ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 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 2022, 2021 and 2020:




















	Year Ended December 31, 2022
	Commercial		Mortgage		Consumer		Auto loans and leases		Total
	(In thousands)
Non-PCD:
Balance at beginning of year	$	32,262	$	15,299	$	19,141	$	65,363	$	132,065
Provision for (recapture of) credit losses	19,076		(8,758)		16,084		16,016		42,418
Charge-offs	(13,380)		(284)		(15,198)		(32,662)		(61,524)
Recoveries	1,200		3,314		3,237		21,131		28,882
Balance at end of year	$	39,158	$	9,571	$	23,264	$	69,848	$	141,841
PCD:
Balance at beginning of year	$	4,508	$	19,018	$	34	$	312	$	23,872
(Recapture) provision of credit losses	(6,855)		(10,629)		62		(588)		(18,010)
Charge-offs	(69)		(1,695)		(176)		(310)		(2,250)
Recoveries	3,804		2,665		94		657		7,220
Balance at end of year	$	1,388	$	9,359	$	14	$	71	$	10,832
Total allowance for credit losses at end of year	$	40,546	$	18,930	$	23,278	$	69,919	$	152,673





















	Year Ended December 31, 2021
	Commercial		Mortgage		Consumer		Auto loans and leases		Total
	(In thousands)
Non-PCD:
Balance at beginning of year	$	45,779	$	19,687	$	25,253	$	70,296	$	161,015

(Recapture of) provision for credit losses	(7,130)		(242)		2,868		(2,373)		(6,877)
Charge-offs	(8,788)		(5,789)		(11,880)		(26,530)		(52,987)
Recoveries	2,401		1,643		2,900		23,970		30,914
Balance at end of year	$	32,262	$	15,299	$	19,141	$	65,363	$	132,065
PCD:
Balance at beginning of year	$	16,405	$	26,389	$	57	$	943	$	43,794

(Recapture of) provision for credit losses	(2,585)		11,556		(317)		(894)		7,760
Charge-offs	(12,241)		(20,350)		(22)		(946)		(33,559)
Recoveries	2,929		1,423		316		1,209		5,877
Balance at end of year	$	4,508	$	19,018	$	34	$	312	$	23,872
Total allowance for credit losses at end of year	$	36,770	$	34,317	$	19,175	$	65,675	$	155,937


	Year Ended December 31, 2020
	Commercial		Mortgage		Consumer		Auto loans and leases		Total
			(In thousands)
Non-PCD:
Balance at beginning of year	$	25,993	$	8,727	$	18,446	$	31,878	$	85,044
Impact of ASC 326 adoption	3,562		10,980		8,418		16,238		39,198
Provision for credit losses	18,462		258		16,579		51,233		86,532
Charge-offs	(4,979)		(884)		(21,772)		(48,547)		(76,182)
Recoveries	2,741		606		3,582		19,494		26,423
Balance at end of year	$	45,779	$	19,687	$	25,253	$	70,296	$	161,015
PCD:
Balance at beginning of year	$	8,893	$	21,655	$	—	$	947	$	31,495
Impact of ASC 326 adoption	42,143		7,830		181		368		50,522
Provision for credit losses	480		6,392		126		187		7,185
Charge-offs	(36,097)		(10,342)		(542)		(2,023)		(49,004)
Recoveries	986		854		292		1,464		3,596

Balance at end of year	$	16,405	$	26,389	$	57	$	943	$	43,794
Total allowance for credit losses at end of year	$	62,184	$	46,076	$	25,310	$	71,239	$	204,809

The allowance for credit losses for 2020 included a $39.9 million provision to incorporate changes in the macro-economic scenario and qualitative adjustments as a result of the Covid-19 pandemic.