ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2024 and 2023:


	Quarter Ended September 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
Provision for (recapture of) credit losses	928		(31)		9,904		10,212		21,013
Charge-offs	(139)		(37)		(8,863)		(16,371)		(25,410)
Recoveries	1,479		72		830		6,300		8,681
Balance at end of period	$	36,077	$	6,890	$	31,303	$	80,863	$	155,133
PCD:
Balance at beginning of period	$	789	$	5,642	$	8	$	13	$	6,452
Provision for (recapture of) credit losses	751		(424)		(16)		(22)		289
Charge-offs	(663)		(66)		—		(9)		(738)
Recoveries	70		250		19		25		364
Balance at end of period	$	947	$	5,402	$	11	$	7	$	6,367
Total allowance for credit losses at end of period	$	37,024	$	12,292	$	31,314	$	80,870	$	161,500


	Nine-Month Period Ended September 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	(2,462)		(1,885)		26,867		32,329		54,849
Charge-offs	(7,189)		(102)		(25,024)		(43,148)		(75,463)
Recoveries	1,687		879		2,374		18,197		23,137
Balance at end of period	$	36,077	$	6,890	$	31,303	$	80,863	$	155,133
PCD:
Balance at beginning of period	$	1,113	$	7,351	$	7	$	25	$	8,496
Provision for (recapture of) credit losses	377		(2,752)		(45)		(107)		(2,527)
Charge-offs	(928)		(178)		—		(24)		(1,130)
Recoveries	385		981		49		113		1,528
Balance at end of period	$	947	$	5,402	$	11	$	7	$	6,367
Total allowance for credit losses at end of period	$	37,024	$	12,292	$	31,314	$	80,870	$	161,500


	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