios, the Corporation’s Special Asset Group (“SAG”) focuses on strategies for the accelerated reduction of non-performing assets through note sales, short sales, loss mitigation programs, and sales of OREO.

In addition, the Corporation extends, renews, and restructures loans with satisfactory credit profiles. Many commercial loan facilities are structured as lines of credit, which generally have one-year terms and, therefore, require annual renewals. Other facilities may be restructured or extended from time to time based upon changes in the borrower’s business needs, use of funds, and timing of completion of projects, and other factors. If the borrower is not deemed to have financial difficulties, extensions, renewals, and restructurings are done in the normal course of business and not considered to be concessions, and the loans continue to be recorded as performing.

Under the provisions of the CARES Act of 2020, as amended by the Consolidated Appropriations Act, 2021 enacted on December 27, 2020, financial institutions may permit loan modifications for borrowers affected by the COVID-19 pandemic through January 1, 2022 without categorizing the modifications as TDRs, as long as the loan meets certain conditions, including the requirement that the loan was not more than 30 days past due as of December 31, 2019. As of September 30, 2021, commercial loans totaling $329.9 million, or 2.96% of the balance of the total loan portfolio held for investment, were modified under the provisions of Section 4013 of the CARES Act of 2020, as amended by Division N, Title V, Section 541 of the Consolidated Appropriations Act. These modifications on commercial loans were primarily related to borrowers in industries with longer expected recovery times, mostly hospitality, retail and entertainment industries, and consisted of providing deferrals of principal payments and interest rate adjustments for an extended period of time, typically 12 months. With respect to temporary deferred repayment arrangements established in 2020 to assist borrowers affected by the COVID-19 pandemic, as of September 30, 2021, all loans previously modified under such programs have completed their deferral period.

Selected information on the Corporation’s TDR loans held for investment based on the amortized cost by loan class and modification type is summarized in the following tables as of the indicated dates:

			As of September 30, 2021
Puerto Rico and Virgin Islands region			Interest rate below market			Maturity or term extension			Combination of reduction in interest rate and extension of maturity			Forgiveness of principal and/or interest			Forbearance Agreement			Other (1)			Total
(In thousands)
TDRs:
Conventional residential mortgage loans			$	15,892		$	10,224		$	181,728		$	-		$	221		$	51,859		$	259,924
Construction loans				18			1,432			1,433			-			-			161			3,044
Commercial mortgage loans				1,437			722			42,061			-			16,118			6,945			67,283
C&I loans				224			2,443			19,523			-			17,159			36,496			75,845
Consumer loans:
	Auto loans			-			252			3,029			-			-			4,414			7,695
	Finance leases			-			3			315			-			-			706			1,024
	Personal loans			44			7			381			-			-			484			916
	Credit cards			-			-			2,626			9			-			-			2,635
	Other consumer loans			979			882			290			142			-			313			2,606
		Total TDRs in Puerto Rico and Virgin Islands region	$	18,594		$	15,965		$	251,386		$	151		$	33,498		$	101,378		$	420,972
(1)		Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

			As of September 30, 2021
Florida region			Interest rate below market			Maturity or term extension			Combination of reduction in interest rate and extension of maturity			Forgiveness of principal and/or interest			Forbearance Agreement				Other (1)			Total
(In thousands)
TDRs:
Conventional residential mortgage loans			$	609		$	908		$	2,892		$	-		$	-			$	-		$	4,409
Construction loans				-			-			-			-			-				-			-
Commercial mortgage loans				-			817			1,463			-			-				-			2,280
C&I loans				-			286			-			-			-				156			442
Consumer loans:
	Auto loans			-			37			3			-			-				-			40
	Finance leases			-			-			-			-			-				-			-
	Personal loans			-			-			-			-			-				-			-
	Credit cards			-			-			-			-			-				-			-
	Other consumer loans			-			-			108			-			-				349			457
		Total TDRs in Florida region	$	609		$	2,048		$	4,466		$	-		$	-			$	505		$	7,628
(1)		Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

			As of September 30, 2021
Total			Interest rate below market			Maturity or term extension			Combination of reduction in interest rate and extension of maturity			Forgiveness of principal and/or interest			Forbearance Agreement				Other (1)			Total
(In thousands)
TDRs:
Conventional residential mortgage loans			$	16,501		$	11,132		$	184,620		$	-		$	221			$	51,859		$	264,333
Construction loans				18			1,432			1,433			-			-				161			3,044
Commercial mortgage loans				1,437			1,539			43,524			-			16,118				6,945			69,563
C&I loans				224			2,729			19,523			-			17,159				36,652			76,287
Consumer loans:
	Auto loans			-			289			3,032			-			-				4,414			7,735
	Finance leases			-			3			315			-			-				706			1,024
	Personal loans			44			7			381			-			-				484			916
	Credit cards			-			-			2,626			9			-				-			2,635
	Other consumer loans			979			882			398			142			-				662			3,063
		Total TDRs	$	19,203		$	18,013		$	255,852		$	151		$	33,498			$	101,883		$	428,600
(1)		Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

			As of December 31, 2020
Puerto Rico and Virgin Islands region			Interest rate below market			Maturity or term extension			Combination of reduction in interest rate and extension of maturity			Forgiveness of principal and/or interest			Forbearance Agreement				Other (1)			Total
(In thousands)
TDRs:
Conventional residential mortgage loans			$	17,740		$	11,125		$	211,155		$	-		$	223			$	66,694		$	306,937
Construction loans				21			1,700			1,516			-			-				186			3,423
Commercial mortgage loans				1,491			1,380			35,714			-			16,473				6,765			61,823
C&I loans				238			12,267			14,119			-			17,890				35,744			80,258
Consumer loans:
	Auto loans			-			474			4,863			-			-				6,112			11,449
	Finance leases			-			15			588			-			-				541			1,144
	Personal loans			58			9			571			-			-				286			924
	Credit cards			-			-			2,342			16			-				-			2,358
	Other consumer loans			1,602			991			572			193			-				343			3,701
		Total TDRs in Puerto Rico and Virgin Islands region	$	21,150		$	27,961		$	271,440		$	209		$	34,586			$	116,671		$	472,017
(1)		Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

			As of December 31, 2020
Florida region			Interest rate below market			Maturity or term extension			Combination of reduction in interest rate and extension of maturity			Forgiveness of principal and/or interest			Forbearance Agreement				Other (1)			Total
(In thousands)
TDRs:
Conventional residential mortgage loans			$	989		$	401		$	2,257		$	-		$	-			$	22		$	3,669
Construction loans				-			-			-			-			-				-			-
Commercial mortgage loans				-			834			1,781			-			-				-			2,615
C&I loans				-			-			-			-			-				224			224
Consumer loans:
	Auto loans			-			55			15			-			-				-			70
	Finance leases			-			-			-			-			-				-			-
	Personal loans			-			-			-			-			-				-			-
	Credit cards			-			-			-			-			-				-			-
	Other consumer loans			37			-			172			-			-				392			601
		Total TDRs in Florida region	$	1,026		$	1,290		$	4,225		$	-		$	-			$	638		$	7,179
(1)		Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

			As of December 31, 2020
Total			Interest rate below market			Maturity or term extension			Combination of reduction in interest rate and extension of maturity			Forgiveness of principal and/or interest			Forbearance Agreement				Other (1)			Total
(In thousands)
TDRs:
Conventional residential mortgage loans			$	18,729		$	11,526		$	213,412		$	-		$	223			$	66,716		$	310,606
Construction loans				21			1,700			1,516			-			-				186			3,423
Commercial mortgage loans				1,491			2,214			37,495			-			16,473				6,765			64,438
C&I loans				238			12,267			14,119			-			17,890				35,968			80,482
Consumer loans:
	Auto loans			-			529			4,878			-			-				6,112			11,519
	Finance leases			-			15			588			-			-				541			1,144
	Personal loans			58			9			571			-			-				286			924
	Credit cards			-			-			2,342			16			-				-			2,358
	Other consumer loans			1,639			991			744			193			-				735			4,302
		Total TDRs	$	22,176		$	29,251		$	275,665		$	209		$	34,586			$	117,309		$	479,196
(1)		Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

The following table presents the Corporation's TDR loans held for investment activity for the indicated periods:
				Quarter Ended							Nine-Month Period Ended
				September 30,							September 30,
				2021				2020			2021				2020
(In thousands)
Beginning balance of TDRs				$	450,078			$	496,207		$	479,196			$	487,997
New TDRs					23,078				3,187			30,216				31,733
Increases to existing TDRs					-				2,210			57				5,821
Charge-offs post modification (1)					(13,211)				(4,548)			(16,706)				(8,063)
Sales, net of charge-offs					(17,492)				-			(17,492)				-
Foreclosures					(1,074)				(309)			(2,684)				(1,947)
Removed from TDR classification					-				-			(6,023)				-
Paid-off, partial payments and other					(12,779)				(8,132)			(37,964)				(26,926)
	Ending balance of TDRs			$	428,600			$	488,615		$	428,600			$	488,615
(1)	For the quarter and nine-month period ended September 30, 2021, includes charge-offs totaling $12.5 million related to $29.9 million of residential mortgage TDR loans that were part of the $52.5 million bulk sale of nonaccrual residential mortgage loans.

TDR loans are classified as either accrual or nonaccrual loans. Loans in accrual status may remain in accrual status when their contractual terms have been modified in a TDR if the loans had demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Otherwise, a loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower has proven the ability to perform under the modified structure, generally for a minimum of six months, and there is evidence that such payments can, and are likely to, continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. Loan modifications increase the Corporation’s interest income by returning a nonaccrual loan to performing status, if applicable, increase cash flows by providing for payments to be made by the borrower, and limit increases in foreclosure and OREO costs. A TDR loan that specifies an interest rate that at the time of the restructuring is greater than or equal to the rate the Corporation is willing to accept for a new loan with comparable risk may not be reported as a TDR loan in the calendar years subsequent to the restructuring, if it is in compliance with its modified terms. During the first nine months of 2021, the Corporation removed $6.0 million in loans from the TDR classification as the borrower was no longer experiencing financial difficulties, the outstanding loans are at market terms, and did not contain any concession to the borrower. The Corporation did not remove any loans from the TDR classification during the first nine months of 2020.

The following tables provide a breakdown of the TDR loans held for investment by those in accrual and nonaccrual status as of the indicated dates:
September 30, 2021			Puerto Rico and
			Virgin Islands region							Florida region							Total
			Accrual		Nonaccrual		Total TDRs			Accrual		Nonaccrual		Total TDRs			Accrual		Nonaccrual (1)		Total TDRs
(In thousands)
Conventional residential mortgage loans			$	240,632	$	19,292	$	259,924		$	3,053	$	1,356	$	4,409		$	243,685	$	20,648	$	264,333
Construction loans				2,315		729		3,044			-		-		-			2,315		729		3,044
Commercial mortgage loans				51,055		16,228		67,283			2,280		-		2,280			53,335		16,228		69,563
C&I loans				64,354		11,491		75,845			-		442		442			64,354		11,933		76,287
Consumer loans:
	Auto loans			4,671		3,024		7,695			40		-		40			4,711		3,024		7,735
	Finance leases			1,024		-		1,024			-		-		-			1,024		-		1,024
	Personal loans			914		2		916			-		-		-			914		2		916
	Credit Cards			2,635		-		2,635			-		-		-			2,635		-		2,635
	Other consumer loans			2,310		296		2,606			457		-		457			2,767		296		3,063
		Total TDRs	$	369,910	$	51,062	$	420,972		$	5,830	$	1,798	$	7,628		$	375,740	$	52,860	$	428,600
(1)		Included in nonaccrual loans are $13.6 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible.

December 31, 2020			Puerto Rico and
			Virgin Islands region							Florida region							Total
			Accrual		Nonaccrual		Total TDRs			Accrual		Nonaccrual		Total TDRs			Accrual		Nonaccrual (1)		Total TDRs
(In thousands)
Conventional residential mortgage loans			$	253,421	$	53,516	$	306,937		$	3,358	$	311	$	3,669		$	256,779	$	53,827	$	310,606
Construction loans				2,480		943		3,423			-		-		-			2,480		943		3,423
Commercial mortgage loans				43,012		18,811		61,823			2,615		-		2,615			45,627		18,811		64,438
C&I loans				73,649		6,609		80,258			-		224		224			73,649		6,833		80,482
Consumer loans:
	Auto loans			6,481		4,968		11,449			70		-		70			6,551		4,968		11,519
	Finance leases			1,125		19		1,144			-		-		-			1,125		19		1,144
	Personal loans			920		4		924			-		-		-			920		4		924
	Credit Cards			2,358		-		2,358			-		-		-			2,358		-		2,358
	Other consumer loans			3,274		427		3,701			564		37		601			3,838		464		4,302
		Total TDRs	$	386,720	$	85,297	$	472,017		$	6,607	$	572	$	7,179		$	393,327	$	85,869	$	479,196
(1)		Included in nonaccrual loans are $5.9 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible.

TDR loans exclude restructured residential mortgage loans that are government-guaranteed (e.g., FHA/VA loans) totaling $57.7 million as of September 30, 2021 (compared with $58.7 million as of December 31, 2020). The Corporation excludes FHA/VA guaranteed loans from TDR loan statistics given that, in the event that the borrower defaults on the loan, the principal and interest (at the specified debenture rate) are guaranteed by the U.S. government. Therefore, the risk of loss on these types of loans is very low.

Loan modifications that are considered TDR loans completed during the quarters and nine-month periods ended September 30, 2021 and 2020 were as follows:
Quarter Ended September 30, 2021
			Puerto Rico and Virgin Islands region								Florida region								Total
			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost
(Dollars in thousands)
TDRs:
Conventional residential mortgage loans			21		$	2,084		$	2,080		2		$	570		$	570		23		$	2,654		$	2,650
Construction loans			-			-			-		-			-			-		-			-			-
Commercial mortgage loans			2			10,433			10,331		-			-			-		2			10,433			10,331
C&I loans			3			9,100			9,100		-			-			-		3			9,100			9,100
Consumer loans:
	Auto loans		22			435			436		-			-			-		22			435			436
	Finance leases		10			190			191		-			-			-		10			190			191
	Personal loans		9			103			103		-			-			-		9			103			103
	Credit Cards		40			207			207		-			-			-		40			207			207
	Other consumer loans		14			59			60		-			-			-		14			59			60
		Total TDRs	121		$	22,611		$	22,508		2		$	570		$	570		123		$	23,181		$	23,078
Quarter Ended September 30, 2020
			Puerto Rico and Virgin Islands region								Florida region								Total
			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost
(Dollars in thousands)
TDRs:
Conventional residential mortgage loans			20		$	2,070		$	1,938		-		$	-		$	-		20		$	2,070		$	1,938
Construction loans			-			-			-		-			-			-		-			-			-
Commercial mortgage loans			-			-			-		-			-			-		-			-			-
C&I loans			-			-			-		-			-			-		-			-			-
Consumer loans:
	Auto loans		37			658			655		-			-			-		37			658			655
	Finance leases		4			54			54		-			-			-		4			54			54
	Personal loans		7			60			60		-			-			-		7			60			60
	Credit Cards		46			224			224		-			-			-		46			224			224
	Other consumer loans		54			312			233		1			23			23		55			335			256
		Total TDRs	168		$	3,378		$	3,164		1		$	23		$	23		169		$	3,401		$	3,187

Nine-Month Period Ended September 30, 2021
			Puerto Rico and Virgin Islands region								Florida region								Total
			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost
(Dollars in thousands)
TDRs:
Conventional residential mortgage loans			43		$	4,086		$	3,981		5		$	1,466		$	1,466		48		$	5,552		$	5,447
Construction loans			-			-			-		-			-			-		-			-			-
Commercial mortgage loans			6			11,091			11,028		-			-			-		6			11,091			11,028
C&I loans			4			9,395			9,272		1			299			299		5			9,694			9,571
Consumer loans:
	Auto loans		101			1,875			1,877		-			-			-		101			1,875			1,877
	Finance leases		33			550			552		-			-			-		33			550			552
	Personal loans		32			330			336		-			-			-		32			330			336
	Credit Cards		203			1,171			1,171		-			-			-		203			1,171			1,171
	Other consumer loans		55			233			234		-			-			-		55			233			234
		Total TDRs	477		$	28,731		$	28,451		6		$	1,765		$	1,765		483		$	30,496		$	30,216
Nine-Month Period Ended September 30, 2020
			Puerto Rico and Virgin Islands region								Florida region								Total
			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost			Number of contracts		Pre-modification Amortized Cost			Post-modification Amortized Cost
(Dollars in thousands)
TDRs:
Conventional residential mortgage loans			72		$	6,427		$	5,722		-		$	-		$	-		72		$	6,427		$	5,722
Construction loans			-			-			-		-			-			-		-			-			-
Commercial mortgage loans			2			75			81		-			-			-		2			75			81
C&I loans			6			22,064			22,064		-			-			-		6			22,064			22,064
Consumer loans:
	Auto loans		133			2,102			2,091		-			-			-		133			2,102			2,091
	Finance leases		29			408			408		-			-			-		29			408			408
	Personal loans		23			202			200		-			-			-		23			202			200
	Credit Cards		143			709			709		-			-			-		143			709			709
	Other consumer loans		139			507			435		1			23			23		140			530			458
		Total TDRs	547		$	32,494		$	31,710		1		$	23		$	23		548		$	32,517		$	31,733

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a nonaccrual loan. Recidivism on a modified loan occurs at a notably higher rate than defaults on new origination loans, so modified loans present a higher risk of loss than new origination loans. The Corporation considers a loan to have defaulted if the borrower has failed to make payments of either principal, interest, or both for a period of 90 days or more.

Loan modifications considered TDR loans that defaulted during the quarters and nine-month periods ended September 30, 2021 and 2020, and had become TDR during the 12-months preceding the default date, were as follows:

			Quarter Ended September 30,
			2021					2020
Puerto Rico and Virgin Islands region			Number of contracts		Amortized Cost			Number of contracts		Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans			2		$	126		2		$	253
Construction loans			-			-		-			-
Commercial mortgage loans			-			-		-			-
C&I loans			-			-		-			-
Consumer loans:
	Auto loans		23			433		19			358
	Finance leases		-			-		-			-
	Personal loans		1			1		-			-
	Credit cards		13			68		15			80
	Other consumer loans		-			-		14			64
		Total Puerto Rico and Virgin Islands region	39		$	628		50		$	755

			Quarter Ended September 30,
			2021					2020
Florida region			Number of contracts		Amortized Cost			Number of contracts		Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans			-		$	-		-		$	-
Construction loans			-			-		-			-
Commercial mortgage loans			-			-		-			-
C&I loans			-			-		-			-
Consumer loans:
	Auto loans		-			-		-			-
	Finance leases		-			-		-			-
	Personal loans		-			-		-			-
	Credit cards		-			-		-			-
	Other consumer loans		-			-		-			-
		Total in Florida region	-		$	-		-		$	-

			Quarter Ended September 30,
			2021					2020
Total			Number of contracts		Amortized Cost			Number of contracts		Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans			2		$	126		2		$	253
Construction loans			-			-		-			-
Commercial mortgage loans			-			-		-			-
C&I loans			-			-		-			-
Consumer loans:
	Auto loans		23			433		19			358
	Finance leases		-			-		-			-
	Personal loans		1			1		-			-
	Credit cards		13			68		15			80
	Other consumer loans		-			-		14			64
		Total	39		$	628		50		$	755

			Nine-Month Period Ended September 30,
			2021					2020
Puerto Rico and Virgin Islands region			Number of contracts		Amortized Cost			Number of contracts		Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans			4		$	304		8		$	2,142
Construction loans			-			-		-			-
Commercial mortgage loans			-			-		-			-
C&I loans			-			-		1			35
Consumer loans:
	Auto loans		69			1,164		40			681
	Finance leases		-			-		1			5
	Personal loans		1			1		1			7
	Credit cards		25			161		41			192
	Other consumer loans		9			36		50			191
		Total Puerto Rico and Virgin Islands region	108		$	1,666		142		$	3,253

			Nine-Month Period Ended September 30,
			2021					2020
Florida region			Number of contracts		Amortized Cost			Number of contracts		Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans			-		$	-		-		$	-
Construction loans			-			-		-			-
Commercial mortgage loans			-			-		-			-
C&I loans			-			-		-			-
Consumer loans:
	Auto loans		-			-		-			-
	Finance leases		-			-		-			-
	Personal loans		-			-		-			-
	Credit cards		-			-		-			-
	Other consumer loans		-			-		-			-
		Total in Florida region	-		$	-		-		$	-

			Nine-Month Period Ended September 30,
			2021					2020
Total			Number of contracts		Amortized Cost			Number of contracts		Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans			4		$	304		8		$	2,142
Construction loans			-			-		-			-
Commercial mortgage loans			-			-		-			-
C&I loans			-			-		1			35
Consumer loans:
	Auto loans		69			1,164		40			681
	Finance leases		-			-		1			5
	Personal loans		1			1		1			7
	Credit cards		25			161		41			192
	Other consumer loans		9			36		50			191
		Total	108		$	1,666		142		$	3,253

For certain TDR loans, the Corporation splits the loans into two new notes, A and B Notes. The A Note is restructured to comply with the Corporation’s lending standards at current market rates and is tailored to suit the customer’s ability to make timely interest and principal payments. The B Note includes the granting of the concession to the borrower and varies by situation. The B Note is fully charged-off but the borrower’s obligation is not forgiven, and payments that are collected are accounted for as recoveries of previously charged-off amounts. A partial charge-off may be recorded if the B Note is collateral dependent and the source of repayment is independent of the A Note. At the time of the restructuring, the A Note is identified and classified as a TDR loan. In general, if the loan performs for at least six months according to the modified terms, the A Note may be returned to accrual status. The borrower’s payment performance prior to the restructuring is included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring. In the periods following the calendar year in which a loan is restructured, the A Note may no longer be reported as a TDR loan if it is in accrual status, is in compliance with its modified terms, and yields a market rate (as determined and documented at the time of the restructuring).

The following tables provide additional information about the activity of this type of loan restructuring, and the effect on the ACL in the third quarter and first nine months of 2021 and 2020:

		Quarter Ended												Quarter Ended
		September 30, 2021												September 30, 2020
(In thousands)		Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total			Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total
Beginning balance of A/B Notes		$	16,225		$	26,742		$	1,476		$	44,443		$	22,599		$	26,767		$	1,892		$	51,258
Increase to existing TDRs			-			-			-			-			-			367			-			367
Principal repayments			(77)			(788)			(44)			(909)			(97)			-			(288)			(385)
Charge-offs			(29)			-			-			(29)			(3,087)			-			-			(3,087)
Ending balance of A/B Notes		$	16,119		$	25,954		$	1,432		$	43,505		$	19,415		$	27,134		$	1,604		$	48,153
		Nine-Month Period Ended												Nine-Month Period Ended
		September 30, 2021												September 30, 2020
(In thousands)		Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total			Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total
Beginning balance of A/B Notes		$	16,475		$	27,050		$	1,562		$	45,087		$	22,749		$	26,596		$	1,883		$	51,228
Increase to existing TDRs			-			-			-			-			-			738			34			772
Principal repayments			(227)			(1,096)			(130)			(1,453)			(247)			(200)			(313)			(760)
Charge-offs			(129)			-			-			(129)			(3,087)			-			-			(3,087)
Ending balance of A/B Notes		$	16,119		$	25,954		$	1,432		$	43,505		$	19,415		$	27,134		$	1,604		$	48,153
		Quarter Ended												Quarter Ended
		September 30, 2021												September 30, 2020
(In thousands)		Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total			Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total
ACL at the beginning of the period for A/B Notes		$	-		$	-		$	-		$	-		$	3,646		$	438		$	-		$	4,084
Provision for credit losses - expense			29			-			-			29			(559)			(40)			-			(599)
Charge-offs			(29)			-			-			(29)			(3,087)			-			-			(3,087)
ACL at the end of the period for A/B notes		$	-		$	-		$	-		$	-		$	-		$	398		$	-		$	398
		Nine-Month Period Ended												Nine-Month Period Ended
		September 30, 2021												September 30, 2020
(In thousands)		Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total			Commercial Mortgage loans			Commercial and Industrial loans			Construction loans			Total
ACL at the beginning of the
period for A/B Notes		$	-		$	401		$	-		$	401		$	3,516		$	14		$	-		$	3,530
Impact of adopting CECL			-			-			-			-			(415)			89			-			(326)
Provision for credit losses -
expense (benefit)			129			(401)			-			(272)			(14)			295			-			281
Charge-offs			(129)			-			-			(129)			(3,087)			-			-			(3,087)
ACL at the end of the period for A/B notes		$	-		$	-		$	-		$	-		$	-		$	398		$	-		$	398

Approximately $37.1 million of the balance of loans restructured using the A/B Note restructure workout strategy were in accrual status as of September 30, 2021.

X

- Definition

The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2196772

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X

- References

No definition available.

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