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LOANS HELD FOR INVESTMENT

3 Months Ended

Mar. 31, 2020

NOTE 7 – LOANS HELD FOR INVESTMENT

The following provides information about the loan portfolio held for investment as of the indicated dates:

	As of March 31,		As of December 31,
	2020		2019
(In thousands)
Residential mortgage loans, mainly secured by first mortgages	$	2,875,672	$	2,933,773
Construction loans		159,675		111,317
Commercial mortgage loans		1,454,753		1,444,586
Commercial and Industrial loans (1)		2,236,218		2,230,876
Consumer loans		2,312,629		2,281,653
Loans held for investment		9,038,947		9,002,205
Allowance for credit losses on loans and finance leases		(292,774)		(155,139)
Loans held for investment, net	$	8,746,173	$	8,847,066

As of March 31, 2020 and December 31, 2019, includes $712.6 million and $719.0 million, respectively, of commercial loans that were secured by real estate but are not dependent upon the real estate for repayment.

The following tables present by portfolio classes the amortized cost basis of loans on nonaccrual status and loans 90 days or more still accruing as of March 31, 2020 and December 31, 2019 and the interest income recognized on nonaccrual loans for the quarter ended March 31, 2020:

		As of March 31, 2020										As of December 31, 2019
Puerto Rico and Virgin Islands region		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing
(In thousands)		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing

Residential mortgage loans, mainly secured
by first mortgages:
	FHA\VA government-guaranteed	$	-	$	-	$	-	$	77,637	$	-	$	-	$	81,011
	Conventional residential mortgage loans		34,603		74,117		108,720		37,968		294		108,117		40,208
Construction loans			6,991		2,672		9,663		29		20		9,782		-
Commercial mortgage loans			12,687		23,266		35,953		4,072		74		40,076		2,222
Commercial and Industrial loans			5,979		13,463		19,442		6,510		32		18,458		7,061
Consumer Loans:
Auto loans			37		14,764		14,801		-		50		12,057		-
Finance leases			-		1,925		1,925		-		11		1,354		-
Personal loans			-		1,498		1,498		-		19		1,523		-
Credit cards			-		-		-		4,513		-		-		4,411
Other consumer loans			1,032		3,931		4,963		-		5		5,016		-
Total loans held for investment ^{(1) (2) (3)}		$	61,329	$	135,636	$	196,965	$	130,729	$	505	$	196,383	$	134,913

Nonaccrual loans exclude $391.9 million and $388.4 million of TDR loans that were in compliance with modified terms and in accrual status as of March 31, 2020 and December 31, 2019, respectively.Excludes PCD loans previously accounted for under ASC 310-30 for which the Corporation made the accounting policy election to maintain pools of loans accounted for under ASC 310-30 as “units of account” both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement. These loans will accrete interest income based on the effective interest rate of the loan pools determined at the time of adoption of ASC 326 and will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The amortized cost of such loans as of March 31, 2020 and December 31, 2019 amounted to $134.0 million and $136.7 million, respectively.Includes 90-day past due and still accruing PCD loans previously accounted for under ASC 310-30 for which the Corporation made the accounting policy election to maintain pools of such loans both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement. The amortized cost of 90 days past due and still accruing PCD loans as of March 31, 2020 and December 31, 2019 amounted to $25.4 million and $27.0 million, respectively.

		As of March 31, 2020										As of December 31, 2019
Florida region		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing
(In thousands)		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing

Residential mortgage loans, mainly secured
by first mortgages:
	FHA\VA government-guaranteed	$	-	$	-	$	-	$	129	$	-	$	-	$	129
	Conventional residential mortgage loans		196		13,987		14,183		-		83		13,291		-
Construction loans			-		-		-		-		-		-		-
Commercial mortgage loans			-		-		-		583		-		-		-
Commercial and Industrial loans			292		-		292		-		19		315		-
Consumer Loans:
Auto loans			-		126		126		-		2		163		-
Finance leases			-		-		-		-		-		-		-
Personal loans			-		254		254		-		2		5		-
Credit cards			-		-		-		-		-		-		-
Other consumer loans			475		-		475		-		4		511		-
Total loans held for investment ⁽¹⁾		$	963	$	14,367	$	15,330	$	712	$	110	$	14,285	$	129

Nonaccrual loans exclude $9.7 million and $9.9 million of TDR loans that were in compliance with modified terms and in accrual status as of March 31, 2020 and December 31, 2019, respectively.

		As of March 31, 2020										As of December 31, 2019
Total		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing
(In thousands)		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing


Residential mortgage loans, mainly secured
by first mortgages:
	FHA\VA government-guaranteed	$	-	$	-	$	-	$	77,766	$	-	$	-	$	81,140
	Conventional residential mortgage loans		34,799		88,104		122,903		37,968		377		121,408		40,208
Construction loans			6,991		2,672		9,663		29		20		9,782		-
Commercial mortgage loans			12,687		23,266		35,953		4,655		74		40,076		2,222
Commercial and Industrial loans			6,271		13,463		19,734		6,510		51		18,773		7,061
Consumer Loans:
Auto loans			37		14,890		14,927		-		52		12,220		-
Finance leases			-		1,925		1,925		-		11		1,354		-
Personal loans			-		1,752		1,752		-		21		1,528		-
Credit cards			-		-		-		4,513		-		-		4,411
Other consumer loans			1,507		3,931		5,438		-		9		5,527		-
Total loans held for investment ^{(1) (2) (3)}		$	62,292	$	150,003	$	212,295	$	131,441	$	615	$	210,668	$	135,042

Nonaccrual loans exclude $401.6 million and $398.3 million of TDR loans that were in compliance with modified terms and in accrual status as of March 31, 2020 and December 31, 2019, respectively.Excludes PCD loans previously accounted for under ASC 310-30 for which the Corporation made the accounting policy election to maintain pools of loans accounted for under ASC 310-30 as “units of account” both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement. These loans will accrete interest income based on the effective interest rate of the loan pools determined at the time of adoption of ASC 326 and will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The amortized cost of such loans as of March 31, 2020 and December 31, 2019 amounted to $134.0 million and $136.7 million, respectively.Includes 90-day past due and still accruing PCD loans previously accounted for under ASC 310-30 for which the Corporation made the accounting policy election to maintain pools of such loans both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement. The amortized cost of 90 days past due and still accruing PCD loans as of March 31, 2020 and December 31, 2019 amounted to $25.4 million and $27.0 million, respectively. As of March 31, 2020, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $159.3 million, including $38.1 million of loans insured by the FHA or guaranteed by the VA, and $19.5 million of PCD loans acquired prior to the adoption, on January 1, 2020, of ASC 326 and for which the Corporation made the accounting policy election of maintaining pools of loans previously accounted for under ASC 310-30 as “units of account.” The Corporation commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent in accordance with the requirements of the Consumer Financial Protection Bureau (“CFPB”). Foreclosure procedures and timelines vary depending on whether the property is located in a judicial or non-judicial state. Judicial states (i.e., Puerto Rico, Florida and the USVI) require the foreclosure to be processed through the state’s court while foreclosure in non-judicial states (i.e., the BVI) is processed without court intervention. Foreclosure timelines vary according to local jurisdiction law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediations, bankruptcy, court delays and title issues.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes as of March 31, 2020 is as follows:

As of March 31, 2020
Puerto Rico and Virgin Islands region	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due⁽¹⁾⁽²⁾		Total Past Due		Current		Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed loans ^{(2) (3) (4)}	$	-	$	1,956	$	77,637	$	79,593	$	37,734	$	117,327
Conventional residential mortgage loans ^{(2) (4) (5)}		-		38,129		146,688		184,817		2,016,028		2,200,845
Commercial loans:
Construction loans⁽⁴⁾		-		81		9,692		9,773		48,740		58,513
Commercial mortgage loans ^{(4) (6)}		311		348		40,025		40,684		1,038,705		1,079,389
Commercial and Industrial loans		1,714		333		25,952		27,999		1,343,429		1,371,428
Consumer loans:
Auto loans		23,870		2,193		14,801		40,864		1,095,410		1,136,274
Finance leases		4,418		567		1,925		6,910		422,236		429,146
Personal loans		3,980		771		1,498		6,249		266,647		272,896
Credit cards		2,019		2,358		4,513		8,890		275,184		284,074
Other consumer loans		3,903		1,395		4,963		10,261		143,753		154,014
Total loans held for investment	$	40,215	$	48,131	$	327,694	$	416,040	$	6,687,866	$	7,103,906

Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $34.6 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.As of March 31, 2020, includes $35.0 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days as of March 31, 2020 amounted to $7.7 million, $86.8 million, $4.2 million, and $0.1 million, respectively.Includes residential mortgage loans, previously accounted for under ASC 310-30, for which the Corporation made the accounting policy election to maintain pools of loans as “units of account” both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement, with individual delinquencies as follow: current – $104.2 million, 60-89 days past due – $3.5 million, and 90 days or more past due – $23.8 million.Includes commercial mortgage loans, previously accounted for under ASC 310-30, for which the Corporation made the accounting policy election to maintain pools of loans as “units of account” both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement, with individual delinquencies as follow: current – $0.9 million, and 90 days or more past due – $1.6 million.


As of March 31, 2020
Florida region	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due ^{(1) (2)}		Total Past Due		Current		Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed loans ^{(2) (3)}	$	-	$	-	$	129	$	129	$	1,059	$	1,188
Conventional residential mortgage loans ⁽³⁾		-		1,918		14,183		16,101		540,211		556,312
Commercial loans:
Construction loans		-		-		-		-		101,162		101,162
Commercial mortgage loans⁽³⁾		23		-		583		606		374,758		375,364
Commercial and Industrial loans		2,633		212		292		3,137		861,653		864,790
Consumer loans:
Auto loans		1,021		237		126		1,384		25,394		26,778
Finance leases		-		-		-		-		-		-
Personal loans		-		-		254		254		171		425
Credit cards		-		-		-		-		-		-
Other consumer loans		26		152		475		653		8,369		9,022
Total loans held for investment	$	3,703	$	2,519	$	16,042	$	22,264	$	1,912,777	$	1,935,041

Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans).It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. No residential mortgage loans insured by the FHA in the Florida region were over 15 months delinquent as of March 31, 2020.According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days as of March 31, 2020 amounted to $0.1 million, $12.2 million, and $0.3 million, respectively.


As of March 31, 2020
Total	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due^{(1) (2)}		Total Past Due		Current		Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed loans ^{(2) (3) (4)}	$	-	$	1,956	$	77,766	$	79,722	$	38,793	$	118,515
Conventional residential mortgage loans ^{(2) (4) (5)}		-		40,047		160,871		200,918		2,556,239		2,757,157
Commercial loans:
Construction loans ⁽⁴⁾		-		81		9,692		9,773		149,902		159,675
Commercial mortgage loans ^{(4) (6)}		334		348		40,608		41,290		1,413,463		1,454,753
Commercial and Industrial loans		4,347		545		26,244		31,136		2,205,082		2,236,218
Consumer loans:
Auto loans		24,891		2,430		14,927		42,248		1,120,804		1,163,052
Finance leases		4,418		567		1,925		6,910		422,236		429,146
Personal loans		3,980		771		1,752		6,503		266,818		273,321
Credit cards		2,019		2,358		4,513		8,890		275,184		284,074
Other consumer loans		3,929		1,547		5,438		10,914		152,122		163,036
Total loans held for investment	$	43,918	$	50,650	$	343,736	$	438,304	$	8,600,643	$	9,038,947

Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $34.6 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.As of March 31, 2020, includes $35.0 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days as of March 31, 2020 amounted to $7.8 million, $99.0 million, $4.5 million, and $0.1 million, respectively.Includes residential mortgage loans, previously accounted for under ASC 310-30, for which the Corporation made the accounting policy election to maintain pools of loans as “units of account” both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement, with individual delinquencies as follow: current – $104.2 million, 60-89 days past due – $3.5 million, and 90 days or more past due – $23.8 million.Includes commercial mortgage loans, previously accounted for under ASC 310-30, for which the Corporation made the accounting policy election to maintain pools of loans as “units of account” both at the time of adoption of ASC 326 and on an ongoing basis for credit loss measurement, with individual delinquencies as follow: current – $0.9 million, and 90 days or more past due – $1.6 million.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes as of December 31, 2019 is as follows:

As of December 31, 2019
Puerto Rico and Virgin Islands region	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due^{(1) (2)}		Total Past Due		Current		Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed loans ^{(2) (3) (4)}	$	-	$	2,068	$	81,011	$	83,079	$	39,350	$	122,429
Conventional residential mortgage loans^{(2) (4) (5)}		-		83,308		148,325		231,633		2,013,525		2,245,158
Commercial loans:
Construction loans ⁽⁴⁾		-		105		9,782		9,887		38,359		48,246
Commercial mortgage loans ^{(4) (6)}		-		2,681		42,298		44,979		1,034,921		1,079,900
Commercial and Industrial loans		1,454		105		25,519		27,078		1,364,335		1,391,413
Consumer loans:
Auto loans		35,163		8,267		12,057		55,487		1,048,873		1,104,360
Finance leases		6,501		1,402		1,354		9,257		405,275		414,532
Personal loans		4,008		2,084		1,523		7,615		266,478		274,093
Credit cards		2,896		2,096		4,411		9,403		282,887		292,290
Other consumer loans		3,870		1,575		5,016		10,461		145,395		155,856
Total loans held for investment	$	53,892	$	103,691	$	331,296	$	488,879	$	6,639,398	$	7,128,277

Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $37.9 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.As of December 31, 2019, includes $35.6 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days as of December 31, 2019 amounted to $6.7 million, $110.5 million, $6.0 million, and $0.1 million respectively.Amount includes PCD residential mortgage loans with individual delinquencies as follow: current – $101.2 million, 60-89 days past due – $7.5 million, and 90 days or more past due – $25.0 million.Amount includes PCD commercial mortgage loans with individual delinquencies as follow: current – $0.9 million, and 90 days or more past due – $2.0 million.


As of December 31, 2019
Florida region	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due ^{(1) (2)}		Total Past Due		Current		Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed loans ^{(2) (3)}	$	-	$	-	$	129	$	129	$	1,351	$	1,480
Conventional residential mortgage loans ^{(2) (3)}		-		2,193		13,291		15,484		549,222		564,706
Commercial loans:
Construction loans		-		-		-		-		63,071		63,071
Commercial mortgage loans⁽³⁾		-		870		-		870		363,816		364,686
Commercial and Industrial loans		331		-		315		646		838,817		839,463
Consumer loans:
Auto loans		1,270		272		163		1,705		28,790		30,495
Finance leases		-		-		-		-		-		-
Personal loans		-		-		5		5		777		782
Credit cards		-		-		-		-		-		-
Other consumer loans		147		2		511		660		8,585		9,245
Total loans held for investment	$	1,748	$	3,337	$	14,414	$	19,499	$	1,854,429	$	1,873,928

Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards).It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. No residential mortgage loans insured by the FHA in the Florida region were over 15 months delinquent.According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days as of December 31, 2019 amounted to $0.4 million, $5.8 million, and $0.6 million respectively.


As of December 31, 2019
Total	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due ^{(1) (2)}		Total Past Due		Current		Total loans held for investment
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed loans^{(2) (3) (4)}	$	-	$	2,068	$	81,140	$	83,208	$	40,701	$	123,909
Conventional residential mortgage loans^{(2) (4) (5)}		-		85,501		161,616		247,117		2,562,747		2,809,864
Commercial loans:
Construction loans ⁽⁴⁾		-		105		9,782		9,887		101,430		111,317
Commercial mortgage loans ^{(4) (6)}		-		3,551		42,298		45,849		1,398,737		1,444,586
Commercial and Industrial loans		1,785		105		25,834		27,724		2,203,152		2,230,876
Consumer loans:
Auto loans		36,433		8,539		12,220		57,192		1,077,663		1,134,855
Finance leases		6,501		1,402		1,354		9,257		405,275		414,532
Personal loans		4,008		2,084		1,528		7,620		267,255		274,875
Credit cards		2,896		2,096		4,411		9,403		282,887		292,290
Other consumer loans		4,017		1,577		5,527		11,121		153,980		165,101
Total loans held for investment	$	55,640	$	107,028	$	345,710	$	508,378	$	8,493,827	$	9,002,205

Includes nonaccrual loans and accruing loans that were contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days.It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA, guaranteed by the VA, and other government-insured loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans since the principal repayment is insured. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $37.9 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.As of December 31, 2019, includes $35.6 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans.According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and construction loans past due 30-59 days as of December 31, 2019 amounted to $7.1 million, $116.2 million, $6.6 million, and $0.1 million respectively.Amount includes PCD residential mortgage loans with individual delinquencies as follow: current – $101.2 million, 60-89 days past due –$7.5 million, and 90 days or more past due – $25.0 million.Amount includes PCD commercial mortgage loans with individual delinquencies as follow: current –$0.9 million, and 90 days or more past due – $2.0 million.

Credit Quality Indicators:

The Corporation categorized loans into risk categories based on relevant information about the ability of the borrower to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes non-homogeneous loans, such as commercial mortgage, commercial and industrial, and construction loans individually to classify the loans’ credit risk. As mentioned above, the Corporation periodically reviews its commercial and construction loan classifications to evaluate if they are properly classified. The frequency of these reviews will depend on the amount of the aggregate outstanding debt, and the risk rating classification of the obligor. In addition, during the renewal and annual review process of applicable credit facilities, the Corporation evaluates the corresponding loan grades. The Corporation uses the same definition for risk ratings as those described for Puerto Rico municipal bonds accounted for as held-to-maturity securities, as discussed in Note 5 – Investment Securities above.

For residential mortgage and consumer loans, the Corporation also evaluates credit quality based on credit scores and loan-to-value ratios, if applicable.

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by origination year based on the internal credit-risk category as of March 13, 2020 and the amortized cost of commercial and construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2019 was as follows:

	As of March 31, 2020
Puerto Rico and Virgin Islands Region	Term Loans																As of December 31, 2019
Puerto Rico and Virgin Islands Region	Amortized Cost Basis by Origination Year																As of December 31, 2019
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total

CONSTRUCTION
Risk Ratings:
Pass	$	5,033	$	13,945	$	3,170	$	14,629	$	5,329	$	3,992	$	-	$	46,098	$	35,680
Criticized:
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		886		1,858		-		5,150		4,521		-		12,415		12,566
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total construction loans	$	5,033	$	14,831	$	5,028	$	14,629	$	10,479	$	8,513	$	-	$	58,513	$	48,246

COMMERCIAL MORTGAGE
Risk Ratings:
Pass	$	86,063	$	295,273	$	175,341	$	42,555	$	73,336	$	260,877	$	13	$	933,458	$	891,298
Criticized:
Special Mention		284		-		-		79,998		-		11,205		-		91,487		13,080
Substandard		-		-		-		-		2,337		52,107		-		54,444		175,522
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial mortgage loans	$	86,347	$	295,273	$	175,341	$	122,553	$	75,673	$	324,189	$	13	$	1,079,389	$	1,079,900

COMMERCIAL AND INDUSTRIAL
Risk Ratings:
Pass	$	10,811	$	225,388	$	146,464	$	138,815	$	55,130	$	304,636	$	423,165	$	1,304,409	$	1,321,804
Criticized:
Special Mention		-		-		573		933		82		9,175		8,485		19,248		39,327
Substandard		-		96		2,491		98		1,197		38,136		5,753		47,771		27,265
Doubtful		-		-		-		-		-		-		-		-		2,768
Loss		-		-		-		-		-		-		-		-		249
Total commercial and industrial loans	$	10,811	$	225,484	$	149,528	$	139,846	$	56,409	$	351,947	$	437,403	$	1,371,428	$	1,391,413

					As of March 31, 2020
					Term Loans												As of December 31, 2019
Florida Region					Amortized Cost Basis by Origination Year												As of December 31, 2019
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total

CONSTRUCTION
Risk Ratings:
Pass	$	30,335	$	9,744	$	39,703	$	17,064	$	-	$	-	$	4,316	$	101,162	$	63,071
Criticized:
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total construction loans	$	30,335	$	9,744	$	39,703	$	17,064	$	-	$	-	$	4,316	$	101,162	$	63,071

COMMERCIAL MORTGAGE
Risk Ratings:
Pass	$	1,314	$	82,887	$	36,929	$	46,347	$	52,333	$	90,578	$	64,661	$	375,049	$	364,370
Criticized:
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		315		-		315		316
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial mortgage loans	$	1,314	$	82,887	$	36,929	$	46,347	$	52,333	$	90,893	$	64,661	$	375,364	$	364,686

COMMERCIAL AND INDUSTRIAL
Risk Ratings:
Pass	$	34,894	$	244,020	$	152,326	$	164,636	$	21,747	$	65,450	$	179,979	$	863,052	$	837,697
Criticized:
Special Mention		-		-		-		-		-		-		-		-		1,766
Substandard		-		-		-		-		-		1,738		-		1,738		-
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial and industrial loans	$	34,894	$	244,020	$	152,326	$	164,636	$	21,747	$	67,188	$	179,979	$	864,790	$	839,463

	As of March 31, 2020
Total	Term Loans																As of December 31, 2019
	Amortized Cost Basis by Origination Year																As of December 31, 2019
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total

CONSTRUCTION
Risk Ratings:
Pass	$	35,368	$	23,689	$	42,873	$	31,693	$	5,329	$	3,992	$	4,316	$	147,260	$	98,751
Criticized:
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		886		1,858		-		5,150		4,521		-		12,415		12,566
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total construction loans	$	35,368	$	24,575	$	44,731	$	31,693	$	10,479	$	8,513	$	4,316	$	159,675	$	111,317

COMMERCIAL MORTGAGE
Risk Ratings:
Pass	$	87,377	$	378,159	$	212,270	$	88,902	$	125,669	$	351,455	$	64,674	$	1,308,506	$	1,255,668
Criticized:
Special Mention		284		-		-		79,999		-		11,205		-		91,488		13,080
Substandard		-		-		-		-		2,337		52,422		-		54,759		175,838
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial mortgage loans	$	87,661	$	378,159	$	212,270	$	168,901	$	128,006	$	415,082	$	64,674	$	1,454,753	$	1,444,586

COMMERCIAL AND INDUSTRIAL
Risk Ratings:
Pass	$	45,706	$	469,408	$	298,790	$	303,451	$	76,877	$	370,085	$	603,144	$	2,167,461	$	2,159,501
Criticized:
Special Mention		-		-		573		933		82		9,175		8,485		19,248		39,327
Substandard		-		96		2,491		98		1,197		39,874		5,753		49,509		29,031
Doubtful		-		-		-		-		-		-		-		-		2,768
Loss		-		-		-		-		-		-		-		-		249
Total commercial and industrial loans	$	45,706	$	469,504	$	301,854	$	304,482	$	78,156	$	419,134	$	617,382	$	2,236,218	$	2,230,876

The following table presents the amortized cost in residential mortgage loans by origination year based on original loan-to-value-ratio (LTV) and original credit scores as of March 31, 2020 and the amortized cost in residential mortgage loans by original LTV and original credit scores as of December 31, 2019:

	As of March 31, 2020																As of December 31, 2019
	Term Loans
RESIDENTIAL MORTGAGES	Amortized Cost Basis by Origination Year
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total


Puerto Rico and Virgin Islands region:
FHA/VA government-guaranteed loans	$	-	$	356	$	2,130	$	2,770	$	5,739	$	106,332	$	-	$	117,327	$	122,429
Conventional residential mortgage loans:
Original LTV
Less than or equal to 90 percent		10,306		63,081		98,430		64,562		85,527		1,331,475		-		1,653,381		1,684,340
Greater than 90 percent but less than
or equal to 100 percent		163		1,567		5,073		2,414		11,432		429,446		-		450,095		460,879
Greater than 100 percent		-		926		5,497		3,138		7,323		80,485		-		97,369		99,939
Total residential mortgages in
Puerto Rico and Virgin Islands region	$	10,469	$	65,930	$	111,130	$	72,884	$	110,021	$	1,947,738	$	-	$	2,318,172	$	2,367,587

Florida region:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	290	$	-	$	898	$	-	$	1,188	$	1,480
Conventional residential mortgage loans:
Original LTV
Less than or equal to 90 percent		8,591		56,229		69,912		97,647		89,226		219,892		-		541,497		549,850
Greater than 90 percent but less than
or equal to 100 percent		180		2,047		3,298		5,334		2,540		1,357		-		14,756		14,796
Greater than 100 percent		-		-		-		-		-		59		-		59		60
Total residential mortgages in Florida region	$	8,771	$	58,276	$	73,210	$	103,271	$	91,766	$	222,206	$	-	$	557,500	$	566,186

Total:
FHA/VA government-guaranteed loans	$	-	$	356	$	2,130	$	3,060	$	5,739	$	107,230	$	-	$	118,515	$	123,909
Conventional residential mortgage loans:
Original LTV
Less than or equal to 90 percent		18,897		119,310		168,342		162,209		174,753		1,551,367		-		2,194,878		2,234,190
Greater than 90 percent but less than
or equal to 100 percent		343		3,614		8,371		7,748		13,972		430,803		-		464,851		475,675
Greater than 100 percent		-		926		5,497		3,138		7,323		80,544		-		97,428		99,999
Total residential mortgages	$	19,240	$	124,206	$	184,340	$	176,155	$	201,787	$	2,169,944	$	-	$	2,875,672	$	2,933,773

	As of March 31, 2020																As of December 31, 2019
	Term Loans
RESIDENTIAL MORTGAGES	Amortized Cost Basis by Origination Year
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total


Puerto Rico and Virgin Islands region:
FHA/VA government-guaranteed loans	$	-	$	356	$	2,130	$	2,770	$	5,739	$	106,332	$	-	$	117,327	$	122,429
Conventional residential mortgage loans:
FICO Score
Less than 620		-		-		463		1,280		75		280,356		-		282,174		286,754
Greater than or equal to 620
and less than 680		89		2,223		7,359		6,920		7,781		380,022		-		404,394		416,766
Greater than or equal to 680
and less than 740		4,682		23,085		40,264		21,361		35,242		492,137		-		616,771		626,291
Greater than or equal to 740		5,698		40,266		60,914		40,553		61,184		688,891		-		897,506		915,347
Total residential mortgages in
Puerto Rico and Virgin Islands region	$	10,469	$	65,930	$	111,130	$	72,884	$	110,021	$	1,947,738	$	-	$	2,318,172	$	2,367,587

Florida region:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	290	$	-	$	898	$	-	$	1,188	$	1,480
Conventional residential mortgage loans:
FICO Score
Less than 620		-		-		2,567		-		-		898		-		3,465		3,485
Greater than or equal to 620
and less than 680		264		5,155		3,643		10,412		11,910		18,380		-		49,764		51,164
Greater than or equal to 680
and less than 740		2,807		16,871		17,911		32,859		29,656		49,568		-		149,672		151,544
Greater than or equal to 740		5,700		36,250		49,089		59,710		50,200		152,462		-		353,411		358,513
Total residential mortgages in Florida region	$	8,771	$	58,276	$	73,210	$	103,271	$	91,766	$	222,206	$	-	$	557,500	$	566,186

Total:
FHA/VA government-guaranteed loans	$	-	$	356	$	2,130	$	3,060	$	5,739	$	107,230	$	-	$	118,515	$	123,909
Conventional residential mortgage loans:
FICO Score
Less than 620		-		-		3,030		1,280		75		281,254		-		285,639		290,239
Greater than or equal to 620
and less than 680		353		7,378		11,002		17,332		19,691		398,402		-		454,158		467,930
Greater than or equal to 680
and less than 740		7,489		39,956		58,175		54,220		64,898		541,705		-		766,443		777,835
Greater than or equal to 740		11,398		76,516		110,003		100,263		111,384		841,353		-		1,250,917		1,273,860
Total residential mortgages	$	19,240	$	124,206	$	184,340	$	176,155	$	201,787	$	2,169,944	$	-	$	2,875,672	$	2,933,773

The following table presents the amortized cost in consumer loans by origination year based on original credit scores as of March 31, 2020 and consumer loans based on original credit scores as of December 31, 2019:

CONSUMER	As of March 31, 2020
	Term Loans																As of December 31, 2019
Puerto Rico and Virgin Islands Region	Amortized Cost Basis by Origination Year																As of December 31, 2019
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total


Auto loans
Original FICO score
Less than 620	$	13,484	$	55,007	$	29,046	$	13,441	$	9,764	$	8,755	$	-	$	129,497	$	126,540
Greater than or equal to 620
and less than 680		36,068		160,298		104,758		47,050		24,460		23,238		-		395,872		388,890
Greater than or equal to 680
and less than 740		31,582		141,358		88,652		40,956		24,097		16,273		-		342,918		333,734
Greater than or equal to 740		30,328		110,340		58,096		33,387		22,474		13,362		-		267,987		255,196
Total auto loans	$	111,462	$	467,003	$	280,552	$	134,834	$	80,795	$	61,628	$	-	$	1,136,274	$	1,104,360

Finance leases
Original FICO score
Less than 620	$	917	$	6,052	$	5,140	$	2,259	$	737	$	591	$	-	$	15,696	$	15,852
Greater than or equal to 620
and less than 680		6,651		39,654		31,521		14,862		6,261		4,352		-		103,301		100,438
Greater than or equal to 680
and less than 740		11,902		64,512		53,723		22,471		14,122		8,562		-		175,292		170,034
Greater than or equal to 740		10,817		54,977		38,009		11,689		12,748		6,617		-		134,857		128,208
Total finance leases	$	30,287	$	165,195	$	128,393	$	51,281	$	33,868	$	20,122	$	-	$	429,146	$	414,532

Personal loans
Original FICO score
Less than 620	$	840	$	3,042	$	2,088	$	820	$	718	$	618	$	-	$	8,126	$	8,197
Greater than or equal to 620
and less than 680		4,901		27,691		12,014		4,921		1,849		1,032		-		52,408		52,712
Greater than or equal to 680
and less than 740		11,790		53,286		27,814		13,053		5,677		3,045		-		114,665		114,147
Greater than or equal to 740		8,746		40,676		26,457		12,686		6,275		2,857		-		97,697		98,668
Unscorable		-		-		-		-		-		-		-		-		369
Total personal loans	$	26,277	$	124,695	$	68,373	$	31,480	$	14,519	$	7,552	$	-	$	272,896	$	274,093

Credit cards
Original FICO score
Less than 620	$	-	$	-	$	-	$	-	$	-	$	-	$	10,823	$	10,823	$	11,247
Greater than or equal to 620
and less than 680		-		-		-		-		-		-		57,032		57,032		57,643
Greater than or equal to 680
and less than 740		-		-		-		-		-		-		124,289		124,289		126,977
Greater than or equal to 740		-		-		-		-		-		-		91,930		91,930		96,423
Total credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	284,074	$	284,074	$	292,290

Other consumer loans
Original FICO score
Less than 620	$	2,887	$	13,848	$	3,776	$	2,308	$	1,046	$	812	$	3,608	$	28,285	$	28,251
Greater than or equal to 620
and less than 680		7,984		33,375		9,625		5,282		2,455		7,012		1,982		67,715		68,727
Greater than or equal to 680
and less than 740		5,475		19,082		6,238		3,065		1,366		3,329		3,367		41,922		41,914
Greater than or equal to 740		1,234		5,074		1,630		928		408		2,115		1,692		13,081		13,359
Unscorable		-		-		-		-		-		2,613		398		3,011		3,605
Total other consumer loans	$	17,580	$	71,379	$	21,269	$	11,583	$	5,275	$	15,881	$	11,047	$	154,014	$	155,856

Total consumer loans in Puerto Rico and Virgin Islands region	$	185,606	$	828,272	$	498,587	$	229,178	$	134,457	$	105,183	$	295,121	$	2,276,404	$	2,241,131

CONSUMER	As of March 31, 2020
	Term Loans																As of December 31, 2019
Florida Region	Amortized Cost Basis by Origination Year																As of December 31, 2019
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total


Auto loans
Original FICO score
Less than 620	$	-	$	38	$	1,182	$	1,070	$	869	$	237	$	-	$	3,396	$	3,857
Greater than or equal to 620
and less than 680		-		625		5,286		4,316		2,122		812		-		13,161		15,052
Greater than or equal to 680
and less than 740		-		538		3,991		1,886		834		266		-		7,515		8,590
Greater than or equal to 740		-		352		1,758		409		148		39		-		2,706		2,996
Total auto loans	$	-	$	1,553	$	12,217	$	7,681	$	3,973	$	1,354	$	-	$	26,778	$	30,495

Finance leases
Original FICO score
Less than 620	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Greater than or equal to 620
and less than 680		-		-		-		-		-		-		-		-		-
Greater than or equal to 680
and less than 740		-		-		-		-		-		-		-		-		-
Greater than or equal to 740		-		-		-		-		-		-		-		-		-
Total finance leases	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Personal loans
Original FICO score
Less than 620	$	-	$	11	$	-	$	5	$	250	$	-	$	-	$	266	$	593
Greater than or equal to 620
and less than 680		10		-		-		-		-		-		-		10		-
Greater than or equal to 680
and less than 740		-		53		-		26		-		-		-		79		85
Greater than or equal to 740		-		-		-		70		-		-		-		70		71
Unscorable		-		-		-		-		-		-		-		-		33
Total personal loans	$	10	$	64	$	-	$	101	$	250	$	-	$	-	$	425	$	782

Credit cards
Original FICO score
Less than 620	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Greater than or equal to 620
and less than 680		-		-		-		-		-		-		-		-		-
Greater than or equal to 680
and less than 740		-		-		-		-		-		-		-		-		-
Greater than or equal to 740		-		-		-		-		-		-		-		-		-
Total credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other consumer loans
Original FICO score
Less than 620	$	-	$	77	$	-	$	-	$	-	$	-	$	-	$	77	$	83
Greater than or equal to 620
and less than 680		189		-		-		109		29		631		96		1,054		874
Greater than or equal to 680
and less than 740		-		-		43		51		329		1,313		780		2,516		2,559
Greater than or equal to 740		-		-		-		25		325		2,908		2,117		5,375		5,573
Unscorable		-		-		-		-		-		-		-		-		156
Total other consumer loans	$	189	$	77	$	43	$	185	$	683	$	4,852	$	2,993	$	9,022	$	9,245

Total consumer loans in Florida region	$	199	$	1,694	$	12,260	$	7,967	$	4,906	$	6,206	$	2,993	$	36,225	$	40,522

CONSUMER	As of March 31, 2020
	Term Loans																As of December 31, 2019
Total	Amortized Cost Basis by Origination Year																As of December 31, 2019
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total		Total


Auto loans
Original FICO score
Less than 620	$	13,484	$	55,045	$	30,228	$	14,511	$	10,633	$	8,992	$	-	$	132,893	$	130,397
Greater than or equal to 620
and less than 680		36,068		160,923		110,044		51,366		26,582		24,050		-		409,033		403,942
Greater than or equal to 680
and less than 740		31,582		141,896		92,643		42,842		24,931		16,539		-		350,433		342,324
Greater than or equal to 740		30,328		110,692		59,854		33,796		22,622		13,401		-		270,693		258,192
Total auto loans	$	111,462	$	468,556	$	292,769	$	142,515	$	84,768	$	62,982	$	-	$	1,163,052	$	1,134,855

Finance leases
Original FICO score
Less than 620	$	917	$	6,052	$	5,140	$	2,259	$	737	$	591	$	-	$	15,696	$	15,852
Greater than or equal to 620
and less than 680		6,651		39,654		31,521		14,862		6,261		4,352		-		103,301		100,438
Greater than or equal to 680
and less than 740		11,902		64,512		53,723		22,471		14,122		8,562		-		175,292		170,034
Greater than or equal to 740		10,817		54,977		38,009		11,689		12,748		6,617		-		134,857		128,208
Total finance leases	$	30,287	$	165,195	$	128,393	$	51,281	$	33,868	$	20,122	$	-	$	429,146	$	414,532

Personal loans
Original FICO score
Less than 620	$	840	$	3,053	$	2,088	$	825	$	968	$	618	$	-	$	8,392	$	8,790
Greater than or equal to 620
and less than 680		4,911		27,691		12,014		4,921		1,849		1,032		-		52,418		52,712
Greater than or equal to 680
and less than 740		11,790		53,339		27,814		13,079		5,677		3,045		-		114,744		114,232
Greater than or equal to 740		8,746		40,676		26,457		12,756		6,275		2,857		-		97,767		98,739
Unscorable		-		-		-		-		-		-		-		-		402
Total personal loans	$	26,287	$	124,759	$	68,373	$	31,581	$	14,769	$	7,552	$	-	$	273,321	$	274,875

Credit cards
Original FICO score
Less than 620	$	-	$	-	$	-	$	-	$	-	$	-	$	10,823	$	10,823	$	11,247
Greater than or equal to 620
and less than 680		-		-		-		-		-		-		57,032		57,032		57,643
Greater than or equal to 680
and less than 740		-		-		-		-		-		-		124,289		124,289		126,977
Greater than or equal to 740		-		-		-		-		-		-		91,930		91,930		96,423
Total credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	284,074	$	284,074	$	292,290

Other consumer loans
Original FICO score
Less than 620	$	2,887	$	13,925	$	3,776	$	2,308	$	1,046	$	812	$	3,608	$	28,362	$	28,334
Greater than or equal to 620
and less than 680		8,173		33,375		9,625		5,391		2,484		7,643		2,078		68,769		69,601
Greater than or equal to 680
and less than 740		5,475		19,082		6,281		3,116		1,695		4,642		4,147		44,438		44,473
Greater than or equal to 740		1,234		5,074		1,630		953		733		5,023		3,809		18,456		18,932
Unscorable		-		-		-		-		-		2,613		398		3,011		3,761
Total other consumer loans	$	17,769	$	71,456	$	21,312	$	11,768	$	5,958	$	20,733	$	14,040	$	163,036	$	165,101

Total consumer loans	$	185,805	$	829,966	$	510,847	$	237,145	$	139,363	$	111,389	$	298,114	$	2,312,629	$	2,281,653

The following tables present information about collateral dependent loans individually evaluated for purposes of determining the ACL as of March 31, 2020:


Collateral dependent loans
March 31, 2020
		Collateral Dependent Loans - With Specific Allowance			Collateral Dependent Loans - With No Related Specific Allowance		Collateral Dependent Loans - Total
Puerto Rico and Virgin Islands region	Amortized Cost (1)		Related Specific Allowance		Amortized Cost (1)		Amortized Cost (1)		Related Specific Allowance
(In thousands)
Residential mortgage loans:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	-	$	-
Conventional residential mortgage loans		127,100		12,687		45,770		172,870		12,687
Commercial loans:
Construction loans		-		-		9,358		9,358		-
Commercial mortgage loans		21,990		5,053		41,844		63,834		5,053
Commercial and Industrial loans		12,763		5,653		17,296		30,059		5,653
Consumer loans:
Auto loans		-		-		-		-		-
Finance leases		-		-		-		-		-
Personal loans		146		2		-		146		2
Credit cards		-		-		-		-		-
Other consumer loans		893		68		63		956		68
	$	162,892	$	23,463	$	114,331	$	277,223	$	23,463

Excludes accrued interest receivable.

		Collateral Dependent Loans - With Specific Allowance			Collateral Dependent Loans - With No Related Specific Allowance		Collateral Dependent Loans - Total
Florida region	Amortized Cost (1)		Related Specific Allowance		Amortized Cost (1)		Amortized Cost (1)		Related Specific Allowance
(In thousands)
Residential mortgage loans:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	-	$	-
Conventional residential mortgage loans		8,459		1,091		707		9,166		1,091
Commercial loans:
Construction loans		-		-		-		-		-
Commercial mortgage loans		-		-		5,175		5,175		-
Commercial and Industrial loans		-		-		292		292		-
Consumer loans:
Auto loans		-		-		-		-		-
Finance leases		-		-		-		-		-
Personal loans		-		-		-		-		-
Credit cards		-		-		-		-		-
Other consumer loans		-		-		-		-		-
	$	8,459	$	1,091	$	6,174	$	14,633	$	1,091

Excludes accrued interest receivable.

		Collateral Dependent Loans - With Specific Allowance			Collateral Dependent Loans - With No Related Specific Allowance		Collateral Dependent Loans - Total
Total	Amortized Cost (1)		Related Specific Allowance		Amortized Cost (1)		Amortized Cost (1)		Related Specific Allowance
(In thousands)
Residential mortgage loans:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	-	$	-
Conventional residential mortgage loans		135,559		13,778		46,477		182,036		13,778
Commercial loans:
Construction loans		-		-		9,358		9,358		-
Commercial mortgage loans		21,990		5,053		47,019		69,009		5,053
Commercial and Industrial loans		12,763		5,653		17,588		30,351		5,653
Consumer loans:								-		-
Auto loans		-		-		-		-		-
Finance leases		-		-		-		-		-
Personal loans		146		2		-		146		2
Credit cards		-		-		-		-		-
Other consumer loans		893		68		63		956		68
	$	171,351	$	24,554	$	120,505	$	291,856	$	24,554

Excludes accrued interest receivable. The underlying collateral for residential mortgage and consumer collateral dependent loans consisted of single-family residential properties, and for commercial and construction loans consisted primarily of office buildings, multifamily residential properties, and retail establishments. The weighted-average loan-to-value coverage for collateral dependent loans as of March 31, 2020 was 86%. There were no significant changes in the extent to which collateral secures the Corporation’s collateral dependent financial assets during the first quarter of 2020.

Purchases and Sales of Loans

During the first quarter of 2020, the Corporation purchased $0.8 million of residential mortgage loans as part of a strategic program to purchase ongoing residential mortgage loan production from mortgage bankers in Puerto Rico, compared to purchases of $4.3 million for the first quarter of 2019. In general, the loans purchased from mortgage bankers were conforming residential mortgage loans. Purchases of conforming residential mortgage loans provide the Corporation the flexibility to retain or sell the loans, including through securitization transactions, depending upon the Corporation’s interest rate risk management strategies. When the Corporation sells such loans, it generally keeps the servicing of the loans.

In the ordinary course of business, the Corporation sells residential mortgage loans (originated or purchased) to GNMA and GSEs such as FNMA and FHLMC, which generally securitize the transferred loans into MBS for sale into the secondary market. During the first quarter of 2020, the Corporation sold $60.9 million of FHA/VA mortgage loans to GNMA, which packaged them into MBS, compared to sales of $51.0 million for the first quarter of 2019. Also, during the first quarter of 2020, the Corporation sold approximately $32.8 million of performing residential mortgage loans to FNMA and FHLMC, compare to sales of $26.3 million for the first quarter of 2019. The Corporation’s continuing involvement in these sold loans consists primarily of servicing the loans. In addition, the Corporation agreed to repurchase loans if it breaches any of the representations and warranties included in the sale agreement. These representations and warranties are consistent with the GSEs’ selling and servicing guidelines (i.e., ensuring that the mortgage was properly underwritten according to established guidelines).

For loans sold to GNMA, the Corporation holds an option to repurchase individual delinquent loans issued on or after January 1, 2003 when the borrower fails to make any payment for three consecutive months. This option gives the Corporation the ability, but not the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA.

Under ASC Topic 860, “Transfer and Servicing,” once the Corporation has the unilateral ability to repurchase the delinquent loan, it is considered to have regained effective control over the loan and is required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of the Corporation’s intent to repurchase the loan. As of March 31, 2020 and December 31, 2019, rebooked GNMA delinquent loans included in the residential mortgage loan portfolio amounted to $35.0 million and $35.6 million, respectively.

During the first quarter of 2020 and 2019, the Corporation repurchased, pursuant to its repurchase option with GNMA, $5.2 million and $4.2 million, respectively, of loans previously sold to GNMA. The principal balance of these loans is fully guaranteed and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent interest payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA, which are computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA. Historically, losses for violations of representations and warranties, and on optional repurchases of GNMA delinquent loans, have been immaterial and no provision has been made at the time of sale.

Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation repurchased at par loans previously sold to FNMA and FHLMC in the amount of $41 thousand and $63 thousand during the first quarter of 2020 and 2019, respectively. The Corporation’s risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing loans with documentation deficiencies.

In addition, during the first quarter of 2019, the Corporation sold $4.8 million in nonaccrual commercial loans held for sale.

Loan Portfolio Concentration

The Corporation’s primary lending area is Puerto Rico. The Corporation’s banking subsidiary, FirstBank, also lends in the USVI and BVI markets and in the United States (principally in the state of Florida). Of the total gross loans held for investment of $9.0 billion as of March 31, 2020, credit risk concentration was approximately 74% in Puerto Rico, 21% in the United States, and 5% in the USVI and BVI.

As of March 31, 2020, the Corporation had $56.6 million outstanding in loans extended to the Puerto Rico government, its municipalities and public corporations, compared to $57.7 million as of December 31, 2019. Approximately $43.0 million of the outstanding loans as of March 31, 2020 consisted of loans extended to municipalities in Puerto Rico, which in most cases are supported by assigned property tax revenues. The vast majority of revenues of the municipalities included in the Corporation’s loan portfolio are independent of the Puerto Rico central government. These municipalities are required by law to levy special property taxes in such amounts as are required for the payment of all of their respective general obligation bonds and notes. Late in 2015, the GDB and the Municipal Revenue Collection Center (“CRIM”) signed and perfected a deed of trust. Through this deed, the Puerto Rico Fiscal Agency and Financial Advisory Authority, as fiduciary, is bound to keep the CRIM funds separate from any other deposits and must distribute the funds pursuant to applicable law. The CRIM funds are deposited at another commercial depository financial institution in Puerto Rico. In addition to loans extended to municipalities, the Corporation’s loan exposure to the Puerto Rico government as of March 31, 2020 included a $13.7 million loan granted to an affiliate of PREPA.

In addition, as of March 31, 2020, the Corporation had $103.6 million in exposure to residential mortgage loans that are guaranteed by the PRHFA, compared to $106.9 million as of December 31, 2019. Residential mortgage loans guaranteed by the PRHFA are secured by the underlying properties and the guarantees serve to cover shortfalls in collateral in the event of a borrower default. The Puerto Rico government guarantees up to $75 million of the principal for all loans under the mortgage loan insurance program. According to the most recently-released audited financial statements of the PRHFA, as of June 30, 2016, the PRHFA’s mortgage loans insurance program covered loans in an aggregate of approximately $576 million. The regulations adopted by the PRHFA require the establishment of adequate reserves to guarantee the solvency of the mortgage loan insurance fund. As of June 30, 2016, the most recent date as of which information is available, the PRHFA had a restricted net position for such purposes of approximately $77.4 million.

The Corporation also has credit exposure to USVI government entities. As of March 31, 2020, the Corporation had $62.5 million in loans to USVI government instrumentalities and public corporations, compared to $64.1 million as of December 31, 2019. Of the amount outstanding as of March 31, 2020, public corporations of the USVI owed approximately $39.3 million and an independent instrumentality of the USVI government owed approximately $23.2 million. As of March 31, 2020, all loans were currently performing and up to date on principal and interest payments.

The Corporation cannot predict at this time the ultimate effect on the Puerto Rico economy, the Corporation’s clients, and the Corporation’s financial condition and results of operations of the financial problems of the Commonwealth of Puerto Rico, which may be exacerbated as a result of the COVID-19 pandemic, the uncertainty about the ultimate outcomes of the debt restructuring process, and the various legislative and other measures adopted and to be adopted by the Puerto Rico government and the PROMESA oversight board in response to such fiscal situation.

Troubled Debt Restructurings

The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program in Puerto Rico that is similar to the U.S. government’s Home Affordable Modification Program guidelines. Depending upon the nature of borrowers’ financial condition, restructurings or loan modifications through this program, as well as other restructurings of individual commercial, commercial mortgage, construction, and residential mortgage loans, fit the definition of a TDR. A restructuring of a debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Modifications involve changes in one or more of the loan terms that bring a defaulted loan current and provide sustainable affordability. Changes may include, among others, the extension of the maturity of the loan and modifications of the loan rate. As of March 31, 2020, the Corporation’s total TDR loans held for investment of $497.3 million consisted of $311.4 million of residential mortgage loans, $82.7 million of commercial and industrial loans, $74.3 million of commercial mortgage loans, $4.3 million of construction loans, and $24.6 million of consumer loans. The Corporation has committed to lend additional amounts on these loans totaling up to $3.0 million.

The Corporation’s loss mitigation programs for residential mortgage and consumer loans can provide for one or a combination of the following: movement of interest past due to the end of the loan, extension of the loan term, deferral of principal payments and reduction of interest rates either permanently or for a period of up to six years (increasing back in step-up rates). Additionally, in certain cases, the restructuring may provide for the forgiveness of contractually-due principal or interest. Uncollected interest is added to the end of the loan term at the time of the restructuring and not recognized as income until collected or when the loan is paid off. These programs are available only to those borrowers who have defaulted, or are likely to default, permanently on their loans and would lose their homes in a foreclosure action absent some lender concession. Nevertheless, if the Corporation is not reasonably assured that the borrower will comply with its contractual commitment, the property is foreclosed.

Prior to permanently modifying a loan, the Corporation may enter into trial modifications with certain borrowers. Trial modifications generally represent a six-month period during which the borrower makes monthly payments under the anticipated modified payment terms prior to a formal modification. Upon successful completion of a trial modification, the Corporation and the borrower enter into a permanent modification. TDR loans that are participating in or that have been offered a binding trial modification are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification. As of March 31, 2020, the Corporation included as TDRs $2.2 million of residential mortgage loans that were participating in or had been offered a trial modification.

For the commercial real estate, commercial and industrial, and construction loan portfolios, at the time of a restructuring, the Corporation determines, on a loan-by-loan basis, whether a concession was granted for economic or legal reasons related to the borrower’s financial difficulty. Concessions granted for loans in these portfolios could include: reductions in interest rates to rates that are considered below market; extension of repayment schedules and maturity dates beyond original contractual terms; waivers of borrower covenants; forgiveness of principal or interest; or other contractual changes that are considered to be concessions. The Corporation mitigates loan defaults for these loan portfolios through its collection function. The function’s objective is to minimize both early stage delinquencies and losses upon default of loans in these portfolios. In the case of the commercial and industrial, commercial mortgage, and construction loan portfolios, the Corporation’s Special Asset Group (“SAG”) focuses on strategies for the accelerated reduction of non-performing assets through note sales, short sales, loss mitigation programs, and sales of OREO.

In addition, the Corporation extends, renews, and restructures loans with satisfactory credit profiles. Many commercial loan facilities are structured as lines of credit, which generally have one-year terms and, therefore, are required to be renewed annually. Other facilities may be restructured or extended from time to time based upon changes in the borrower’s business needs, use of funds, and timing of completion of projects, and other factors. If the borrower is not deemed to have financial difficulties, extensions, renewals, and restructurings are done in the normal course of business and not considered concessions, and the loans continue to be recorded as performing.

In working with borrowers affected by the COVID-19 outbreak, the Corporation has agreed to let consumer borrowers defer payments on their loans (i.e., residential mortgage, personal loans, auto loans, finance leases and small loans) for a period up to June 30, 2020, with the possibility of a further extension up to August 31, 2020, if needed, as long as the borrowers were current in their payments or no more than 2 payments in arrears (not having exceeded 89 days past due as of March 16, 2020), and who did not make their payment corresponding to the month of March. In the case of credit cards and individual lines of credit, the borrowers were required to be current or less than 29 days past due in their payments as of March 16, 2020 to qualify for the payment deferral program. For both consumer and residential mortgage loans subject to the deferral programs, each borrower is required to begin making their regularly scheduled loan payment at the end of the deferral period and the deferred amounts were moved to the end of the loan. The payment deferral programs were applied prospectively beginning, in some instances, with the scheduled contractual payment due in March. For commercial loans, any request for payment deferral is analyzed on a case by case basis. As of May 7, 2020, the Corporation has under deferred payment arrangements approximately 7,064 residential mortgage loans totaling $931.5 million, 93,629 consumer loans totaling $1.0 billion, and 741 commercial and construction loans totaling $1.8 billion. These short-term modifications made in response to COVID-19 pandemic to qualifying borrowers are not considered TDR loans.

Selected information on the Corporation’s TDR loans held for investment based on the amortized cost by loan class and modification type is summarized in the following tables as of the indicated dates:

	As of March 31, 2020
Puerto Rico and Virgin Islands region	Interest rate below market		Maturity or term extension		Combination of reduction in interest rate and extension of maturity		Forgiveness of principal and/or interest		Forbearance Agreement		Other (1)		Total
(In thousands)
TDRs:
Conventional residential mortgage loans	$	18,096	$	11,566	$	214,077	$	-	$	223	$	63,921	$	307,883
Construction loans		23		2,436		1,634		-		-		182		4,275
Commercial mortgage loans		890		1,404		38,850		-		19,776		7,933		68,853
Commercial and industrial loans		561		14,786		11,481		-		19,056		36,543		82,427
Consumer loans:
Auto loans		-		705		6,622		-		-		6,766		14,093
Finance leases		-		33		897		-		-		621		1,551
Personal loans		24		36		773		-		-		241		1,074
Credit cards		-		-		2,733		21		-		-		2,754
Other consumer loans		1,938		1,146		742		177		-		340		4,343
Total Troubled Debt Restructurings in Puerto Rico
and Virgin Islands region	$	21,532	$	32,112	$	277,809	$	198	$	39,055	$	116,547	$	487,253

Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concession listed in the table.

	As of March 31, 2020
Florida region	Interest rate below market		Maturity or term extension		Combination of reduction in interest rate and extension of maturity		Forgiveness of principal and/or interest		Forbearance Agreement		Other (1)		Total
(In thousands)
TDRs:
Conventional residential mortgage loans	$	1,002	$	410	$	2,037	$	-	$	-	$	31	$	3,480
Construction loans		-		-		-		-		-		-		-
Commercial mortgage loans		2,876		855		1,748		-		-		-		5,479
Commercial and industrial loans		-		-		-		-		-		292		292
Consumer loans:
Auto loans		-		74		19		-		-		-		93
Finance leases		-		-		-		-		-		-		-
Personal loans		-		-		-		-		-		-		-
Credit cards		-		-		-		-		-		-		-
Other consumer loans		37		-		181		-		-		480		698
Total Troubled Debt Restructurings in Florida Region	$	3,915	$	1,339	$	3,985	$	-	$	-	$	803	$	10,042

	As of March 31, 2020
Total	Interest rate below market		Maturity or term extension		Combination of reduction in interest rate and extension of maturity		Forgiveness of principal and/or interest		Forbearance Agreement		Other (1)		Total
(In thousands)
TDRs:
Conventional residential mortgage loans	$	19,098	$	11,976	$	216,114	$	-	$	223	$	63,952	$	311,363
Construction loans		23		2,436		1,634		-		-		182		4,275
Commercial mortgage loans		3,766		2,259		40,598		-		19,776		7,933		74,332
Commercial and industrial loans		561		14,786		11,481		-		19,056		36,835		82,719
Consumer loans:
Auto loans		-		779		6,641		-		-		6,766		14,186
Finance leases		-		33		897		-		-		621		1,551
Personal loans		24		36		773		-		-		241		1,074
Credit cards		-		-		2,733		21		-		-		2,754
Other consumer loans		1,975		1,146		923		177		-		820		5,041
Total Troubled Debt Restructurings	$	25,447	$	33,451	$	281,794	$	198	$	39,055	$	117,350	$	497,295


	As of December 31, 2019
Puerto Rico and Virgin Islands region	Interest rate below market		Maturity or term extension		Combination of reduction in interest rate and extension of maturity		Forgiveness of principal and/or interest		Forbearance Agreement		Other (1)		Total
(In thousands)
TDRs:
Conventional residential mortgage loans	$	18,561	$	11,188	$	219,618	$	-	$	142	$	63,638	$	313,147
Construction loans		24		2,469		1,639		-		-		189		4,321
Commercial mortgage loans		909		1,414		39,131		-		19,848		8,149		69,451
Commercial and industrial loans		579		16,160		12,077		142		692		36,884		66,534
Consumer loans:
Auto loans		-		801		7,374		-		-		6,249		14,424
Finance leases		-		40		1,066		-		-		426		1,532
Personal loans		26		43		845		-		-		159		1,073
Credit cards		-		-		2,767		24		-		-		2,791
Other consumer loans		2,020		1,196		770		180		-		337		4,503
Total Troubled Debt Restructurings in Puerto Rico
and Virgin Island region	$	22,119	$	33,311	$	285,287	$	346	$	20,682	$	116,031	$	477,776


	As of December 31, 2019
Florida region	Interest rate below market		Maturity or term extension		Combination of reduction in interest rate and extension of maturity		Forgiveness of principal and/or interest		Forbearance Agreement		Other (1)		Total
(In thousands)
TDRs:
Conventional residential mortgage loans	$	1,009	$	412	$	2,049	$	-	$	-	$	32	$	3,502
Construction loans		-		-		-		-		-		-		-
Commercial mortgage loans		2,901		862		1,765		-		-		-		5,528
Commercial and industrial loans		-		-		-		-		-		315		315
Consumer loans:
Auto loans		-		97		19		-		-		-		116
Finance leases		-		-		-		-		-		-		-
Personal loans		-		-		-		-		-		-		-
Credit cards		-		-		-		-		-		-		-
Other consumer loans		39		-		183		-		-		538		760
Total Troubled Debt Restructurings in Florida region	$	3,949	$	1,371	$	4,016	$	-	$	-	$	885	$	10,221


	As of December 31, 2019
Total	Interest rate below market		Maturity or term extension		Combination of reduction in interest rate and extension of maturity		Forgiveness of principal and/or interest		Forbearance Agreement		Other (1)		Total
(In thousands)
TDRs:
Conventional residential mortgage loans	$	19,570	$	11,600	$	221,667	$	-	$	142	$	63,670	$	316,649
Construction loans		24		2,469		1,639		-		-		189		4,321
Commercial mortgage loans		3,810		2,276		40,896		-		19,848		8,149		74,979
Commercial and industrial loans		579		16,160		12,077		142		692		37,199		66,849
Consumer loans:
Auto loans		-		898		7,393		-		-		6,249		14,540
Finance leases		-		40		1,066		-		-		426		1,532
Personal loans		26		43		845		-		-		159		1,073
Credit cards		-		-		2,767		24		-		-		2,791
Other consumer loans		2,059		1,196		953		180		-		875		5,263
Total Troubled Debt Restructurings	$	26,068	$	34,682	$	289,303	$	346	$	20,682	$	116,916	$	487,997

The following table presents the Corporation's TDR loans held for investment activity for the indicated periods:

	Quarter Ended
	March 31, 2020		March 31, 2019
(In thousands)
Beginning balance of TDRs	$	487,997	$	582,647
New TDRs		23,125		25,459
Increases to existing TDRs		103		1,175
Charge-offs post modification		(2,337)		(2,821)
Foreclosures		(1,611)		(3,643)
Paid-off, partial payments and other		(9,982)		(13,022)
Ending balance of TDRs	$	497,295	$	589,795

TDR loans are classified as either accrual or nonaccrual loans. Loans in accrual status may remain in accrual status when their contractual terms have been modified in a TDR if the loans had demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Otherwise, loans on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower has proven the ability to perform under the modified structure, generally for a minimum of six months, and there is evidence that such payments can, and are likely to, continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. Loan modifications increase the Corporation’s interest income by returning a nonaccrual loan to performing status, if applicable, increase cash flows by providing for payments to be made by the borrower, and limit increases in foreclosure and OREO costs. A TDR loan that specifies an interest rate that at the time of the restructuring is greater than or equal to the rate the Corporation is willing to accept for a new loan with comparable risk may not be reported as a TDR in the calendar years subsequent to the restructuring, if it is in compliance with its modified terms. The Corporation did not remove any loans from the TDR classification during 2020 and 2019.

The following tables provide a breakdown of the TDR loans held for investment by those in accrual and nonaccrual status as of the indicated periods:

March 31, 2020	Puerto Rico and
	Virgin Islands region						Florida region						Total
	Accrual		Nonaccrual		Total TDRs		Accrual		Nonaccrual		Total TDRs		Accrual		Nonaccrual ⁽¹⁾		Total TDRs
(In thousands)
Conventional residential mortgage loans	$	253,077	$	54,806	$	307,883	$	3,420	$	60	$	3,480	$	256,497	$	54,866	$	311,363
Construction loans		3,200		1,075		4,275		-		-		-		3,200		1,075		4,275
Commercial mortgage loans		45,193		23,660		68,853		5,479		-		5,479		50,672		23,660		74,332
Commercial and industrial loans		73,531		8,896		82,427		-		292		292		73,531		9,188		82,719
Consumer loans:
Auto loans		7,928		6,165		14,093		93		-		93		8,021		6,165		14,186
Finance leases		1,544		7		1,551		-		-		-		1,544		7		1,551
Personal loans		1,052		22		1,074		-		-		-		1,052		22		1,074
Credit Cards		2,754		-		2,754		-		-		-		2,754		-		2,754
Other consumer loans		3,671		672		4,343		661		37		698		4,332		709		5,041
Total Troubled Debt Restructurings	$	391,950	$	95,303	$	487,253	$	9,653	$	389	$	10,042	$	401,603	$	95,692	$	497,295

Included in nonaccrual loans are $16.3 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible.


December 31, 2019	Puerto Rico and
	Virgin Islands region						Florida region						Total
	Accrual		Nonaccrual		Total TDRs		Accrual		Nonaccrual		Total TDRs		Accrual		Nonaccrual ⁽¹⁾		Total TDRs
(In thousands)
Conventional residential mortgage loans	$	262,244	$	50,903	$	313,147	$	3,502	$	-	$	3,502	$	265,746	$	50,903	$	316,649
Construction loans		3,238		1,083		4,321		-		-		-		3,238		1,083		4,321
Commercial mortgage loans		45,534		23,917		69,451		5,528		-		5,528		51,062		23,917		74,979
Commercial and industrial loans		59,689		6,845		66,534		-		315		315		59,689		7,160		66,849
Consumer loans:
Auto loans		8,440		5,984		14,424		116		-		116		8,556		5,984		14,540
Finance leases		1,502		30		1,532		-		-		-		1,502		30		1,532
Personal loans		1,052		21		1,073		-		-		-		1,052		21		1,073
Credit Cards		2,791		-		2,791		-		-		-		2,791		-		2,791
Other consumer loans		3,898		605		4,503		723		37		760		4,621		642		5,263
Total Troubled Debt Restructurings	$	388,388	$	89,388	$	477,776	$	9,869	$	352	$	10,221	$	398,257	$	89,740	$	487,997

Included in nonaccrual loans are $14.8 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible.TDR loans exclude restructured residential mortgage loans that are government-guaranteed (e.g., FHA/VA loans) totaling $55.8 million as of March 31, 2020 (compared with $60.1 million as of December 31, 2019). The Corporation excludes FHA/VA guaranteed loans from TDR loan statistics given that, in the event that the borrower defaults on the loan, the principal and interest (at the specified debenture rate) are guaranteed by the U.S. government; therefore, the risk of loss on these types of loans is very low.

Loan modifications that are considered TDR loans completed during the first quarter of 2020 and 2019 were as follows:

March 31, 2020
	Number of contracts	Pre-modification Amortized Cost		Post-modification Amortized Cost		Number of contracts	Pre-modification Amortized Cost		Post-modification Amortized Cost		Number of contracts	Pre-modification Amortized Cost		Post-modification Amortized Cost
(Dollars in thousands)
TDRs:
Conventional residential mortgage loans	32	$	3,124	$	2,560	-	$	-	$	-	32	$	3,124	$	2,560
Construction loans	-		-		-	-		-		-	-		-		-
Commercial mortgage loans	2		75		81	-		-		-	2		75		81
Commercial and industrial loans	3		18,386		18,386	-		-		-	3		18,386		18,386
Consumer loans:
Auto loans	81		1,241		1,235	-		-		-	81		1,241		1,235
Finance leases	21		284		284	-		-		-	21		284		284
Personal loans	13		113		111	-		-		-	13		113		111
Credit Cards	57		280		280	-		-		-	57		280		280
Other consumer loans	64		180		188	-		-		-	64		180		188
Total Troubled Debt Restructurings	273	$	23,683	$	23,125	-	$	-	$	-	273	$	23,683	$	23,125


March 31, 2019
	Number of contracts	Pre-modification Amortized Cost		Post-modification Amortized Cost		Number of contracts	Pre-modification Amortized Cost		Post-modification Amortized Cost		Number of contracts	Pre-modification Amortized Cost		Post-modification Amortized Cost
(Dollars in thousands)
TDRs:
Conventional residential mortgage loans	29	$	3,178	$	3,191	-	$	-	$	-	29	$	3,178	$	3,191
Construction loans	1		12		12	-		-		-	1		12		12
Commercial mortgage loans	3		22,510		20,334	-		-		-	3		22,510		20,334
Commercial and industrial loans	4		107		106	-		-		-	4		107		106
Consumer loans:
Auto loans	59		914		914	3		33		33	62		947		947
Finance leases	7		159		159	-		-		-	7		159		159
Personal loans	20		204		204	-		-		-	20		204		204
Credit Cards	29		168		168	-		-		-	29		168		168
Other consumer loans	99		320		338	-		-		-	99		320		338
Total Troubled Debt Restructurings	251	$	27,572	$	25,426	3	$	33	$	33	254	$	27,605	$	25,459

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a nonaccrual loan. Recidivism on a modified loan occurs at a notably higher rate than do defaults on new origination loans, so modified loans present a higher risk of loss than do new origination loans. The Corporation considers a loan to have defaulted if the borrower has failed to make payments of either principal, interest, or both for a period of 90 days or more.

Loan modifications considered TDR loans that defaulted during the quarters ended March 31, 2020 and March 31, 2019, and had become TDR during the 12 months preceding the default date, were as follows:

	Quarter ended March 31,
	2020			2019
Puerto Rico and Virgin Islands region	Number of contracts	Amortized Cost		Number of contracts	Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans	6	$	1,889	-	$	-
Construction loans	-		-	-		-
Commercial mortgage loans	-		-	-		-
Commercial and industrial loans	1		35	-		-
Consumer loans:
Auto loans	10		176	20		251
Finance leases	1		5	-		-
Personal loans	1		7	-		-
Credit cards	5		14	-		-
Other consumer loans	29		108	18		47
Total Puerto Rico and Virgin Islands region	53	$	2,234	38	$	298


	Quarter ended March 31,
	2020			2019
Florida region	Number of contracts	Amortized Cost		Number of contracts	Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans	-	$	-	-	$	-
Construction loans	-		-	-		-
Commercial mortgage loans	-		-	-		-
Commercial and industrial loans	-		-	-		-
Consumer loans:
Auto loans	-		-	-		-
Finance leases	-		-	-		-
Personal loans	-		-	-		-
Credit cards	-		-	-		-
Other consumer loans	-		-	-		-
Total in Florida region	-	$	-	-	$	-


	Quarter ended March 31,
	2020			2019
Total	Number of contracts	Amortized Cost		Number of contracts	Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans	6	$	1,889	-	$	-
Construction loans	-		-	-		-
Commercial mortgage loans	-		-	-		-
Commercial and industrial loans	1		35	-		-
Consumer loans:
Auto loans	10		176	20		251
Finance leases	1		5	-		-
Personal loans	1		7	-		-
Credit cards	5		14	-		-
Other consumer loans	29		108	18		47
Total	53	$	2,234	38	$	298

For certain TDR loans, the Corporation splits the loans into two new notes, A and B Notes. The A Note is restructured to comply with the Corporation’s lending standards at current market rates, and is tailored to suit the customer’s ability to make timely interest and principal payments. The B Note includes the granting of the concession to the borrower and varies by situation. The B Note is fully charged off but the borrower’s obligation is not forgiven, and payments that are collected are accounted for as recoveries of previously charged-off amounts. A partial charge-off may be recorded if the B Note is collateral dependent and the source of repayment is independent of the A Note. At the time of the restructuring, the A Note is identified and classified as a TDR loan. If the loan performs for at least six months according to the modified terms, the A Note may be returned to accrual status. The borrower’s payment performance prior to the restructuring is included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring. In the periods following the calendar year in which a loan is restructured, the A Note may no longer be reported as a TDR loan if it is in accrual status, is in compliance with its modified terms, and yields a market rate (as determined and documented at the time of the restructuring).

The following table provides additional information about the volume of this type of loan restructuring as of March 31, 2020 and March 31, 2019, and the effect on the allowance for credit losses in the first quarter of 2020 and 2019:

	Quarter ended								Quarter ended
	March 31, 2020								March 31, 2019
(In thousands)	Commercial Mortgage loans		Commercial and Industrial loans		Construction loans		Total		Commercial Mortgage loans		Commercial and Industrial loans		Construction loans		Total
Beginning balance of A/B Notes	$	22,749	$	26,596	$	1,883	$	51,228	$	3,003	$	28,406	$	2,431	$	33,840
New TDR loan splits		-		-		-		-		20,059		-		-		20,059
Paid-off and partial payments		(97)		(200)		(25)		(322)		(30)		(230)		(71)		(331)
Ending balance of A/B Notes	$	22,652	$	26,396	$	1,858	$	50,906	$	23,032	$	28,176	$	2,360	$	53,568



	Quarter ended								Quarter ended
	March 31, 2020								March 31, 2019
(In thousands)	Commercial Mortgage loans		Commercial and Industrial loans		Construction loans		Total		Commercial Mortgage loans		Commercial and Industrial loans		Construction loans		Total
Allowance for credit losses at the
beginning of the period for A/B Notes	$	3,516	$	14	$	-	$	3,530	$	-	$	473	$	-	$	473
Impact of adopting ASC 326		(415)		89		-		(326)		-		-		-		-
Charges (releases) to the provision
for credit losses		15		(102)		-		(87)		611		(124)		-		487
Allowance for credit losses at the
end of the period for A/B Notes	$	3,116	$	1	$	-	$	3,117	$	611	$	349	$	-	$	960

Approximately $39.4 million of the loans restructured using the A/B Note restructure workout strategy were in accrual status as of March 31, 2020.