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LOANS

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022 was as follows:


	June 30, 2023						December 31, 2022
	Non-PCD		PCD		Total		Non-PCD		PCD		Total
	(In thousands)
Commercial loans:
Commercial secured by real estate	$	980,570	$	131,326	$	1,111,896	$	974,202	$	138,678	$	1,112,880
Other commercial and industrial	971,608		21,562		993,170		854,442		20,474		874,916

US commercial loans	669,332		—		669,332		642,133		—		642,133
	2,621,510		152,888		2,774,398		2,470,777		159,152		2,629,929
Mortgage	641,555		980,833		1,622,388		675,793		1,028,428		1,704,221
Consumer:
Personal loans	540,975		294		541,269		480,620		338		480,958
Credit lines	11,312		274		11,586		12,826		300		13,126
Credit cards	40,561		—		40,561		42,872		—		42,872
Overdraft	274		—		274		301		—		301
	593,122		568		593,690		536,619		638		537,257
Auto loans and leases	2,124,076		3,319		2,127,395		1,958,257		5,658		1,963,915
	5,980,263		1,137,608		7,117,871		5,641,446		1,193,876		6,835,322
Allowance for credit losses	(150,167)		(9,756)		(159,923)		(141,841)		(10,832)		(152,673)
Total loans held for investment, net	5,830,096		1,127,852		6,957,948		5,499,605		1,183,044		6,682,649
Mortgage loans held for sale	11,397		—		11,397		19,499		—		19,499
Other loans held for sale	18,899		—		18,899		21,088		—		21,088
Total loans held for sale	30,296		—		30,296		40,587		—		40,587
Total loans, net	$	5,860,392	$	1,127,852	$	6,988,244	$	5,540,192	$	1,183,044	$	6,723,236

During the six month period ended June 30, 2023, OFG transferred to loans held for investment $8.7 million of residential mortgage loans held for sale. During the six month period ended June 30, 2022, OFG transferred to loans held for investment $16.9 million and $1.1 million, respectively, of commercial and residential mortgage loans held for sale.

At June 30, 2023 and December 31, 2022, OFG had carrying balances of $70.6 million and $73.7 million, respectively, in loans held for investment granted to the Puerto Rico government or its instrumentalities as part of the commercial loan segment. The Bank’s loans 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 in current status. 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 June 30, 2023 and December 31, 2022, by class of loans. Mortgage loans past due include $18.4 million and $32.6 million of delinquent loans in the Government National Mortgage Association (“GNMA”) buy-back option program at June 30, 2023 and December 31, 2022, 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.


	June 30, 2023
	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	$	825	$	274	$	6,502	$	7,601	$	972,969	$	980,570	$	—
Other commercial and industrial	587		261		4,203		5,051		966,557		971,608		—
US commercial loans	—		9,721		6,270		15,991		653,341		669,332		—
	1,412		10,256		16,975		28,643		2,592,867		2,621,510		—
Mortgage	5,773		8,203		35,631		49,607		591,948		641,555		2,600
Consumer
Personal loans	4,595		2,709		2,163		9,467		531,508		540,975		—
Credit lines	75		26		64		165		11,147		11,312		—
Credit cards	440		290		611		1,341		39,220		40,561		—
Overdraft	53		—		—		53		221		274		—
	5,163		3,025		2,838		11,026		582,096		593,122		—
Auto loans and leases	84,881		32,356		13,130		130,367		1,993,709		2,124,076		—
Total loans	$	97,229	$	53,840	$	68,574	$	219,643	$	5,760,620	$	5,980,263	$	2,600

As of June 30, 2023, total past due loans exclude $6.4 million of past due commercial loans held for sale.


	December 31, 2022
	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	$	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.

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, purchased credit deteriorated (“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 June 30, 2023 and December 31, 2022:


	June 30, 2023						December 31, 2022
	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	$	6,012	$	8,478	$	14,490	$	4,091	$	17,098	$	21,189
Other commercial and industrial	4,413		280		4,693		2,769		885		3,654
US commercial loans	24,005		—		24,005		9,589		—		9,589
	34,430		8,758		43,188		16,449		17,983		34,432
Mortgage	13,091		6,130		19,221		11,719		11,522		23,241
Consumer
Personal loans	1,940		292		2,232		1,950		379		2,329
Personal lines of credit	63		—		63		116		—		116
Credit cards	612		—		612		683		—		683
	2,615		292		2,907		2,749		379		3,128
Auto loans and leases	13,126		4		13,130		19,612		1		19,613
Total	$	63,262	$	15,184	$	78,446	$	50,529	$	29,885	$	80,414

PCD:
Commercial
Commercial secured by real estate	$	2,547	$	4,353	$	6,900	$	2,807	$	6,084	$	8,891
Other commercial and industrial	—		1,204		1,204		—		36		36
	2,547		5,557		8,104		2,807		6,120		8,927
Mortgage	256		—		256		259		—		259



Total	$	2,803	$	5,557	$	8,360	$	3,066	$	6,120	$	9,186
Total non-accrual loans	$	66,065	$	20,741	$	86,806	$	53,595	$	36,005	$	89,600

The determination of nonaccrual or accrual status of PCD loans is made at the pool level, not the individual loan level.

As of June 30, 2023 and December 31, 2022, total commercial non-accrual loans exclude $14.3 million and $16.4 million of non-accrual commercial loans held for sale, respectively.

Delinquent residential mortgage loans insured or guaranteed under applicable FHA and Veterans Administration (“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, 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 as they were performing under their modified terms.

Modifications to Debtors Experiencing Financial Difficulty

OFG’s loss mitigation program was designed to ensure that borrowers experiencing financial difficulties have the opportunity to continue paying their obligations. The loss mitigation alternatives are divided depending on the borrower’s hardship and their ability to continue with regular payment or with a new modified payment plan. The loss mitigation program provides alternatives for home retention or disposition options avoiding foreclosure proceedings and collateral retention.

OFG offers various types of loan modifications to borrowers experiencing financial difficulty in the form of an interest rate reduction, an other-than-insignificant payment delay, a term extension, interest or principal forbearance or forgiveness or any combination of these types of concessions.

On January 1, 2023, OFG adopted ASU 2022-02, which eliminated the recognition and measurement of TDRs and enhanced disclosures for loan restructurings for borrowers experiencing financial difficulty, using the prospective transition method.

At June 30, 2023, the amortized cost of modified loans excludes $5 thousand of accrued interest receivable. Accrued interest receivable on loans is included in the “accrued interest receivable” line in OFG’s consolidated statements of financial condition.

The following tables present the amortized cost basis as of June 30, 2023 of loans held for investment that were modified during the quarter and six month period ended June 30, 2023, disaggregated by class of financing receivable and type of concession granted.


	Quarter Ended June 30, 2023
	Term Extension
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable

Commercial loans:
Commercial loans secured by real estate	$	5,341	0.48	%
Other commercial and industrial	147		0.01	%


	5,488		0.20	%
Mortgage	1,827		0.11	%







Total	$	7,315


	Quarter Ended June 30, 2023
	Combination - Term Extension and Interest Rate Reduction
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable







Mortgage	417		0.03	%
Consumer:
Personal loans	58		0.01	%





Total	$	475


	Quarter Ended June 30, 2023
	Combination - Term Extension and Principal Forgiveness/Forbearance
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable

Commercial loans:



US commercial loans	$	4,260	0.64	%

Mortgage	431		0.03	%







Total	$	4,691


	Six-Month Period Ended June 30, 2023
	Term Extension
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable

Commercial loans:
Commercial loans secured by real estate	$	5,810	0.52	%
Other commercial and industrial	147		0.01	%


	5,957		0.21	%
Mortgage	4,318		0.27	%







Total	$	10,275


	Six-Month Period Ended June 30, 2023
	Principal Forgiveness/Forbearance
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable







Mortgage	$	100	0.01	%


	Six-Month Period Ended June 30, 2023
	Combination - Term Extension and Interest Rate Reduction
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable







Mortgage	$	602	0.02	%
Consumer:
Personal loans	84		0.02	%





Total	$	686


	Six-Month Period Ended June 30, 2023
	Combination - Term Extension and Principal Forgiveness/Forbearance
	Amortized Cost Basis (In thousands)		% of Total Class of Financing Receivable

Commercial loans:



US commercial loans	$	4,260	0.64	%

Mortgage	431		0.03	%







Total	$	4,691

Our credit loss estimation methodology incorporates a lifetime approach, utilizing modeled loan performance based on the historical experience of loans with similar risk characteristics, adjusted for current conditions, and reasonable and supportable forecasts. The model considers extensive historical loss experience, including the impact of loss mitigation programs offered to borrowers facing financial difficulty and projected loss severity from loan defaults, and is applied consistently across all portfolio segments. Additionally, our allowance for credit losses is recorded on each asset upon origination or acquisition and is based on historical loss information, including modifications made to borrowers facing financial difficulty. Changes to the allowance for credit losses are generally not recorded upon modification, as the effects of most modifications are already considered in the estimation methodology. Refer to Note 5 – Allowance for Credit Losses for additional information.

The following table presents the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarter and six month period ended June 30, 2023. The financial effect of the combined modifications is presented separately by type of modification.


	Quarter Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount
Commercial:
Commercial loans secured by real estate	—	%	25	$	—
US Commercial loans	—	%	31	2,973
	—	%	56	$	2,973
Mortgage	1.86	%	195	$	20
Consumer:
Personal loans	1.25	%	110	$	—

During the quarter ended June 30, 2023, OFG granted a modification to a US commercial loan with unpaid principal balance of $8.9 million by extending its term and forgiving $4.6 million of its principal balance in exchange for the company's private stock with a fair value of $1.6 million. Subsequently, during July 2023, OFG granted a modification to another US commercial loan with unpaid principal balance of $4.4 million by forgiving all its unpaid principal balance in exchange for the company's private stock with a fair value of $279 thousand. This US commercial loan was already provisioned at June 30, 2023.


	Six-Month Period Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount
Commercial:
Commercial loans secured by real estate	—	%	24	$	—
US Commercial loans	—	%	31	2,973
	—	%	55	$	2,973
Mortgage	2.04	%	206	$	24
Consumer:
Personal loans	2.50	%	81	$	—

The following table presents the amortized cost basis as of June 30, 2023 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior six-months.


	Six-Month Period Ended June 30, 2023
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)






Mortgage	$	—	$	415	$	—	$	—	$	415

A payment default for a financial difficulty modification loan is defined as reaching 90 days past due with respect to principal and/or interest payments or when the borrower missed three consecutive monthly payments since modification. Payment defaults are one of the factors considered when projecting future cash flows in the calculation of the allowance for credit losses of loans.

OFG closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents an aging of the loans held for investment that have been modified during the six month period ended June 30, 2023.


	June 30, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	5,810	$	5,810
Other commercial and industrial	—		—		—		—		147		147
US commercial loans	—		—		—		—		4,260		4,260
	—		—		—		—		10,217		10,217
Mortgage	—		122		415		537		4,914		5,451
Consumer
Personal loans	—		—		—		—		84		84



	—		—		—		—		84		84

Total	$	—	$	122	$	415	$	537	$	15,215	$	15,752

At June 30, 2023, the total amortized cost of modified loans to borrowers experiencing financial difficulty includes $4.2 million of government-guaranteed loans (e.g., FHA/VA). There were no outstanding commitments to lend additional funds to debtors experiencing financial difficulties at June 30, 2023.

Troubled Debt Restructurings (“TDRs”) Disclosures Prior to the Adoption of ASU 2022-02

Prior to the adoption of ASU 2022-02, OFG offered various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consisted 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 restructuring. Loans that were restructured in a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the historical TDR accounting until the relevant loans are paid off, liquidated or subsequently modified. Refer to “Note 1 – Summary of Significant Accounting Policies” in our 2022 Form 10-K for more information on TDR accounting and disclosure requirements, and “Note 1 – Summary of Significant Accounting Policies” in this report for more information on our adoption of ASU 2022-02.

The amount of outstanding commitments to lend additional funds to commercial borrowers whose terms were modified in TDRs amounted to $3.2 million at December 31, 2022.

The following table presents the troubled-debt restructurings in all loan portfolios as of December 31, 2022:


	December 31, 2022
		Accruing		Non-accruing		Total		Related Allowance
	(In thousands)
Commercial loans:
Commercial secured by real estate		$	31,437	$	13,187	$	44,624	$	181
Other commercial and industrial		2,272		354		2,626		42

US commercial loans		7,132		—		7,132		89
		40,841		13,541		54,382		312
Mortgage		102,387		6,773		109,160		2,495
Consumer:
Personal loans		1,850		15		1,865		73




Auto loans and leases		77		—		77		3
Total loans		$	145,155	$	20,329	$	165,484	$	2,883

The following tables present the troubled-debt restructurings by loan portfolios and modification type as of December 31, 2022:


	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

At December 31, 2022, TDR mortgage loans included $43.5 million 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 were not included in the TDR tables.

Loan modifications that were considered TDR loans completed during the quarter and six-month period ended June 30, 2022:


	Quarter Ended June 30, 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	36	4,333		4.58	%	267	4,608		3.68	%	344
Commercial	2	37,808		3.51	%	133	37,808		3.61	%	187
Consumer	1	9		20.95	%	72	9		10.95	%	72



	Six-Month Period Ended June 30, 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	72	$	9,033	4.55	%	270	$	9,471	3.57	%	343
Commercial	4	38,703		3.56	%	131	38,560		3.63	%	184
Consumer	2	22		19.27	%	79	22		10.95	%	79

The following table presents troubled-debt restructurings for which there was a payment default during the twelve-months periods ended June 30, 2022:


	Twelve-month period ended June 30, 2022
		Number of Contracts	Recorded Investment

Mortgage		7	$	800

Consumer		3	$	47

As of June 30, 2023 and December 31, 2022, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $25.8 million and $14.9 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 property title issues.

Collateral-dependent Loans

The table below presents the amortized cost of commercial collateral-dependent loans held for investment at June 30, 2023 and December 31, 2022, by class of loans.


	June 30,		December 31,
	2023		2022
	(In thousands)

Commercial loans secured by real estate	$	9,945	$	8,805

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.

On January 1, 2023, OFG adopted ASU 2022-02 which requires public companies to include current year-to-date period gross charge-offs by year of origination as described in the tables below.

As of June 30, 2023 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
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Commercial:
Commercial secured by real estate:
Loan grade:
Pass	$	40,469	$	221,969	$	174,336	$	123,684	$	99,681	$	192,049	$	54,543	$	906,731
Special Mention	—		1,837		6,729		17,860		15,827		10,903		192		53,348
Substandard	—		411		1,714		644		2,738		14,111		527		20,145
Doubtful	—		—		—		—		—		15		331		346
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	40,469		224,217		182,779		142,188		118,246		217,078		55,593		980,570
Commercial secured by real estate:
Current-period gross charge-offs	—		—		80		—		94		67		—		241


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Other commercial and industrial:
Loan grade:
Pass	153,016		107,027		122,761		55,849		30,431		17,332		475,103		961,519
Special Mention	9		1,841		—		5,852		628		17		22		8,369
Substandard	—		124		1		256		331		213		756		1,681
Doubtful	—		—		—		—		—		—		39		39
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	153,025		108,992		122,762		61,957		31,390		17,562		475,920		971,608
Other commercial and industrial:
Current-period gross charge-offs	—		18		458		—		—		1,180		—		1,656
US commercial loans:
Loan grade:
Pass	74,370		60,598		85,047		45,864		31,545		17,685		306,777		621,886
Special Mention	—		7,854		—		—		—		—		—		7,854
Substandard	30		10,395		—		958		—		18,020		10,189		39,592
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total US commercial loans:	74,400		78,847		85,047		46,822		31,545		35,705		316,966		669,332
US commercial loans:
Current-period gross charge-offs	33		1,156		—		—		—		1,785		—		2,974
Total commercial loans	$	267,894	$	412,056	$	390,588	$	250,967	$	181,181	$	270,345	$	848,479	$	2,621,510
Total current-period gross charge-offs	$	33	$	1,174	$	538	$	—	$	94	$	3,032	$	—	$	4,871

As of December 31, 2022 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

At June 30, 2023 and December 31, 2022, the balance of revolving loans converted to term loans was $79.4 million and $78.0 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 June 30, 2023 and December 31, 2022:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Mortgage:
Payment performance:
Performing	$	5,996	$	19,898	$	24,880	$	16,182	$	14,600	$	532,399	$	—	$	613,955
Nonperforming	—		—		—		109		328		27,163		—		27,600
Total mortgage loans:	5,996		19,898		24,880		16,291		14,928		559,562		—		641,555
Mortgage:
Current-period gross charge-offs	—		—		—		—		—		392		—		392
Consumer:
Personal loans:
Payment performance:
Performing	161,223		232,481		87,578		24,773		22,131		10,557		—		538,743
Nonperforming	166		1,019		355		169		154		369		—		2,232
Total personal loans	161,389		233,500		87,933		24,942		22,285		10,926		—		540,975
Personal loans:
Current-period gross charge-offs	23		4,998		2,364		444		818		308		—		8,955
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		11,249		11,249
Nonperforming	—		—		—		—		—		—		63		63
Total credit lines	—		—		—		—		—		—		11,312		11,312
Credit lines:
Current-period gross charge-offs	—		—		—		—		—		—		214		214
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		39,949		39,949
Nonperforming	—		—		—		—		—		—		612		612
Total credit cards	—		—		—		—		—		—		40,561		40,561
Credit cards:
Current-period gross charge-offs	—		—		—		—		—		—		1,486		1,486
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		274		274
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		274		274
Overdrafts:
Current-period gross charge-offs	—		—		—		—		—		—		303		303


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Total consumer loans	161,389		233,500		87,933		24,942		22,285		10,926		52,147		593,122
Total consumer current-period gross charge-offs	23		4,998		2,364		444		818		308		2,003		10,958
Total mortgage and consumer loans	$	167,385	$	253,398	$	112,813	$	41,233	$	37,213	$	570,488	$	52,147	$	1,234,677
Total mortgage and consumer current-period gross charge-offs	$	23	$	4,998	$	2,364	$	444	$	818	$	700	$	2,003	$	11,350


	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

At June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022:


	Term Loans Amortized Cost Basis by Origination Year												Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Auto loans and leases:
FICO score:
1-660	79,226		202,606		133,141		65,096		48,918		55,603		584,590
661-699	86,433		145,405		72,453		32,591		24,416		23,826		385,124
700+	234,111		354,101		210,260		123,846		111,118		94,364		1,127,800
No FICO	3,031		7,444		5,414		3,045		4,851		2,777		26,562
Total auto loans and leases:	$	402,801	$	709,556	$	421,268	$	224,578	$	189,303	$	176,570	$	2,124,076
Auto loans and leases:
Current-period gross charge-offs	$	94	$	7,666	$	5,245	$	2,039	$	1,795	$	1,809	$	18,648


	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

As of June 30, 2023 and December 31, 2022, accrued interest receivable on loans totaled $58.6 million and $58.1 million, respectively, and is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to “Note 10 – Accrued Interest Receivable and Other Assets” for more information on accrued interest receivable on loans.