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LOANS HELD FOR INVESTMENT
 6 Months Ended
Jun. 30, 2023
LOANS HELD FOR INVESTMENT [Abstract]  
LOAN HELD FOR INVESTMENT
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 locations
 
as of the indicated
 
dates:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
As of December 31,
2023
2022
(In thousands)
Puerto Rico and Virgin Islands region:
Residential mortgage loans, mainly secured by first mortgages
$
2,352,310
$
2,417,900
Construction loans
69,219
34,772
Commercial mortgage loans
 
1,800,289
1,834,204
Commercial and Industrial ("C&I") loans
2,011,774
1,860,109
Consumer loans
3,487,454
3,317,489
Loans held for investment
$
9,721,046
$
9,464,474
Florida region:
Residential mortgage loans, mainly secured by first mortgages
$
441,480
$
429,390
Construction loans
94,779
98,181
Commercial mortgage loans
 
519,780
524,647
C&I loans
934,427
1,026,154
Consumer loans
7,803
9,979
Loans held for investment
$
1,998,269
$
2,088,351
Total:
Residential mortgage loans, mainly secured by first mortgages
$
2,793,790
$
2,847,290
Construction loans
163,998
132,953
Commercial mortgage loans
 
2,320,069
2,358,851
C&I loans
(1)
2,946,201
2,886,263
Consumer loans
3,495,257
3,327,468
Loans held for investment
(2)
11,719,315
11,552,825
ACL on loans and finance leases
(267,058)
(260,464)
Loans held for investment, net
$
11,452,257
$
11,292,361
(1)
As of June 30, 2023 and December 31, 2022, includes
 
$
821.4
 
million and $
838.5
 
million, respectively, of commercial loans that were secured by real estate and the
primary source of repayment at origination was not dependent
 
upon the real estate.
(2)
Includes accretable fair value net purchase discounts of $
27.1
 
million and $
29.3
 
million as of June 30, 2023 and December 31, 2022, respectively.
When
 
a
 
loan
 
is placed
 
in
 
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
 
$
0.5
 
million
 
and
 
$
1.1
 
million
 
for
 
the
 
quarter
 
and
 
six-month
 
period
 
ended
 
June
 
30,
 
2023,
 
respectively,
 
compared
 
with
 
$
0.3
million and $
0.7
 
million for the quarter
 
and six-month period ended
 
June 30, 2022, respectively.
 
For the quarter and
 
six-month period
ended
 
June
 
30,
 
2023,
 
the
 
cash
 
interest
 
income
 
recognized
 
on
 
nonaccrual
 
loans
 
amounted
 
to
 
$
0.5
 
million
 
and
 
$
1.0
 
million,
respectively, compared
 
to $
0.3
 
million and $
0.7
 
million for the quarter and six-month period ended June 30, 2022, respectively.
As of
 
June
 
30,
 
2023,
 
the recorded
 
investment
 
on
 
residential
 
mortgage
 
loans collateralized
 
by
 
residential
 
real
 
estate property
 
that
were in
 
the process
 
of foreclosure
 
amounted to
 
$
50.9
 
million, including
 
$
21.5
 
million of
 
FHA/VA
 
government-guaranteed
 
mortgage
loans, and
 
$
7.2
 
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.
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2023
Days Past Due and Accruing
Current
30-59
60-89
90+
(1) (2) (3)
Nonaccrual
(4)
Total loans held
for investment
Nonaccrual
Loans with no
ACL
(5)
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
 
FHA/VA government-guaranteed
 
loans
(1) (3) (6)
$
69,242
$
-
$
1,605
$
34,038
$
-
$
104,885
$
-
 
Conventional residential mortgage loans
(2) (6)
2,613,464
-
29,274
12,915
33,252
2,688,905
1,861
Commercial loans:
 
Construction loans
 
(6)
161,248
1,062
11
-
1,677
163,998
973
 
Commercial mortgage loans
(2) (6)
2,287,864
4,551
565
5,553
21,536
2,320,069
11,834
 
C&I loans
 
2,928,957
1,827
1,186
5,037
9,194
2,946,201
1,816
Consumer loans:
 
Auto loans
1,803,442
44,425
8,281
-
11,311
1,867,459
3,464
 
Finance leases
778,649
8,015
1,564
-
2,483
790,711
496
 
Personal loans
359,898
4,363
1,985
-
1,353
367,599
-
 
Credit cards
305,434
3,734
2,620
5,668
-
317,456
-
 
Other consumer loans
147,419
2,191
1,207
-
1,215
152,032
35
 
Total loans held for investment
$
11,455,617
$
70,168
$
48,298
$
63,211
$
82,021
$
11,719,315
$
20,479
 
(1)
It is the Corporation's policy to report delinquent Federal Housing Authority (“FHA”)/Veterans Affairs (“VA”)
 
government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed
to nonaccrual loans. 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 $
19.9
 
million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of June 30, 2023.
(2)
Includes purchased credit deteriorated ("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 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 $
9.5
 
million as of June 30, 2023 ($
8.5
 
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 $
6.5
 
million as of June 30, 2023. 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 $
9.8
 
million as of June 30, 2023, primarily nonaccrual residential mortgage loans and C&I loans.
(5)
Includes $
0.3
 
million of nonaccrual C&I loans with no ACL in the Florida region as of June 30, 2023.
(6)
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 June 30, 2023 amounted to $
6.6
 
million, $
62.9
 
million, $
1.9
million, and $
0.2
 
million, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2022
Days Past Due and Accruing
Current
30-59
60-89
90+
(1)(2)(3)
Nonaccrual
(4)
Total loans held
for investment
Nonaccrual
Loans with no
ACL
(5)
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
 
FHA/VA government-guaranteed
 
loans
(1) (3) (6)
$
67,116
$
-
$
2,586
$
48,456
$
-
$
118,158
$
-
 
Conventional residential mortgage loans
(2) (6)
2,643,909
-
25,630
16,821
42,772
2,729,132
2,292
Commercial loans:
 
Construction loans
130,617
-
-
128
2,208
132,953
977
 
Commercial mortgage loans
(2) (6)
2,330,094
300
2,367
3,771
22,319
2,358,851
15,991
 
C&I loans
 
2,868,989
1,984
1,128
6,332
7,830
2,886,263
3,300
Consumer loans:
 
Auto loans
1,740,271
40,039
7,089
-
10,672
1,798,071
2,136
 
Finance leases
707,646
7,148
1,791
-
1,645
718,230
330
 
Personal loans
346,366
3,738
1,894
-
1,248
353,246
-
 
Credit cards
301,013
3,705
2,238
4,775
-
311,731
-
 
Other consumer loans
141,687
1,804
1,458
-
1,241
146,190
-
 
Total loans held for investment
$
11,277,708
$
58,718
$
46,181
$
80,283
$
89,935
$
11,552,825
$
25,026
 
(1)
It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to
 
nonaccrual loans. 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 $
28.2
 
million of residential mortgage loans
guaranteed by the FHA that were over 15 months delinquent as of December 31, 2022.
(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 $
12.0
 
million as of December 31, 2022 ($
11.0
 
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 $
10.3
 
million as of December 31, 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 $
8.3
 
million as of December 31, 2022, primarily nonaccrual residential mortgage loans.
(5)
Includes $
0.3
 
million of nonaccrual C&I loans with no ACL in the Florida region as of December 31, 2022.
(6)
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, 2022 amounted to $
6.1
 
million, $
65.2
 
million, and $
1.6
 
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,
 
C&I,
 
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 3
 
– Debt
 
Securities, to
 
the audited
 
consolidated financial
 
statements included
 
in the
 
2022 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,
 
2023, the
 
gross charge
 
-offs for
 
the six-month
 
period ended
June 30,
 
2023 by
 
portfolio classes
 
and by
 
origination year,
 
and the
 
amortized cost
 
of commercial
 
and construction
 
loans by
 
portfolio
classes based on the internal credit-risk category as of December 31,
 
2022, were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
Puerto Rico and Virgin Islands region
Term Loans
As of December 31, 2022
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
CONSTRUCTION
 
Risk Ratings:
 
Pass
$
29,645
$
22,238
$
11,093
$
-
$
-
$
3,887
$
-
$
66,863
$
31,879
 
Criticized:
 
Special Mention
-
-
-
-
-
-
-
-
-
 
Substandard
-
7
-
-
-
2,349
-
2,356
2,893
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total construction loans
$
29,645
$
22,245
$
11,093
$
-
$
-
$
6,236
$
-
$
69,219
$
34,772
 
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
38
$
-
$
38
COMMERCIAL MORTGAGE
 
Risk Ratings:
 
Pass
$
94,161
$
385,980
$
139,699
$
322,212
$
283,938
$
381,556
$
427
$
1,607,973
$
1,655,728
 
Criticized:
 
Special Mention
-
4,487
-
33,698
-
118,636
-
156,821
145,415
 
Substandard
-
129
-
-
2,847
32,519
-
35,495
33,061
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total commercial mortgage loans
$
94,161
$
390,596
$
139,699
$
355,910
$
286,785
$
532,711
$
427
$
1,800,289
$
1,834,204
 
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
106
$
-
$
106
C&I
 
Risk Ratings:
 
Pass
$
113,567
$
297,329
$
193,851
$
178,144
$
299,435
$
222,553
$
649,354
$
1,954,233
$
1,789,572
 
Criticized:
 
Special Mention
-
-
-
-
508
12,709
22,537
35,754
43,224
 
Substandard
-
-
389
634
13,797
6,682
285
21,787
27,313
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total C&I loans
$
113,567
$
297,329
$
194,240
$
178,778
$
313,740
$
241,944
$
672,176
$
2,011,774
$
1,860,109
 
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
211
$
55
$
266
(1) Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
Term Loans
As of December 31, 2022
Florida region
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
CONSTRUCTION
 
Risk Ratings:
 
Pass
$
32
$
47,557
$
47,190
$
-
$
-
$
-
$
-
$
94,779
$
98,181
 
Criticized:
 
Special Mention
-
-
-
-
-
-
-
-
-
 
Substandard
-
-
-
-
-
-
-
-
-
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total construction loans
$
32
$
47,557
$
47,190
$
-
$
-
$
-
$
-
$
94,779
$
98,181
 
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
COMMERCIAL MORTGAGE
 
Risk Ratings:
 
Pass
$
6,258
$
184,611
$
69,659
$
40,608
$
51,005
$
122,449
$
19,642
$
494,232
$
503,184
 
Criticized:
 
Special Mention
-
-
-
-
13,156
11,224
-
24,380
20,295
 
Substandard
-
-
-
1,168
-
-
-
1,168
1,168
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total commercial mortgage loans
$
6,258
$
184,611
$
69,659
$
41,776
$
64,161
$
133,673
$
19,642
$
519,780
$
524,647
 
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
C&I
 
Risk Ratings:
 
Pass
$
45,172
$
272,282
$
153,401
$
74,535
$
173,170
$
56,918
$
117,134
$
892,612
$
979,151
 
Criticized:
 
Special Mention
-
-
19,580
-
5,976
11,403
-
36,959
17,905
 
Substandard
-
-
-
652
193
2,825
300
3,970
29,098
 
Doubtful
-
-
-
-
-
886
-
886
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total C&I loans
$
45,172
$
272,282
$
172,981
$
75,187
$
179,339
$
72,032
$
117,434
$
934,427
$
1,026,154
 
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
6,202
$
-
$
6,202
(1) Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
Total
Term Loans
As of December 31, 2022
Amortized Cost Basis by Origination Year (1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
CONSTRUCTION
 
Risk Ratings:
 
Pass
$
29,677
$
69,795
$
58,283
$
-
$
-
$
3,887
$
-
$
161,642
$
130,060
 
Criticized:
 
Special Mention
-
-
-
-
-
-
-
-
-
 
Substandard
-
7
-
-
-
2,349
-
2,356
2,893
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total construction loans
$
29,677
$
69,802
$
58,283
$
-
$
-
$
6,236
$
-
$
163,998
$
132,953
 
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
38
$
-
$
38
COMMERCIAL MORTGAGE
 
Risk Ratings:
 
Pass
$
100,419
$
570,591
$
209,358
$
362,820
$
334,943
$
504,005
$
20,069
$
2,102,205
$
2,158,912
 
Criticized:
 
Special Mention
-
4,487
-
33,698
13,156
129,860
-
181,201
165,710
 
Substandard
-
129
-
1,168
2,847
32,519
-
36,663
34,229
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total commercial mortgage loans
$
100,419
$
575,207
$
209,358
$
397,686
$
350,946
$
666,384
$
20,069
$
2,320,069
$
2,358,851
 
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
106
$
-
$
106
C&I
 
Risk Ratings:
 
Pass
$
158,739
$
569,611
$
347,252
$
252,679
$
472,605
$
279,471
$
766,488
$
2,846,845
$
2,768,723
 
Criticized:
 
Special Mention
-
-
19,580
-
6,484
24,112
22,537
72,713
61,129
 
Substandard
-
-
389
1,286
13,990
9,507
585
25,757
56,411
 
Doubtful
-
-
-
-
-
886
-
886
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total C&I loans
$
158,739
$
569,611
$
367,221
$
253,965
$
493,079
$
313,976
$
789,610
$
2,946,201
$
2,886,263
 
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
6,413
$
55
$
6,468
(1) Excludes accrued interest receivable.
As of June 30, 2023 and December 31, 2022, the balance of revolving loans
 
converted to term loans was
no
t material.
Accrued
 
interest
 
receivable
 
on
 
loans
 
totaled
 
$
52.8
 
million
 
as
 
of
 
June
 
30,
 
2023
 
($
53.1
 
million
 
as
 
of
 
December
 
31,
 
2022),
 
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, 2023 and December 31, 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2023
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:
Conventional residential mortgage loans
$
31,199
$
2,026
$
-
$
31,199
$
2,026
Commercial loans:
Construction loans
-
-
956
956
-
Commercial mortgage loans
6,590
1,016
52,447
59,037
1,016
C&I loans
 
2,563
418
10,601
13,164
418
Consumer loans:
Personal loans
-
-
-
-
-
Other consumer loans
173
17
-
173
17
$
40,525
$
3,477
$
64,004
$
104,529
$
3,477
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,
 
2023 was
68
%, compared
 
to
70
% as
 
of December
 
31, 2022,
 
which was
not considered a significant change in the extent to which collateral secured these loans.
Purchases and Sales of Loans
In
 
the
 
ordinary
 
course
 
of
 
business,
 
the
 
Corporation
 
enters
 
into
 
securitization
 
transactions
 
and
 
whole
 
loan
 
sales
 
with
 
GNMA
 
and
GSEs, such
 
as FNMA
 
and FHLMC.
 
During the
 
first six
 
months of
 
2023, loans
 
pooled into
 
GNMA MBS
 
amounted to
 
approximately
$
66.4
 
million, compared to
 
$
79.7
 
million during the
 
first six months
 
of 2022, for
 
which the Corporation
 
recognized a net
 
gain on sale
of
 
$
1.4
 
million
 
and
 
$
2.3
 
million,
 
respectively.
 
Also, during
 
the
 
first
 
six
 
months
 
of 2023,
 
the
 
Corporation
 
sold
 
approximately
 
$
22.8
million of performing residential mortgage loans to FNMA, for
 
which the Corporation recognized a net gain on sale of $
0.6
 
million. In
addition,
 
during
 
the
 
first
 
six
 
months
 
of
 
2022,
 
the
 
Corporation
 
sold
 
approximately
 
$
75.2
 
million
 
and
 
$
3.2
 
million
 
of
 
performing
residential
 
mortgage
 
loans
 
to
 
FNMA
 
and
 
FHLMC,
 
respectively,
 
for
 
which
 
the
 
Corporation
 
recognized
 
a
 
net
 
gain
 
on
 
sale
 
of
 
$
3.3
million
 
and
 
$
0.1
 
million,
 
respectively.
 
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,
 
2023 and
 
December 31,
 
2022, rebooked
 
GNMA delinquent
 
loans that
were included in the residential mortgage loan portfolio amounted to $
6.5
 
million and $
10.4
 
million, respectively.
 
During the first
 
six months of 2023
 
and 2022, the Corporation
 
repurchased, pursuant to
 
the aforementioned repurchase
 
option, $
1.9
million
 
and
 
$
6.2
 
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.
Historically, losses
 
on these 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’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
 
2023
 
and
 
2022,
 
the
 
Corporation
 
purchased
 
C&I
 
loan
 
participations
 
in
 
the
 
Florida
 
region
 
totaling
$
28.0
 
million and $
76.4
 
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
$
11.7
 
billion as
 
of June
 
30, 2023,
 
credit risk
 
concentration
 
was approximately
79
% in
 
Puerto Rico,
17
% in
 
the U.S.,
 
and
4
% in
 
the
USVI and BVI.
As
 
of
 
June
 
30,
 
2023,
 
the
 
Corporation
 
had
 
$
174.9
 
million
 
outstanding
 
in
 
loans
 
extended
 
to
 
the
 
Puerto
 
Rico
 
government,
 
its
municipalities
 
and
 
public
 
corporations,
 
compared
 
to
 
$
169.8
 
million
 
as
 
of
 
December
 
31,
 
2022.
 
As
 
of
 
June
 
30,
 
2023,
 
approximately
$
105.2
 
million
 
consisted
 
of
 
loans
 
extended
 
to
 
municipalities
 
in
 
Puerto
 
Rico
 
that
 
are
 
general
 
obligations
 
supported
 
by
 
assigned
property
 
tax
 
revenues,
 
and $
28.1
 
million
 
of
 
loans which
 
are supported
 
by one
 
or
 
more
 
specific sources
 
of municipal
 
revenues. 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,
 
2023 included
 
$
9.5
 
million
 
in
loans granted
 
to an affiliate
 
of the
 
Puerto
Rico Electric
Power Authority
 
(“PREPA”)
 
and $
32.1
 
million in loans
 
to agencies or
 
public
corporations of the Puerto Rico government.
 
In addition, as of
 
June 30, 2023, the Corporation
 
had $
81.1
 
million in exposure to
 
residential mortgage loans that
 
are guaranteed by
the PRHFA,
 
a government
 
instrumentality that
 
has been designated
 
as a covered
 
entity under PROMESA,
 
compared to
 
$
84.7
 
million
as
 
of
 
December
 
31,
 
2022.
 
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, 2023,
 
the Corporation
 
had
$
78.9
 
million in
loans to
 
USVI government
 
public corporations,
 
compared to
 
$
38.0
 
million as
 
of December
 
31, 2022.
 
As of
 
June 30,
 
2023, all
 
loans
were currently performing and up to date on principal and interest payments.
Loss Mitigation Program for Borrowers Experiencing
 
Financial Difficulty
Effective January 1, 2023, the Corporation
 
adopted ASU 2022-02. For additional information on the adoption,
 
see Note 1 – Basis of
Presentation and Significant Accounting Policies.
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 are provided,
 
as well as
other restructurings of
 
individual C&I, commercial
 
mortgage, construction, and
 
residential mortgage
 
loans. The Corporation
 
may also
modify contractual terms to comply with regulations regarding the treatment
 
of certain bankruptcy filings and discharge situations.
The
 
loan
 
modifications
 
granted
 
to
 
borrowers
 
experiencing
 
financial
 
difficulty
 
that
 
are
 
associated
 
with
 
payment
 
delays
 
typically
include the following:
-
Forbearance plans –
 
Payments of either interest
 
and/or principal are
 
deferred for a pre-established
 
period of time, generally
 
not
exceeding
 
six
 
months
 
in
 
any
 
given
 
year.
 
The
 
deferred
 
interest
 
and/or
 
principal
 
is
 
repaid
 
as
 
either
 
a
 
lump
 
sum
 
payment
 
at
maturity date or by extending the loan’s
 
maturity date by the number of forbearance months granted.
 
-
Payment
 
plans
 
–
 
Borrowers
 
are
 
allowed
 
to
 
pay
 
the
 
regular
 
monthly
 
payment
 
plus
 
the
 
pre-established
 
delinquent
 
amounts
during a period generally not exceeding
 
six months.
 
At the end of the payment plan, the
 
borrower is required to resume making
its regularly scheduled loan payments.
-
Trial modifications
 
– These types of loan
 
modifications are granted for
 
residential mortgage loans. Borrower
 
s
 
continue making
reduced monthly payments during
 
the trial period, which is
 
generally of up to six
 
months. The reduced payments
 
that are made
by the
 
borrower during
 
the trial
 
period will
 
result in
 
a payment
 
delay with
 
respect to
 
the original
 
contractual terms
 
of the
 
loan
since
 
the
 
loan
 
has
 
not
 
yet
 
been
 
contractually
 
modified.
 
After
 
successful
 
completion
 
of
 
the
 
trial
 
period,
 
the
 
mortgage
 
loan
 
is
contractually modified.
Modifications
 
in
 
the
 
form
 
of
 
a
 
reduction
 
in
 
interest
 
rate,
 
term
 
extension,
 
an
 
other-than-insignificant
 
payment
 
delay,
 
or
 
any
combination
 
of
 
these
 
types
 
of
 
loan
 
modifications
 
that
 
have
 
occurred
 
in
 
the
 
current
 
reporting
 
period
 
for
 
a
 
borrower
 
experiencing
financial difficulty are disclosed in the tables below.
The
 
below
 
disclosures
 
relate
 
to
 
loan
 
modifications
 
granted
 
to
 
borrowers
 
experiencing
 
financial
 
difficulty
 
in
 
which
 
there
 
was
 
a
change
 
in
 
the
 
timing
 
and/or
 
amount
 
of
 
contractual
 
cash
 
flows
 
in
 
the
 
form
 
of
 
any
 
of
 
the
 
aforementioned
 
types
 
of
 
modifications,
including
 
restructurings
 
that
 
resulted
 
in
 
a
 
more-than-insignificant
 
payment
 
delay.
 
These
 
disclosures
 
exclude
 
$
1.6
 
million
 
and
 
$
2.5
million in restructured residential
 
mortgage loans that are
 
government-guaranteed (e.g.,
 
FHA/VA
 
loans) and were modified
 
during the
quarter and six-month period ended June 30, 2023, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
As of
December 31,
2022
Term Loans
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Puerto Rico and Virgin Islands Region:
FHA/VA government-guaranteed loans
Accrual Status:
Performing
$
118
$
691
$
689
$
782
$
1,117
$
100,760
$
-
$
104,157
$
117,416
Non-Performing
-
-
-
-
-
-
-
-
-
Total FHA/VA
 
government-guaranteed loans
$
118
$
691
$
689
$
782
$
1,117
$
100,760
$
-
$
104,157
$
117,416
Conventional residential mortgage loans:
Accrual Status:
Performing
$
61,153
$
170,239
$
73,033
$
30,819
$
45,799
$
1,841,296
$
-
$
2,222,339
$
2,265,013
Non-Performing
-
-
35
-
171
25,608
-
25,814
35,471
Total conventional residential mortgage loans
$
61,153
$
170,239
$
73,068
$
30,819
$
45,970
$
1,866,904
$
-
$
2,248,153
$
2,300,484
Total:
Accrual Status:
Performing
$
61,271
$
170,930
$
73,722
$
31,601
$
46,916
$
1,942,056
$
-
$
2,326,496
$
2,382,429
Non-Performing
-
-
35
-
171
25,608
-
25,814
35,471
Total residential mortgage loans in Puerto Rico
and Virgin Islands Region
$
61,271
$
170,930
$
73,757
$
31,601
$
47,087
$
1,967,664
$
-
$
2,352,310
$
2,417,900
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
3
$
-
$
2,126
$
-
$
2,129
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
As of
December 31,
2022
Term Loans
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Florida Region:
FHA/VA government-guaranteed loans
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
728
$
-
$
728
$
742
Non-Performing
-
-
-
-
-
-
-
-
-
Total FHA/VA
 
government-guaranteed loans
$
-
$
-
$
-
$
-
$
-
$
728
$
-
$
728
$
742
Conventional residential mortgage loans:
Accrual Status:
Performing
$
37,150
$
80,115
$
48,955
$
30,517
$
28,459
$
208,118
$
-
$
433,314
$
421,347
Non-Performing
-
-
-
-
259
7,179
-
7,438
7,301
Total conventional residential mortgage loans
$
37,150
$
80,115
$
48,955
$
30,517
$
28,718
$
215,297
$
-
$
440,752
$
428,648
Total:
Accrual Status:
Performing
$
37,150
$
80,115
$
48,955
$
30,517
$
28,459
$
208,846
$
-
$
434,042
$
422,089
Non-Performing
-
-
-
-
259
7,179
-
7,438
7,301
Total residential mortgage loans in Florida region
$
37,150
$
80,115
$
48,955
$
30,517
$
28,718
$
216,025
$
-
$
441,480
$
429,390
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
As of
December 31,
2022
Term Loans
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Total:
FHA/VA government-guaranteed loans
Accrual Status:
Performing
$
118
$
691
$
689
$
782
$
1,117
$
101,488
$
-
$
104,885
$
118,158
Non-Performing
-
-
-
-
-
-
-
-
-
Total FHA/VA
 
government-guaranteed loans
$
118
$
691
$
689
$
782
$
1,117
$
101,488
$
-
$
104,885
$
118,158
Conventional residential mortgage loans:
Accrual Status:
Performing
$
98,303
$
250,354
$
121,988
$
61,336
$
74,258
$
2,049,414
$
-
$
2,655,653
$
2,686,360
Non-Performing
-
-
35
-
430
32,787
-
33,252
42,772
Total conventional residential mortgage loans
$
98,303
$
250,354
$
122,023
$
61,336
$
74,688
$
2,082,201
$
-
$
2,688,905
$
2,729,132
Total:
Accrual Status:
Performing
$
98,421
$
251,045
$
122,677
$
62,118
$
75,375
$
2,150,902
$
-
$
2,760,538
$
2,804,518
Non-Performing
-
-
35
-
430
32,787
-
33,252
42,772
Total residential mortgage loans
$
98,421
$
251,045
$
122,712
$
62,118
$
75,805
$
2,183,689
$
-
$
2,793,790
$
2,847,290
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
3
$
-
$
2,126
$
-
$
2,129
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
As of
December 31,
2022
Term Loans
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Puerto Rico and Virgin Islands Region:
Auto loans:
Accrual Status:
Performing
$
326,746
$
604,040
$
445,754
$
214,692
$
167,480
$
95,343
$
-
$
1,854,055
$
1,783,782
Non-Performing
199
2,234
2,530
1,341
2,702
2,255
-
11,261
10,596
Total auto loans
$
326,945
$
606,274
$
448,284
$
216,033
$
170,182
$
97,598
$
-
$
1,865,316
$
1,794,378
Charge-offs on auto loans
$
174
$
3,355
$
2,287
$
886
$
1,205
$
745
$
-
$
8,652
Finance leases:
Accrual Status:
Performing
$
159,308
$
270,541
$
172,697
$
76,249
$
66,859
$
42,574
$
-
$
788,228
$
716,585
Non-Performing
-
619
490
525
380
469
-
2,483
1,645
Total finance leases
$
159,308
$
271,160
$
173,187
$
76,774
$
67,239
$
43,043
$
-
$
790,711
$
718,230
Charge-offs on finance leases
$
11
$
656
$
485
$
228
$
341
$
428
$
-
$
2,149
Personal loans:
Accrual Status:
Performing
$
88,877
$
148,554
$
43,113
$
22,164
$
39,809
$
23,410
$
-
$
365,927
$
351,664
Non-Performing
8
713
222
68
220
122
-
1,353
1,248
Total personal loans
$
88,885
$
149,267
$
43,335
$
22,232
$
40,029
$
23,532
$
-
$
367,280
$
352,912
Charge-offs on personal loans
$
24
$
3,414
$
1,435
$
662
$
1,180
$
834
$
-
$
7,549
Credit cards:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
317,456
$
317,456
$
311,731
Non-Performing
-
-
-
-
-
-
-
-
-
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
317,456
$
317,456
$
311,731
Charge-offs on credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
8,447
$
8,447
Other consumer loans:
Accrual Status:
Performing
$
49,470
$
52,078
$
14,386
$
7,261
$
8,060
$
5,348
$
8,932
$
145,535
$
139,116
Non-Performing
40
527
192
50
65
201
81
1,156
1,122
Total other consumer loans
$
49,510
$
52,605
$
14,578
$
7,311
$
8,125
$
5,549
$
9,013
$
146,691
$
140,238
Charge-offs on other consumer loans
$
89
$
3,530
$
1,262
$
305
$
600
$
235
$
221
$
6,242
Total:
Performing
$
624,401
$
1,075,213
$
675,950
$
320,366
$
282,208
$
166,675
$
326,388
$
3,471,201
$
3,302,878
Non-Performing
247
4,093
3,434
1,984
3,367
3,047
81
16,253
14,611
Total consumer loans in Puerto Rico and Virgin
Islands region
$
624,648
$
1,079,306
$
679,384
$
322,350
$
285,575
$
169,722
$
326,469
$
3,487,454
$
3,317,489
Charge-offs on total consumer loans
$
298
$
10,955
$
5,469
$
2,081
$
3,326
$
2,242
$
8,668
$
33,039
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
As of
December 31,
2022
Term Loans
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Florida Region:
Auto loans:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
220
$
1,873
$
-
$
2,093
$
3,617
Non-Performing
-
-
-
-
-
50
-
50
76
Total auto loans
$
-
$
-
$
-
$
-
$
220
$
1,923
$
-
$
2,143
$
3,693
Charge-offs on auto loans
$
-
$
-
$
-
$
-
$
23
$
198
$
-
$
221
Finance leases:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Non-Performing
-
-
-
-
-
-
-
-
-
Total finance leases
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Charge-offs on finance leases
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Personal loans:
Accrual Status:
Performing
$
244
$
-
$
71
$
4
$
-
$
-
$
-
$
319
$
334
Non-Performing
-
-
-
-
-
-
-
-
-
Total personal loans
$
244
$
-
$
71
$
4
$
-
$
-
$
-
$
319
$
334
Charge-offs on personal loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Credit cards:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Non-Performing
-
-
-
-
-
-
-
-
-
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Charge-offs on credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Other consumer loans:
Accrual Status:
Performing
$
-
$
48
$
227
$
455
$
-
$
2,389
$
2,163
$
5,282
$
5,833
Non-Performing
-
-
-
-
-
21
38
59
119
Total other consumer loans
$
-
$
48
$
227
$
455
$
-
$
2,410
$
2,201
$
5,341
$
5,952
Charge-offs on other consumer loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Total:
Performing
$
244
$
48
$
298
$
459
$
220
$
4,262
$
2,163
$
7,694
$
9,784
Non-Performing
-
-
-
-
-
71
38
109
195
Total consumer loans in Florida region
$
244
$
48
$
298
$
459
$
220
$
4,333
$
2,201
$
7,803
$
9,979
Charge-offs on total consumer loans
$
-
$
-
$
-
$
-
$
23
$
198
$
-
$
221
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
2023
As of
December 31,
2022
Term Loans
Amortized Cost Basis by Origination Year
(1)
2023
2022
2021
2020
2019
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Total:
Auto loans:
Accrual Status:
Performing
$
326,746
$
604,040
$
445,754
$
214,692
$
167,700
$
97,216
$
-
$
1,856,148
$
1,787,399
Non-Performing
199
2,234
2,530
1,341
2,702
2,305
-
11,311
10,672
Total auto loans
$
326,945
$
606,274
$
448,284
$
216,033
$
170,402
$
99,521
$
-
$
1,867,459
$
1,798,071
Charge-offs on auto loans
$
174
$
3,355
$
2,287
$
886
$
1,228
$
943
$
-
$
8,873
Finance leases:
Accrual Status:
Performing
$
159,308
$
270,541
$
172,697
$
76,249
$
66,859
$
42,574
$
-
$
788,228
$
716,585
Non-Performing
-
619
490
525
380
469
-
2,483
1,645
Total finance leases
$
159,308
$
271,160
$
173,187
$
76,774
$
67,239
$
43,043
$
-
$
790,711
$
718,230
Charge-offs on finance leases
$
11
$
656
$
485
$
228
$
341
$
428
$
-
$
2,149
Personal loans:
Accrual Status:
Performing
$
89,121
$
148,554
$
43,184
$
22,168
$
39,809
$
23,410
$
-
$
366,246
$
351,998
Non-Performing
8
713
222
68
220
122
-
1,353
1,248
Total personal loans
$
89,129
$
149,267
$
43,406
$
22,236
$
40,029
$
23,532
$
-
$
367,599
$
353,246
Charge-offs on personal loans
$
24
$
3,414
$
1,435
$
662
$
1,180
$
834
$
-
$
7,549
Credit cards:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
317,456
$
317,456
$
311,731
Non-Performing
-
-
-
-
-
-
-
-
-
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
317,456
$
317,456
$
311,731
Charge-offs on credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
8,447
$
8,447
Other consumer loans:
Accrual Status:
Performing
$
49,470
$
52,126
$
14,613
$
7,716
$
8,060
$
7,737
$
11,095
$
150,817
$
144,949
Non-Performing
40
527
192
50
65
222
119
1,215
1,241
Total other consumer loans
$
49,510
$
52,653
$
14,805
$
7,766
$
8,125
$
7,959
$
11,214
$
152,032
$
146,190
Charge-offs on other consumer loans
$
89
$
3,530
$
1,262
$
305
$
600
$
235
$
221
$
6,242
Total:
Performing
$
624,645
$
1,075,261
$
676,248
$
320,825
$
282,428
$
170,937
$
328,551
$
3,478,895
$
3,312,662
Non-Performing
247
4,093
3,434
1,984
3,367
3,118
119
16,362
14,806
Total consumer loans
$
624,892
$
1,079,354
$
679,682
$
322,809
$
285,795
$
174,055
$
328,670
$
3,495,257
$
3,327,468
Charge-offs on total consumer loans
$
298
$
10,955
$
5,469
$
2,081
$
3,349
$
2,440
$
8,668
$
33,260
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 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:
Conventional residential mortgage loans
$
36,206
$
2,571
$
-
$
36,206
$
2,571
Commercial loans:
Construction loans
-
-
956
956
-
Commercial mortgage loans
2,466
897
62,453
64,919
897
C&I loans
 
1,513
322
17,590
19,103
322
Consumer loans:
Personal loans
56
1
64
120
1
Other consumer loans
207
29
-
207
29
$
40,448
$
3,820
$
81,063
$
121,511
$
3,820
The Corporation’s
 
aging of
 
the loan
 
portfolio held
 
for investment,
 
as well
 
as information
 
about nonaccrual
 
loans with
 
no ACL,
 
by
portfolio classes as of June 30, 2023 and December 31, 2022 are as follows:
The following
 
tables present the
 
amortized cost of
 
residential mortgage
 
loans by portfolio
 
classes and by
 
origination year
 
based on
accrual
 
status
 
as
 
of
 
June
 
30,
 
2023,
 
the
 
gross
 
charge-offs
 
for
 
the
 
six-month
 
period
 
ended
 
June
 
30,
 
2023
 
by portfolio
 
classes
 
and
 
by
origination year,
 
and the amortized
 
cost of residential
 
mortgage loans by
 
portfolio classes
 
based on
 
accrual status as
 
of December
 
31,
2022:
The
 
following
 
tables present
 
the
 
amortized
 
cost
 
of
 
consumer
 
loans
 
by
 
portfolio
 
classes
 
and
 
by origination
 
year
 
based on
 
accrual
status as of
 
June 30, 2023,
 
the gross charge
 
-offs for
 
the six-month period
 
ended June 30,
 
2023 by portfolio
 
classes and by
 
origination
year, and the amortized cost of consumer
 
loans by portfolio classes based on accrual status as of December 31, 2022:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following tables present the amortized cost basis as of June 30,
 
2023 of loans modified to borrowers experiencing financial
difficulty during the quarter and six-month period ended
 
June 30,
 
2023, by portfolio classes and type of modification granted, and
the percentage of these modified loans relative to the total period-end amortized
 
cost basis of receivables in the portfolio class:
Quarter Ended June 30,
 
2023
Payment Delay Only
Forbearance
Payment
Plan
Trial
Modification
Interest
Rate
Reduction
Term
Extension
Combination of
Interest Rate
Reduction and
Term Extension
Forgiveness
of principal
and/or
interest
Other
Total
Percentage of
Total by
Portfolio
Classes
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
210
$
-
$
73
$
-
$
-
$
-
$
283
0.01%
Construction loans
-
-
-
-
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
-
30,170
-
-
30,170
1.30%
C&I loans
-
-
-
-
187
-
-
-
187
0.01%
Consumer loans:
Auto loans
-
-
-
-
82
69
-
678
(1)
829
0.04%
Personal loans
-
-
-
-
41
71
-
-
112
0.03%
Credit cards
-
-
-
486
(2)
-
-
-
-
486
0.15%
Other consumer loans
-
-
-
-
146
40
-
10
(1)
196
0.13%
 
Total modifications
$
-
$
-
$
210
$
486
$
529
$
30,350
$
-
$
688
$
32,263
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The
 
following
 
tables
 
present
 
by
 
portfolio
 
classes
 
the
 
financial
 
effects
 
of
 
the
 
modifications
 
granted
 
to
 
borrowers
 
experiencing
financial difficulty,
 
other than those
 
associated to payment
 
delay,
 
during the
 
quarter and six-month
 
period ended June
 
30, 2023.
 
The
financial effects
 
of the modifications
 
associated to
 
payment delay
 
were discussed
 
above, and
 
as such,
 
were excluded
 
from the
 
tables
below:
Quarter Ended June 30,
 
2023
Combination of Interest Rate Reduction
and Term Extension
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Forgiveness of
Principal and/or
Interest Amount
(In thousands)
Conventional residential mortgage loans
-
%
239
-
%
-
$
-
Construction loans
-
%
-
-
%
-
-
Commercial mortgage loans
-
%
-
0.25
%
64
-
C&I loans
-
%
72
-
%
-
-
Consumer loans:
Auto loans
-
%
27
3.96
%
30
-
Personal loans
-
%
37
5.41
%
26
-
Credit cards
16.26
%
-
-
%
-
-
Other consumer loans
-
%
28
1.87
%
22
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents by portfolio classes the performance of loans modified
 
during the six-month period ended June 30,
 
2023 that were granted to borrowers experiencing financial difficulty:
Six-Month Period Ended June 30,
 
2023
30-59
60-89
90+
Total
Delinquency
Current
Total
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
-
$
-
$
1,139
$
1,139
Construction loans
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
30,170
30,170
C&I loans
-
-
-
-
187
187
Consumer loans:
Auto loans
10
-
-
10
1,415
1,425
Personal loans
-
-
-
-
151
151
Credit cards
40
40
-
80
652
732
Other consumer loans
22
-
-
22
382
404
 
Total modifications
$
72
$
40
$
-
$
112
$
34,096
$
34,208
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six-Month Period Ended June 30,
 
2023
Payment Delay Only
Forbearance
Payment
Plan
Trial
Modification
Interest
Rate
Reduction
Term
Extension
Combination of
Interest Rate
Reduction and
Term Extension
Forgiveness
of principal
and/or
interest
Other
Total
Percentage of
Total by
Portfolio
Classes
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
542
$
-
$
503
$
94
$
-
$
-
$
1,139
0.04%
Construction loans
-
-
-
-
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
-
30,170
-
-
30,170
1.30%
C&I loans
-
-
-
-
187
-
-
-
187
0.01%
Consumer loans:
Auto loans
-
-
-
-
167
103
-
1,155
(1)
1,425
0.08%
Personal loans
-
-
-
-
68
83
-
-
151
0.04%
Credit cards
-
-
-
732
(2)
-
-
-
-
732
0.23%
Other consumer loans
-
-
-
-
273
99
-
32
(1)
404
0.27%
 
Total modifications
$
-
$
-
$
542
$
732
$
1,198
$
30,549
$
-
$
1,187
$
34,208
(1)
Modification consists of court mandated reduction to 0% interest rate for remaining loan term to borrowers in bankruptcy proceedings unless dismissal occurs.
(2)
Modification consists of reduction in interest rate and revocation of revolving line privileges.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six-Month Period Ended June 30,
 
2023
Combination of Interest Rate Reduction
and Term Extension
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Forgiveness of
Principal and/or
Interest Amount
(In thousands)
Conventional residential mortgage loans
-
%
118
2.40
%
157
$
-
Construction loans
-
%
-
-
%
-
-
Commercial mortgage loans
-
%
-
0.25
%
64
-
C&I loans
-
%
72
-
%
-
-
Consumer loans:
Auto loans
-
%
25
3.64
%
30
-
Personal loans
-
%
34
5.11
%
24
-
Credit cards
16.15
%
-
-
%
-
-
Other consumer loans
-
%
27
1.92
%
24
-
There
 
were
no
 
loans
 
modified
 
to
 
borrowers
 
experiencing
 
financial
 
difficulty
 
on
 
or
 
after
 
January
 
1,
 
2023,
 
which
 
had
 
a
 
payment
default (failure by
 
the borrower to make
 
payments of either principal,
 
interest, or both for
 
a period of 90
 
days or more) during
 
the six-
month period ended June 30, 2023.