ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Gross Loan and Allowance for Credit Losses

The following tables present the activity in OFG’s allowance for credit losses by segment for the quarters and six-month periods ended June 30, 2022 and 2021:


	Quarter Ended June 30, 2022
	Commercial		Mortgage		Consumer		Auto and Leasing		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,097	$	14,952	$	21,100	$	64,195	$	137,344
Provision for (recapture of) credit losses	7,368		(3,122)		4,521		3,535		12,302
Charge-offs	(2,907)		(259)		(3,307)		(6,428)		(12,901)
Recoveries	456		335		795		5,565		7,151
Balance at end of period	$	42,014	$	11,906	$	23,109	$	66,867	$	143,896
PCD:
Balance at beginning of period	$	3,622	$	15,881	$	31	$	197	$	19,731
Recapture of provision for credit losses	(1,444)		(4,183)		(16)		(152)		(5,795)
Charge-offs	—		(183)		(8)		(75)		(266)
Recoveries	249		1,026		13		185		1,473
Balance at end of period	$	2,427	$	12,541	$	20	$	155	$	15,143
Total allowance for credit losses at end of period	$	44,441	$	24,447	$	23,129	$	67,022	$	159,039


	Six-Month Period Ended June 30, 2022
	Commercial		Mortgage		Consumer		Auto and Leasing		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	32,262	$	15,299	$	19,141	$	65,363	$	132,065
Provision for (recapture of) credit losses	12,555		(5,540)		8,484		5,366		20,865
Charge-offs	(3,451)		(262)		(5,966)		(14,318)		(23,997)
Recoveries	648		2,409		1,450		10,456		14,963
Balance at end of period	$	42,014	$	11,906	$	23,109	$	66,867	$	143,896
PCD:
Balance at beginning of period	$	4,508	$	19,018	$	34	$	312	$	23,872
Recapture of provision for credit losses	(5,319)		(7,031)		(3)		(290)		(12,643)
Charge-offs	(34)		(1,317)		(47)		(189)		(1,587)
Recoveries	3,272		1,871		36		322		5,501
Balance at end of period	$	2,427	$	12,541	$	20	$	155	$	15,143
Total allowance for credit losses at end of period	$	44,441	$	24,447	$	23,129	$	67,022	$	159,039


	Quarter Ended June 30, 2021
	Commercial		Mortgage		Consumer		Auto and Leasing		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	47,683	$	17,035	$	21,191	$	71,069	$	156,978

(Recapture of) provision for credit losses	(4,503)		(592)		74		(2,538)		(7,559)
Charge-offs	(653)		(268)		(2,897)		(5,170)		(8,988)
Recoveries	996		193		697		5,997		7,883
Balance at end of period	$	43,523	$	16,368	$	19,065	$	69,358	$	148,314
PCD:
Balance at beginning of period	$	14,306	$	29,939	$	52	$	698	$	44,995

(Recapture of) provision for credit losses	(1,974)		1,727		(47)		(285)		(579)
Charge-offs	(6)		(1,742)		—		(226)		(1,974)
Recoveries	430		184		33		314		961
Balance at end of period	$	12,756	$	30,108	$	38	$	501	$	43,403
Total allowance for credit losses at end of period	$	56,279	$	46,476	$	19,103	$	69,859	$	191,717

	Six-Month Period Ended June 30, 2021
	Commercial		Mortgage		Consumer		Auto and Leasing		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	45,779	$	19,687	$	25,253	$	70,296	$	161,015

(Recapture of) provision for credit losses	(2,961)		(3,071)		(85)		1,501		(4,616)
Charge-offs	(720)		(1,056)		(7,366)		(14,253)		(23,395)
Recoveries	1,425		808		1,263		11,814		15,310
Balance at end of period	$	43,523	$	16,368	$	19,065	$	69,358	$	148,314
PCD:
Balance at beginning of period	$	16,405	$	26,389	$	57	$	943	$	43,794

(Recapture of) provision for credit losses	(4,466)		7,721		(52)		(457)		2,746
Charge-offs	(50)		(4,332)		(22)		(682)		(5,086)
Recoveries	867		330		55		697		1,949
Balance at end of period	$	12,756	$	30,108	$	38	$	501	$	43,403
Total allowance for credit losses at end of period	$	56,279	$	46,476	$	19,103	$	69,859	$	191,717