ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and 2023:


	Quarter Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,371	$	7,627	$	27,453	$	76,316	$	148,767
(Recapture of) provision for credit losses	(1,984)		(1,280)		9,308		11,039		17,083
Charge-offs	(1,734)		(1)		(8,180)		(12,559)		(22,474)
Recoveries	156		540		851		5,926		7,473
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,133	$	6,638	$	7	$	18	$	7,796
Recapture of credit losses	(237)		(1,060)		(6)		(29)		(1,332)
Charge-offs	(265)		(29)		—		(6)		(300)
Recoveries	158		93		7		30		288
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301


	Six-Month Period Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	44,041	$	7,998	$	27,086	$	73,485	$	152,610
(Recapture of) provision for credit losses	(3,390)		(1,854)		16,963		22,117		33,836
Charge-offs	(7,050)		(65)		(16,161)		(26,777)		(50,053)
Recoveries	208		807		1,544		11,897		14,456
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,113	$	7,351	$	7	$	25	$	8,496
Recapture of credit losses	(374)		(2,328)		(29)		(85)		(2,816)
Charge-offs	(265)		(112)		—		(15)		(392)
Recoveries	315		731		30		88		1,164
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301


	Quarter Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		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		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