ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023 and 2022:


	Quarter Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto and Leasing		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,774	$	9,083	$	24,664	$	69,864	$	141,385
Provision for (recapture of) credit losses	14,089		(556)		4,517		(1,800)		16,250
Charge-offs	(3,496)		(191)		(5,518)		(9,169)		(18,374)
Recoveries	237		334		2,003		8,332		10,906
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,693	$	8,717	$	12	$	77	$	10,499
(Recapture of) provision for credit losses	(604)		(679)		78		(401)		(1,606)
Charge-offs	—		(1)		(124)		(34)		(159)
Recoveries	319		260		42		401		1,022
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923


	Six Month Period Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto loans and leases		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	39,158	$	9,571	$	23,264	$	69,848	$	141,841
Provision for (recapture of) credit losses	13,754		(1,059)		10,491		1,096		24,282
Charge-offs	(4,871)		(392)		(10,958)		(18,648)		(34,869)
Recoveries	563		550		2,869		14,931		18,913
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,388	$	9,359	$	14	$	71	$	10,832
Provision for (recapture of) credit losses	1,316		(1,493)		278		(408)		(307)
Charge-offs	(2,104)		(76)		(337)		(121)		(2,638)
Recoveries	808		507		53		501		1,869
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923


	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 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 loans and leases		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 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