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LOANS (Tables)

6 Months Ended

Jun. 30, 2022

The composition of the amortized cost basis of OFG’s loan portfolio at June 30, 2022 and December 31, 2021 was as follows:


	June 30, 2022						December 31, 2021
	Non-PCD		PCD		Total		Non-PCD		PCD		Total
	(In thousands)
Commercial loans:
Commercial secured by real estate	$	932,165	$	147,362	$	1,079,527	$	883,994	$	176,186	$	1,060,180
Other commercial and industrial	832,309		26,920		859,229		759,172		28,149		787,321
Other commercial and industrial - Paycheck Protection Program (PPP Loans)	33,304		—		33,304		86,889		—		86,889
US commercial loans	623,807		—		623,807		444,940		—		444,940
	2,421,585		174,282		2,595,867		2,174,995		204,335		2,379,330
Mortgage	708,755		1,099,097		1,807,852		718,848		1,188,423		1,907,271
Consumer:
Personal loans	440,419		402		440,821		346,859		546		347,405
Credit lines	13,597		296		13,893		14,775		370		15,145
Credit cards	44,074		—		44,074		46,795		—		46,795
Overdraft	314		—		314		330		—		330
	498,404		698		499,102		408,759		916		409,675
Auto and leasing	1,791,052		8,788		1,799,840		1,693,029		13,281		1,706,310
	5,419,796		1,282,865		6,702,661		4,995,631		1,406,955		6,402,586
Allowance for credit losses	(143,896)		(15,143)		(159,039)		(132,065)		(23,872)		(155,937)
Total loans held for investment, net	5,275,900		1,267,722		6,543,622		4,863,566		1,383,083		6,246,649
Mortgage loans held for sale	26,947		—		26,947		51,096		—		51,096
Other loans held for sale	14,641		—		14,641		31,566		—		31,566
Total loans held for sale	41,588		—		41,588		82,662		—		82,662
Total loans, net	$	5,317,488	$	1,267,722	$	6,585,210	$	4,946,228	$	1,383,083	$	6,329,311

Schedule of Aging of Recorded Investment in Gross Loans


	June 30, 2022
	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	$	1,529	$	2,903	$	6,502	$	10,934	$	921,231	$	932,165	$	—
Other commercial and industrial	1,481		88		741		2,310		863,303		865,613		—
US commercial loans	—		—		—		—		623,807		623,807		—
	3,010		2,991		7,243		13,244		2,408,341		2,421,585		—
Mortgage	6,995		6,942		55,669		69,606		639,149		708,755		1,301
Consumer
Personal loans	4,279		1,951		1,207		7,437		432,982		440,419		—
Credit lines	261		150		164		575		13,022		13,597		—
Credit cards	702		362		604		1,668		42,406		44,074		—
Overdraft	57		—		—		57		257		314		—
	5,299		2,463		1,975		9,737		488,667		498,404		—
Auto and leasing	63,599		27,808		15,230		106,637		1,684,415		1,791,052		—
Total loans	$	78,903	$	40,204	$	80,117	$	199,224	$	5,220,572	$	5,419,796	$	1,301


	December 31, 2021
	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	$	2,210	$	102	$	8,446	$	10,758	$	873,236	$	883,994	$	—
Other commercial and industrial	1,886		538		946		3,370		842,691		846,061		—
US commercial loans	—		—		—		—		444,940		444,940		—
	4,096		640		9,392		14,128		2,160,867		2,174,995		—
Mortgage	8,704		7,855		43,468		60,027		658,821		718,848		2,346
Consumer
Personal loans	2,382		1,131		1,116		4,629		342,230		346,859		—
Credit lines	531		141		227		899		13,876		14,775		—
Credit cards	610		336		631		1,577		45,218		46,795		—
Overdraft	130		14		—		144		186		330		—
	3,653		1,622		1,974		7,249		401,510		408,759		—
Auto and leasing	60,038		30,234		13,461		103,733		1,589,296		1,693,029		—
Total loans	$	76,491	$	40,351	$	68,295	$	185,137	$	4,810,494	$	4,995,631	$	2,346

Schedule of Investment in Loans on Non-Accrual Status

The following table presents the amortized cost basis of loans on nonaccrual status as of June 30, 2022 and December 31, 2021:


	June 30, 2022						December 31, 2021
	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)
Non-PCD:
Commercial
Commercial secured by real estate	$	17,088	$	18,134	$	35,222	$	16,299	$	19,538	$	35,837
Other commercial and industrial	2,698		294		2,992		1,284		483		1,767
US commercial loans	8,992		—		8,992		—		—		—
	28,778		18,428		47,206		17,583		20,021		37,604
Mortgage	14,062		9,319		23,381		16,428		12,840		29,268
Consumer
Personal loans	882		338		1,220		1,143		302		1,445
Personal lines of credit	164		—		164		226		—		226
Credit cards	603		—		603		632		—		632
	1,649		338		1,987		2,001		302		2,303
Auto and leasing	15,328		1		15,329		19,827		2		19,829
Total	$	59,817	$	28,086	$	87,903	$	55,839	$	33,165	$	89,004

PCD:
Commercial
Commercial secured by real estate	$	3,406	$	6,611	$	10,017	$	5,205	$	6,198	$	11,403
Other commercial and industrial	—		40		40		1,102		40		1,142
	3,406		6,651		10,057		6,307		6,238		12,545
Mortgage	261		—		261		334		—		334



Total	$	3,667	$	6,651	$	10,318	$	6,641	$	6,238	$	12,879
Total non-accrual loans	$	63,484	$	34,737	$	98,221	$	62,480	$	39,403	$	101,883

Schedule of Troubled Debt Restructurings

The following table presents the troubled-debt restructurings in all loan portfolios as of June 30, 2022 and December 31, 2021.


	June 30, 2022								December 31, 2021
	Accruing		Non-accruing		Total		Related Allowance		Accruing		Non-accruing		Total		Related Allowance
	(In thousands)
Commercial loans:
Commercial secured by real estate	$	30,987	$	14,033	$	45,020	$	273	$	10,981	$	14,444	$	25,425	$	202
Other commercial and industrial	2,532		403		2,935		54		2,785		473		3,258		41

US commercial loans	7,203		—		7,203		197		7,156		—		7,156		126
	40,722		14,436		55,158		524		20,922		14,917		35,839		369
Mortgage	106,658		8,981		115,639		3,106		101,487		9,475		110,962		3,867
Consumer:
Personal loans	2,519		13		2,532		122		3,275		139		3,414		159




Auto and leasing	97		1		98		4		203		8		211		11
Total loans	$	149,996	$	23,431	$	173,427	$	3,756	$	125,887	$	24,539	$	150,426	$	4,406

The following tables present the troubled-debt restructurings by loan portfolios and modification type as of June 30, 2022 and December 31, 2021:


	June 30, 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	$	8,093	$	25,777	$	7,947	$	3,203	$	45,020
Other commercial and industrial	818		1,600		493		24		2,935

US commercial loans	7,203		—		—		—		7,203
	16,114		27,377		8,440		3,227		55,158
Mortgage	36,793		7,747		37,519		33,580		115,639
Consumer:
Personal loans	1,088		204		1,126		114		2,532




Auto and leasing	44		—		25		29		98
Total loans	$	54,039	$	35,328	$	47,110	$	36,950	$	173,427


	December 31, 2021
	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	$	8,461	$	1,227	$	12,401	$	3,336	$	25,425
Other commercial and industrial	723		1,985		522		28		3,258

US commercial loans	7,156		—		—		—		7,156
	16,340		3,212		12,923		3,364		35,839
Mortgage	37,307		6,796		32,456		34,403		110,962
Consumer:
Personal loans	1,496		287		1,430		201		3,414





Auto and leasing	74		—		28		109		211
Total loans	$	55,217	$	10,295	$	46,837	$	38,077	$	150,426

Loan modifications that are considered TDR loans completed during the quarters and six-month periods ended June 30, 2022 and 2021 were as follows:


	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


	Quarter Ended June 30, 2021
	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	44	5,104		4.24	%	303	4,880		3.59	%	349
Commercial	1	991		4.25	%	175	880		5.75	%	60
Consumer	7	139		12.76	%	72	139		9.47	%	76
Auto and leasing	3	44		13.15	%	78	44		10.15	%	73


	Six-Month Period Ended June 30, 2021
	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	70	$	8,661	4.14	%	302	$	8,460	3.60	%	342
Commercial	3	1,176		4.72	%	157	1,085		5.95	%	60
Consumer	9	155		12.65	%	70	156		9.52	%	75
Auto and leasing	8	126		9.04	%	70	126		9.93	%	49

The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month periods ended June 30, 2022 and 2021:


	Twelve-Month Period Ended June 30,
	2022			2021
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Mortgage	7	$	800	19	$	2,191

Consumer	3	$	47	1	$	14
Auto and leasing	—	$	—	11	$	64

Schedule of Aging of the Amortized Cost of Collateral-Dependent Loans Held for Investment

The table below presents the amortized cost of collateral-dependent loans held for investment at June 30, 2022 and December 31, 2021, by class of loans.


	June 30, 2022		December 31, 2021
	(In thousands)
Commercial loans:
Commercial secured by real estate	$	21,565	$	10,233

Schedule of Credit Quality Indicators of Loans

As of June 30, 2022 and based on the most recent analysis performed, the risk category of loans 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	$	136,168	$	181,469	$	121,765	$	111,269	$	67,813	$	186,450	$	42,048	$	846,982
Special Mention	—		—		608		31,749		4,353		7,463		685		44,858
Substandard	—		8,689		10,080		167		511		16,643		3,694		39,784
Doubtful	—		—		—		—		—		18		523		541
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	136,168		190,158		132,453		143,185		72,677		210,574		46,950		932,165
Other commercial and industrial:
Loan grade:
Pass	57,167		224,278		81,381		39,130		58,787		14,136		382,607		857,486
Special Mention	—		9		29		680		1,954		—		2,217		4,889
Substandard	126		57		175		196		503		120		2,015		3,192
Doubtful	—		—		—		—		—		—		46		46
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	57,293		224,344		81,585		40,006		61,244		14,256		386,885		865,613
US commercial loans:
Loan grade:
Pass	54,361		85,534		57,794		37,559		52,194		—		314,371		601,813
Special Mention	—		—		—		—		4,912		—		—		4,912
Substandard	887		—		7,203		1,538		2,958		—		—		12,586
Doubtful	—		—		—		—		4,496		—		—		4,496
Loss	—		—		—		—		—		—		—		—
Total US commercial loans:	55,248		85,534		64,997		39,097		64,560		—		314,371		623,807
Total commercial loans	$	248,709	$	500,036	$	279,035	$	222,288	$	198,481	$	224,830	$	748,206	$	2,421,585

As of December 31, 2021 and based on the most recent analysis performed, the risk category of loans 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
	2021		2020		2019		2018		2017		Prior
	(In thousands)
Commercial:
Commercial secured by real estate:
Loan grade:
Pass	$	183,820	$	120,855	$	114,208	$	94,864	$	52,439	$	183,026	$	45,178	$	794,390
Special Mention	654		628		32,578		4,581		4,053		5,102		643		48,239
Substandard	8,415		10,694		58		849		1,357		17,555		1,671		40,599
Doubtful	—		—		—		—		—		22		744		766
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	192,889		132,177		146,844		100,294		57,849		205,705		48,236		883,994
Other commercial and industrial:
Loan grade:
Pass	276,165		93,809		45,976		57,989		6,106		6,004		330,072		816,121
Special Mention	78		23		8,076		2,213		3,525		—		13,642		27,557
Substandard	112		48		155		394		81		28		1,513		2,331
Doubtful	—		—		—		—		—		—		52		52
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	276,355		93,880		54,207		60,596		9,712		6,032		345,279		846,061
US commercial loans:
Loan grade:
Pass	85,394		61,098		41,924		47,179		—		—		171,928		407,523
Special Mention	—		—		1,515		19,095		—		—		—		20,610
Substandard	—		7,156		—		9,651		—		—		—		16,807
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total US commercial loans:	85,394		68,254		43,439		75,925		—		—		171,928		444,940
Total commercial loans	$	554,638	$	294,311	$	244,490	$	236,815	$	67,561	$	211,737	$	565,443	$	2,174,995

The following table presents the amortized cost in mortgage and consumer loans based on payment activity as of June 30, 2022:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	2022		2021		2020		2019		2018		Prior
	(In thousands)
Mortgage:
Payment performance:
Performing	$	10,017	$	26,538	$	16,966	$	15,111	$	17,007	$	589,770	$	—	$	—	$	675,409
Nonperforming	—		—		123		858		462		31,903		—		—		33,346
Total mortgage loans:	10,017		26,538		17,089		15,969		17,469		621,673		—		—		708,755
Consumer:
Personal loans:
Payment performance:
Performing	180,716		142,304		40,917		45,414		19,418		10,430		—		—		439,199
Nonperforming	33		295		162		194		168		368		—		—		1,220
Total personal loans	180,749		142,599		41,079		45,608		19,586		10,798		—		—		440,419
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		13,433		—		13,433
Nonperforming	—		—		—		—		—		—		164		—		164
Total credit lines	—		—		—		—		—		—		13,597		—		13,597
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		43,471		—		43,471
Nonperforming	—		—		—		—		—		—		603		—		603
Total credit cards	—		—		—		—		—		—		44,074		—		44,074
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		314		—		314
Nonperforming	—		—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		314		—		314
Total consumer loans	180,749		142,599		41,079		45,608		19,586		10,798		57,985		—		498,404
Total mortgage and consumer loans	$	190,766	$	169,137	$	58,168	$	61,577	$	37,055	$	632,471	$	57,985	$	—	$	1,207,159

The following table presents the amortized cost in mortgage and consumer loans based on payment activity as of December 31, 2021:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	2021		2020		2019		2018		2017		Prior
	(In thousands)
Mortgage:
Payment performance:
Performing	$	18,486	$	16,585	$	15,461	$	19,261	$	24,872	$	584,792	$	—	$	—	$	679,457
Nonperforming	—		126		129		510		1,830		36,796		—		—		39,391
Total mortgage loans:	18,486		16,711		15,590		19,771		26,702		621,588		—		—		718,848
Consumer:
Personal loans:
Payment performance:
Performing	175,273		55,960		65,425		29,808		12,287		6,661		—		—		345,414
Nonperforming	296		239		411		143		20		336		—		—		1,445
Total personal loans	175,569		56,199		65,836		29,951		12,307		6,997		—		—		346,859
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		14,549		—		14,549
Nonperforming	—		—		—		—		—		—		226		—		226
Total credit lines	—		—		—		—		—		—		14,775		—		14,775
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		46,163		—		46,163
Nonperforming	—		—		—		—		—		—		632		—		632
Total credit cards	—		—		—		—		—		—		46,795		—		46,795
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		330		—		330
Nonperforming	—		—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		330		—		330
Total consumer loans	175,569		56,199		65,836		29,951		12,307		6,997		61,900		—		408,759
Total mortgage and consumer loans	$	194,055	$	72,910	$	81,426	$	49,722	$	39,009	$	628,585	$	61,900	$	—	$	1,127,607

The following table presents the amortized cost in auto loans and leases based on their most recent FICO score as of June 30, 2022:


	Term Loans Amortized Cost Basis by Origination Year												Total
	2022		2021		2020		2019		2018		Prior
	(In thousands)
Auto and leasing:
FICO score:
1-660	78,283		149,018		76,504		66,065		52,072		43,198		465,140
661-699	76,782		124,169		53,105		36,849		27,029		19,624		337,558
700+	164,107		247,689		163,079		159,093		109,330		71,625		914,923
No FICO	13,379		20,182		11,555		14,032		8,201		6,082		73,431
Total auto and leasing:	$	332,551	$	541,058	$	304,243	$	276,039	$	196,632	$	140,529	$	1,791,052

The following table presents the amortized cost in auto loans and leases based on their most recent FICO score as of December 31, 2021:


	Term Loans Amortized Cost Basis by Origination Year												Total
	2021		2020		2019		2018		2017		Prior
	(In thousands)
Auto and leasing:
FICO score:
1-660	161,534		90,402		80,745		65,681		38,001		23,171		459,534
661-699	134,507		68,422		48,173		33,854		16,761		10,534		312,251
700+	245,148		180,737		184,307		133,098		63,229		38,474		844,993
No FICO	26,759		13,580		17,062		10,119		5,515		3,216		76,251
Total auto and leasing:	$	567,948	$	353,141	$	330,287	$	242,752	$	123,506	$	75,395	$	1,693,029