ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2023 and 2022:


	Quarter Ended September 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
Provision for (recapture of) credit losses	1,103		(273)		6,026		9,804		16,660
Charge-offs	(8,254)		(218)		(5,894)		(10,458)		(24,824)
Recoveries	174		185		655		5,193		6,207
Balance at end of period	$	41,627	$	8,364	$	26,453	$	71,766	$	148,210
PCD:
Balance at beginning of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Provision for (recapture of) credit losses	60		(226)		15		(67)		(218)
Charge-offs	(690)		(148)		(39)		(37)		(914)
Recoveries	494		80		23		98		695
Balance at end of period	$	1,272	$	8,003	$	7	$	37	$	9,319
Total allowance for credit losses at end of period	$	42,899	$	16,367	$	26,460	$	71,803	$	157,529


	Nine-Month Period Ended September 30, 2023
	Commercial		Mortgage		Consumer		Auto		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	14,857		(1,332)		16,517		10,900		40,942
Charge-offs	(13,125)		(610)		(16,852)		(29,106)		(59,693)
Recoveries	737		735		3,524		20,124		25,120
Balance at end of period	$	41,627	$	8,364	$	26,453	$	71,766	$	148,210
PCD:
Balance at beginning of period	$	1,388	$	9,359	$	14	$	71	$	10,832
Provision for (recapture of) credit losses	1,376		(1,719)		293		(475)		(525)
Charge-offs	(2,794)		(224)		(376)		(158)		(3,552)
Recoveries	1,302		587		76		599		2,564
Balance at end of period	$	1,272	$	8,003	$	7	$	37	$	9,319
Total allowance for credit losses at end of period	$	42,899	$	16,367	$	26,460	$	71,803	$	157,529


	Quarter Ended September 30, 2022
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	42,014	$	11,906	$	23,109	$	66,867	$	143,896

Provision for (recapture of) credit losses	3,108		(1,741)		4,555		4,325		10,247
Charge-offs	(6,485)		(14)		(4,163)		(7,964)		(18,626)
Recoveries	214		280		732		5,674		6,900
Balance at end of period	$	38,851	$	10,431	$	24,233	$	68,902	$	142,417
PCD:
Balance at beginning of period	$	2,427	$	12,541	$	20	$	155	$	15,143

Recapture of credit losses	(786)		(1,735)		(40)		(216)		(2,777)
Charge-offs	(23)		(270)		(9)		(56)		(358)
Recoveries	268		191		47		231		737
Balance at end of period	$	1,886	$	10,727	$	18	$	114	$	12,745
Total allowance for credit losses at end of period	$	40,737	$	21,158	$	24,251	$	69,016	$	155,162

	Nine-Month Period Ended September 30, 2022
	Commercial		Mortgage		Consumer		Auto		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	15,663		(7,281)		13,039		9,691		31,112
Charge-offs	(9,936)		(276)		(10,129)		(22,282)		(42,623)
Recoveries	862		2,689		2,182		16,130		21,863
Balance at end of period	$	38,851	$	10,431	$	24,233	$	68,902	$	142,417
PCD:
Balance at beginning of period	$	4,508	$	19,018	$	34	$	312	$	23,872

Recapture of credit losses	(6,105)		(8,766)		(43)		(506)		(15,420)
Charge-offs	(57)		(1,587)		(56)		(245)		(1,945)
Recoveries	3,540		2,062		83		553		6,238
Balance at end of period	$	1,886	$	10,727	$	18	$	114	$	12,745
Total allowance for credit losses at end of period	$	40,737	$	21,158	$	24,251	$	69,016	$	155,162