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LOANS HELD FOR INVESTMENT
 9 Months Ended
Sep. 30, 2023
LOANS HELD FOR INVESTMENT [Abstract]  
LOANS 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 September 30,
 
As of December 31,
2023
2022
(In thousands)
Puerto Rico and Virgin Islands region:
Residential mortgage loans, mainly secured by first mortgages
$
2,353,679
$
2,417,900
Construction loans
102,327
34,772
Commercial mortgage loans
 
1,780,008
1,834,204
Commercial and Industrial ("C&I") loans
2,088,274
1,860,109
Consumer loans
3,582,001
3,317,489
Loans held for investment
$
9,906,289
$
9,464,474
Florida region:
Residential mortgage loans, mainly secured by first mortgages
$
458,952
$
429,390
Construction loans
100,447
98,181
Commercial mortgage loans
 
536,105
524,647
C&I loans
942,680
1,026,154
Consumer loans
6,459
9,979
Loans held for investment
$
2,044,643
$
2,088,351
Total:
Residential mortgage loans, mainly secured by first mortgages
$
2,812,631
$
2,847,290
Construction loans
202,774
132,953
Commercial mortgage loans
 
2,316,113
2,358,851
C&I loans
(1)
3,030,954
2,886,263
Consumer loans
3,588,460
3,327,468
Loans held for investment
(2)
11,950,932
11,552,825
ACL on loans and finance leases
(263,615)
(260,464)
Loans held for investment, net
$
11,687,317
$
11,292,361
(1)
As of September 30, 2023 and December 31, 2022, includes
 
$
807.6
 
million and $
838.5
 
million, respectively, of commercial loans that were secured by real estate
and for which the primary source of repayment at origination was
 
not dependent upon such real estate.
(2)
Includes accretable fair value net purchase discounts of $
25.8
 
million and $
29.3
 
million as of September 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 $
0.9
 
million and $
2.0
 
million for the quarter
 
and nine-month period ended
 
September 30, 2023, respectively,
 
compared to $
0.5
million
 
and
 
$
1.2
 
million
 
for
 
the
 
quarter
 
and
 
nine-month
 
period
 
ended
 
September
 
30,
 
2022,
 
respectively.
 
For
 
the
 
quarter
 
and
 
nine-
month period
 
ended September
 
30, 2023,
 
the cash interest
 
income recognized on
 
nonaccrual loans amounted
 
to $
0.4
 
million and $
1.4
million,
 
respectively,
 
compared
 
to
 
$
0.3
 
million
 
and
 
$
1.0
 
million
 
for
 
the
 
quarter
 
and
 
nine-month
 
period
 
ended
 
September
 
30,
 
2022,
respectively.
As of
 
September 30,
 
2023, the
 
recorded investment
 
on residential
 
mortgage loans
 
collateralized by
 
residential real
 
estate property
that
 
were
 
in
 
the
 
process
 
of
 
foreclosure
 
amounted
 
to
 
$
43.8
 
million,
 
including
 
$
18.4
 
million
 
of
 
FHA/VA
 
government-guaranteed
mortgage
 
loans,
 
and
 
$
6.1
 
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.
 
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 September 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)
$
69,175
$
-
$
2,754
$
32,167
$
-
$
104,096
$
-
 
Conventional residential mortgage loans
(2) (6)
2,633,303
-
31,328
11,958
31,946
2,708,535
1,910
Commercial loans:
 
Construction loans
 
(6)
199,293
1,834
-
7
1,640
202,774
973
 
Commercial mortgage loans
(2) (6)
2,290,012
930
1,166
2,373
21,632
2,316,113
5,458
 
C&I loans
 
2,998,999
441
1,956
10,749
18,809
3,030,954
1,523
Consumer loans:
 
Auto loans
1,826,679
52,755
10,648
-
13,103
1,903,185
102
 
Finance leases
816,251
10,421
2,346
-
2,522
831,540
-
 
Personal loans
367,428
5,708
2,840
-
1,874
377,850
-
 
Credit cards
308,519
4,563
3,230
5,638
-
321,950
-
 
Other consumer loans
148,251
2,399
1,647
-
1,638
153,935
1
 
Total loans held for investment
$
11,657,910
$
79,051
$
57,915
$
62,892
$
93,164
$
11,950,932
$
9,967
 
(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 $
17.4
 
million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of September 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 $
8.9
 
million as of September 30,
 
2023 ($
8.0
 
million conventional residential mortgage loans and $
0.9
 
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 $
8.5
 
million as of September 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 $
8.7
 
million as of September 30, 2023, primarily nonaccrual residential mortgage loans and C&I loans.
(5)
There were
no
 
nonaccrual loans with no ACL in the Florida region as of September 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 September 30, 2023 amounted to $
6.9
 
million, $
65.5
million, $
1.0
 
million, and $
0.1
 
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
 
September 30,
 
2023, the
 
gross charge
 
-offs for
 
the nine-month
 
period
ended September
 
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 September 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
$
44,895
$
36,361
$
14,939
$
-
$
-
$
3,824
$
-
$
100,019
$
31,879
 
Criticized:
 
Special Mention
-
-
-
-
-
-
-
-
-
 
Substandard
-
-
-
-
-
2,308
-
2,308
2,893
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total construction loans
$
44,895
$
36,361
$
14,939
$
-
$
-
$
6,132
$
-
$
102,327
$
34,772
 
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
42
$
-
$
42
COMMERCIAL MORTGAGE
 
Risk Ratings:
 
Pass
$
118,701
$
382,403
$
138,404
$
318,372
$
278,814
$
355,823
$
1,153
$
1,593,670
$
1,655,728
 
Criticized:
 
Special Mention
-
4,438
-
33,670
-
112,829
-
150,937
145,415
 
Substandard
-
127
-
-
2,825
31,639
-
34,591
33,061
 
Doubtful
-
-
-
-
-
810
-
810
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total commercial mortgage loans
$
118,701
$
386,968
$
138,404
$
352,042
$
281,639
$
501,101
$
1,153
$
1,780,008
$
1,834,204
 
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
107
$
-
$
107
C&I
 
Risk Ratings:
 
Pass
$
216,614
$
293,433
$
165,637
$
171,386
$
284,636
$
188,691
$
697,937
$
2,018,334
$
1,789,572
 
Criticized:
 
Special Mention
546
-
-
-
492
2,469
33,448
36,955
43,224
 
Substandard
1
-
385
617
13,439
18,178
365
32,985
27,313
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total C&I loans
$
217,161
$
293,433
$
166,022
$
172,003
$
298,567
$
209,338
$
731,750
$
2,088,274
$
1,860,109
 
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
218
$
57
$
275
(1) Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
787
$
54,329
$
39,004
$
-
$
-
$
-
$
236
$
94,356
$
98,181
 
Criticized:
 
Special Mention
-
-
6,091
-
-
-
-
6,091
-
 
Substandard
-
-
-
-
-
-
-
-
-
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total construction loans
$
787
$
54,329
$
45,095
$
-
$
-
$
-
$
236
$
100,447
$
98,181
 
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
COMMERCIAL MORTGAGE
 
Risk Ratings:
 
Pass
$
22,043
$
185,268
$
63,924
$
40,330
$
50,661
$
119,451
$
29,008
$
510,685
$
503,184
 
Criticized:
 
Special Mention
-
-
-
-
13,080
11,172
-
24,252
20,295
 
Substandard
-
-
-
1,168
-
-
-
1,168
1,168
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total commercial mortgage loans
$
22,043
$
185,268
$
63,924
$
41,498
$
63,741
$
130,623
$
29,008
$
536,105
$
524,647
 
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
C&I
 
Risk Ratings:
 
Pass
$
80,515
$
271,894
$
172,186
$
57,897
$
135,159
$
54,973
$
122,583
$
895,207
$
979,151
 
Criticized:
 
Special Mention
-
-
19,532
-
11,878
11,169
-
42,579
17,905
 
Substandard
-
-
-
632
191
3,185
-
4,008
29,098
 
Doubtful
-
-
-
-
-
886
-
886
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total C&I loans
$
80,515
$
271,894
$
191,718
$
58,529
$
147,228
$
70,213
$
122,583
$
942,680
$
1,026,154
 
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
6,202
$
-
$
6,202
(1) Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
45,682
$
90,690
$
53,943
$
-
$
-
$
3,824
$
236
$
194,375
$
130,060
 
Criticized:
 
Special Mention
-
-
6,091
-
-
-
-
6,091
-
 
Substandard
-
-
-
-
-
2,308
-
2,308
2,893
 
Doubtful
-
-
-
-
-
-
-
-
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total construction loans
$
45,682
$
90,690
$
60,034
$
-
$
-
$
6,132
$
236
$
202,774
$
132,953
 
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
42
$
-
$
42
COMMERCIAL MORTGAGE
 
Risk Ratings:
 
Pass
$
140,744
$
567,671
$
202,328
$
358,702
$
329,475
$
475,274
$
30,161
$
2,104,355
$
2,158,912
 
Criticized:
 
Special Mention
-
4,438
-
33,670
13,080
124,001
-
175,189
165,710
 
Substandard
-
127
-
1,168
2,825
31,639
-
35,759
34,229
 
Doubtful
-
-
-
-
-
810
-
810
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total commercial mortgage loans
$
140,744
$
572,236
$
202,328
$
393,540
$
345,380
$
631,724
$
30,161
$
2,316,113
$
2,358,851
 
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
107
$
-
$
107
C&I
 
Risk Ratings:
 
Pass
$
297,129
$
565,327
$
337,823
$
229,283
$
419,795
$
243,664
$
820,520
$
2,913,541
$
2,768,723
 
Criticized:
 
Special Mention
546
-
19,532
-
12,370
13,638
33,448
79,534
61,129
 
Substandard
1
-
385
1,249
13,630
21,363
365
36,993
56,411
 
Doubtful
-
-
-
-
-
886
-
886
-
 
Loss
-
-
-
-
-
-
-
-
-
 
Total C&I loans
$
297,676
$
565,327
$
357,740
$
230,532
$
445,795
$
279,551
$
854,333
$
3,030,954
$
2,886,263
 
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
6,420
$
57
$
6,477
(1) Excludes accrued interest receivable.
As of September 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 $
55.2
 
million as of September
 
30, 2023 (as
 
compared to $
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 September 30, 2023 and December
 
31, 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
27,341
$
1,596
$
68
$
27,409
$
1,596
Commercial loans:
Construction loans
-
-
956
956
-
Commercial mortgage loans
12,525
1,651
44,722
57,247
1,651
C&I loans
 
12,062
2,105
6,649
18,711
2,105
Consumer loans:
Personal loans
28
-
-
28
-
Other consumer loans
162
17
-
162
17
$
52,118
$
5,369
$
52,395
$
104,513
$
5,369
The allowance related
 
to collateral dependent loans
 
reported in the tables
 
above includes qualitative
 
adjustments applied to
 
the loan
portfolio
 
that
 
consider
 
possible
 
changes
 
in
 
circumstances
 
that
 
could
 
ultimately
 
impact
 
credit
 
losses
 
and
 
might
 
not
 
be
 
reflected
 
in
historical
 
data
 
or
 
forecasted
 
data
 
incorporated
 
in
 
the
 
quantitative
 
models.
 
The
 
underlying
 
collateral
 
for
 
residential
 
mortgage
 
and
consumer
 
collateral
 
dependent
 
loans
 
consisted
 
of
 
single-family
 
residential
 
properties,
 
and
 
for
 
commercial
 
and
 
construction
 
loans
consisted
 
primarily
 
of
 
office
 
buildings,
 
multifamily
 
residential
 
properties,
 
and
 
retail
 
establishments.
 
The
 
weighted-average
 
loan-to-
value coverage
 
for collateral dependent
 
loans as of
 
September 30, 2023
 
was
72
%, 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
 
nine months of 2023,
 
loans pooled into GNMA MBS
 
amounted to approximately
$
102.9
 
million, compared
 
to $
115.7
 
million during the
 
first nine months
 
of 2022,
 
for which the
 
Corporation recognized
 
a net gain
 
on
sale
 
of
 
$
2.2
 
million
 
and
 
$
3.2
 
million,
 
respectively.
 
Also,
 
during
 
the
 
first
 
nine
 
months
 
of
 
2023,
 
the
 
Corporation
 
sold
 
approximately
$
28.6
 
million
 
of
 
performing
 
residential
 
mortgage
 
loans
 
to
 
FNMA
 
and
 
FHLMC,
 
compared
 
to
 
$
90.8
 
million
 
during
 
the
 
first
 
nine
months
 
of
 
2022,
 
for
 
which
 
the
 
Corporation
 
recognized
 
a
 
net
 
gain
 
on
 
sale
 
of
 
$
0.7
 
million
 
and
 
$
4.0
 
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 September
 
30, 2023 and
 
December 31, 2022,
 
rebooked GNMA delinquent
 
loans
that were included in the residential mortgage loan portfolio amounted
 
to $
8.5
 
million and $
10.4
 
million, respectively.
During
 
the
 
first
 
nine
 
months
 
of
 
2023
 
and
 
2022,
 
the
 
Corporation
 
repurchased,
 
pursuant
 
to
 
the
 
aforementioned
 
repurchase
 
option,
$
2.5
 
million and $
8.2
 
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
 
nine
 
months of
 
2023
 
and
 
2022,
 
the
 
Corporation
 
purchased
 
C&I
 
loan
 
participations
 
in
 
the Florida
 
region
 
totaling
$
61.3
 
million and $
135.4
 
million, respectively.
 
There were
no
 
significant sales of
 
commercial loan
 
participations during the
 
first nine
months of 2023. Meanwhile, during the first nine months
 
of 2022, the Corporation sold a $
35.2
 
million commercial and industrial loan
participation in the Puerto Rico region.
 
 
 
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
$
12.0
 
billion as of
 
September 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
 
September
 
30,
 
2023,
 
the Corporation
 
had $
185.0
 
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
 
September
 
30,
 
2023,
approximately
 
$
115.8
 
million consisted
 
of loans
 
extended
 
to municipalities
 
in Puerto
 
Rico that
 
are general
 
obligations supported
 
by
assigned
 
property
 
tax
 
revenues,
 
and
 
$
25.6
 
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
 
September 30,
 
2023 included
 
$
8.9
million in
 
loans granted to
 
an affiliate of
 
the Puerto Rico
 
Electric Power Authority
 
(“PREPA”)
 
and $
34.7
 
million in loans
 
to agencies
or public corporations of the Puerto Rico government.
In
 
addition,
 
as
 
of
 
September
 
30,
 
2023,
 
the
 
Corporation
 
had
 
$
79.3
 
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
 
September
 
30,
 
2023,
 
the
 
Corporation
 
had
$
87.5
million in
 
loans to
 
USVI government
 
public corporations,
 
compared to
 
$
38.0
 
million as
 
of December
 
31, 2022.
 
As of September
 
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 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.
 
Many
 
factors
 
are
 
considered
 
when
 
evaluating
 
whether
 
there
 
is
 
an
 
other-than-
insignificant
 
payment
 
delay,
 
such as
 
the significance
 
of the
 
restructured
 
payment
 
amount relative
 
to the
 
unpaid
 
principal balance
 
or
collateral value of the loan or the relative significance of the delay to
 
the original loan terms.
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
 
$
0.9
 
million
 
and
 
$
3.2
million in restructured residential
 
mortgage loans that are
 
government-guaranteed (e.g.,
 
FHA/VA
 
loans) and were modified
 
during the
quarter and nine-month period ended September 30, 2023, respectively.
The
 
following
 
tables
 
present
 
the
 
amortized
 
cost
 
basis
 
as
 
of
 
September
 
30,
 
2023
 
of
 
loans
 
modified
 
to
 
borrowers
 
experiencing
financial difficulty
 
during the quarter
 
and nine-month period
 
ended September 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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
220
$
686
$
1,455
$
660
$
1,104
$
99,007
$
-
$
103,132
$
117,416
Non-Performing
-
-
-
-
-
-
-
-
-
Total FHA/VA
 
government-guaranteed loans
$
220
$
686
$
1,455
$
660
$
1,104
$
99,007
$
-
$
103,132
$
117,416
Conventional residential mortgage loans:
Accrual Status:
Performing
$
114,791
$
168,507
$
69,903
$
30,088
$
44,999
$
1,797,010
$
-
$
2,225,298
$
2,265,013
Non-Performing
-
-
35
-
174
25,040
-
25,249
35,471
Total conventional residential mortgage loans
$
114,791
$
168,507
$
69,938
$
30,088
$
45,173
$
1,822,050
$
-
$
2,250,547
$
2,300,484
Total:
Accrual Status:
Performing
$
115,011
$
169,193
$
71,358
$
30,748
$
46,103
$
1,896,017
$
-
$
2,328,430
$
2,382,429
Non-Performing
-
-
35
-
174
25,040
-
25,249
35,471
Total residential mortgage loans in Puerto Rico
and Virgin Islands Region
$
115,011
$
169,193
$
71,393
$
30,748
$
46,277
$
1,921,057
$
-
$
2,353,679
$
2,417,900
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
3
$
-
$
2,619
$
-
$
2,622
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
-
$
-
$
-
$
-
$
-
$
964
$
-
$
964
$
742
Non-Performing
-
-
-
-
-
-
-
-
-
Total FHA/VA
 
government-guaranteed loans
$
-
$
-
$
-
$
-
$
-
$
964
$
-
$
964
$
742
Conventional residential mortgage loans:
Accrual Status:
Performing
$
71,543
$
78,806
$
47,891
$
29,868
$
27,387
$
195,796
$
-
$
451,291
$
421,347
Non-Performing
-
16
-
-
257
6,424
-
6,697
7,301
Total conventional residential mortgage loans
$
71,543
$
78,822
$
47,891
$
29,868
$
27,644
$
202,220
$
-
$
457,988
$
428,648
Total:
Accrual Status:
Performing
$
71,543
$
78,806
$
47,891
$
29,868
$
27,387
$
196,760
$
-
$
452,255
$
422,089
Non-Performing
-
16
-
-
257
6,424
-
6,697
7,301
Total residential mortgage loans in Florida region
$
71,543
$
78,822
$
47,891
$
29,868
$
27,644
$
203,184
$
-
$
458,952
$
429,390
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
-
$
-
$
6
$
-
$
6
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
220
$
686
$
1,455
$
660
$
1,104
$
99,971
$
-
$
104,096
$
118,158
Non-Performing
-
-
-
-
-
-
-
-
-
Total FHA/VA
 
government-guaranteed loans
$
220
$
686
$
1,455
$
660
$
1,104
$
99,971
$
-
$
104,096
$
118,158
Conventional residential mortgage loans:
Accrual Status:
Performing
$
186,334
$
247,313
$
117,794
$
59,956
$
72,386
$
1,992,806
$
-
$
2,676,589
$
2,686,360
Non-Performing
-
16
35
-
431
31,464
-
31,946
42,772
Total conventional residential mortgage loans
$
186,334
$
247,329
$
117,829
$
59,956
$
72,817
$
2,024,270
$
-
$
2,708,535
$
2,729,132
Total:
Accrual Status:
Performing
$
186,554
$
247,999
$
119,249
$
60,616
$
73,490
$
2,092,777
$
-
$
2,780,685
$
2,804,518
Non-Performing
-
16
35
-
431
31,464
-
31,946
42,772
Total residential mortgage loans
$
186,554
$
248,015
$
119,284
$
60,616
$
73,921
$
2,124,241
$
-
$
2,812,631
$
2,847,290
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
3
$
-
$
2,625
$
-
$
2,628
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
483,036
$
567,954
$
414,852
$
195,698
$
149,360
$
77,639
$
-
$
1,888,539
$
1,783,782
Non-Performing
1,271
3,122
2,654
1,407
2,472
2,141
-
13,067
10,596
Total auto loans
$
484,307
$
571,076
$
417,506
$
197,105
$
151,832
$
79,780
$
-
$
1,901,606
$
1,794,378
Charge-offs on auto loans
$
630
$
5,420
$
3,412
$
1,391
$
1,811
$
1,237
$
-
$
13,901
Finance leases:
Accrual Status:
Performing
$
243,524
$
258,990
$
162,169
$
70,224
$
60,539
$
33,572
$
-
$
829,018
$
716,585
Non-Performing
7
741
466
434
305
569
-
2,522
1,645
Total finance leases
$
243,531
$
259,731
$
162,635
$
70,658
$
60,844
$
34,141
$
-
$
831,540
$
718,230
Charge-offs on finance leases
$
172
$
1,182
$
921
$
419
$
446
$
579
$
-
$
3,719
Personal loans:
Accrual Status:
Performing
$
133,568
$
133,763
$
37,159
$
19,132
$
33,558
$
18,492
$
-
$
375,672
$
351,664
Non-Performing
162
1,146
196
71
161
138
-
1,874
1,248
Total personal loans
$
133,730
$
134,909
$
37,355
$
19,203
$
33,719
$
18,630
$
-
$
377,546
$
352,912
Charge-offs on personal loans
$
242
$
5,765
$
2,137
$
892
$
1,812
$
1,077
$
-
$
11,925
Credit cards:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
321,950
$
321,950
$
311,731
Non-Performing
-
-
-
-
-
-
-
-
-
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
321,950
$
321,950
$
311,731
Charge-offs on credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
13,294
$
13,294
Other consumer loans:
Accrual Status:
Performing
$
69,063
$
40,513
$
11,921
$
6,396
$
6,377
$
4,442
$
9,071
$
147,783
$
139,116
Non-Performing
323
671
184
52
91
160
95
1,576
1,122
Total other consumer loans
$
69,386
$
41,184
$
12,105
$
6,448
$
6,468
$
4,602
$
9,166
$
149,359
$
140,238
Charge-offs on other consumer loans
$
662
$
5,418
$
1,853
$
446
$
851
$
297
$
354
$
9,881
Total:
Performing
$
929,191
$
1,001,220
$
626,101
$
291,450
$
249,834
$
134,145
$
331,021
$
3,562,962
$
3,302,878
Non-Performing
1,763
5,680
3,500
1,964
3,029
3,008
95
19,039
14,611
Total consumer loans in Puerto Rico and Virgin
Islands region
$
930,954
$
1,006,900
$
629,601
$
293,414
$
252,863
$
137,153
$
331,116
$
3,582,001
$
3,317,489
Charge-offs on total consumer loans
$
1,706
$
17,785
$
8,323
$
3,148
$
4,920
$
3,190
$
13,648
$
52,720
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
-
$
-
$
-
$
-
$
187
$
1,356
$
-
$
1,543
$
3,617
Non-Performing
-
-
-
-
-
36
-
36
76
Total auto loans
$
-
$
-
$
-
$
-
$
187
$
1,392
$
-
$
1,579
$
3,693
Charge-offs on auto loans
$
-
$
-
$
-
$
-
$
23
$
263
$
-
$
286
Finance leases:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Non-Performing
-
-
-
-
-
-
-
-
-
Total finance leases
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Charge-offs on finance leases
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Personal loans:
Accrual Status:
Performing
$
231
$
-
$
71
$
2
$
-
$
-
$
-
$
304
$
334
Non-Performing
-
-
-
-
-
-
-
-
-
Total personal loans
$
231
$
-
$
71
$
2
$
-
$
-
$
-
$
304
$
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
$
55
$
47
$
225
$
451
$
-
$
2,295
$
1,441
$
4,514
$
5,833
Non-Performing
-
-
-
-
-
20
42
62
119
Total other consumer loans
$
55
$
47
$
225
$
451
$
-
$
2,315
$
1,483
$
4,576
$
5,952
Charge-offs on other consumer loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Total:
Performing
$
286
$
47
$
296
$
453
$
187
$
3,651
$
1,441
$
6,361
$
9,784
Non-Performing
-
-
-
-
-
56
42
98
195
Total consumer loans in Florida region
$
286
$
47
$
296
$
453
$
187
$
3,707
$
1,483
$
6,459
$
9,979
Charge-offs on total consumer loans
$
-
$
-
$
-
$
-
$
23
$
263
$
-
$
286
(1)
Excludes accrued interest receivable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
$
483,036
$
567,954
$
414,852
$
195,698
$
149,547
$
78,995
$
-
$
1,890,082
$
1,787,399
Non-Performing
1,271
3,122
2,654
1,407
2,472
2,177
-
13,103
10,672
Total auto loans
$
484,307
$
571,076
$
417,506
$
197,105
$
152,019
$
81,172
$
-
$
1,903,185
$
1,798,071
Charge-offs on auto loans
$
630
$
5,420
$
3,412
$
1,391
$
1,834
$
1,500
$
-
$
14,187
Finance leases:
Accrual Status:
Performing
$
243,524
$
258,990
$
162,169
$
70,224
$
60,539
$
33,572
$
-
$
829,018
$
716,585
Non-Performing
7
741
466
434
305
569
-
2,522
1,645
Total finance leases
$
243,531
$
259,731
$
162,635
$
70,658
$
60,844
$
34,141
$
-
$
831,540
$
718,230
Charge-offs on finance leases
$
172
$
1,182
$
921
$
419
$
446
$
579
$
-
$
3,719
Personal loans:
Accrual Status:
Performing
$
133,799
$
133,763
$
37,230
$
19,134
$
33,558
$
18,492
$
-
$
375,976
$
351,998
Non-Performing
162
1,146
196
71
161
138
-
1,874
1,248
Total personal loans
$
133,961
$
134,909
$
37,426
$
19,205
$
33,719
$
18,630
$
-
$
377,850
$
353,246
Charge-offs on personal loans
$
242
$
5,765
$
2,137
$
892
$
1,812
$
1,077
$
-
$
11,925
Credit cards:
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
321,950
$
321,950
$
311,731
Non-Performing
-
-
-
-
-
-
-
-
-
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
321,950
$
321,950
$
311,731
Charge-offs on credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
13,294
$
13,294
Other consumer loans:
Accrual Status:
Performing
$
69,118
$
40,560
$
12,146
$
6,847
$
6,377
$
6,737
$
10,512
$
152,297
$
144,949
Non-Performing
323
671
184
52
91
180
137
1,638
1,241
Total other consumer loans
$
69,441
$
41,231
$
12,330
$
6,899
$
6,468
$
6,917
$
10,649
$
153,935
$
146,190
Charge-offs on other consumer loans
$
662
$
5,418
$
1,853
$
446
$
851
$
297
$
354
$
9,881
Total:
Performing
$
929,477
$
1,001,267
$
626,397
$
291,903
$
250,021
$
137,796
$
332,462
$
3,569,323
$
3,312,662
Non-Performing
1,763
5,680
3,500
1,964
3,029
3,064
137
19,137
14,806
Total consumer loans
$
931,240
$
1,006,947
$
629,897
$
293,867
$
253,050
$
140,860
$
332,599
$
3,588,460
$
3,327,468
Charge-offs on total consumer loans
$
1,706
$
17,785
$
8,323
$
3,148
$
4,943
$
3,453
$
13,648
$
53,006
(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 September 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
 
September
 
30,
 
2023,
 
the
 
gross charge
 
-offs
 
for
 
the
 
nine-month
 
period
 
ended
 
September
 
30,
 
2023 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 September
 
30, 2023,
 
the gross
 
charge-offs
 
for the
 
nine-month period
 
ended September
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30,2023
Payment Delay Only
Forbearance
Payment Plan
Trial
Modification
Interest Rate
Reduction
Term
Extension
Combination
of Interest
Rate
Reduction
and Term
Extension
Other
Total
Percentage
of Total by
Portfolio
Classes
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
401
$
-
$
-
$
-
$
-
$
401
0.01%
Construction loans
-
-
-
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
2,225
-
-
2,225
0.10%
C&I loans
-
-
-
192
-
-
-
192
0.01%
Consumer loans:
Auto loans
-
-
-
-
74
59
608
(1)
741
0.04%
Personal loans
-
-
-
-
67
87
-
154
0.04%
Credit cards
-
-
-
368
(2)
-
-
-
368
0.11%
Other consumer loans
-
-
-
-
54
4
4
(1)
62
0.04%
 
Total modifications
$
-
$
-
$
401
$
560
$
2,420
$
150
$
612
$
4,143
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
nine-month
 
period
 
ended
 
September
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 September 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)
(In thousands)
Conventional residential mortgage loans
-
%
-
-
%
-
Construction loans
-
%
-
-
%
-
Commercial mortgage loans
-
%
13
-
%
-
C&I loans
0.45
%
-
-
%
-
Consumer loans:
Auto loans
-
%
31
2.27
%
25
Personal loans
-
%
35
3.61
%
41
Credit cards
16.67
%
-
-
%
-
Other consumer loans
-
%
22
2.00
%
10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents by portfolio classes the performance of loans modified
 
during the nine-month period ended
September 30, 2023 that were granted to borrowers experiencing financial
 
difficulty:
Nine-Month Period Ended September 30, 2023
30-59
60-89
90+
Total
Delinquency
Current
Total
(In thousands)
Conventional residential mortgage loans
$
71
$
-
$
-
$
71
$
1,465
$
1,536
Construction loans
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
32,395
32,395
C&I loans
-
-
-
-
377
377
Consumer loans:
Auto loans
22
-
-
22
1,876
1,898
Personal loans
15
-
-
15
282
297
Credit cards
149
35
-
184
849
1,033
Other consumer loans
34
17
15
(1)
66
363
429
 
Total modifications
$
291
$
52
$
15
$
358
$
37,607
$
37,965
(1)
Consists of loan modifications 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
 
quarter and nine-month period ended September
30, 2023, and that had been modified after January 1, 2023.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine-Month Period Ended September 30,2023
Payment Delay Only
Forbearance
Payment Plan
Trial
Modification
Interest Rate
Reduction
Term
Extension
Combination
of Interest
Rate
Reduction
and Term
Extension
Other
Total
Percentage
of Total by
Portfolio
Classes
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
610
$
-
$
687
$
239
$
-
$
1,536
0.05%
Construction loans
-
-
-
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
2,225
30,170
-
32,395
1.40%
C&I loans
-
-
-
192
185
-
-
377
0.01%
Consumer loans:
Auto loans
-
-
-
-
234
153
1,511
(1)
1,898
0.10%
Personal loans
-
-
-
-
132
165
-
297
0.08%
Credit cards
-
-
-
1,033
(2)
-
-
-
1,033
0.32%
Other consumer loans
-
-
-
-
311
90
28
(1)
429
0.28%
 
Total modifications
$
-
$
-
$
610
$
1,225
$
3,774
$
30,817
$
1,539
$
37,965
(1)
Modification consists of reduction to 0% interest rate for remaining loan term to borrowers in bankruptcy proceedings or consumer credit counseling programs unless dismissal occurs.
(2)
Modification consists of reduction in interest rate and revocation of revolving line privileges.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine-Month Period Ended September 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)
(In thousands)
Conventional residential mortgage loans
-
%
105
2.95
%
105
Construction loans
-
%
-
-
%
-
Commercial mortgage loans
-
%
13
0.25
%
64
C&I loans
0.45
%
72
-
%
-
Consumer loans:
Auto loans
-
%
27
3.10
%
28
Personal loans
-
%
35
4.29
%
33
Credit cards
16.27
%
-
-
%
-
Other consumer loans
-
%
26
1.74
%
23
Various
 
loans
 
were
 
assigned
 
as
 
collateral
 
for
 
borrowings,
 
government
 
deposits,
 
time
 
deposits
 
accounts,
 
and
 
related
 
unused
commitments.
 
The carrying
 
value of
 
loans pledged
 
as collateral
 
amounted
 
to $
4.4
 
billion and
 
$
4.3
 
billion as
 
of September
 
30, 2023
and December
 
31, 2022,
 
respectively.
 
As of
 
each of
 
September 30,
 
2023 and
 
December 31,
 
2022, loans
 
pledged as
 
collateral include
$
1.8
 
billion that were pledged
 
at the FHLB as
 
collateral for borrowings and
 
letters of credit; $
2.4
 
billion that were pledged
 
at the FED
Discount
 
Window
 
as
 
collateral
 
for
 
borrowings,
 
compared
 
to
 
$
2.2
 
billion
 
as
 
of
 
December
 
31,
 
2022;
 
and
 
$
68.2
 
million
 
serve
 
as
collateral for the uninsured portion of government deposits, compared to $
123.7
 
million as of December 31, 2022.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Troubled Debt
 
Restructuring ("TDR") Disclosures Prior to
 
Adoption of ASU 2022-02
 
The
 
following
 
provides
 
additional
 
disclosures
 
previously
 
required
 
by
 
ASC
 
Subtopic
 
310-40,
 
Receivables
 
-
 
Troubled
 
Debt
Restructurings
 
by
 
Creditors,
 
related
 
to
 
the quarter
 
and
 
nine-month
 
period
 
ended
 
September
 
30,
 
2022.
 
Prior
 
to the
 
adoption of
 
ASU
2022-02,
 
a restructuring
 
of a
 
loan constituted
 
a TDR
 
if the
 
creditor,
 
for economic
 
or legal
 
reasons related
 
to the
 
borrower's financial
difficulties, granted
 
a concession to
 
the borrower that
 
it would not
 
otherwise consider.
 
See Note 1
 
- Nature of
 
Business and Summary
of Significant
 
Accounting Policies
 
and Note
 
4 -
 
Loans Held
 
For Investment
 
to the
 
audited consolidated
 
financial statements
 
included
in
 
the
 
2022
 
Annual
 
Report
 
on
 
Form
 
10-K
 
for
 
additional
 
discussion
 
of
 
TDRs.
 
The
 
following
 
tables
 
present
 
TDR
 
loans
 
completed
during the quarter and nine-month period ended September 30,
 
2022:
Quarter Ended September 30,2022
Total
Interest rate
below market
Maturity or
term extension
Combination
of reduction in
interest rate
and extension
of maturity
Forgiveness of
principal
and/or interest
Other
(1)
Total
(In thousands)
TDRs:
Conventional residential mortgage loans
$
-
$
132
$
-
$
-
$
1,022
$
1,154
Construction loans
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
-
-
C&I loans
495
-
-
-
-
495
Consumer loans:
Auto loans
661
42
84
-
-
787
Finance leases
-
82
-
-
-
82
Personal loans
-
75
58
-
-
133
Credit cards
252
(2)
-
-
-
-
252
Other consumer loans
10
56
-
19
-
85
Total TDRs
 
$
1,418
$
387
$
142
$
19
$
1,022
$
2,988
(1)
Other concessions granted by the Corporation include payment
 
plans under judicial stipulation or loss mitigation programs, 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.
(2)
Concession consists of reduction in interest rate and revocation
 
of revolving line privileges.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine-Month Period Ended September 30,2022
Total
Interest rate
below market
Maturity or
term extension
Combination
of reduction in
interest rate
and extension
of maturity
Forgiveness of
principal
and/or interest
Other
(1)
Total
(In thousands)
TDRs:
Conventional residential mortgage loans
$
215
$
1,484
$
190
$
-
$
3,709
$
5,598
Construction loans
-
-
-
-
-
-
Commercial mortgage loans
-
245
5,178
-
467
5,890
C&I loans
895
-
-
825
1,083
2,803
Consumer loans:
Auto loans
2,120
126
264
-
-
2,510
Finance leases
-
451
-
-
18
469
Personal loans
99
135
84
-
-
318
Credit cards
647
(2)
-
-
-
-
647
Other consumer loans
93
188
-
37
-
318
Total TDRs
 
$
4,069
$
2,629
$
5,716
$
862
$
5,277
$
18,553
(1)
Other concessions granted by the Corporation include payment
 
plans under judicial stipulation or loss mitigation programs, 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.
(2)
Concession consists of reduction in interest rate and revocation
 
of revolving line privileges.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30,2022
Nine-Month Period Ended September 30,2022
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
12
$
1,220
$
1,154
49
$
5,668
$
5,598
Construction loans
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
3
5,897
5,890
C&I loans
3
495
495
15
3,031
2,803
Consumer loans:
 
Auto loans
35
790
787
123
2,512
2,510
 
Finance leases
5
82
82
26
469
469
 
Personal loans
7
116
133
19
301
318
 
Credit Cards
50
251
252
139
646
647
 
Other consumer loans
29
83
85
77
311
318
 
Total TDRs
141
$
3,037
$
2,988
451
$
18,835
$
18,553
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
quarter
 
and
 
nine-month
 
period
 
ended
 
September
 
30,
 
2022,
 
and
 
had
 
become
 
TDR
loans during the 12-months preceding the default date, were as follows:
Quarter Ended September 30,2022
Nine-Month Period Ended September 30,2022
Number of contracts
Amortized Cost
Number of contracts
Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans
1
$
50
5
$
534
Construction loans
-
-
-
-
Commercial mortgage loans
-
-
-
-
C&I loans
-
-
-
-
Consumer loans:
Auto loans
31
776
75
1,674
Finance leases
-
-
1
16
Personal loans
-
-
-
-
Credit cards
14
60
39
201
Other consumer loans
1
2
5
19
Total
47
$
888
125
$
2,444