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LOANS HELD FOR INVESTMENT
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
LOAN HELD FOR INVESTMENT [Text Block]

NOTE 3 – LOANS HELD FOR INVESTMENT

 

The following table provides information about the loan portfolio held for investment by portfolio segment and disaggregated by geographic location as of the indicated dates:

 

 

As of June 30, 2022

 

As of December 31, 2021

(In thousands)

 

Puerto Rico and Virgin Island region:

 

 

 

 

 

Residential mortgage loans, mainly secured by first mortgages

$

2,444,532

 

$

2,549,573

Construction loans

 

25,477

 

 

43,133

Commercial mortgage loans

 

1,784,879

 

 

1,702,231

Commercial and Industrial ("C&I") loans

 

1,869,210

 

 

1,946,597

Consumer loans

 

3,093,629

 

 

2,872,384

 

Loans held for investment

 

9,217,727

 

 

9,113,918

 

 

 

 

 

 

 

Florida region:

 

 

 

 

 

Residential mortgage loans, mainly secured by first mortgages

$

407,153

 

$

429,322

Construction loans

 

89,833

 

 

95,866

Commercial mortgage loans

 

485,234

 

 

465,238

C&I loans

 

993,707

 

 

940,654

Consumer loans

 

13,220

 

 

15,660

 

Loans held for investment

 

1,989,147

 

 

1,946,740

 

 

 

 

 

 

 

Total:

 

 

 

 

 

Residential mortgage loans, mainly secured by first mortgages

$

2,851,685

 

$

2,978,895

Construction loans

 

115,310

 

 

138,999

Commercial mortgage loans

 

2,270,113

 

 

2,167,469

C&I loans (1)

 

2,862,917

 

 

2,887,251

Consumer loans

 

3,106,849

 

 

2,888,044

 

Loans held for investment (2)

$

11,206,874

 

$

11,060,658

 

 

 

 

 

 

 

(1)

As of June 30, 2022 and December 31, 2021, includes $893.0 million and $952.1 million, respectively, of commercial loans that were secured by real estate but were not dependent upon the real estate for repayment.

(2)

Includes accretable fair value net purchase discounts of $32.0 million and $35.3 million as of June 30, 2022 and December 31, 2021, respectively.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes and nonaccrual loans with no ACL as of June 30, 2022 and December 31, 2021 are as follows:

As of June 30, 2022

 

 

 

Days Past Due and Accruing

 

 

 

 

 

 

 

 

 

 

Current

 

30-59

 

60-89

 

90 +

(1) (2) (3)

 

Nonaccrual

(4) (5)

 

Total loans held for investment

 

Nonaccrual Loans with no ACL (6)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans, mainly secured by first mortgages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHA/VA government-guaranteed loans (1) (3) (7)

$

63,062

 

$

-

 

$

2,346

 

$

55,752

 

$

-

 

$

121,160

 

$

-

 

Conventional residential mortgage loans (2) (7)

 

2,633,359

 

 

-

 

 

30,964

 

 

21,614

 

 

44,588

 

 

2,730,525

 

 

3,351

Commercial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans

 

112,932

 

 

-

 

 

-

 

 

3

 

 

2,375

 

 

115,310

 

 

982

 

Commercial mortgage loans (2) (7)

 

2,243,330

 

 

-

 

 

417

 

 

1,613

 

 

24,753

 

 

2,270,113

 

 

7,736

C&I loans

 

2,828,679

 

 

4,990

 

 

197

 

 

11,972

 

 

17,079

 

 

2,862,917

 

 

11,619

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

1,668,658

 

 

29,884

 

 

4,771

 

 

-

 

 

6,916

 

 

1,710,229

 

 

2,535

 

Finance leases

 

626,352

 

 

5,234

 

 

1,148

 

 

-

 

 

1,047

 

 

633,781

 

 

266

 

Personal loans

 

321,892

 

 

2,903

 

 

1,458

 

 

-

 

 

893

 

 

327,146

 

 

-

 

Credit cards

 

288,774

 

 

3,096

 

 

2,012

 

 

3,407

 

 

-

 

 

297,289

 

 

-

 

Other consumer loans

 

134,142

 

 

1,857

 

 

946

 

 

-

 

 

1,459

 

 

138,404

 

 

13

 

 

Total loans held for investment

$

10,921,180

 

$

47,964

 

$

44,259

 

$

94,361

 

$

99,110

 

$

11,206,874

 

$

26,502

 

 

 

(1)

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 $35.6 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.

(2)

Includes purchased credit deteriorated ("PCD") loans previously accounted for under Accounting Standard Codification ("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 of maintaining pools of loans 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 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 portion of such loans contractually past due 90 days or more, amounting to $15.3 million as of June 30, 2022 ($14.3 million conventional residential mortgage loans and $1.0 million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $10.8 million as of June 30, 2022. 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, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $7.1 million as of June 30, 2022.

(5)

Nonaccrual loans exclude $345.4 million of TDR loans that were in compliance with modified terms and in accrual status as of June 30, 2022.

(6)

Includes $0.4 million of nonaccrual C&I loans with no ACL in the Florida region as of June 30, 2022.

(7)

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, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as of June 30, 2022 amounted to $6.7 million, $61.6 million, and $0.7 million, respectively.

As of December 31, 2021

 

 

 

Days Past Due and Accruing

 

 

 

 

 

 

 

 

 

 

Current

 

30-59

 

60-89

 

90+

(1) (2) (3)

 

Nonaccrual

(4) (5)

 

Total loans held for investment

 

Nonaccrual Loans with no ACL (6)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans, mainly secured by first mortgages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHA/VA government-guaranteed loans (1) (3) (7)

$

57,522

 

$

-

 

$

2,355

 

$

65,515

 

$

-

 

$

125,392

 

$

-

 

Conventional residential mortgage loans (2) (7)

 

2,738,111

 

 

-

 

 

31,832

 

 

28,433

 

 

55,127

 

 

2,853,503

 

 

3,689

Commercial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans

 

136,317

 

 

18

 

 

-

 

 

-

 

 

2,664

 

 

138,999

 

 

1,000

 

Commercial mortgage loans (2) (7)

 

2,129,375

 

 

2,402

 

 

436

 

 

9,919

 

 

25,337

 

 

2,167,469

 

 

8,289

 

C&I loans

 

2,858,397

 

 

2,047

 

 

1,845

 

 

7,827

 

 

17,135

 

 

2,887,251

 

 

11,393

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

1,533,445

 

 

26,462

 

 

4,949

 

 

-

 

 

6,684

 

 

1,571,540

 

 

3,146

 

Finance leases

 

568,606

 

 

4,820

 

 

713

 

 

-

 

 

866

 

 

575,005

 

 

196

 

Personal loans

 

310,390

 

 

3,299

 

 

1,285

 

 

-

 

 

1,208

 

 

316,182

 

 

-

 

Credit cards

 

282,179

 

 

3,158

 

 

1,904

 

 

2,985

 

 

-

 

 

290,226

 

 

-

 

Other consumer loans

 

130,588

 

 

1,996

 

 

811

 

 

-

 

 

1,696

 

 

135,091

 

 

20

 

 

Total loans held for investment

$

10,744,930

 

$

44,202

 

$

46,130

 

$

114,679

 

$

110,717

 

$

11,060,658

 

$

27,733

 

 

 

 

 

 

(1)

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 $46.6 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.

(2)

Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans 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 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 portion of such loans contractually past due 90 days or more, amounting to $20.6 million as of December 31, 2021 ($19.1 million conventional residential mortgage loans and $1.5 million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $7.2 million as of December 31, 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, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $8.2 million as of December 31, 2021.

(5)

Nonaccrual loans exclude $363.4 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2021.

(6)

Includes $0.5 million of nonaccrual C&I loans with no ACL in the Florida region as of December 31, 2021.

(7)

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, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as of December 31, 2021 amounted to $6.1 million, $66.0 million, and $0.7 million, respectively.

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 $0.3 million and $0.7 million for the quarter and six-month period ended June 30, 2022, respectively ($0.3 million and $1.3 million for the quarter and six-month period ended June 30, 2021, respectively). For the quarter and six-month period ended June 30, 2022, the cash interest recognized on nonaccrual loans amounted to $0.3 million and $0.7 million, respectively, compared with $0.8 million and $1.3 million for the quarter and six-month period ended June 30, 2021, respectively.

 

As of June 30, 2022, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $84.8 million, including $35.1 million of loans insured by the FHA or guaranteed by the VA, and $12.1 million of PCD loans acquired prior to the adoption, on January 1, 2020, of CECL. 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. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediations, bankruptcy, court delays and title issues.

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 debt securities, as discussed in Note 5 – Investment Securities, in the 2021 Annual Report on Form 10-K.

 

For residential mortgage and consumer loans, the Corporation also evaluates credit quality based on its interest accrual status.

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 June 30, 2022 and the amortized cost of commercial and construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2021 was as follows:

 

 

 

 

 

 

As of June 30, 2022

 

 

 

 

 

 

 

 

Puerto Rico and Virgin Islands region

 

Term Loans

 

 

 

 

 

 

 

As of December 31, 2021

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSTRUCTION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

4,741

 

$

12,633

 

$

962

 

$

-

 

$

-

 

$

3,747

 

$

-

 

$

22,083

 

$

38,066

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

-

 

 

-

 

 

-

 

 

3

 

 

-

 

 

-

 

 

-

 

 

3

 

 

765

 

 

 

Substandard

 

 

-

 

 

-

 

 

-

 

 

-

 

 

274

 

 

3,117

 

 

-

 

 

3,391

 

 

4,302

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total construction loans

 

$

4,741

 

$

12,633

 

$

962

 

$

3

 

$

274

 

$

6,864

 

$

-

 

$

25,477

 

$

43,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL MORTGAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

206,946

 

$

156,607

 

$

361,553

 

$

236,728

 

$

192,126

 

$

328,477

 

$

13

 

$

1,482,450

 

$

1,395,569

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

1,345

 

 

-

 

 

10,426

 

 

84,387

 

 

31,055

 

 

136,282

 

 

-

 

 

263,495

 

 

259,263

 

 

 

Substandard

 

 

140

 

 

637

 

 

-

 

 

2,952

 

 

768

 

 

34,437

 

 

-

 

 

38,934

 

 

47,399

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total commercial mortgage loans

 

$

208,431

 

$

157,244

 

$

371,979

 

$

324,067

 

$

223,949

 

$

499,196

 

$

13

 

$

1,784,879

 

$

1,702,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL AND INDUSTRIAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

57,862

 

$

234,695

 

$

196,485

 

$

333,737

 

$

134,771

 

$

271,681

 

$

542,321

 

$

1,771,552

 

$

1,852,552

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

1,037

 

 

9,395

 

 

1,293

 

 

-

 

 

239

 

 

5,696

 

 

16,010

 

 

33,670

 

 

32,650

 

 

 

Substandard

 

 

37

 

 

4,138

 

 

1,397

 

 

14,084

 

 

2,015

 

 

34,494

 

 

7,823

 

 

63,988

 

 

61,395

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total commercial and industrial loans

 

$

58,936

 

$

248,228

 

$

199,175

 

$

347,821

 

$

137,025

 

$

311,871

 

$

566,154

 

$

1,869,210

 

$

1,946,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes accrued interest receivable.

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

As of December 31, 2021

Florida region

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSTRUCTION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

45,275

 

$

44,085

 

$

-

 

$

103

 

$

-

 

$

-

 

$

370

 

$

89,833

 

$

95,866

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Substandard

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total construction loans

 

$

45,275

 

$

44,085

 

$

-

 

$

103

 

$

-

 

$

-

 

$

370

 

$

89,833

 

$

95,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL MORTGAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

108,137

 

$

80,960

 

$

43,270

 

$

57,206

 

$

83,347

 

$

73,388

 

$

16,955

 

$

463,263

 

$

404,304

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

-

 

 

-

 

 

7,062

 

 

13,430

 

 

-

 

 

-

 

 

-

 

 

20,492

 

 

60,618

 

 

 

Substandard

 

 

-

 

 

-

 

 

1,168

 

 

-

 

 

-

 

 

311

 

 

-

 

 

1,479

 

 

316

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total commercial mortgage loans

 

$

108,137

 

$

80,960

 

$

51,500

 

$

70,636

 

$

83,347

 

$

73,699

 

$

16,955

 

$

485,234

 

$

465,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL AND INDUSTRIAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

141,496

 

$

188,753

 

$

93,852

 

$

204,060

 

$

56,694

 

$

60,919

 

$

122,712

 

$

868,486

 

$

826,823

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

-

 

 

-

 

 

-

 

 

14,682

 

 

13,075

 

 

12,363

 

 

22,162

 

 

62,282

 

 

49,946

 

 

 

Substandard

 

 

-

 

 

-

 

 

24,196

 

 

33,964

 

 

-

 

 

4,444

 

 

335

 

 

62,939

 

 

63,885

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total commercial and industrial loans

 

$

141,496

 

$

188,753

 

$

118,048

 

$

252,706

 

$

69,769

 

$

77,726

 

$

145,209

 

$

993,707

 

$

940,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes accrued interest receivable.

 

 

 

 

 

 

As of June 30, 2022

 

 

 

 

 

 

 

 

Total

 

Term Loans

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSTRUCTION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

50,016

 

$

56,718

 

$

962

 

$

103

 

$

-

 

$

3,747

 

$

370

 

$

111,916

 

$

133,932

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

-

 

 

-

 

 

-

 

 

3

 

 

-

 

 

-

 

 

-

 

 

3

 

 

765

 

 

 

Substandard

 

 

-

 

 

-

 

 

-

 

 

-

 

 

274

 

 

3,117

 

 

-

 

 

3,391

 

 

4,302

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total construction loans

 

$

50,016

 

$

56,718

 

$

962

 

$

106

 

$

274

 

$

6,864

 

$

370

 

$

115,310

 

$

138,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL MORTGAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

315,083

 

$

237,567

 

$

404,823

 

$

293,934

 

$

275,473

 

$

401,865

 

$

16,968

 

$

1,945,713

 

$

1,799,873

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

1,345

 

 

-

 

 

17,488

 

 

97,817

 

 

31,055

 

 

136,282

 

 

-

 

 

283,987

 

 

319,881

 

 

 

Substandard

 

 

140

 

 

637

 

 

1,168

 

 

2,952

 

 

768

 

 

34,748

 

 

-

 

 

40,413

 

 

47,715

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total commercial mortgage loans

 

$

316,568

 

$

238,204

 

$

423,479

 

$

394,703

 

$

307,296

 

$

572,895

 

$

16,968

 

$

2,270,113

 

$

2,167,469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL AND INDUSTRIAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

199,358

 

$

423,448

 

$

290,337

 

$

537,797

 

$

191,465

 

$

332,600

 

$

665,033

 

$

2,640,038

 

$

2,679,375

 

 

Criticized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

 

1,037

 

 

9,395

 

 

1,293

 

 

14,682

 

 

13,314

 

 

18,059

 

 

38,172

 

 

95,952

 

 

82,596

 

 

 

Substandard

 

 

37

 

 

4,138

 

 

25,593

 

 

48,048

 

 

2,015

 

 

38,938

 

 

8,158

 

 

126,927

 

 

125,280

 

 

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Loss

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total commercial and industrial loans

 

$

200,432

 

$

436,981

 

$

317,223

 

$

600,527

 

$

206,794

 

$

389,597

 

$

711,363

 

$

2,862,917

 

$

2,887,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes accrued interest receivable.

The following tables present the amortized cost of residential mortgage loans by origination year based on accrual status as of June 30, 2022, and the amortized cost of residential mortgage loans by accrual status as of December 31, 2021:

 

 

As of June 30, 2022

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

(In thousands)

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico and Virgin Islands Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHA/VA government-guaranteed loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

657

 

$

871

 

$

1,240

 

$

2,924

 

$

114,736

 

$

-

 

$

120,428

 

$

124,652

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total FHA/VA government-guaranteed loans

 

$

-

 

$

657

 

$

871

 

$

1,240

 

$

2,924

 

$

114,736

 

$

-

 

$

120,428

 

$

124,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conventional residential mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

78,843

 

$

78,100

 

$

32,608

 

$

50,519

 

$

78,967

 

$

1,966,451

 

$

-

 

$

2,285,488

 

$

2,376,946

 

 

Non-Performing

 

 

-

 

 

35

 

 

77

 

 

113

 

 

279

 

 

38,112

 

 

-

 

 

38,616

 

 

47,975

 

 

 

Total conventional residential mortgage loans

 

$

78,843

 

$

78,135

 

$

32,685

 

$

50,632

 

$

79,246

 

$

2,004,563

 

$

-

 

$

2,324,104

 

$

2,424,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

78,843

 

$

78,757

 

$

33,479

 

$

51,759

 

$

81,891

 

$

2,081,187

 

$

-

 

$

2,405,916

 

$

2,501,598

 

 

Non-Performing

 

 

-

 

 

35

 

 

77

 

 

113

 

 

279

 

 

38,112

 

 

-

 

 

38,616

 

 

47,975

 

 

 

Total residential mortgage loans in Puerto Rico and Virgin Islands Region

 

$

78,843

 

$

78,792

 

$

33,556

 

$

51,872

 

$

82,170

 

$

2,119,299

 

$

-

 

$

2,444,532

 

$

2,549,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes accrued interest receivable.

 

 

As of June 30, 2022

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

(In thousands)

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHA/VA government-guaranteed loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

732

 

$

-

 

$

732

 

$

740

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total FHA/VA government-guaranteed loans

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

732

 

$

-

 

$

732

 

$

740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conventional residential mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

35,617

 

$

50,948

 

$

33,258

 

$

34,427

 

$

41,198

 

$

205,001

 

$

-

 

$

400,449

 

$

421,430

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

281

 

 

-

 

 

5,691

 

 

-

 

 

5,972

 

 

7,152

 

 

 

Total conventional residential mortgage loans

 

$

35,617

 

$

50,948

 

$

33,258

 

$

34,708

 

$

41,198

 

$

210,692

 

$

-

 

$

406,421

 

$

428,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

35,617

 

$

50,948

 

$

33,258

 

$

34,427

 

$

41,198

 

$

205,733

 

$

-

 

$

401,181

 

$

422,170

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

281

 

 

-

 

 

5,691

 

 

-

 

 

5,972

 

 

7,152

 

 

 

Total residential mortgage loans in Florida region

 

$

35,617

 

$

50,948

 

$

33,258

 

$

34,708

 

$

41,198

 

$

211,424

 

$

-

 

$

407,153

 

$

429,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes accrued interest receivable.

 

 

As of June 30, 2022

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

(In thousands)

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHA/VA government-guaranteed loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

657

 

$

871

 

$

1,240

 

$

2,924

 

$

115,468

 

$

-

 

$

121,160

 

$

125,392

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total FHA/VA government-guaranteed loans

 

$

-

 

$

657

 

$

871

 

$

1,240

 

$

2,924

 

$

115,468

 

$

-

 

$

121,160

 

$

125,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conventional residential mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

114,460

 

$

129,048

 

$

65,866

 

$

84,946

 

$

120,165

 

$

2,171,452

 

$

-

 

$

2,685,937

 

$

2,798,376

 

 

Non-Performing

 

 

-

 

 

35

 

 

77

 

 

394

 

 

279

 

 

43,803

 

 

-

 

 

44,588

 

 

55,127

 

 

 

Total conventional residential mortgage loans

 

$

114,460

 

$

129,083

 

$

65,943

 

$

85,340

 

$

120,444

 

$

2,215,255

 

$

-

 

$

2,730,525

 

$

2,853,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

114,460

 

$

129,705

 

$

66,737

 

$

86,186

 

$

123,089

 

$

2,286,920

 

$

-

 

$

2,807,097

 

$

2,923,768

 

 

Non-Performing

 

 

-

 

 

35

 

 

77

 

 

394

 

 

279

 

 

43,803

 

 

-

 

 

44,588

 

 

55,127

 

 

 

Total residential mortgage loans

 

$

114,460

 

$

129,740

 

$

66,814

 

$

86,580

 

$

123,368

 

$

2,330,723

 

$

-

 

$

2,851,685

 

$

2,978,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes accrued interest receivable.

The following tables present the amortized cost of consumer loans by origination year based on accrual status as of June 30, 2022 and the amortized cost of consumer loans by accrual status as of December 31, 2021:

 

 

As of June 30, 2022

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

(In thousands)

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico and Virgin Islands Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

379,265

 

$

579,362

 

$

298,766

 

$

250,492

 

$

126,132

 

$

63,509

 

$

-

 

$

1,697,526

 

$

1,556,097

 

 

Non-Performing

 

 

65

 

 

1,170

 

 

883

 

 

1,810

 

 

1,415

 

 

1,504

 

 

-

 

 

6,847

 

 

6,684

 

 

 

Total auto loans

 

$

379,330

 

$

580,532

 

$

299,649

 

$

252,302

 

$

127,547

 

$

65,013

 

$

-

 

$

1,704,373

 

$

1,562,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

140,447

 

$

210,366

 

$

100,710

 

$

96,801

 

$

60,908

 

$

23,502

 

$

-

 

$

632,734

 

$

574,139

 

 

Non-Performing

 

 

-

 

 

120

 

 

166

 

 

238

 

 

282

 

 

241

 

 

-

 

 

1,047

 

 

866

 

 

 

Total finance leases

 

$

140,447

 

$

210,486

 

$

100,876

 

$

97,039

 

$

61,190

 

$

23,743

 

$

-

 

$

633,781

 

$

575,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

87,793

 

$

70,988

 

$

39,484

 

$

72,802

 

$

32,609

 

$

22,191

 

$

-

 

$

325,867

 

$

314,867

 

 

Non-Performing

 

 

6

 

 

157

 

 

107

 

 

362

 

 

145

 

 

116

 

 

-

 

 

893

 

 

1,208

 

 

 

Total personal loans

 

$

87,799

 

$

71,145

 

$

39,591

 

$

73,164

 

$

32,754

 

$

22,307

 

$

-

 

$

326,760

 

$

316,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

297,289

 

$

297,289

 

$

290,226

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total credit cards

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

297,289

 

$

297,289

 

$

290,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

44,438

 

$

34,988

 

$

12,563

 

$

17,666

 

$

6,089

 

$

5,682

 

$

8,676

 

$

130,102

 

$

126,734

 

 

Non-Performing

 

 

38

 

 

256

 

 

113

 

 

191

 

 

36

 

 

551

 

 

139

 

 

1,324

 

 

1,563

 

 

 

Total other consumer loans

 

$

44,476

 

$

35,244

 

$

12,676

 

$

17,857

 

$

6,125

 

$

6,233

 

$

8,815

 

$

131,426

 

$

128,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

651,943

 

$

895,704

 

$

451,523

 

$

437,761

 

$

225,738

 

$

114,884

 

$

305,965

 

$

3,083,518

 

$

2,862,063

 

 

Non-Performing

 

 

109

 

 

1,703

 

 

1,269

 

 

2,601

 

 

1,878

 

 

2,412

 

 

139

 

 

10,111

 

 

10,321

 

 

 

Total consumer loans in Puerto Rico and Virgin Islands region

 

$

652,052

 

$

897,407

 

$

452,792

 

$

440,362

 

$

227,616

 

$

117,296

 

$

306,104

 

$

3,093,629

 

$

2,872,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes accrued interest receivable.

 

 

As of June 30, 2022

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

(In thousands)

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

-

 

$

-

 

$

444

 

$

3,358

 

$

1,985

 

$

-

 

$

5,787

 

$

8,759

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

7

 

 

48

 

 

14

 

 

-

 

 

69

 

 

-

 

 

 

Total auto loans

 

$

-

 

$

-

 

$

-

 

$

451

 

$

3,406

 

$

1,999

 

$

-

 

$

5,856

 

$

8,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total finance leases

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

298

 

$

72

 

$

16

 

$

-

 

$

-

 

$

-

 

$

-

 

$

386

 

$

107

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total personal loans

 

$

298

 

$

72

 

$

16

 

$

-

 

$

-

 

$

-

 

$

-

 

$

386

 

$

107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total credit cards

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

50

 

$

234

 

$

473

 

$

-

 

$

40

 

$

3,032

 

$

3,014

 

$

6,843

 

$

6,661

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

23

 

 

112

 

 

135

 

 

133

 

 

 

Total other consumer loans

 

$

50

 

$

234

 

$

473

 

$

-

 

$

40

 

$

3,055

 

$

3,126

 

$

6,978

 

$

6,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

348

 

$

306

 

$

489

 

$

444

 

$

3,398

 

$

5,017

 

$

3,014

 

$

13,016

 

$

15,527

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

7

 

 

48

 

 

37

 

 

112

 

 

204

 

 

133

 

 

 

Total consumer loans in Florida region

 

$

348

 

$

306

 

$

489

 

$

451

 

$

3,446

 

$

5,054

 

$

3,126

 

$

13,220

 

$

15,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes accrued interest receivable.

 

 

As of June 30, 2022

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

(In thousands)

 

2022

 

2021

 

2020

 

2019

 

2018

 

Prior

 

Revolving Loans Amortized Cost Basis

 

Total

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

379,265

 

$

579,362

 

$

298,766

 

$

250,936

 

$

129,490

 

$

65,494

 

$

-

 

$

1,703,313

 

$

1,564,856

 

 

Non-Performing

 

 

65

 

 

1,170

 

 

883

 

 

1,817

 

 

1,463

 

 

1,518

 

 

-

 

 

6,916

 

 

6,684

 

 

 

Total auto loans

 

$

379,330

 

$

580,532

 

$

299,649

 

$

252,753

 

$

130,953

 

$

67,012

 

$

-

 

$

1,710,229

 

$

1,571,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

140,447

 

$

210,366

 

$

100,710

 

$

96,801

 

$

60,908

 

$

23,502

 

$

-

 

$

632,734

 

$

574,139

 

 

Non-Performing

 

 

-

 

 

120

 

 

166

 

 

238

 

 

282

 

 

241

 

 

-

 

 

1,047

 

 

866

 

 

 

Total finance leases

 

$

140,447

 

$

210,486

 

$

100,876

 

$

97,039

 

$

61,190

 

$

23,743

 

$

-

 

$

633,781

 

$

575,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

88,091

 

$

71,060

 

$

39,500

 

$

72,802

 

$

32,609

 

$

22,191

 

$

-

 

$

326,253

 

$

314,974

 

 

Non-Performing

 

 

6

 

 

157

 

 

107

 

 

362

 

 

145

 

 

116

 

 

-

 

 

893

 

 

1,208

 

 

 

Total personal loans

 

$

88,097

 

$

71,217

 

$

39,607

 

$

73,164

 

$

32,754

 

$

22,307

 

$

-

 

$

327,146

 

$

316,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

297,289

 

$

297,289

 

$

290,226

 

 

Non-Performing

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Total credit cards

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

297,289

 

$

297,289

 

$

290,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual Status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

44,488

 

$

35,222

 

$

13,036

 

$

17,666

 

$

6,129

 

$

8,714

 

$

11,690

 

$

136,945

 

$

133,395

 

 

Non-Performing

 

 

38

 

 

256

 

 

113

 

 

191

 

 

36

 

 

574

 

 

251

 

 

1,459

 

 

1,696

 

 

 

Total other consumer loans

 

$

44,526

 

$

35,478

 

$

13,149

 

$

17,857

 

$

6,165

 

$

9,288

 

$

11,941

 

$

138,404

 

$

135,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

652,291

 

$

896,010

 

$

452,012

 

$

438,205

 

$

229,136

 

$

119,901

 

$

308,979

 

$

3,096,534

 

$

2,877,590

 

 

Non-Performing

 

 

109

 

 

1,703

 

 

1,269

 

 

2,608

 

 

1,926

 

 

2,449

 

 

251

 

 

10,315

 

 

10,454

 

 

 

Total consumer loans

 

$

652,400

 

$

897,713

 

$

453,281

 

$

440,813

 

$

231,062

 

$

122,350

 

$

309,230

 

$

3,106,849

 

$

2,888,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes accrued interest receivable.

Accrued interest receivable on loans totaled $47.1 million as of June 30, 2022 ($48.1 million as of December 31, 2021), 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 June 30, 2022 and December 31, 2021:

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral Dependent Loans - With Allowance

 

Collateral Dependent Loans - With No Related Allowance

 

Collateral Dependent Loans - 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

 

41,823

 

 

3,122

 

 

818

 

 

42,641

 

 

3,122

Commercial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans

 

-

 

 

-

 

 

1,230

 

 

1,230

 

 

-

 

Commercial mortgage loans

 

11,748

 

 

1,707

 

 

54,807

 

 

66,555

 

 

1,707

 

C&I loans

 

17,937

 

 

3,029

 

 

20,791

 

 

38,728

 

 

3,029

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Finance leases

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Personal loans

 

57

 

 

1

 

 

-

 

 

57

 

 

1

 

Credit cards

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Other consumer loans

 

568

 

 

75

 

 

-

 

 

568

 

 

75

 

 

$

72,133

 

$

7,934

 

$

77,646

 

$

149,779

 

$

7,934

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral Dependent Loans - With Allowance

 

Collateral Dependent Loans - With No Related Allowance

 

Collateral Dependent Loans - 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

 

51,771

 

 

3,966

 

 

781

 

 

52,552

 

 

3,966

Commercial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans

 

-

 

 

-

 

 

1,797

 

 

1,797

 

 

-

 

Commercial mortgage loans

 

9,908

 

 

1,152

 

 

56,361

 

 

66,269

 

 

1,152

 

C&I loans

 

5,781

 

 

670

 

 

34,043

 

 

39,824

 

 

670

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Finance leases

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Personal loans

 

78

 

 

1

 

 

-

 

 

78

 

 

1

 

Credit cards

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Other consumer loans

 

782

 

 

98

 

 

-

 

 

782

 

 

98

 

 

$

68,320

 

$

5,887

 

$

92,982

 

$

161,302

 

$

5,887

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 June 30, 2022 was 79%, compared to 78% as of December 31, 2021. There were no significant changes in the extent to which collateral secured the Corporation’s collateral dependent financial assets during the second quarter and first six months of 2022.

Purchases and Sales of Loans

 

During the first six months of 2022, the Corporation transferred $79.7 million in residential mortgage loans to GNMA, which packaged the loans into MBS for sale in the secondary market, compared to $105.9 million for the same period in 2021. Also, during the first six months of 2022, the Corporation sold approximately $78.4 million of performing residential mortgage loans to FNMA and FHLMC, compared to sales of $191.4 million during the first six months of 2021. 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 pooled into GNMA MBS, the Corporation, as servicer, holds an option to repurchase individual delinquent loans issued on or after January 1, 2003 when certain delinquency criteria are met. This option gives the Corporation the unilateral ability, but not the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. Since the Corporation is considered to have regained effective control over the loans, it is required to recognize the loans and a corresponding repurchase liability regardless of its intent to repurchase the loans. As of June 30, 2022 and December 31, 2021, rebooked GNMA delinquent loans that were included in the residential mortgage loan portfolio amounted to $10.8 million and $7.2 million, respectively.

 

During the first six months of 2022 and 2021, the Corporation repurchased, pursuant to the aforementioned repurchase option, $6.2 million and $0.3 million, respectively, of loans previously pooled into GNMA MBS. 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.

 

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 $0.2 million and $0.3 million during the first six months of 2022 and 2021, 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 six months of 2021, two criticized commercial loan participations totaling $24.0 million were sold.

 

In addition, during the first six months of 2022 and 2021, the Corporation purchased commercial and industrial loans participations in the Florida region totaling $76.4 million and $50.0 million, respectively.

 

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 $11.2 billion as of June 30, 2022, credit risk concentration was approximately 79% in Puerto Rico, 18% in the United States, and 3% in the USVI and BVI.

 

As of June 30, 2022, the Corporation had $171.4 million outstanding in loans extended to the Puerto Rico government, its municipalities and public corporations, compared to $178.4 million as of December 31, 2021. As of June 30, 2022, approximately $99.7 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by assigned property tax revenues, and $31.3 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. In addition to loans extended to municipalities, the Corporation’s exposure to the Puerto Rico government as of June 30, 2022 included $11.7 million in loans granted to an affiliate of the Puerto Rico Electric Power Authority (“PREPA”) and $28.7 million in loans to an agency of the Puerto Rico central government.

 

In addition, as of June 30, 2022, the Corporation had $88.5 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, compared to $92.8 million as of December 31, 2021. 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 Corporation also has credit exposure to USVI government entities. As of June 30, 2022, the Corporation had $39.5 million in loans to USVI government public corporations, compared to $39.2 million as of December 31, 2021. As of June 30, 2022, all loans were currently performing and up to date on principal and interest payments.

 

Troubled Debt Restructurings

 

The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program. 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. As of June 30, 2022, the Corporation’s total TDR loans held for investment amounted to $394.5 million, of which $345.4 million were in accruing status. See Note 8 – Loans Held for Investment to the consolidated financial statements included in the 2021 Annual Report on Form 10-K, for information on when the Corporation classifies TDR loans as either accrual or nonaccrual loans. The total TDR loans held for investment consisted of $245.4 million of residential mortgage loans, $68.7 million of C&I loans, $65.4 million of commercial mortgage loans, $1.6 million of construction loans, and $13.4 million of consumer loans. As of June 30, 2022, the Corporation included as TDRs $1.9 million of residential mortgage loans that were participating in or had been offered a trial modification, which generally represents a six-month period during which the borrower makes monthly payments under the anticipated modified payment terms prior to a formal modification. TDR loans exclude restructured residential mortgage loans that are government-guaranteed (e.g., FHA/VA loans) totaling $55.1 million as of June 30, 2022, compared with $57.6 million as of December 31, 2021. As of June 30, 2022, the Corporation has committed to lend up to additional $10 thousand on TDR consumer loans.

 

The following tables present TDR loans completed during the quarters and six-month periods ended June 30, 2022 and 2021:

 

 

 

Quarter Ended June 30, 2022

 

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

$

-

 

$

621

 

$

-

 

$

-

 

$

-

 

$

830

 

$

1,451

Construction loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Commercial mortgage loans

 

-

 

 

245

 

 

5,178

 

 

-

 

 

-

 

 

467

 

 

5,890

C&I loans

 

400

 

 

-

 

 

-

 

 

825

 

 

-

 

 

1,078

 

 

2,303

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

667

 

 

30

 

 

33

 

 

-

 

 

-

 

 

-

 

 

730

 

Finance leases

 

-

 

 

123

 

 

-

 

 

-

 

 

-

 

 

-

 

 

123

 

Personal loans

 

99

 

 

-

 

 

8

 

 

-

 

 

-

 

 

-

 

 

107

 

Credit cards

 

-

 

 

-

 

 

206

 

 

-

 

 

-

 

 

-

 

 

206

 

Other consumer loans

 

50

 

 

26

 

 

-

 

 

9

 

 

-

 

 

-

 

 

85

 

 

Total TDRs

$

1,216

 

$

1,045

 

$

5,425

 

$

834

 

$

-

 

$

2,375

 

$

10,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

Six-Month Period Ended June 30, 2022

 

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

$

215

 

$

1,352

 

$

190

 

$

-

 

$

-

 

$

2,687

 

$

4,444

Construction loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Commercial mortgage loans

 

-

 

 

245

 

 

5,178

 

 

-

 

 

-

 

 

467

 

 

5,890

C&I loans

 

400

 

 

-

 

 

-

 

 

825

 

 

-

 

 

1,083

 

 

2,308

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

667

 

 

30

 

 

33

 

 

-

 

 

-

 

 

993

 

 

1,723

 

Finance leases

 

-

 

 

123

 

 

-

 

 

-

 

 

-

 

 

264

 

 

387

 

Personal loans

 

99

 

 

-

 

 

8

 

 

-

 

 

-

 

 

78

 

 

185

 

Credit cards

 

-

 

 

-

 

 

395

 

 

-

 

 

-

 

 

-

 

 

395

 

Other consumer loans

 

83

 

 

132

 

 

-

 

 

18

 

 

-

 

 

-

 

 

233

 

 

Total TDRs

$

1,464

 

$

1,882

 

$

5,804

 

$

843

 

$

-

 

$

5,572

 

$

15,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

Quarter Ended June 30, 2021

 

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

$

20

 

$

-

 

$

934

 

$

-

 

$

-

 

$

577

 

$

1,531

Construction loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Commercial mortgage loans

 

-

 

 

-

 

 

90

 

 

-

 

 

-

 

 

442

 

 

532

C&I loans

 

-

 

 

300

 

 

-

 

 

-

 

 

-

 

 

171

 

 

471

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

24

 

 

-

 

 

27

 

 

-

 

 

-

 

 

575

 

 

626

 

Finance leases

 

-

 

 

49

 

 

-

 

 

-

 

 

-

 

 

124

 

 

173

 

Personal loans

 

-

 

 

15

 

 

31

 

 

-

 

 

-

 

 

161

 

 

207

 

Credit cards

 

-

 

 

-

 

 

530

 

 

-

 

 

-

 

 

-

 

 

530

 

Other consumer loans

 

12

 

 

12

 

 

-

 

 

25

 

 

-

 

 

-

 

 

49

 

 

Total TDRs

$

56

 

$

376

 

$

1,612

 

$

25

 

$

-

 

$

2,050

 

$

4,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

Six-Month Period Ended June 30, 2021

 

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

$

20

 

$

-

 

$

1,513

 

$

-

 

$

-

 

$

1,264

 

$

2,797

Construction loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Commercial mortgage loans

 

-

 

 

-

 

 

255

 

 

-

 

 

-

 

 

442

 

 

697

C&I loans

 

-

 

 

300

 

 

-

 

 

-

 

 

-

 

 

171

 

 

471

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

 

24

 

 

-

 

 

27

 

 

-

 

 

-

 

 

1,390

 

 

1,441

 

Finance leases

 

-

 

 

49

 

 

-

 

 

-

 

 

-

 

 

312

 

 

361

 

Personal loans

 

-

 

 

15

 

 

31

 

 

-

 

 

-

 

 

187

 

 

233

 

Credit cards

 

-

 

 

-

 

 

964

 

 

-

 

 

-

 

 

-

 

 

964

 

Other consumer loans

 

28

 

 

40

 

 

-

 

 

46

 

 

-

 

 

60

 

 

174

 

 

Total TDRs

$

72

 

$

404

 

$

2,790

 

$

46

 

$

-

 

$

3,826

 

$

7,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

Quarter Ended June 30, 2022

 

Quarter Ended June 30, 2021

 

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

14

 

$

1,452

 

$

1,451

 

14

 

$

1,531

 

$

1,531

Construction loans

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

Commercial mortgage loans

3

 

 

5,897

 

 

5,890

 

2

 

 

493

 

 

532

C&I loans

11

 

 

2,531

 

 

2,303

 

2

 

 

594

 

 

471

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

37

 

 

727

 

 

730

 

34

 

 

622

 

 

626

 

Finance leases

8

 

 

123

 

 

123

 

10

 

 

171

 

 

173

 

Personal loans

7

 

 

107

 

 

107

 

17

 

 

201

 

 

207

 

Credit Cards

45

 

 

206

 

 

206

 

98

 

 

530

 

 

530

 

Other consumer loans

21

 

 

82

 

 

85

 

11

 

 

49

 

 

49

 

 

Total TDRs

146

 

$

11,125

 

$

10,895

 

188

 

$

4,191

 

$

4,119

 

 

 

Six-Month Period Ended June 30, 2022

 

Six-Month Period Ended June 30, 2021

 

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

37

 

$

4,448

 

$

4,444

 

25

 

$

2,898

 

$

2,797

Construction loans

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

Commercial mortgage loans

3

 

 

5,897

 

 

5,890

 

4

 

 

658

 

 

697

C&I loans

12

 

 

2,536

 

 

2,308

 

2

 

 

594

 

 

471

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto loans

88

 

 

1,722

 

 

1,723

 

79

 

 

1,440

 

 

1,441

 

Finance leases

21

 

 

387

 

 

387

 

23

 

 

360

 

 

361

 

Personal loans

12

 

 

185

 

 

185

 

23

 

 

227

 

 

233

 

Credit Cards

89

 

 

395

 

 

395

 

163

 

 

964

 

 

964

 

Other consumer loans

48

 

 

228

 

 

233

 

41

 

 

174

 

 

174

 

 

Total TDRs

310

 

$

15,798

 

$

15,565

 

360

 

$

7,315

 

$

7,138

Loan modifications considered TDR loans that defaulted (failure by the borrower to make payments of either principal, interest, or both for a period of 90 days or more) during the quarters and six-month periods ended June 30, 2022 and 2021, and had become TDR loans during the 12-months preceding the default date, were as follows:

 

 

 

Quarter Ended June 30, 2022

 

Quarter Ended June 30, 2021

 

Number of contracts

 

Amortized Cost

 

Number of contracts

 

Amortized Cost

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Conventional residential mortgage loans

1

 

$

95

 

-

 

$

-

Construction loans

-

 

 

-

 

-

 

 

-

Commercial mortgage loans

-

 

 

-

 

-

 

 

-

C&I loans

-

 

 

-

 

-

 

 

-

Consumer loans:

 

 

 

 

 

 

 

 

 

 

Auto loans

20

 

 

376

 

17

 

 

174

 

Finance leases

-

 

 

-

 

-

 

 

-

 

Personal loans

-

 

 

-

 

-

 

 

-

 

Credit cards

14

 

 

62

 

11

 

 

86

 

Other consumer loans

2

 

 

6

 

2

 

 

3

 

 

Total

37

 

$

539

 

30

 

$

263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six-Month Period Ended June 30, 2022

 

Six-Month Period Ended June 30, 2021

 

Number of contracts

 

Amortized Cost

 

Number of contracts

 

Amortized Cost

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Conventional residential mortgage loans

4

 

$

484

 

2

 

$

178

Construction loans

-

 

 

-

 

-

 

 

-

Commercial mortgage loans

-

 

 

-

 

-

 

 

-

C&I loans

-

 

 

-

 

-

 

 

-

Consumer loans:

 

 

 

 

 

 

 

 

 

 

Auto loans

44

 

 

898

 

46

 

 

731

 

Finance leases

1

 

 

16

 

-

 

 

-

 

Personal loans

-

 

 

-

 

-

 

 

-

 

Credit cards

25

 

 

141

 

12

 

 

93

 

Other consumer loans

4

 

 

17

 

9

 

 

36

 

 

Total

78

 

$

1,556

 

69

 

$

1,038