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LOANS | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
LOANS | LOANS OFG’s loan portfolio is composed of four segments: commercial, mortgage, consumer, and auto loans and leases. Loans are further segregated into classes which OFG uses when assessing and monitoring the risk and performance of the portfolio. The composition of the amortized cost basis of OFG’s loan portfolio at December 31, 2022 and 2021 was as follows:
| December 31, 2022 |  | December 31, 2021
| Non-PCD |  | PCD |  | Total |  | Non-PCD |  | PCD |  | Total
| (In thousands)
Commercial loans: |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 974,202 |  |  | $ | 138,678 |  |  | $ | 1,112,880 |  |  | $ | 883,994 |  |  | $ | 176,186 |  |  | $ | 1,060,180 |
Other commercial and industrial | 847,740 |  |  | 20,474 |  |  | 868,214 |  |  | 759,172 |  |  | 28,149 |  |  | 787,321 |
Other commercial and industrial - Paycheck Protection Program (PPP Loans) | 6,702 |  |  | — |  |  | 6,702 |  |  | 86,889 |  |  | — |  |  | 86,889 |
US commercial loans | 642,133 |  |  | — |  |  | 642,133 |  |  | 444,940 |  |  | — |  |  | 444,940 |
| 2,470,777 |  |  | 159,152 |  |  | 2,629,929 |  |  | 2,174,995 |  |  | 204,335 |  |  | 2,379,330 |
Mortgage | 675,793 |  |  | 1,028,428 |  |  | 1,704,221 |  |  | 718,848 |  |  | 1,188,423 |  |  | 1,907,271 |
Consumer: |  |  |  |  |  |  |  |  |  |  |
Personal loans | 480,620 |  |  | 338 |  |  | 480,958 |  |  | 346,859 |  |  | 546 |  |  | 347,405 |
Credit lines | 12,826 |  |  | 300 |  |  | 13,126 |  |  | 14,775 |  |  | 370 |  |  | 15,145 |
Credit cards | 42,872 |  |  | — |  |  | 42,872 |  |  | 46,795 |  |  | — |  |  | 46,795 |
Overdraft | 301 |  |  | — |  |  | 301 |  |  | 330 |  |  | — |  |  | 330 |
| 536,619 |  |  | 638 |  |  | 537,257 |  |  | 408,759 |  |  | 916 |  |  | 409,675 |
Auto loans and leases | 1,958,257 |  |  | 5,658 |  |  | 1,963,915 |  |  | 1,693,029 |  |  | 13,281 |  |  | 1,706,310 |
| 5,641,446 |  |  | 1,193,876 |  |  | 6,835,322 |  |  | 4,995,631 |  |  | 1,406,955 |  |  | 6,402,586 |
Allowance for credit losses | (141,841) |  |  | (10,832) |  |  | (152,673) |  |  | (132,065) |  |  | (23,872) |  |  | (155,937) |
Total loans held for investment, net | 5,499,605 |  |  | 1,183,044 |  |  | 6,682,649 |  |  | 4,863,566 |  |  | 1,383,083 |  |  | 6,246,649 |
Mortgage loans held for sale | 19,499 |  |  | — |  |  | 19,499 |  |  | 51,096 |  |  | — |  |  | 51,096 |
Other loans held for sale | 21,088 |  |  | — |  |  | 21,088 |  |  | 31,566 |  |  | — |  |  | 31,566 |
Total loans held for sale | 40,587 |  |  | — |  |  | 40,587 |  |  | 82,662 |  |  | — |  |  | 82,662 |
Total loans, net | $ | 5,540,192 |  |  | $ | 1,183,044 |  |  | $ | 6,723,236 |  |  | $ | 4,946,228 |  |  | $ | 1,383,083 |  |  | $ | 6,329,311 |
During 2022, OFG transferred to held for sale two commercial loans amounting to $9.7 million, net of $8.8 million charge-offs, one of them was sold during the fourth quarter of 2022. In addition, during 2022, OFG sold $21.9 million of past due mortgage loans held for sale. These mortgage loans were transferred to held for sale during the fourth quarter of 2021. At December 31, 2022 and 2021, OFG had carrying balances of $73.7 million and $87.3 million, respectively, in loans held for investment granted to the Puerto Rico government, including its municipalities and public corporations, as part of the commercial loan segment. The Bank’s loans to the Puerto Rico government amounting to $73.7 million and $86.2 million at December 31, 2022 and 2021, respectively, were general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities in current status. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations. At December 31, 2021, total loan exposure to the Puerto Rico government included a $1.1 million PCD loan granted to a public corporation classified as non-accrual, which was repaid during 2022. The tables below present the aging of the amortized cost of loans held for investment at December 31, 2022 and 2021, by class of loans. Mortgage loans past due include $32.6 million and $14.5 million of delinquent loans in the GNMA buy-back option program at December 31, 2022 and 2021, respectively. 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.
| December 31, 2022
| 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total Past Due |  | Current |  | Total Loans |  | Loans 90+ Days Past Due and Still Accruing
| (In thousands)
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 923 |  |  | $ | 164 |  |  | $ | 6,147 |  |  | $ | 7,234 |  |  | $ | 966,968 |  |  | $ | 974,202 |  |  | $ | — |
Other commercial and industrial | 943 |  |  | 720 |  |  | 3,225 |  |  | 4,888 |  |  | 849,554 |  |  | 854,442 |  |  | — |
US commercial loans | — |  |  | — |  |  | — |  |  | — |  |  | 642,133 |  |  | 642,133 |  |  | — |
| 1,866 |  |  | 884 |  |  | 9,372 |  |  | 12,122 |  |  | 2,458,655 |  |  | 2,470,777 |  |  | — |
Mortgage | 9,267 |  |  | 5,848 |  |  | 56,714 |  |  | 71,829 |  |  | 603,964 |  |  | 675,793 |  |  | 3,856 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans | 4,263 |  |  | 2,669 |  |  | 2,314 |  |  | 9,246 |  |  | 471,374 |  |  | 480,620 |  |  | — |
Credit lines | 500 |  |  | 154 |  |  | 117 |  |  | 771 |  |  | 12,055 |  |  | 12,826 |  |  | — |
Credit cards | 730 |  |  | 486 |  |  | 682 |  |  | 1,898 |  |  | 40,974 |  |  | 42,872 |  |  | — |
Overdraft | 91 |  |  | 2 |  |  | — |  |  | 93 |  |  | 208 |  |  | 301 |  |  | — |
| 5,584 |  |  | 3,311 |  |  | 3,113 |  |  | 12,008 |  |  | 524,611 |  |  | 536,619 |  |  | — |
Auto loans and leases | 75,237 |  |  | 36,954 |  |  | 19,613 |  |  | 131,804 |  |  | 1,826,453 |  |  | 1,958,257 |  |  | — |
Total loans | $ | 91,954 |  |  | $ | 46,997 |  |  | $ | 88,812 |  |  | $ | 227,763 |  |  | $ | 5,413,683 |  |  | $ | 5,641,446 |  |  | $ | 3,856 |
As of December 31, 2022, total past due loans exclude $21.1 million of past due commercial loans held for sale.
| December 31, 2021
| 30-59 Day Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total Past Due |  | Current |  | Total Loans |  | Loans 90+ Days Past Due and Still Accruing
| (In thousands)
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 2,210 |  |  | $ | 102 |  |  | $ | 8,446 |  |  | $ | 10,758 |  |  | $ | 873,236 |  |  | $ | 883,994 |  |  | $ | — |
Other commercial and industrial | 1,886 |  |  | 538 |  |  | 946 |  |  | 3,370 |  |  | 842,691 |  |  | 846,061 |  |  | — |
US commercial loans | — |  |  | — |  |  | — |  |  | — |  |  | 444,940 |  |  | 444,940 |  |  | — |
| 4,096 |  |  | 640 |  |  | 9,392 |  |  | 14,128 |  |  | 2,160,867 |  |  | 2,174,995 |  |  | — |
Mortgage | 8,704 |  |  | 7,855 |  |  | 43,468 |  |  | 60,027 |  |  | 658,821 |  |  | 718,848 |  |  | 2,346 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans | 2,382 |  |  | 1,131 |  |  | 1,116 |  |  | 4,629 |  |  | 342,230 |  |  | 346,859 |  |  | — |
Credit lines | 531 |  |  | 141 |  |  | 227 |  |  | 899 |  |  | 13,876 |  |  | 14,775 |  |  | — |
Credit cards | 610 |  |  | 336 |  |  | 631 |  |  | 1,577 |  |  | 45,218 |  |  | 46,795 |  |  | — |
Overdraft | 130 |  |  | 14 |  |  | — |  |  | 144 |  |  | 186 |  |  | 330 |  |  | — |
| 3,653 |  |  | 1,622 |  |  | 1,974 |  |  | 7,249 |  |  | 401,510 |  |  | 408,759 |  |  | — |
Auto loans and leases | 60,038 |  |  | 30,234 |  |  | 13,461 |  |  | 103,733 |  |  | 1,589,296 |  |  | 1,693,029 |  |  | — |
Total loans | $ | 76,491 |  |  | $ | 40,351 |  |  | $ | 68,295 |  |  | $ | 185,137 |  |  | $ | 4,810,494 |  |  | $ | 4,995,631 |  |  | $ | 2,346 |
As of December 31, 2021, total past due loans excludes $4.7 million of past due commercial loans held for sale. Upon adoption of the CECL methodology, OFG 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 tables above. Non-accrual Loans The following table presents the amortized cost basis of loans held for investment on nonaccrual status as of December 31, 2022 and 2021:
| December 31, 2022 |  | December 31, 2021
| Non-accrual with Allowance for Credit Loss |  | Non-accrual with no Allowance for Credit Loss |  | Total |  | Non-accrual with Allowance for Credit Loss |  | Non-accrual with no Allowance for Credit Loss |  | Total
| (In thousands) |  | (In thousands)
Non-PCD: |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 4,091 |  |  | $ | 17,098 |  |  | $ | 21,189 |  |  | $ | 16,299 |  |  | $ | 19,538 |  |  | $ | 35,837 |
Other commercial and industrial | 2,769 |  |  | 885 |  |  | 3,654 |  |  | 1,283 |  |  | 483 |  |  | 1,766 |
US commercial loans | 9,589 |  |  | — |  |  | 9,589 |  |  | — |  |  | — |  |  | — |
| 16,449 |  |  | 17,983 |  |  | 34,432 |  |  | 17,582 |  |  | 20,021 |  |  | 37,603 |
Mortgage | 11,719 |  |  | 11,522 |  |  | 23,241 |  |  | 16,429 |  |  | 12,840 |  |  | 29,269 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Personal loans | 1,950 |  |  | 379 |  |  | 2,329 |  |  | 1,143 |  |  | 302 |  |  | 1,445 |
Personal lines of credit | 116 |  |  | — |  |  | 116 |  |  | 226 |  |  | — |  |  | 226 |
Credit cards | 683 |  |  | — |  |  | 683 |  |  | 632 |  |  | — |  |  | 632 |
| 2,749 |  |  | 379 |  |  | 3,128 |  |  | 2,001 |  |  | 302 |  |  | 2,303 |
Auto loans and leases | 19,612 |  |  | 1 |  |  | 19,613 |  |  | 19,827 |  |  | 2 |  |  | 19,829 |
Total | $ | 50,529 |  |  | $ | 29,885 |  |  | $ | 80,414 |  |  | $ | 55,839 |  |  | $ | 33,165 |  |  | $ | 89,004 |
PCD: |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 2,807 |  |  | $ | 6,084 |  |  | $ | 8,891 |  |  | $ | 5,205 |  |  | $ | 6,198 |  |  | $ | 11,403 |
Other commercial and industrial | — |  |  | 36 |  |  | 36 |  |  | 1,102 |  |  | 40 |  |  | 1,142 |
| 2,807 |  |  | 6,120 |  |  | 8,927 |  |  | 6,307 |  |  | 6,238 |  |  | 12,545 |
Mortgage | 259 |  |  | — |  |  | 259 |  |  | 334 |  |  | — |  |  | 334 |
Total | $ | 3,066 |  |  | $ | 6,120 |  |  | $ | 9,186 |  |  | $ | 6,641 |  |  | $ | 6,238 |  |  | $ | 12,879 |
Total non-accrual loans | $ | 53,595 |  |  | $ | 36,005 |  |  | $ | 89,600 |  |  | $ | 62,480 |  |  | $ | 39,403 |  |  | $ | 101,883 |
The determination of nonaccrual or accrual status of PCD loans is made at the pool level, not the individual loan level. As of December 31, 2022 and 2021, total commercial non-accrual loans excludes $16.4 million and $9.9 million of non-accrual commercial loans held for sale, respectively. 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 December 31, 2022 and 2021, loans whose terms have been extended and which were classified as troubled-debt restructurings that were not included in non-accrual loans amounted to $145.2 million and $125.9 million, respectively, as they were performing under their modified terms. Modifications OFG offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers’ financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure. The amount of outstanding commitments to lend additional funds to commercial borrowers whose terms have been modified in TDRs amounted to $3.2 million and $3.7 million at December 31, 2022 and 2021, respectively. The following table presents the troubled-debt restructurings in all loan portfolios as of December 31, 2022 and 2021.
| December 31, 2022 |  | December 31, 2021
| Accruing |  | Non-accruing |  | Total |  | Related Allowance |  | Accruing |  | Non-accruing |  | Total |  | Related Allowance
| (In thousands) |  | (In thousands)
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 31,437 |  |  | $ | 13,187 |  |  | $ | 44,624 |  |  | $ | 181 |  |  | $ | 10,981 |  |  | $ | 14,444 |  |  | $ | 25,425 |  |  | $ | 202 |
Other commercial and industrial | 2,272 |  |  | 354 |  |  | 2,626 |  |  | 42 |  |  | 2,785 |  |  | 473 |  |  | 3,258 |  |  | 41 |
US commercial loans | 7,132 |  |  | — |  |  | 7,132 |  |  | 89 |  |  | 7,156 |  |  | — |  |  | 7,156 |  |  | 126 |
| 40,841 |  |  | 13,541 |  |  | 54,382 |  |  | 312 |  |  | 20,922 |  |  | 14,917 |  |  | 35,839 |  |  | 369 |
Mortgage | 102,387 |  |  | 6,773 |  |  | 109,160 |  |  | 2,495 |  |  | 101,487 |  |  | 9,475 |  |  | 110,962 |  |  | 3,867 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans | 1,850 |  |  | 15 |  |  | 1,865 |  |  | 73 |  |  | 3,275 |  |  | 139 |  |  | 3,414 |  |  | 159 |
Auto loans and leases | 77 |  |  | — |  |  | 77 |  |  | 3 |  |  | 203 |  |  | 8 |  |  | 211 |  |  | 11 |
Total loans | $ | 145,155 |  |  | $ | 20,329 |  |  | $ | 165,484 |  |  | $ | 2,883 |  |  | $ | 125,887 |  |  | $ | 24,539 |  |  | $ | 150,426 |  |  | $ | 4,406 |
The following tables present the troubled-debt restructurings by loan portfolios and modification type as of December 31, 2022 and 2021:
| December 31, 2022
| Reduction in interest rate |  | Maturity or term extension |  | Combination of reduction in interest rate and extension of maturity |  | Forbearance |  | Total
| (In thousands)
Commercial loans: |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 7,746 |  |  | $ | 29,454 |  |  | $ | 7,424 |  |  | $ | — |  |  | $ | 44,624 |
Other commercial and industrial | 785 |  |  | 1,367 |  |  | 474 |  |  | — |  |  | 2,626 |
US commercial loans | 7,132 |  |  | — |  |  | — |  |  | — |  |  | 7,132 |
| 15,663 |  |  | 30,821 |  |  | 7,898 |  |  | — |  |  | 54,382 |
Mortgage | 31,709 |  |  | 8,020 |  |  | 35,194 |  |  | 34,237 |  |  | 109,160 |
Consumer: |  |  |  |  |  |  |  |  |
Personal loans | 825 |  |  | 176 |  |  | 793 |  |  | 71 |  |  | 1,865 |
Auto loans and leases | 39 |  |  | — |  |  | 20 |  |  | 18 |  |  | 77 |
Total loans | $ | 48,236 |  |  | $ | 39,017 |  |  | $ | 43,905 |  |  | $ | 34,326 |  |  | $ | 165,484 |
| December 31, 2021
| Reduction in interest rate |  | Maturity or term extension |  | Combination of reduction in interest rate and extension of maturity |  | Forbearance |  | Total
| (In thousands)
Commercial loans: |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 8,461 |  |  | $ | 1,227 |  |  | $ | 12,401 |  |  | $ | 3,336 |  |  | $ | 25,425 |
Other commercial and industrial | 723 |  |  | 1,985 |  |  | 522 |  |  | 28 |  |  | 3,258 |
US commercial loans | 7,156 |  |  | — |  |  | — |  |  | — |  |  | 7,156 |
| 16,340 |  |  | 3,212 |  |  | 12,923 |  |  | 3,364 |  |  | 35,839 |
Mortgage | 37,307 |  |  | 6,796 |  |  | 32,456 |  |  | 34,403 |  |  | 110,962 |
Consumer: |  |  |  |  |  |  |  |  |
Personal loans | 1,496 |  |  | 287 |  |  | 1,430 |  |  | 201 |  |  | 3,414 |
Auto loans and leases | 74 |  |  | — |  |  | 28 |  |  | 109 |  |  | 211 |
Total loans | $ | 55,217 |  |  | $ | 10,295 |  |  | $ | 46,837 |  |  | $ | 38,077 |  |  | $ | 150,426 |
TDRs disclosed above were not related to Covid-19 modifications. Section 4013 of CARES Act and the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" provided banks an option to elect to not account for certain loan modifications related to Covid-19 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019 and at the time of implementation of the modification program, and the borrowers meet other applicable criteria. At December 31, 2021, there were $28.0 million loans deferred from the Covid-19 pandemic that were not classified as a TDR, which consisted of FHA and VA insured mortgage loans. There were no deferred loans from the COVID-19 pandemic at December 31, 2022. At December 31, 2022 and 2021, TDR mortgage loans include $43.5 million and $40.8 million, respectively, of government-guaranteed loans (e.g. FHA/VA). Upon adoption of CECL, OFG 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 TDR tables. Loan modifications that are considered TDR loans completed during 2022, 2021 and 2020 were as follows:
| Year Ended December 31, 2022
| 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 | 103 |  | $ | 12,580 |  |  | 4.63 | % |  | 258 |  | $ | 13,199 |  |  | 3.79 | % |  | 342
Commercial | 5 |  | 38,873 |  |  | 3.57 | % |  | 131 |  | 38,729 |  |  | 3.64 | % |  | 184
Consumer | 4 |  | 77 |  |  | 13.42 | % |  | 74 |  | 77 |  |  | 10.41 | % |  | 70
| Year Ended December 31, 2021
| 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 | 160 |  | $ | 20,077 |  |  | 4.33 | % |  | 323 |  | $ | 20,241 |  |  | 3.47 | % |  | 345
Commercial | 7 |  | 10,093 |  |  | 5.50 | % |  | 86 |  | 9,979 |  |  | 4.48 | % |  | 60
Consumer | 17 |  | 294 |  |  | 13.72 | % |  | 69 |  | 295 |  |  | 10.12 | % |  | 78
Auto loans and leases | 9 |  | 148 |  |  | 8.70 | % |  | 72 |  | 148 |  |  | 9.35 | % |  | 49
| Year Ended December 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 | 88 |  | $ | 11,081 |  |  | 4.70 | % |  | 332 |  | $ | 10,151 |  |  | 4.13 | % |  | 327
Commercial | 8 |  | 14,896 |  |  | 5.45 | % |  | 63 |  | 14,896 |  |  | 4.36 | % |  | 77
Consumer | 23 |  | 349 |  |  | 14.11 | % |  | 64 |  | 391 |  |  | 10.57 | % |  | 76
Auto loans and leases | 31 |  | 217 |  |  | 10.88 | % |  | 74 |  | 219 |  |  | 11.02 | % |  | 71
The following table presents troubled-debt restructurings for which there was a payment default during 2022, 2021 and 2020:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| Number of Contracts |  | Recorded Investment |  | Number of Contracts |  | Recorded Investment |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 13 |  |  | $ | 1,701 |  |  | 19 |  |  | $ | 2,488 |  |  | 9 |  |  | $ | 1,345 |
Commercial | 1 |  |  | $ | 633 |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |
Consumer | 1 |  |  | $ | 40 |  |  | 6 |  |  | $ | 76 |  |  | 1 |  |  | $ | 2 |
Auto loans and leases | — |  |  | $ | — |  |  | 1 |  |  | $ | 10 |  |  | — |  |  | $ | — |
As of December 31, 2022 and 2021, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $14.9 million and $16.9 million, respectively. OFG commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent. Puerto Rico and the USVI require the foreclosure to be processed through the respective territory’s courts. Foreclosure timelines vary according to local law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediation, bankruptcy, court delays and title issues. As a result of the effects of Hurricane Fiona and Puerto Rico being declared a disaster zone by local and federal authorities during 2022, OFG granted loan payment accommodations to certain qualified borrowers in order to provide them with flexibility to address the hurricane’s immediate impact. In addition, for its business banking segment, OFG granted loans up to $50,000 with three months of interest-only payments followed by up to thirty-three payments of principal and interest. At December 31, 2022, the total loans outstanding under the payment accommodations program amounted to $33.1 million. The table below presents the amortized cost of collateral-dependent loans held for investment at December 31, 2022 and 2021, by class of loans.
| December 31,
| 2022 |  | 2021
| (In thousands)
Commercial secured by real estate | $ | 8,805 |  |  | $ | 10,233 |
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 OFG categorizes its loans into loan grades based on relevant information about the ability of borrowers to service their debts, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans. OFG 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 process described above are considered to be pass loans. As of December 31, 2022 and 2021 and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows.
|  | Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans Amortized Cost Basis |  | Total
|  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  |
|  | (In thousands)
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 220,035 |  |  | $ | 177,775 |  |  | $ | 110,809 |  |  | $ | 118,518 |  |  | $ | 50,454 |  |  | $ | 159,721 |  |  | $ | 69,523 |  |  | $ | 906,835 |
Special Mention |  | 1,899 |  |  | — |  |  | 6,007 |  |  | 17,004 |  |  | 2,095 |  |  | 13,934 |  |  | 439 |  |  | 41,378 |
Substandard |  | 103 |  |  | 8,410 |  |  | 345 |  |  | 405 |  |  | 473 |  |  | 14,722 |  |  | 1,185 |  |  | 25,643 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  | 331 |  |  | 346 |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial secured by real estate |  | 222,037 |  |  | 186,185 |  |  | 117,161 |  |  | 135,927 |  |  | 53,022 |  |  | 188,392 |  |  | 71,478 |  |  | 974,202 |
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 123,659 |  |  | 198,776 |  |  | 67,147 |  |  | 35,678 |  |  | 13,807 |  |  | 7,863 |  |  | 397,944 |  |  | 844,874 |
Special Mention |  | 3 |  |  | 60 |  |  | 31 |  |  | 654 |  |  | 1,819 |  |  | 21 |  |  | 3,823 |  |  | 6,411 |
Substandard |  | 112 |  |  | — |  |  | 260 |  |  | 472 |  |  | 280 |  |  | 74 |  |  | 1,920 |  |  | 3,118 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 39 |  |  | 39 |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total other commercial and industrial: |  | 123,774 |  |  | 198,836 |  |  | 67,438 |  |  | 36,804 |  |  | 15,906 |  |  | 7,958 |  |  | 403,726 |  |  | 854,442 |
US commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 81,155 |  |  | 92,688 |  |  | 43,965 |  |  | 33,827 |  |  | 49,356 |  |  | — |  |  | 308,183 |  |  | 609,174 |
Special Mention |  | 6,346 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,122 |  |  | 7,468 |
Substandard |  | 3,363 |  |  | — |  |  | 8,090 |  |  | — |  |  | 4,449 |  |  | — |  |  | 9,589 |  |  | 25,491 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total US commercial loans: |  | 90,864 |  |  | 92,688 |  |  | 52,055 |  |  | 33,827 |  |  | 53,805 |  |  | — |  |  | 318,894 |  |  | 642,133 |
Total commercial loans |  | $ | 436,675 |  |  | $ | 477,709 |  |  | $ | 236,654 |  |  | $ | 206,558 |  |  | $ | 122,733 |  |  | $ | 196,350 |  |  | $ | 794,098 |  |  | $ | 2,470,777 |
|  | Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans Amortized Cost Basis |  | Total
|  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  |
|  | (In thousands)
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 183,820 |  |  | $ | 120,855 |  |  | $ | 114,208 |  |  | $ | 94,864 |  |  | $ | 52,439 |  |  | $ | 183,026 |  |  | $ | 45,178 |  |  | $ | 794,390 |
Special Mention |  | 654 |  |  | 628 |  |  | 32,578 |  |  | 4,581 |  |  | 4,053 |  |  | 5,102 |  |  | 643 |  |  | 48,239 |
Substandard |  | 8,415 |  |  | 10,694 |  |  | 58 |  |  | 849 |  |  | 1,357 |  |  | 17,555 |  |  | 1,671 |  |  | 40,599 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 22 |  |  | 744 |  |  | 766 |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial secured by real estate |  | 192,889 |  |  | 132,177 |  |  | 146,844 |  |  | 100,294 |  |  | 57,849 |  |  | 205,705 |  |  | 48,236 |  |  | 883,994 |
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 276,165 |  |  | 93,809 |  |  | 45,976 |  |  | 57,989 |  |  | 6,106 |  |  | 6,004 |  |  | 330,072 |  |  | 816,121 |
Special Mention |  | 78 |  |  | 23 |  |  | 8,076 |  |  | 2,213 |  |  | 3,525 |  |  | — |  |  | 13,642 |  |  | 27,557 |
Substandard |  | 112 |  |  | 48 |  |  | 155 |  |  | 394 |  |  | 81 |  |  | 28 |  |  | 1,513 |  |  | 2,331 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 52 |  |  | 52 |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total other commercial and industrial: |  | 276,355 |  |  | 93,880 |  |  | 54,207 |  |  | 60,596 |  |  | 9,712 |  |  | 6,032 |  |  | 345,279 |  |  | 846,061 |
US commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 85,394 |  |  | 61,098 |  |  | 41,924 |  |  | 47,179 |  |  | — |  |  | — |  |  | 171,928 |  |  | 407,523 |
Special Mention |  | — |  |  | — |  |  | 1,515 |  |  | 19,095 |  |  | — |  |  | — |  |  | — |  |  | 20,610 |
Substandard |  | — |  |  | 7,156 |  |  | — |  |  | 9,651 |  |  | — |  |  | — |  |  | — |  |  | 16,807 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total US commercial loans: |  | 85,394 |  |  | 68,254 |  |  | 43,439 |  |  | 75,925 |  |  | — |  |  | — |  |  | 171,928 |  |  | 444,940 |
Total commercial loans |  | $ | 554,638 |  |  | $ | 294,311 |  |  | $ | 244,490 |  |  | $ | 236,815 |  |  | $ | 67,561 |  |  | $ | 211,737 |  |  | $ | 565,443 |  |  | $ | 2,174,995 |
At December 31, 2022 and 2021, the balance of revolving loans converted to term loans was $78.0 million and $37.5 million, respectively. OFG considers the performance of the loan portfolio and its impact on the allowance for credit losses. For mortgage and consumer loan classes, OFG also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2022 and 2021:
|  | Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans Amortized Cost Basis |  | Total
|  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  |
|  | (In thousands)
Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 18,700 |  |  | $ | 25,274 |  |  | $ | 16,175 |  |  | $ | 15,457 |  |  | $ | 16,790 |  |  | $ | 549,885 |  |  | $ | — |  |  | $ | 642,281 |
Nonperforming |  | — |  |  | — |  |  | 110 |  |  | 574 |  |  | 241 |  |  | 32,587 |  |  | — |  |  | 33,512 |
Total mortgage loans: |  | 18,700 |  |  | 25,274 |  |  | 16,285 |  |  | 16,031 |  |  | 17,031 |  |  | 582,472 |  |  | — |  |  | 675,793 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | 284,183 |  |  | 112,591 |  |  | 31,876 |  |  | 31,850 |  |  | 12,022 |  |  | 5,768 |  |  | — |  |  | 478,290 |
Nonperforming |  | 831 |  |  | 661 |  |  | 111 |  |  | 300 |  |  | 81 |  |  | 346 |  |  | — |  |  | 2,330 |
Total personal loans |  | 285,014 |  |  | 113,252 |  |  | 31,987 |  |  | 32,150 |  |  | 12,103 |  |  | 6,114 |  |  | — |  |  | 480,620 |
Credit lines: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,710 |  |  | 12,710 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 116 |  |  | 116 |
Total credit lines |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,826 |  |  | 12,826 |
Credit cards: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,189 |  |  | 42,189 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 683 |  |  | 683 |
Total credit cards |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,872 |  |  | 42,872 |
Overdrafts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 301 |  |  | 301 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total overdrafts |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 301 |  |  | 301 |
Total consumer loans |  | 285,014 |  |  | 113,252 |  |  | 31,987 |  |  | 32,150 |  |  | 12,103 |  |  | 6,114 |  |  | 55,999 |  |  | 536,619 |
Total mortgage and consumer loans |  | $ | 303,714 |  |  | $ | 138,526 |  |  | $ | 48,272 |  |  | $ | 48,181 |  |  | $ | 29,134 |  |  | $ | 588,586 |  |  | $ | 55,999 |  |  | $ | 1,212,412 |
|  | Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans Amortized Cost Basis |  | Total
|  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  |
|  | (In thousands)
Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 18,486 |  |  | $ | 16,585 |  |  | $ | 15,461 |  |  | $ | 19,261 |  |  | $ | 24,872 |  |  | $ | 584,792 |  |  | $ | — |  |  | $ | 679,457 |
Nonperforming |  | — |  |  | 126 |  |  | 129 |  |  | 510 |  |  | 1,830 |  |  | 36,796 |  |  | — |  |  | 39,391 |
Total mortgage loans: |  | 18,486 |  |  | 16,711 |  |  | 15,590 |  |  | 19,771 |  |  | 26,702 |  |  | 621,588 |  |  | — |  |  | 718,848 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | 175,273 |  |  | 55,960 |  |  | 65,425 |  |  | 29,808 |  |  | 12,287 |  |  | 6,661 |  |  | — |  |  | 345,414 |
Nonperforming |  | 296 |  |  | 239 |  |  | 411 |  |  | 143 |  |  | 20 |  |  | 336 |  |  | — |  |  | 1,445 |
Total personal loans |  | 175,569 |  |  | 56,199 |  |  | 65,836 |  |  | 29,951 |  |  | 12,307 |  |  | 6,997 |  |  | — |  |  | 346,859 |
Credit lines: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,549 |  |  | 14,549 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 226 |  |  | 226 |
Total credit lines |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,775 |  |  | 14,775 |
Credit cards: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,163 |  |  | 46,163 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 632 |  |  | 632 |
Total credit cards |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,795 |  |  | 46,795 |
Overdrafts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 330 |  |  | 330 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total overdrafts |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 330 |  |  | 330 |
Total consumer loans |  | 175,569 |  |  | 56,199 |  |  | 65,836 |  |  | 29,951 |  |  | 12,307 |  |  | 6,997 |  |  | 61,900 |  |  | 408,759 |
Total mortgage and consumer loans |  | $ | 194,055 |  |  | $ | 72,910 |  |  | $ | 81,426 |  |  | $ | 49,722 |  |  | $ | 39,009 |  |  | $ | 628,585 |  |  | $ | 61,900 |  |  | $ | 1,127,607 |
At December 31, 2022 and 2021, there were no revolving loans that converted to term loans. OFG evaluates credit quality for auto loans and leases based on FICO score. The following tables present the amortized cost in auto loans and leases held for investment based on their most recent FICO score as of December 31, 2022 and 2021:
| Term Loans Amortized Cost Basis by Origination Year |  | Total
| 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |
| (In thousands)
Auto loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |
FICO score: |  |  |  |  |  |  |  |  |  |  |  |  |
1-660 | 178,426 |  |  | 143,926 |  |  | 72,148 |  |  | 58,069 |  |  | 44,156 |  |  | 31,980 |  |  | 528,705 |
661-699 | 171,723 |  |  | 93,359 |  |  | 42,388 |  |  | 31,033 |  |  | 21,283 |  |  | 13,518 |  |  | 373,304 |
700+ | 375,845 |  |  | 235,743 |  |  | 144,783 |  |  | 135,517 |  |  | 88,597 |  |  | 47,499 |  |  | 1,027,984 |
No FICO | 7,766 |  |  | 6,553 |  |  | 3,741 |  |  | 5,873 |  |  | 3,008 |  |  | 1,323 |  |  | 28,264 |
Total auto loans and leases: | $ | 733,760 |  |  | $ | 479,581 |  |  | $ | 263,060 |  |  | $ | 230,492 |  |  | $ | 157,044 |  |  | $ | 94,320 |  |  | $ | 1,958,257 |
| Term Loans Amortized Cost Basis by Origination Year |  | Total
| 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |
| (In thousands)
Auto loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |
FICO score: |  |  |  |  |  |  |  |  |  |  |  |  |
1-660 | 161,534 |  |  | 90,402 |  |  | 80,745 |  |  | 65,681 |  |  | 38,001 |  |  | 23,171 |  |  | 459,534 |
661-699 | 134,507 |  |  | 68,422 |  |  | 48,173 |  |  | 33,854 |  |  | 16,761 |  |  | 10,534 |  |  | 312,251 |
700+ | 245,148 |  |  | 180,737 |  |  | 184,307 |  |  | 133,098 |  |  | 63,229 |  |  | 38,474 |  |  | 844,993 |
No FICO | 26,759 |  |  | 13,580 |  |  | 17,062 |  |  | 10,119 |  |  | 5,515 |  |  | 3,216 |  |  | 76,251 |
Total auto loans and leases: | $ | 567,948 |  |  | $ | 353,141 |  |  | $ | 330,287 |  |  | $ | 242,752 |  |  | $ | 123,506 |  |  | $ | 75,395 |  |  | $ | 1,693,029 |
Upon adoption of CECL, OFG 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 tables above.

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