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Loans

3 Months Ended

Mar. 31, 2020

NOTE 5 - LOANS

On January 1, 2020, Oriental adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables.

Oriental’s loan portfolio is composed of four segments, commercial, mortgage, consumer, and auto. Loans are further segregated into classes which Oriental uses when assessing and monitoring the risk and performance of the portfolio.

The composition of the amortized cost basis of Oriental’s loan portfolio at March 31, 2020 was as follows:

	March 31, 2020
	Non-PCD		PCD		Total
	(In thousands)
Commercial loans:
Commercial secured by real estate	$	854,187	$	261,066	$	1,115,253
Other commercial and industrial		743,975		130,092		874,067
US Loan Program		312,031		-		312,031
		1,910,193		391,158		2,301,351
Mortgage		887,982		1,561,558		2,449,540
Consumer
Personal loans		358,253		2,807		361,060
Credit lines		51,379		539		51,918
Credit cards		71,875		-		71,875
Overdraft		203		-		203
Auto		1,487,701		42,466		1,530,167
		1,969,411		45,812		2,015,223
		4,767,586		1,998,528		6,766,114
Allowance for credit losses		(149,961)		(80,794)		(230,755)
Total loans held for investment		4,617,625		1,917,734		6,535,359
Mortgage loans held for sale		5,815		-		5,815
Total loans, net	$	4,623,440	$	1,917,734	$	6,541,174

At March 31, 2020, and December 31, 2019, Oriental had a carrying balance of $157.4 million and $134.0 million, respectively, in current status, in loans held for investment granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, as part of the institutional commercial loan segment. All loans granted to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations.The tables below present the aging of the amortized cost of loans held for investment at March 31, 2020, by class of loans. Mortgage loans past due include delinquent loans in the GNMA buy-back option program. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

	March 31, 2020
													Loans 90+
													Days Past
													Due and
	30-59 Days		60-89 Days		90+ Days		Total Past						Still
	Past Due		Past Due		Past Due		Due		Current		Total Loans		Accruing
	(In thousands)
Commercial
Commercial secured by real estate	$	2,620	$	1,174	$	22,718	$	26,512	$	827,675	$	854,187	$	-
Other commercial and industrial		1,904		376		4,951		7,231		736,744		743,975		-
US Loan Program		-		-		-		-		312,031		312,031		-
		4,524		1,550		27,669		33,743		1,876,450		1,910,193		-
Mortgage		4,770		15,748		101,570		122,088		765,894		887,982		2,794
Consumer
Personal loans		6,397		2,947		1,815		11,159		347,094		358,253		-
Credit lines		953		209		547		1,709		49,670		51,379		-
Credit cards		1,809		763		1,317		3,889		67,986		71,875		-
Overdraft		42		7		-		49		154		203		-
Auto		65,502		45,457		20,756		131,715		1,355,986		1,487,701		-
		74,703		49,383		24,435		148,521		1,820,890		1,969,411		-
Total loans	$	83,997	$	66,681	$	153,674	$	304,352	$	4,463,234	$	4,767,586	$	2,794

Upon adoption of CECL, Oriental elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the table above.

	December 31, 2019
													Loans 90+
													Days Past
													Due and
	30-59 Days		60-89 Days		90+ Days		Total Past						Still
	Past Due		Past Due		Past Due		Due		Current		Total Loans		Accruing
	(In thousands)
Originated:
Commercial
Commercial secured by real estate	$	869	$	867	$	15,047	$	16,783	$	814,257	$	831,040	$	-
Other commercial and industrial		7,513		340		1,895		9,748		554,111		563,859		-
US Loan Program		-		-		-		-		272,595		272,595		-
		8,382		1,207		16,942		26,531		1,640,963		1,667,494		-
Mortgage		9,285		12,538		29,733		51,556		525,860		577,416		2,418
Consumer
Personal loans		4,945		2,095		1,556		8,596		323,434		332,030		-
Credit lines		153		-		9		162		1,616		1,778		-
Credit cards		800		243		546		1,589		26,025		27,614		-
Overdraft		51		-		-		51		165		216		-
Auto		72,211		31,351		14,225		117,787		1,159,945		1,277,732		-
		78,160		33,689		16,336		128,185		1,511,185		1,639,370		-
Total originated loans	$	95,827	$	47,434	$	63,011	$	206,272	$	3,678,008	$	3,884,280	$	2,418

Acquired Scotiabank Non-PCI:
Commercial
Commercial secured by real estate	$	125	$	79	$	1,684	$	1,888	$	32,993	$	34,881	$	-
Other commercial and industrial		23		13		795		831		157,480		158,311		-
		148		92		2,479		2,719		190,473		193,192		-
Mortgage		-		567		64,376		64,943		257,236		322,179		-
Consumer
Personal loans		11		28		1		40		33,107		33,147		-
Credit lines		380		20		212		612		50,224		50,836		-
Credit cards		161		75		-		236		28,538		28,774		-
Auto		105		40		15		160		190,855		191,015		-
		657		163		228		1,048		302,724		303,772		-
Total acquired Scotiabank non-PCI loans	$	805	$	822	$	67,083	$	68,710	$	750,433	$	819,143	$	-

Acquired BBVAPR Non-PCI:
Commercial
Commercial secured by real estate	$	-	$	-	$	764	$	764	$	21	$	785	$	-
Other commercial and industrial		48		18		26		92		1,264		1,356		-
		48		18		790		856		1,285		2,141		-
Consumer
Personal loans		22		-		22		44		1,936		1,980		-

Credit cards		477		99		350		926		17,888		18,814		-
Auto		20		21		30		71		64		135		-
		519		120		402		1,041		19,888		20,929		-
Total acquired BBVAPR non-PCI loans		567		138		1,192		1,897		21,173		23,070		-
Total non-PCI loans	$	97,199	$	48,394	$	131,286	$	276,879	$	4,449,614	$	4,726,493	$	2,418

Before CECL implementation, certain acquired loans from the Scotiabank PR & USVI, BBVAPR and Eurobank acquisitions were accounted for by Oriental in accordance with ASC 310-30.The carrying amount corresponding to acquired loans with deteriorated credit quality, including those accounted under ASC 310-30 by analogy, in the statements of financial condition at December 31, 2019 was as follows:

	December 31, 2019
		Scotiabank PR & USVI		BBVAPR		Eurobank
	(In thousands)
Contractual required payments receivable:	$	2,147,249	$	1,086,367	$	117,107
Less: Non-accretable discount		294,424		340,466		4,285
Cash expected to be collected		1,852,825		745,901		112,822
Less: Accretable yield		458,885		214,886		34,441
Carrying amount, gross		1,393,940		531,015		78,381
Less: allowance for loan and lease losses		-		17,036		14,458
Carrying amount, net	$	1,393,940	$	513,979	$	63,923

The following table describes the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the quarter ended March 31, 2019:

	Quarter Ended March 31, 2019
	Mortgage		Commercial		Auto		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	232,199	$	36,508	$	243	$	560	$	269,510
Accretion		(6,350)		(2,656)		(216)		(298)		(9,520)
Change in expected cash flows		-		3,265		3		298		3,566
Transfer from (to) non-accretable discount		1,058		262		150		(133)		1,337
Balance at end of period	$	226,907	$	37,379	$	180	$	427	$	264,893

Non-Accretable Discount Activity:
Balance at beginning of period	$	291,887	$	10,346	$	24,245	$	18,945	$	345,423
Change in actual and expected losses		(729)		(173)		(39)		(243)		(1,184)
Transfer (to) from accretable yield		(1,058)		(262)		(150)		133		(1,337)
Balance at end of period	$	290,100	$	9,911	$	24,056	$	18,835	$	342,902

The following table describes the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarter ended March 31, 2019:

	Quarter Ended March 31, 2019
	Mortgage		Commercial		Leasing		Consumer		Total
	(In thousands)
Accretable Yield Activity:
Balance at beginning of period	$	38,389	$	3,310		-	$	-	$	41,699
Accretion		(1,351)		(1,165)		(12)		(46)		(2,574)
Change in expected cash flows		(423)		(44)		(31)		87		(411)
Transfer from (to) non-accretable discount		407		159		43		(41)		568
Balance at end of period	$	37,022	$	2,260	$	-	$	-	$	39,282

Non-Accretable Discount Activity:
Balance at beginning of period	$	2,826	$	-	$	-	$	133	$	2,959
Change in actual and expected losses		7		159		43		(58)		151
Transfer (to) from accretable yield		(407)		(159)		(43)		41		(568)
Balance at end of period	$	2,426	$	-	$	-	$	116	$	2,542

Non-accrual Loans

The following table presents the amortized cost basis of loans on nonaccrual status as of March 31, 2020:


	March 31, 2020
	Nonaccrual with		Nonaccrual with no
	Allowance		Allowance
	for Credit Loss		for Credit Loss
	(In thousands)
Non-PCD:
Commercial
Commercial secured by real estate	$	18,473	$	18,617
Other commercial and industrial		2,349		3,229
		20,822		21,846
Mortgage		17,631		7,937
Consumer
Personal loans		1,504		315
Personal lines of credit		552		-
Credit cards		1,319		-
Auto and leasing		21,147		-
		24,522		315
Total non-accrual loans	$	62,975	$	30,098

PCD:
Commercial
Commercial secured by real estate	$	12,821	$	3,150
Other commercial and industrial		66,351		89
		79,172		3,239
Mortgage		1,341		-
Consumer
Personal loans		10		-
		10		-
Total non-accrual loans	$	80,523	$	3,239

The following table presents the recorded investment in loans in non-accrual status by class of loans as of December 31, 2019:

	December 31,
	2019
	(In thousands)
Originated and other loans and leases held for investment
Commercial
Commercial secured by real estate	$	30,034
Other commercial and industrial		9,055
		39,089
Mortgage		18,735
Consumer
Personal loans		4,140
Personal lines of credit		15
Credit cards		546
Auto and leasing		14,239
		18,940
Total non-accrual originated loans	$	76,764

Acquired Scotiabank PR & USVI loans accounted for under ASC 310-20
Commercial
Commercial secured by real estate	$	1,922
Other commercial and industrial		805
		2,727
Consumer
Personal loans		2
Personal lines of credit		212
Auto		26
		240
Total non-accrual acquired Scotiabank PR & USVI loans accounted for under ASC 310-20		2,967

Acquired BBVAPR loans accounted for under ASC 310-20
Commercial
Commercial secured by real estate	$	764
Other commercial and industrial		26
		790
Consumer
Personal loans		22
Credit cards		350
Auto		30
		402
Total non-accrual acquired BBVAPR loans accounted for under ASC 310-20		1,192
Total non-accrual loans	$	80,923

Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans.

At March 31, 2020 and December 31, 2019, loans whose terms have been extended and which were classified as troubled-debt restructurings that were not included in non-accrual loans amounted to $105.3 million and $103.7 million, respectively, as they were performing under their new terms.

Impaired Loans

Oriental evaluates all loans, some individually and others as homogeneous groups, for purposes of determining impairment. The total investment in impaired commercial loans that were individually evaluated for impairment at December 31, 2019 was $61.1 million. The impairments on these commercial loans were measured based on the fair value of collateral or the present value of cash flows, including those identified as troubled-debt restructurings. The allowance for loan and lease losses for these impaired commercial loans amounted to $8.2 million at December 31, 2019. The total investment in impaired mortgage loans that were individually evaluated for impairment was $71.2 million at December 31, 2019. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The allowance for loan losses for these impaired mortgage loans amounted to $6.9 million at December 31, 2019.

Originated and Other Loans and Leases Held for Investment

Prior to the adoption of CECL, Oriental’s recorded investment in commercial and mortgage loans categorized as originated and other loans and leases held for investment that were individually evaluated for impairment and the related allowance for loan and lease losses at December 31, 2019 were as follows:

	December 31, 2019
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance:
Commercial	$	33,454	$	28,555	$	8,215	29%
Residential impaired and troubled-debt restructuring		78,666		71,196		6,874	10%
Impaired loans with no specific allowance
Commercial		39,109		31,895		N/A	0%
Total investment in impaired loans	$	151,229	$	131,646	$	15,089	11%

Acquired BBVAPR Loans Accounted for under ASC 310-20 (Loans with revolving feature and/or acquired at a premium)

Prior to the adoption of CECL, Oriental’s recorded investment in acquired BBVAPR commercial loans accounted for under ASC 310-20 that were individually evaluated for impairment and the related allowance for loan and lease losses at December 31, 2019 were as follows:


	December 31, 2019
	Unpaid		Recorded		Related
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance
Commercial	$	926	$	678	$	2	0%
Impaired loans with no specific allowance
Commercial	$	-	$	-		N/A	0%
Total investment in impaired loans	$	926	$	678	$	2	0%

Acquired BBVAPR Loans Accounted for under ASC 310-30 (including those accounted for under ASC 310-30 by analogy)

Prior to the adoption of CECL, Oriental’s recorded investment in acquired BBVAPR loan pools accounted for under ASC 310-30 that have recorded impairments and their related allowance for loan and lease losses at December 31, 2019 were as follows:

	December 31, 2019
							Coverage
	Unpaid		Recorded				to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance:
Mortgage	$	400,964	$	411,531	$	9,376	2%
Commercial		87,103		84,117		6,713	8%
Auto		39,477		1,790		947	53%
Total investment in impaired loan pools	$	527,544	$	497,438	$	17,036	3%

The tables above only present information with respect to acquired BBVAPR loan pools accounted for under ASC 310-30 if there is a recorded impairment to such loan pools and a specific allowance for loan losses.

Acquired Eurobank Loans

Prior to the adoption of CECL, Oriental’s recorded investment in acquired Eurobank loan pools that have recorded impairments and their related allowance for loan and lease losses as of December 31, 2019 were as follows:

	December 31, 2019
							Coverage
	Unpaid		Recorded		Specific		to Recorded
	Principal		Investment		Allowance		Investment
	(In thousands)
Impaired loan pools with specific allowance
Mortgage	$	53,090	$	49,366	$	12,278	25%
Commercial		17,176		17,142		2,180	13%
Total investment in impaired loan pools	$	70,266	$	66,508	$	14,458	22%

The tables above only present information with respect to acquired Eurobank loan pools accounted for under ASC 310-30 if there was a recorded impairment to such loan pools and a specific allowance for loan losses.

The following table presents the interest recognized in commercial and mortgage loans that were individually evaluated for impairment, which excludes loans accounted for under ASC 310-30, for the quarter ended March 31, 2019.

	Quarter Ended March 31,
	2019
	Interest Income Recognized		Average Recorded Investment
	(In thousands)
Originated and other loans held for investment:
Impaired loans with specific allowance
Commercial	$	399	$	50,890
Residential troubled-debt restructuring		667		83,657
Impaired loans with no specific allowance
Commercial		305		32,246
		1,371		166,793
Acquired loans accounted for under ASC 310-20:
Impaired loans with specific allowance
Commercial		-		747
Total interest income from impaired loans	$	1,371	$	167,540

Modifications

The following tables present the troubled-debt restructurings in all loan portfolios during the quarters ended March 31, 2020, and 2019.

	Quarter Ended March 31, 2020
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	26	$	3,093	5.14%	359	$	3,046	4.29%	360
Commercial	1		281	8.00%	105		281	6.00%	240
Consumer	15		199	13.70%	67		204	11.05%	82
Auto	1		14	18.95%	60		17	13.95%	84

	Quarter Ended March 31, 2019
	Number of contracts	Pre-Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage	38	$	4,494	5.52%	387	$	4,242	4.60%	353
Commercial	1		7	11.50%	36		7	11.50%	24
Consumer	71		963	15.20%	65		967	11.86%	73

The following table presents troubled-debt restructurings for which there was a payment default during the quarters ended March 31, 2020 and 2019:

	Twelve month Period Ended March 31,
	2020			2019
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Mortgage	26	$	3,037	27	$	3,011
Commercial	-	$	-	4	$	1,981
Consumer	107	$	1,543	43	$	587

Collateral-dependent Loans

The table below present the amortized cost of collateral-dependent loans held for investment at March 31, 2020, by class of loans.

	March 31, 2020
	Real Estate		Equipment		Total
	(In thousands)
Commercial loans:
Commercial secured by real estate	$	29,671	$	-	$	29,671
Other commercial and industrial		3,144		879		4,023
Total loans	$	32,815	$	879	$	33,694

PCD loans, except for single pooled loans, are not included in the table above as their unit of account is the loan pool.

Credit Quality Indicators

Oriental categorizes its loans into loan grades based on relevant information about the ability of borrowers to service their debt, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans.

Oriental uses the following definitions for loan grades:

Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards.

Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass loans.

As of March 31, 2020 and based on the most recent analysis performed, the risk category of loans subject to risk rating by class of loans is as follows.



	Term Loans												Revolving
	Amortized Cost Basis by Origination Year												Loans
													Amortized
	2020		2019		2018		2017		2016		Prior		Cost Basis		Total
	(In thousands)
Commercial:
Commercial secured by real estate:
Loan grade:
Pass	$	7,302	$	128,853	$	126,387	$	91,250	$	63,919	$	276,985	$	56,161	$	750,857
Special Mention		10,147		3,588		2,219		16,582		119		23,179		1,591		57,425
Substandard		-		338		822		8,771		458		26,903		8,580		45,872
Doubtful		-		-		-		-		-		-		34		34
Loss		-		-		-		-		-		-		-		-
Total commercial secured by real estate		17,449		132,779		129,428		116,603		64,496		327,067		66,366		854,188
Other commercial and industrial:
Loan grade:
Pass		2,689		104,871		102,701		17,761		8,906		83,310		408,054		728,292
Special Mention		-		75		-		-		7		6,007		3,455		9,544
Substandard		37		748		101		185		3,023		129		1,818		6,041
Doubtful		-		-		-		-		-		-		98		98
Loss		-		-		-		-		-		-		-		-
Total other commercial and industrial:		2,726		105,694		102,802		17,946		11,936		89,446		413,425		743,975
US Loan Program:
Loan grade:
Pass		38,921		69,580		146,014		7,220		-		-		37,135		298,870
Special Mention		-		-		9,827		-		-		-		-		9,827
Substandard		-		-		-		-		-		-		3,333		3,333
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total US loan program:		38,921		69,580		155,841		7,220		-		-		40,468		312,030
Total commercial loans	$	59,096	$	308,053	$	388,071	$	141,769	$	76,432	$	416,513	$	520,259	$	1,910,193

At March 31, 2020, the balance of revolving loans converted to term loans was $27.2 million.

Oriental considers the performance of the loan portfolio and its impact on the allowance for credit losses. For mortgage and consumer loan classes, Oriental also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in mortgage and consumer loans based on payment activity:

															Revolving Loans
	Term Loans												Revolving		Converted to
	Amortized Cost Basis by Origination Year												Loans		Term Loans
													Amortized		Amortized
	2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
	(In thousands)
Mortgage:
Payment performance:
Performing	$	706	$	21,770	$	33,825	$	36,620	$	43,605	$	720,381	$	-	$	-	$	856,907
Nonperforming		-		150		455		193		535		29,742		-		-		31,075
Total mortgage loans:		706		21,920		34,280		36,813		44,140		750,123		-		-		887,982
Consumer:
Personal loans:
Payment performance:
Performing		39,247		153,670		81,858		43,541		23,228		14,890		-		-		356,434
Nonperforming		-		293		487		399		250		390		-		-		1,819
Total personal loans		39,247		153,963		82,345		43,940		23,478		15,280		-		-		358,253
Credit lines:
Payment performance:
Performing		-		-		-		-		-		-		50,827		-		50,827
Nonperforming		-		-		-		-		-		-		552		-		552
Total credit lines		-		-		-		-		-		-		51,379		-		51,379
Credit cards:
Payment performance:
Performing		-		-		-		-		-		-		70,556		-		70,556
Nonperforming		-		-		-		-		-		-		1,319		-		1,319
Total credit cards		-		-		-		-		-		-		71,875		-		71,875
Overdrafts:
Payment performance:
Performing		-		-		-		-		-		-		203		-		203

Nonperforming		-		-		-		-		-		-		-		-		-
Total overdrafts		-		-		-		-		-		-		203		-		203
Total consumer loans		39,247		153,963		82,345		43,940		23,478		15,280		123,457		-		481,710
Total mortgage and consumer loans	$	39,953	$	175,883	$	116,625	$	80,753	$	67,618	$	765,403	$	123,457	$	-	$	1,369,692

Oriental evaluates credit quality for auto loans and leases based on FICO score. The following table presents the amortized cost in auto loans and leases based on FICO score:

															Revolving
															Loans
	Term Loans												Revolving		Converted to
	Amortized Cost Basis by Origination Year												Loans		Term Loans
													Amortized		Amortized
	2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
	(In thousands)
Auto:
FICO score:
1-660		19,459		158,140		139,073		83,191		47,310		48,792		-		-		495,965
661-699		11,031		96,585		63,852		32,279		18,638		19,004		-		-		241,389
700+		20,003		211,214		195,463		107,344		61,740		63,567		-		-		659,331
No FICO		28,821		39,335		9,542		6,113		3,777		3,428		-		-		91,016
Total auto:	$	79,314	$	505,274	$	407,930	$	228,927	$	131,465	$	134,791	$	-	$	-	$	1,487,701

As of December 31, 2019, and based on the most recent analysis performed, the loan grading of gross originated loans and acquired loans accounted for under ASC 310-20 subject to loan grade by class of loans was as follows:

	December 31, 2019
	Loan Grades

	Balance				Special
	Outstanding		Pass		Mention		Substandard		Doubtful		Loss
	(In thousands)
Commercial - originated and other loans held for investment
Commercial secured by real estate	$	831,040	$	729,116	$	55,835	$	46,089	$	-	$	-
Other commercial and industrial		563,859		547,304		6,634		9,921		-		-
US Loan Program		272,595		262,745		9,850		-		-		-
Total Commercial - originated and other loans		1,667,494		1,539,165		72,319		56,010		-		-

Scotiabank PR & USVI Commercial - acquired loans (under ASC 310-20) (under ASC 310-20)
Commercial secured by real estate		34,881		33,306		35		1,504		36		-
Other commercial and industrial		158,311		158,171		-		39		101		-
Total Scotiabank PR & USVI commercial - acquired loans		193,192		191,477		35		1,543		137		-

BBVAPR Commercial - acquired loans (under ASC 310-20) (under ASC 310-20)
Commercial secured by real estate		785		21		-		764		-		-
Other commercial and industrial		1,356		1,356		-		-		-		-
Total BBVAPR commercial - acquired loans		2,141		1,377		-		764		-		-
Total commercial loans	$	1,862,827	$	1,732,019	$	72,354	$	58,317	$	137	$	-

	December 31, 2019
	Loan Grades

	Balance				Special
	Outstanding		Pass		Mention		Substandard		Doubtful		Loss

Retail - originated and other loans held for investment
Mortgage	$	577,416	$	547,683	$	-	$	29,733	$	-	$	-
Personal loans		332,030		330,474		-		1,556		-		-
Personal lines of credit		1,778		1,769		-		9		-		-
Credit cards		27,614		27,068		-		546		-		-
Overdrafts		216		165		-		51		-		-
Auto		1,277,732		1,263,506		-		14,226		-		-
Total consumer loans		1,639,370		1,622,982		-		16,388		-		-
Total retail originated loans		2,216,786		2,170,665		-		46,121		-		-
Retail - acquired loans (accounted for under ASC 310-20) - Scotiabank PR & USVI
Mortgage		322,179		257,803		-		64,376		-		-
Personal loans		33,147		33,147		-		-		-		-
Personal lines of credit		50,836		50,624		-		212		-		-
Credit cards		28,774		28,774		-		-		-		-
Auto		191,015		191,000		-		15		-		-
Total consumer loans		303,772		303,545		-		227		-		-
Total retail acquired Scotiabank PR & USVI non-PCI loans		625,951		561,348		-		64,603		-		-
Retail - acquired loans (accounted for under ASC 310-20) - BBVPR
Consumer:
Credit cards		18,814		18,464		-		350		-		-
Personal loans		1,980		1,958		-		22		-		-
Auto		135		106		-		29		-		-
Total retail acquired BBVAPR non-PCI loans		20,929		20,528		-		401		-		-
Total retail originated and acquired non-PCI loans	$	2,863,666	$	2,752,541	$	-	$	111,125	$	-	$	-