XML 30 R16.htm IDEA: XBRL DOCUMENT

LOANS HELD FOR INVESTMENT

12 Months Ended

Dec. 31, 2020

NOTE 8 – LOANS HELD FOR INVESTMENT

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

	As of December 31,		As of December 31,
	2020		2019
(In thousands)
Residential mortgage loans, mainly secured by first mortgages	$	3,521,954	$	2,933,773
Construction loans		212,500		111,317
Commercial mortgage loans		2,230,602		1,444,586
C&I loans (1) (2)		3,202,590		2,230,876
Consumer loans		2,609,643		2,281,653
Loans held for investment (3)(4)		11,777,289		9,002,205
ACL on loans and finance leases		(385,887)		(155,139)
Loans held for investment, net	$	11,391,402	$	8,847,066

As of December 31, 2020, includes $406.0 million of SBA Paycheck Protection Program (“SBA PPP”) loans.As of December 31, 2020 and 2019, includes $1.0 billion and $719.0 million, respectively, of commercial loans that were secured by real estate but were not dependent upon the real estate for repayment.Refer to Note 2 – Business Combination, above, for details about the loans acquired in the BSPR acquisition.Includes accretable fair value net purchase discounts of $48.0 million and $15.1 million as of December 31, 2020 and 2019, respectively.

As of December 31, 2020, and 2019, the Corporation had net deferred origination costs on its loan portfolio amounting to $4.6 million and $9.2 million, respectively. The total loan portfolio is net of unearned income of $65.8 million and $63.8 million as of December 31, 2020 and 2019, respectively.

As of December 31, 2020, the Corporation was servicing residential mortgage loans owned by others in an aggregate amount of $4.2 billion (2019 — $3.1 billion), and commercial loan participations owned by others in an aggregate amount of $422.0 million as of December 31, 2020 (2019 — $267.6 million).

Various loans, mainly secured by first mortgages, were assigned as collateral for CDs, individual retirement accounts, and advances from the FHLB. Total loans pledged as collateral amounted to $2.5 billion and $1.8 billion as of December 31, 2020 and 2019, respectively.

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

		As of December 31, 2020								Year Ended December 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 (2)		Loans Past Due 90 days or more and Still Accruing (3)		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing (3)
(In thousands)		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans (2)		Loans Past Due 90 days or more and Still Accruing (3)		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing (3)

Residential mortgage loans, mainly secured
by first mortgages:
	FHA/VA government-guaranteed	$	-	$	-	$	-	$	98,993	$	-	$	-	$	81,011
	Conventional residential mortgage loans		12,418		98,527		110,945		38,834		1,050		108,117		40,208
Construction loans			4,546		8,425		12,971		-		80		9,782		-
Commercial mortgage loans			11,777		17,834		29,611		3,252		194		40,076		2,222
C&I loans			14,824		5,496		20,320		2,246		86		18,458		7,061
Consumer Loans:
Auto loans			26		8,638		8,664		-		164		12,057		-
Finance leases			-		1,466		1,466		-		25		1,354		-
Personal loans			-		1,623		1,623		-		49		1,523		-
Credit cards			-		-		-		1,520		-		-		4,411
Other consumer loans			-		3,682		3,682		-		5		5,016		-
Total loans held for investment ⁽¹⁾		$	43,591	$	145,691	$	189,282	$	144,845	$	1,653	$	196,383	$	134,913

Nonaccrual loans exclude $386.7 million and $388.4 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2020 and 2019, respectively.Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans accounted for under ASC Subtopic 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 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 December 31, 2020 and 2019 was $130.9 million and $136.7 million, respectivelyThese include loans rebooked, which were previously pooled into GNMA securities amounting to $10.7 million and $35.3 million as of December 31, 2020 and 2019, respectively. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. During the year ended December 31, 2020, the Corporation repurchased, pursuant to the aforementioned repurchase option, $55.0 million of loans previously sold to GNMA.

		As of December 31, 2020								Year Ended December 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	$	-	$	-	$	-	$	250	$	-	$	-	$	129
	Conventional residential mortgage loans		2,584		11,838		14,422		-		285		13,291		-
Construction loans			-		-		-		-		-		-		-
Commercial mortgage loans			-		-		-		-		-		-		-
C&I loans			561		-		561		-		71		315		-
Consumer Loans:
Auto loans			-		223		223		-		12		163		-
Finance leases			-		-		-		-		-		-		-
Personal loans			-		-		-		-		-		5		-
Credit cards			-		-		-		-		-		-		-
Other consumer loans			-		601		601		-		8		511		-
Total loans held for investment ⁽¹⁾		$	3,145	$	12,662	$	15,807	$	250	$	376	$	14,285	$	129

Nonaccrual loans exclude $6.6 million and $9.9 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2020 and 2019, respectively.

		As of December 31, 2020								Year Ended December 31, 2020		As of December 31, 2019
Total		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans (2)		Loans Past Due 90 days or more and Still Accruing (3)		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing (3)
(In thousands)		Nonaccrual Loans with No ACL		Nonaccrual Loans with ACL		Total Nonaccrual Loans (2)		Loans Past Due 90 days or more and Still Accruing (3)		Interest Income Recognized on Nonaccrual Loans		Total Nonaccrual Loans		Loans Past Due 90 days or more and Still Accruing (3)


Residential mortgage loans, mainly secured
by first mortgages:
	FHA/VA government-guaranteed	$	-	$	-	$	-	$	99,243	$	-	$	-	$	81,140
	Conventional residential mortgage loans		15,002		110,365		125,367		38,834		1,335		121,408		40,208
Construction loans			4,546		8,425		12,971		-		80		9,782		-
Commercial mortgage loans			11,777		17,834		29,611		3,252		194		40,076		2,222
C&I loans			15,385		5,496		20,881		2,246		157		18,773		7,061
Consumer Loans:
Auto loans			26		8,861		8,887		-		176		12,220		-
Finance leases			-		1,466		1,466		-		25		1,354		-
Personal loans			-		1,623		1,623		-		49		1,528		-
Credit cards			-		-		-		1,520		-		-		4,411
Other consumer loans			-		4,283		4,283		-		13		5,527		-
Total loans held for investment ⁽¹⁾		$	46,736	$	158,353	$	205,089	$	145,095	$	2,029	$	210,668	$	135,042

Nonaccrual loans exclude $393.3 million and $398.3 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2020 and 2019, respectively.Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans accounted for under ASC Subtopic 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 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 December 31, 2020 and 2019 was $130.9 million and $136.7 million, respectively.These include loans rebooked, which were previously pooled into GNMA securities amounting to $10.7 million and $35.3 million as of December 31, 2020 and 2019, respectively. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. During the year ended December 31, 2020, the Corporation repurchased, pursuant to the aforementioned repurchase option, $55.0 million of loans previously sold to GNMA.As of December 31, 2020, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $172.3 million, including $59.0 million of loans insured by the FHA or guaranteed by the VA, and $18.6 million of PCD loans acquired prior 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 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 December 31, 2020 is as follows:

As of December 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)(3)		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)}	$	-	$	2,223	$	98,993	$	101,216	$	48,348	$	149,564
Conventional residential mortgage loans ⁽⁴⁾		-		61,040		149,779		210,819		2,641,820		2,852,639
Commercial loans:
Construction loans⁽⁴⁾		-		19		12,971		12,990		72,026		85,016
Commercial mortgage loans ⁽⁴⁾		5,071		6,588		32,863		44,522		1,808,702		1,853,224
C&I loans		3,283		10,692		22,566		36,541		2,228,190		2,264,731
Consumer loans:
Auto loans		24,025		5,992		8,664		38,681		1,239,445		1,278,126
Finance leases		5,059		1,086		1,466		7,611		465,378		472,989
Personal loans		4,034		1,981		1,623		7,638		364,373		372,011
Credit cards		3,528		5,842		1,518		10,888		308,936		319,824
Other consumer loans		2,143		993		3,684		6,820		133,162		139,982
Total loans held for investment	$	47,143	$	96,456	$	334,127	$	477,726	$	9,310,380	$	9,788,106

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 $57.9 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.As of December 31, 2020, includes $10.7 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, but less than two payments in arrears, as of December 31, 2020 amounted to $5.9 million, $105.2 million, $5.0 million, and $0.1 million, respectively.

As of December 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)}	$	-	$	-	$	250	$	250	$	920	$	1,170
Conventional residential mortgage loans ⁽³⁾		-		3,237		14,422		17,659		500,922		518,581
Commercial loans:
Construction loans		-		-		-		-		127,484		127,484
Commercial mortgage loans		-		-		-		-		377,378		377,378
C&I loans		218		-		561		779		937,080		937,859
Consumer loans:
Auto loans		710		297		223		1,230		17,068		18,298
Finance leases		-		-		-		-		-		-
Personal loans		-		-		-		-		157		157
Credit cards		-		-		-		-		-		-
Other consumer loans		58		-		601		659		7,597		8,256
Total loans held for investment	$	986	$	3,534	$	16,057	$	20,577	$	1,968,606	$	1,989,183

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 December 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 and conventional residential mortgage loans past due 30-59 days, but less than two payments in arrears, as of December 31, 2020 amounted to $0.2 million and $6.6 million, respectively.

As of December 31, 2020
Total	30-59 Days Past Due		60-89 Days Past Due		90 days or more Past Due^(1)(2)(3)		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)}	$	-	$	2,223	$	99,243	$	101,466	$	49,268	$	150,734
Conventional residential mortgage loans ⁽⁴⁾		-		64,277		164,201		228,478		3,142,742		3,371,220
Commercial loans:
Construction loans ⁽⁴⁾		-		19		12,971		12,990		199,510		212,500
Commercial mortgage loans ⁽⁴⁾		5,071		6,588		32,863		44,522		2,186,080		2,230,602
C&I loans		3,501		10,692		23,127		37,320		3,165,270		3,202,590
Consumer loans:
Auto loans		24,735		6,289		8,887		39,911		1,256,513		1,296,424
Finance leases		5,059		1,086		1,466		7,611		465,378		472,989
Personal loans		4,034		1,981		1,623		7,638		364,530		372,168
Credit cards		3,528		5,842		1,518		10,888		308,936		319,824
Other consumer loans		2,201		993		4,285		7,479		140,759		148,238
Total loans held for investment	$	48,129	$	99,990	$	350,184	$	498,303	$	11,278,986	$	11,777,289

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 $57.9 million of residential mortgage loans insured by the FHA that were over 15 months delinquent.As of December 31, 2020, includes $10.7 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, but less than two payments in arrears, as of December 31, 2020 amounted to $6.1 million, $111.8 million, $5.0 million, and $0.1 million, respectively.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes as of December 31, 2019 was 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)(3)		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⁽⁴⁾		-		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⁾		-		2,681		42,298		44,979		1,034,921		1,079,900
C&I 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, but less than two payments in arrears, as of December 31, 2019 amounted to $6.7 million, $110.5 million, $6.0 million, and $0.1 million respectively.

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 ⁽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
C&I 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, but less than two payments in arrears, 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)(3)		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⁽⁴⁾		-		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⁾		-		3,551		42,298		45,849		1,398,737		1,444,586
C&I 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, but less than two payments in arrears, as of December 31, 2019 amounted to $7.1 million, $116.2 million, $6.6 million, and $0.1 million respectively.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of the borrowers 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 December 31, 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 December 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	$	12,676	$	33,472	$	1,768	$	15,825	$	1,920	$	3,175	$	-	$	68,836	$	35,680
Criticized:
Special Mention		-		776		-		-		-		-		-		776		-
Substandard		-		886		4,934		-		5,269		4,315		-		15,404		12,566
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total construction loans	$	12,676	$	35,134	$	6,702	$	15,825	$	7,189	$	7,490	$	-	$	85,016	$	48,246

COMMERCIAL MORTGAGE
Risk Ratings:
Pass	$	383,847	$	264,499	$	201,344	$	183,056	$	143,673	$	334,875	$	533	$	1,511,827	$	891,298
Criticized:
Special Mention		-		81,797		71,731		119,255		8,766		11,187		-		292,736		13,080
Substandard		188		-		-		-		704		47,769		-		48,661		175,522
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial mortgage loans	$	384,035	$	346,296	$	273,075	$	302,311	$	153,143	$	393,831	$	533	$	1,853,224	$	1,079,900

COMMERCIAL AND INDUSTRIAL
Risk Ratings:
Pass	$	642,966	$	395,232	$	237,958	$	226,469	$	109,300	$	186,781	$	356,520	$	2,155,226	$	1,321,804
Criticized:
Special Mention		-		455		-		827		68		30,335		27,736		59,421		39,327
Substandard		1,389		713		2,721		18,218		1,610		24,438		995		50,084		27,265
Doubtful		-		-		-		-		-		-		-		-		2,768
Loss		-		-		-		-		-		-		-		-		249
Total commercial and industrial loans	$	644,355	$	396,400	$	240,679	$	245,514	$	110,978	$	241,554	$	385,251	$	2,264,731	$	1,391,413

					As of December 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	$	61,813	$	21,672	$	43,168	$	-	$	-	$	-	$	831	$	127,484	$	63,071
Criticized:
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total construction loans	$	61,813	$	21,672	$	43,168	$	-	$	-	$	-	$	831	$	127,484	$	63,071

COMMERCIAL MORTGAGE
Risk Ratings:
Pass	$	48,429	$	81,161	$	39,941	$	51,733	$	28,091	$	18,577	$	23,695	$	291,627	$	364,370
Criticized:
Special Mention		16,803		23,720		6,782		5,350		10,721		17,196		4,855		85,427		-
Substandard		-		-		-		-		-		324		-		324		316
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial mortgage loans	$	65,232	$	104,881	$	46,723	$	57,083	$	38,812	$	36,097	$	28,550	$	377,378	$	364,686

COMMERCIAL AND INDUSTRIAL
Risk Ratings:
Pass	$	174,914	$	264,660	$	94,375	$	84,630	$	9,738	$	46,142	$	148,665	$	823,124	$	837,697
Criticized:
Special Mention		2,999		58,880		12,095		-		-		-		-		73,974		-
Substandard		38,727		-		-		-		-		1,697		337		40,761		1,766
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial and industrial loans	$	216,640	$	323,540	$	106,470	$	84,630	$	9,738	$	47,839	$	149,002	$	937,859	$	839,463

	As of December 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	$	74,489	$	55,144	$	44,936	$	15,825	$	1,920	$	3,175	$	831	$	196,320	$	98,751
Criticized:
Special Mention		-		776		-		-		-		-		-		776		-
Substandard		-		886		4,934		-		5,269		4,315		-		15,404		12,566
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total construction loans	$	74,489	$	56,806	$	49,870	$	15,825	$	7,189	$	7,490	$	831	$	212,500	$	111,317

COMMERCIAL MORTGAGE
Risk Ratings:
Pass	$	432,276	$	345,660	$	241,285	$	234,789	$	171,764	$	353,452	$	24,228	$	1,803,454	$	1,255,668
Criticized:
Special Mention		16,803		105,517		78,513		124,605		19,487		28,383		4,855		378,163		13,080
Substandard		188		-		-		-		704		48,093		-		48,985		175,838
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total commercial mortgage loans	$	449,267	$	451,177	$	319,798	$	359,394	$	191,955	$	429,928	$	29,083	$	2,230,602	$	1,444,586

COMMERCIAL AND INDUSTRIAL
Risk Ratings:
Pass	$	817,880	$	659,892	$	332,333	$	311,099	$	119,038	$	232,923	$	505,185	$	2,978,350	$	2,159,501
Criticized:
Special Mention		2,999		59,335		12,095		827		68		30,335		27,736		133,395		39,327
Substandard		40,116		713		2,721		18,218		1,610		26,135		1,332		90,845		29,031
Doubtful		-		-		-		-		-		-		-		-		2,768
Loss		-		-		-		-		-		-		-		-		249
Total commercial and industrial loans	$	860,995	$	719,940	$	347,149	$	330,144	$	120,716	$	289,393	$	534,253	$	3,202,590	$	2,230,876

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

	As of December 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	$	278	$	2,416	$	2,594	$	4,354	$	9,673	$	130,249	$	-	$	149,564	$	122,429
Conventional residential mortgage loans:
Original LTV:								`
Less than or equal to 90 percent		37,989		61,202		101,157		65,334		88,292		1,675,203		-		2,029,177		1,684,340
Greater than 90 percent but less than
or equal to 100 percent		1,644		7,106		8,319		5,565		16,431		685,984		-		725,049		460,879
Greater than 100 percent		-		939		5,449		2,765		7,362		81,898		-		98,413		99,939
Total residential mortgages in
Puerto Rico and Virgin Islands region	$	39,911	$	71,663	$	117,519	$	78,018	$	121,758	$	2,573,334	$	-	$	3,002,203	$	2,367,587

Florida region:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	285	$	-	$	885	$	-	$	1,170	$	1,480
Conventional residential mortgage loans:
Original LTV:								`
Less than or equal to 90 percent		33,841		50,563		60,581		87,321		78,588		186,516		-		497,410		549,850
Greater than 90 percent but less than
or equal to 100 percent		8,770		2,035		2,827		4,192		2,319		1,028		-		21,171		14,796
Greater than 100 percent		-		-		-		-		-		-		-		-		60
Total residential mortgages in Florida region	$	42,611	$	52,598	$	63,408	$	91,798	$	80,907	$	188,429	$	-	$	519,751	$	566,186

Total:
FHA/VA government-guaranteed loans	$	278	$	2,416	$	2,594	$	4,639	$	9,673	$	131,134	$	-	$	150,734	$	123,909
Conventional residential mortgage loans:
Original LTV:
Less than or equal to 90 percent		71,830		111,765		161,738		152,655		166,880		1,861,719		-		2,526,587		2,234,190
Greater than 90 percent but less than
or equal to 100 percent		10,414		9,141		11,146		9,757		18,750		687,012		-		746,220		475,675
Greater than 100 percent		-		939		5,449		2,765		7,362		81,898		-		98,413		99,999
Total residential mortgages	$	82,522	$	124,261	$	180,927	$	169,816	$	202,665	$	2,761,763	$	-	$	3,521,954	$	2,933,773

	As of December 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	$	278	$	2,416	$	2,594	$	4,354	$	9,673	$	130,249	$	-	$	149,564	$	122,429
Conventional residential mortgage loans:
Original FICO Score:
Less than 620		46		77		464		55		74		325,474		-		326,190		286,754
Greater than or equal to 620
and less than 680		2,144		3,370		8,309		7,416		8,721		511,349		-		541,309		416,766
Greater than or equal to 680
and less than 740		15,009		24,265		40,391		24,308		37,765		700,059		-		841,797		626,291
Greater than or equal to 740		22,434		41,535		65,761		41,885		65,525		906,203		-		1,143,343		915,347
Total residential mortgages in
Puerto Rico and Virgin Islands region	$	39,911	$	71,663	$	117,519	$	78,018	$	121,758	$	2,573,334	$	-	$	3,002,203	$	2,367,587

Florida region:
FHA/VA government-guaranteed loans	$	-	$	-	$	-	$	285	$	-	$	885	$	-	$	1,170	$	1,480
Conventional residential mortgage loans:
Original FICO Score:
Less than 620		-		-		2,509		-		-		821		-		3,330		3,485
Greater than or equal to 620
and less than 680		3,546		5,068		3,440		8,758		11,433		16,175		-		48,420		51,164
Greater than or equal to 680
and less than 740		11,810		15,520		13,810		29,118		26,707		42,232		-		139,197		151,544
Greater than or equal to 740		27,255		32,010		43,649		53,637		42,767		128,316		-		327,634		358,513
Total residential mortgages in Florida region	$	42,611	$	52,598	$	63,408	$	91,798	$	80,907	$	188,429	$	-	$	519,751	$	566,186

Total:
FHA/VA government-guaranteed loans	$	278	$	2,416	$	2,594	$	4,639	$	9,673	$	131,134	$	-	$	150,734	$	123,909
Conventional residential mortgage loans:
Original FICO Score:
Less than 620		46		77		2,973		55		74		326,295		-		329,520		290,239
Greater than or equal to 620
and less than 680		5,690		8,438		11,749		16,174		20,154		527,524		-		589,729		467,930
Greater than or equal to 680
and less than 740		26,819		39,785		54,201		53,426		64,472		742,291		-		980,994		777,835
Greater than or equal to 740		49,689		73,545		109,410		95,522		108,292		1,034,519		-		1,470,977		1,273,860
Total residential mortgages	$	82,522	$	124,261	$	180,927	$	169,816	$	202,665	$	2,761,763	$	-	$	3,521,954	$	2,933,773

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

CONSUMER	As of December 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	$	42,307	$	46,816	$	23,600	$	10,628	$	7,204	$	4,451	$	-	$	135,006	$	126,540
Greater than or equal to 620
and less than 680		134,118		141,778		88,354		37,491		17,955		10,738		-		430,434		388,890
Greater than or equal to 680
and less than 740		136,744		124,654		74,128		32,874		17,628		6,843		-		392,871		333,734
Greater than or equal to 740		129,343		95,516		48,184		26,030		15,595		5,147		-		319,815		255,196
Total auto loans	$	442,512	$	408,764	$	234,266	$	107,023	$	58,382	$	27,179	$	-	$	1,278,126	$	1,104,360

Finance leases
Original FICO score:
Less than 620	$	3,149	$	5,300	$	4,217	$	1,787	$	471	$	258	$	-	$	15,182	$	15,852
Greater than or equal to 620
and less than 680		29,292		35,683		27,540		11,798		4,565		2,302		-		111,180		100,438
Greater than or equal to 680
and less than 740		54,222		58,388		46,563		18,060		10,552		4,061		-		191,846		170,034
Greater than or equal to 740		50,234		49,626		32,861		9,124		9,722		3,214		-		154,781		128,208
Total finance leases	$	136,897	$	148,997	$	111,181	$	40,769	$	25,310	$	9,835	$	-	$	472,989	$	414,532

Personal loans
Original FICO score:
Less than 620	$	1,791	$	2,636	$	2,097	$	1,292	$	1,008	$	2,126	$	-	$	10,950	$	8,197
Greater than or equal to 620
and less than 680		9,650		23,969		9,730		3,793		1,441		1,082		-		49,665		52,712
Greater than or equal to 680
and less than 740		35,466		64,509		30,386		15,974		8,921		5,224		-		160,480		114,147
Greater than or equal to 740		30,781		55,421		31,084		16,144		8,794		4,398		-		146,622		98,668
Unscorable		673		1,722		868		479		234		318		-		4,294		369
Total personal loans	$	78,361	$	148,257	$	74,165	$	37,682	$	20,398	$	13,148	$	-	$	372,011	$	274,093

Credit cards
Original FICO score:
Less than 620	$	-	$	-	$	-	$	-	$	-	$	-	$	12,978	$	12,978	$	11,247
Greater than or equal to 620
and less than 680		-		-		-		-		-		-		60,961		60,961		57,643
Greater than or equal to 680
and less than 740		-		-		-		-		-		-		137,563		137,563		126,977
Greater than or equal to 740		-		-		-		-		-		-		103,938		103,938		96,423
Unscorable		-		-		-		-		-		-		4,384		4,384		-
Total credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	319,824	$	319,824	$	292,290

Other consumer loans
Original FICO score:
Less than 620	$	4,815	$	10,358	$	2,760	$	1,699	$	601	$	377	$	3,130	$	23,740	$	28,251
Greater than or equal to 620
and less than 680		18,443		23,746		7,059		3,616		1,408		5,829		1,566		61,667		68,727
Greater than or equal to 680
and less than 740		13,415		13,031		4,743		2,142		753		1,906		2,612		38,602		41,914
Greater than or equal to 740		4,270		3,581		1,161		571		215		409		1,328		11,535		13,359
Unscorable		-		-		-		-		-		1,645		2,793		4,438		3,605
Total other consumer loans	$	40,943	$	50,716	$	15,723	$	8,028	$	2,977	$	10,166	$	11,429	$	139,982	$	155,856

Total consumer loans in Puerto Rico and Virgin Islands region	$	698,713	$	756,734	$	435,335	$	193,502	$	107,067	$	60,328	$	331,253	$	2,582,932	$	2,241,131

CONSUMER	As of December 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	$	-	$	37	$	824	$	703	$	589	$	116	$	-	$	2,269	$	3,857
Greater than or equal to 620
and less than 680		-		518		3,833		3,029		1,355		307		-		9,042		15,052
Greater than or equal to 680
and less than 740		-		354		2,788		1,340		505		107		-		5,094		8,590
Greater than or equal to 740		-		226		1,315		266		75		11		-		1,893		2,996
Total auto loans	$	-	$	1,135	$	8,760	$	5,338	$	2,524	$	541	$	-	$	18,298	$	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	$	102	$	5	$	-	$	-	$	-	$	-	$	-	$	107	$	593
Greater than or equal to 620
and less than 680		8		-		-		-		-		-		-		8		-
Greater than or equal to 680
and less than 740		-		38		-		-		-		-		-		38		85
Greater than or equal to 740		4		-		-		-		-		-		-		4		71
Unscorable		-		-		-		-		-		-		-		-		33
Total personal loans	$	114	$	43	$	-	$	-	$	-	$	-	$	-	$	157	$	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	$	-	$	-	$	-	$	-	$	-	$	-	$	164	$	164	$	83
Greater than or equal to 620
and less than 680		188		-		-		109		27		610		89		1,023		874
Greater than or equal to 680
and less than 740		178		-		42		50		322		1,094		494		2,180		2,559
Greater than or equal to 740		131		-		-		24		219		2,589		1,926		4,889		5,573
Unscorable		-		-		-		-		-		-		-		-		156
Total other consumer loans	$	497	$	-	$	42	$	183	$	568	$	4,293	$	2,673	$	8,256	$	9,245

Total consumer loans in Florida region	$	611	$	1,178	$	8,802	$	5,521	$	3,092	$	4,834	$	2,673	$	26,711	$	40,522

CONSUMER	As of December 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	$	42,307	$	46,853	$	24,424	$	11,331	$	7,793	$	4,567	$	-	$	137,275	$	130,397
Greater than or equal to 620
and less than 680		134,118		142,296		92,187		40,520		19,310		11,045		-		439,476		403,942
Greater than or equal to 680
and less than 740		136,744		125,008		76,916		34,214		18,133		6,950		-		397,965		342,324
Greater than or equal to 740		129,343		95,742		49,499		26,296		15,670		5,158		-		321,708		258,192
Total auto loans	$	442,512	$	409,899	$	243,026	$	112,361	$	60,906	$	27,720	$	-	$	1,296,424	$	1,134,855

Finance leases
Original FICO score:
Less than 620	$	3,149	$	5,300	$	4,217	$	1,787	$	471	$	258	$	-	$	15,182	$	15,852
Greater than or equal to 620
and less than 680		29,292		35,683		27,540		11,798		4,565		2,302		-		111,180		100,438
Greater than or equal to 680
and less than 740		54,222		58,388		46,563		18,060		10,552		4,061		-		191,846		170,034
Greater than or equal to 740		50,234		49,626		32,861		9,124		9,722		3,214		-		154,781		128,208
Total finance leases	$	136,897	$	148,997	$	111,181	$	40,769	$	25,310	$	9,835	$	-	$	472,989	$	414,532

Personal loans
Original FICO score:
Less than 620	$	1,893	$	2,641	$	2,097	$	1,292	$	1,008	$	2,126	$	-	$	11,057	$	8,790
Greater than or equal to 620
and less than 680		9,658		23,969		9,730		3,793		1,441		1,082		-		49,673		52,712
Greater than or equal to 680
and less than 740		35,466		64,547		30,386		15,974		8,921		5,224		-		160,518		114,232
Greater than or equal to 740		30,785		55,421		31,084		16,144		8,794		4,398		-		146,626		98,739
Unscorable		673		1,722		868		479		234		318		-		4,294		402
Total personal loans	$	78,475	$	148,300	$	74,165	$	37,682	$	20,398	$	13,148	$	-	$	372,168	$	274,875

Credit cards
Original FICO score:
Less than 620	$	-	$	-	$	-	$	-	$	-	$	-	$	12,978	$	12,978	$	11,247
Greater than or equal to 620
and less than 680		-		-		-		-		-		-		60,961		60,961		57,643
Greater than or equal to 680
and less than 740		-		-		-		-		-		-		137,563		137,563		126,977
Greater than or equal to 740		-		-		-		-		-		-		103,938		103,938		96,423
Unscorable		-		-		-		-		-		-		4,384		4,384		-
Total credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	319,824	$	319,824	$	292,290

Other consumer loans
Original FICO score:
Less than 620	$	4,815	$	10,358	$	2,760	$	1,699	$	601	$	377	$	3,294	$	23,904	$	28,334
Greater than or equal to 620
and less than 680		18,631		23,746		7,059		3,725		1,435		6,439		1,655		62,690		69,601
Greater than or equal to 680
and less than 740		13,593		13,031		4,785		2,192		1,075		3,000		3,106		40,782		44,473
Greater than or equal to 740		4,401		3,581		1,161		595		434		2,998		3,254		16,424		18,932
Unscorable		-		-		-		-		-		1,645		2,793		4,438		3,761
Total other consumer loans	$	41,440	$	50,716	$	15,765	$	8,211	$	3,545	$	14,459	$	14,102	$	148,238	$	165,101

Total consumer loans	$	699,324	$	757,912	$	444,137	$	199,023	$	110,159	$	65,162	$	333,926	$	2,609,643	$	2,281,653

The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of December 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		100,950		9,582		7,145		108,095		9,582
Commercial loans:
Construction loans		6,036		500		6,125		12,161		500
Commercial mortgage loans		17,882		1,923		49,241		67,123		1,923
C&I loans		21,933		880		24,728		46,661		880
Consumer loans:
Auto loans		-		-		-		-		-
Finance leases		-		-		-		-		-
Personal loans		146		2		-		146		2
Credit cards		-		-		-		-		-
Other consumer loans		857		113		-		857		113
	$	147,804	$	13,000	$	87,239	$	235,043	$	13,000

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		6,224		988		2,400		8,624		988
Commercial loans:
Construction loans		-		-		-		-		-
Commercial mortgage loans		-		-		2,327		2,327		-
C&I loans		-		-		561		561		-
Consumer loans:
Auto loans		-		-		-		-		-
Finance leases		-		-		-		-		-
Personal loans		-		-		-		-		-
Credit cards		-		-		-		-		-
Other consumer loans		248		83		-		248		83
	$	6,472	$	1,071	$	5,288	$	11,760	$	1,071

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		107,174		10,570		9,545		116,719		10,570
Commercial loans:
Construction loans		6,036		500		6,125		12,161		500
Commercial mortgage loans		17,882		1,923		51,568		69,450		1,923
C&I loans		21,933		880		25,289		47,222		880
Consumer loans:
Auto loans		-		-		-		-		-
Finance leases		-		-		-		-		-
Personal loans		146		2		-		146		2
Credit cards		-		-		-		-		-
Other consumer loans		1,105		196		-		1,105		196
	$	154,276	$	14,071	$	92,527	$	246,803	$	14,071

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 December 31, 2020 was 80%. There were no significant changes in the extent to which collateral secures the Corporation’s collateral dependent financial assets during the year ended December 31, 2020.

PCD and PCI Loans

Prior to the adoption of ASC 326, the Corporation accounted for PCI loans and income recognition thereunder in accordance with ASC Subtopic 310-30. PCI loans are loans that as of the date of their acquisition have experienced deterioration in credit quality between origination and acquisition and for which it was probable at acquisition that not all contractually required payments would be collected. Following the adoption of ASC 326 on January 1, 2020, the Corporation analyzes acquired loans for more-than-insignificant deterioration in credit quality since their origination in accordance with ASC 326. Such loans are classified as PCD loans. Please also see Note 1 – Nature of Business and Summary of Significant Accounting Policies, above, for more information concerning the Corporation’s accounting for PCD loans.

Prior to the adoption of ASC 326, the Corporation identified the amount by which the undiscounted expected future cash flows on PCI loans exceeded the estimated fair value of the loan on the date of acquisition as the “accretable yield,” representing the amount of estimated future interest income on the loan. The amount of accretable yield was re-measured at each financial reporting date, representing the difference between the remaining undiscounted expected cash flows and the then-current carrying value of the PCI loan. Following the adoption of ASC 326, the Corporation accounts for interest income on PCD loans using the interest method, whereby any purchase non-credit discounts or premiums are accreted or amortized into interest income as an adjustment of the loan’s yield.

Upon the adoption of ASC 326, acquired loans classified as PCD are recorded at an initial amortized cost, which is comprised of the purchase price of the loans (or initial fair value) and the initial ACL determined for the loans, which represents the fair value credit discount, and any resulting premium or discount related to factors other than credit.

The following table reconciles the difference between the purchase price of the PCD acquired loans in conjunction with the BSPR acquisition completed on September 1, 2020 and the par value:

	Residential Mortgage		Construction		Commercial Mortgage		C&I		Consumer		Total
(In thousands)	Residential Mortgage		Construction		Commercial Mortgage		C&I		Consumer		Total
Purchase price of loans at acquisition (initial fair value)	$	322,345	$	-	$	180,950	$	194,572	$	54,959	$	752,826
ACL at acquisition		12,739		-		9,723		1,830		4,452		28,744
Non-credit discount (premium) at acquisition		3,075		-		2,783		(95)		(1,284)		4,479
Par value of acquired loans at acquisition	$	338,159	$	-	$	193,456	$	196,307	$	58,127	$	786,049

Refer to Note 1 – Nature of Business and Summary of Significant Accounting Policies, and Note 2 – Business Combination, above, for additional information about the description of the elements considered by the Corporation to determine the value of PCD loans acquired as part of the BSPR acquisition and the methodologies used to determine the initial ACL of these PCD loans.

Purchases and Sales of Loans

During 2020, the Corporation purchased $0.8 million of residential mortgage loans as part of a internal program to purchase residential mortgage loans from mortgage bankers in Puerto Rico, compared to purchases of $18.8 million in 2019 and $46.1 million in 2018. 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 right to service the loans. In addition, during 2020, 2019, and 2018, the Corporation purchased C&I loan participations of $40.0 million, $20.0 million, and $21.4 million, respectively.

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 2020, the Corporation sold $221.5 million of FHA/VA mortgage loans to GNMA, which packaged them into MBS, compared to sales of $235.3 million and $233.2 million in 2019 and 2018, respectively. Also, during 2020, the Corporation sold approximately $254.7 million of performing residential mortgage loans to FNMA and FHLMC, compared to sales of $138.7 million and $104.9 million in 2019 and 2018, respectively. The Corporation’s continuing involvement with the loans that it sells consists primarily of servicing the loans. In addition, the Corporation agrees 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 December 31, 2020 and 2019, rebooked GNMA delinquent loans that were included in the residential mortgage loan portfolio amounted to $10.7 million and $35.6 million, respectively.

During 2020, 2019, and 2018, the Corporation repurchased, pursuant to the aforementioned repurchase option, $55.0 million, $33.5 million, and $49.1 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. On May 14, 2020, in response to the national emergency declared by the U.S. President related to the COVID-19 pandemic, GNMA announced a temporary relief that excludes any new borrower delinquencies, occurring on or after April 2020, from the calculation of delinquency and default ratios established in the GNMA MBS guide. This exclusion was extended automatically to issuers that were compliant with GNMA delinquency rate thresholds as reflected by their April 2020 investor accounting report, reflecting March 2020 servicing data. The exemptions and delinquent loan exclusions will automatically expire on July 31, 2021, unless earlier rescinded or extended by GNMA, or the end of the national emergency, whichever comes earlier. 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 $42 thousand, $0.3 million, and $0.1 million during 2020, 2019, and 2018, 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.

The Corporation participates in the Main Street Lending program established by the FED under the CARES Act of 2020, as amended, to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. Under this program, the Corporation originates loans to borrowers meeting the terms and requirements of the program, including requirements as to eligibility, use of proceeds and priority, and sells a 95% participation interest in these loans to a special purpose vehicle (the “Main Street SPV”) organized by the FED to purchase the participation interests from eligible lenders, including the Corporation. During the fourth quarter of 2020, the Corporation originated 23 loans under this program totaling $184.4 million in principal amount and sold participation interests totaling $175.1 million to the Main Street SPV.

In addition, during 2019, the Corporation sold $11.4 million in nonaccrual commercial loans held for sale and sold three commercial and industrial loan participations in the Puerto Rico region totaling $48.2 million.

Other loan sales in 2018 include: (i) the sale of a $5.6 million commercial and industrial adversely-classified loan in the Puerto Rico region; (ii) the sale of a $9.2 million commercial and industrial loan participation in the Florida region; and (iii) the sale of $34.9 million and $27.0 million in nonaccrual commercial and construction loans in the Puerto Rico and the Virgin Islands regions, respectively.

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 portfolio of $11.8 billion as of December 31, 2020, credit risk concentration was approximately 79% in Puerto Rico, 17% in the U.S., and 4% in the USVI and BVI.

As of December 31, 2020, the Corporation had $201.3 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. As of December 31, 2020, approximately $107.4 million consisted of loans extended to municipalities in Puerto Rico that are supported by assigned property tax revenues, and $38.5 million of municipal special obligation bonds. The vast majority of revenues of the municipalities included in the Corporation’s loan portfolio are independent of budgetary subsidies provided by the Puerto Rico central government. These municipalities are required by law to levy special property taxes in such amounts as are required to satisfy 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 exposure to the Puerto Rico government as of December 31, 2020 included $13.6 million in loans granted to an affiliate of PREPA and $41.8 million in loans to an agency of the Puerto Rico central government.

In addition, as of December 31, 2020, the Corporation had $106.5 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 amount 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 December 31, 2020, the Corporation had $61.8 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 December 31, 2020, public corporations of the USVI owed approximately $38.6 million and an independent instrumentality of the USVI government owed approximately $23.2 million. As of December 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, 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 a borrower’s financial condition, restructurings or loan modifications through this program, as well as other restructurings of individual C&I, 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 December 31, 2020, the Corporation’s total TDR loans held for investment of $479.2 million consisted of $310.6 million of residential mortgage loans, $80.5 million of C&I loans, $64.4 million of commercial mortgage loans, $3.4 million of construction loans, and $20.2 million of consumer loans. The Corporation has committed to lend up to an additional $5.0 million on these loans.

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 principal at 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 December 31, 2020, the Corporation included as TDRs $1.0 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 the 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, require annual renewals. 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 to be concessions, and the loans continue to be recorded as performing.

In working with borrowers affected by the COVID-19 pandemic, the Corporation has agreed to let consumer borrowers (i.e., borrowers under residential mortgages, personal loans, auto loans, finance leases and small loans) that 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) to defer payments on their loans, in some cases for up to six months. 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 providing for payment deferrals, in some cases for up to six months. For both consumer and residential mortgage loans subject to the deferral programs, each borrower was required to begin making the borrower’s 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 deferral of the scheduled contractual payment due in March. For commercial loans, any request for payment deferral, including extensions of the repayment moratorium, has been analyzed on a case-by-case basis. As of December 31, 2020, the Corporation had under temporary deferred repayment arrangements 688 loans, totaling approximately $32.7 million, or 0.3% of its total loan portfolio held for investment balance, consisting of 89 residential mortgage loans, totaling $18.4 million, 580 consumer loans, totaling $8.0 million, and 19 commercial and construction loans, totaling $6.3 million. Additionally, as of December 31, 2020, 24 commercial loans totaling $244.3 million or 2% of total loans held for investment, were permanently modified under the provisions of Section 4013 of the CARES Act of 2020. Most of the temporary deferred payment arrangements have been done under the provisions of Section 4013 of the CARES Act of 2020 or the Revised Interagency Statement. In addition, moratoriums on loan repayments for consumer and residential mortgage products in Puerto Rico were mandated by local law. A loan modification covered by the provisions of the CARES Act of 2020 and/or the Revised Interagency Statement is not required to be considered as a TDR loan.

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 December 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	$	17,740	$	11,125	$	211,155	$	-	$	223	$	66,694	$	306,937
Construction loans		21		1,700		1,516		-		-		186		3,423
Commercial mortgage loans		1,491		1,380		35,714		-		16,473		6,765		61,823
C&I loans		238		12,267		14,119		-		17,890		35,744		80,258
Consumer loans:
Auto loans		-		474		4,863		-		-		6,112		11,449
Finance leases		-		15		588		-		-		541		1,144
Personal loans		58		9		571		-		-		286		924
Credit cards		-		-		2,342		16		-		-		2,358
Other consumer loans		1,602		991		572		193		-		343		3,701
Total TDRs in Puerto Rico
and Virgin Islands region	$	21,150	$	27,961	$	271,440	$	209	$	34,586	$	116,671	$	472,017

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 two or more of the concessions listed in the table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

	As of December 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	$	989	$	401	$	2,257	$	-	$	-	$	22	$	3,669
Construction loans		-		-		-		-		-		-		-
Commercial mortgage loans		-		834		1,781		-		-		-		2,615
C&I loans		-		-		-		-		-		224		224
Consumer loans:
Auto loans		-		55		15		-		-		-		70
Finance leases		-		-		-		-		-		-		-
Personal loans		-		-		-		-		-		-		-
Credit cards		-		-		-		-		-		-		-
Other consumer loans		37		-		172		-		-		392		601
Total TDRs in Florida Region	$	1,026	$	1,290	$	4,225	$	-	$	-	$	638	$	7,179

	As of December 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	$	18,729	$	11,526	$	213,412	$	-	$	223	$	66,716	$	310,606
Construction loans		21		1,700		1,516		-		-		186		3,423
Commercial mortgage loans		1,491		2,214		37,495		-		16,473		6,765		64,438
C&I loans		238		12,267		14,119		-		17,890		35,968		80,482
Consumer loans:
Auto loans		-		529		4,878		-		-		6,112		11,519
Finance leases		-		15		588		-		-		541		1,144
Personal loans		58		9		571		-		-		286		924
Credit cards		-		-		2,342		16		-		-		2,358
Other consumer loans		1,639		991		744		193		-		735		4,302
Total TDRs	$	22,176	$	29,251	$	275,665	$	209	$	34,586	$	117,309	$	479,196

	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
C&I 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 TDRs in Puerto Rico
and Virgin Islands 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
C&I loans		-		-		-		-		-		315		315
Consumer loans:
Auto loans		-		97		19		-		-		-		116
Finance leases		-		-		-		-		-		-		-
Personal loans		-		-		-		-		-		-		-
Credit cards		-		-		-		-		-		-		-
Other consumer loans		39		-		183		-		-		538		760
Total TDRs 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
C&I 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 TDRs	$	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:

	Year Ended		Year Ended		Year Ended
	December 31,2020		December 31,2019		December 31, 2018
(In thousands)
Beginning balance of TDRs	$	487,997	$	582,647	$	587,219
New TDRs		36,319		63,433		171,857
Increases to existing TDRs		6,009		1,840		7,027
Charge-offs post-modification (1)		(11,122)		(10,342)		(27,951)
Foreclosures		(2,015)		(12,872)		(21,591)
TDRs transferred to held for sale, net of charge-offs		-		-		(34,541)
Paid-off, partial payments and other (2)		(37,992)		(136,709)		(99,373)
Ending balance of TDRs	$	479,196	$	487,997	$	582,647

For the year ended December 31, 2018, includes charge-offs of $8.5 million associated with $34.5 million of commercial and construction loans transferred to held for sale.For the year ended December 31, 2019, includes the payoff of a $92.4 million commercial mortgage loan.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, a loan 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 loan 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. In 2018, the Corporation, removed from the TDR classification a $9.9 million loan refinanced at market terms as the borrower was no longer experiencing financial difficulties and the refinancing did not contain any concession to the borrowers. This refinancing was included as part of “Paid-off, partial payments and other” in the above table for the year ended December 31, 2018.

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

December 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	$	253,421	$	53,516	$	306,937	$	3,358	$	311	$	3,669	$	256,779	$	53,827	$	310,606
Construction loans		2,480		943		3,423		-		-		-		2,480		943		3,423
Commercial mortgage loans		43,012		18,811		61,823		2,615		-		2,615		45,627		18,811		64,438
C&I loans		73,649		6,609		80,258		-		224		224		73,649		6,833		80,482
Consumer loans:
Auto loans		6,481		4,968		11,449		70		-		70		6,551		4,968		11,519
Finance leases		1,125		19		1,144		-		-		-		1,125		19		1,144
Personal loans		920		4		924		-		-		-		920		4		924
Credit Cards		2,358		-		2,358		-		-		-		2,358		-		2,358
Other consumer loans		3,274		427		3,701		564		37		601		3,838		464		4,302
Total TDRs	$	386,720	$	85,297	$	472,017	$	6,607	$	572	$	7,179	$	393,327	$	85,869	$	479,196

Included in nonaccrual loans are $5.9 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
C&I 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 TDRs	$	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 $58.7 million as of December 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 2020, 2019 and 2018 were as follows:

Year Ended December 31, 2020

	Puerto Rico and Virgin Islands region					Florida region					Total
	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	103	$	9,027	$	8,307	-	$	-	$	-	103	$	9,027	$	8,307
Construction loans	-		-		-	-		-		-	-		-		-
Commercial mortgage loans	5		824		824	-		-		-	5		824		824
C&I loans	14		22,544		22,524	-		-		-	14		22,544		22,524
Consumer loans:
Auto loans	163		2,635		2,623	-		-		-	163		2,635		2,623
Finance leases	29		408		408	-		-		-	29		408		408
Personal loans	30		306		305	-		-		-	30		306		305
Credit Cards	159		783		783	-		-		-	159		783		783
Other consumer loans	144		590		522	1		23		23	145		613		545
Total TDRs	647	$	37,117	$	36,296	1	$	23	$	23	648	$	37,140	$	36,319

Year Ended December 31, 2019

	Puerto Rico and Virgin Islands region					Florida region					Total
	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	118	$	14,606	$	14,084	-	$	-	$	-	118	$	14,606	$	14,084
Construction loans	4		118		117	-		-		-	4		118		117
Commercial mortgage loans	13		40,988		38,750	-		-		-	13		40,988		38,750
C&I loans	14		1,754		1,750	-		-		-	14		1,754		1,750
Consumer loans:
Auto loans	253		4,168		4,121	3		33		33	256		4,201		4,154
Finance leases	42		804		801	-		-		-	42		804		801
Personal loans	53		502		499	-		-		-	53		502		499
Credit Cards	153		800		800	-		-		-	153		800		800
Other consumer loans	656		2,411		2,478	-		-		-	656		2,411		2,478
Total TDRs	1,306	$	66,151	$	63,400	3	$	33	$	33	1,309	$	66,184	$	63,433

Year Ended December 31, 2018

	Puerto Rico and Virgin Islands region					Florida region					Total
	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	104	$	14,827	$	14,159	-	$	-	$	-	104	$	14,827	$	14,159
Construction loans	2		684		655	-		-		-	2		684		655
Commercial mortgage loans	11		138,994		138,785	-		-		-	11		138,994		138,785
C&I loans	10		9,141		8,786	-		-		-	10		9,141		8,786
Consumer loans:
Auto loans	267		4,229		4,218	18		271		271	285		4,500		4,489
Finance leases	48		1,001		987	-		-		-	48		1,001		987
Personal loans	54		605		603	-		-		-	54		605		603
Credit Cards	203		1,193		1,193	-		-		-	203		1,193		1,193
Other consumer loans	511		2,137		2,200	-		-		-	511		2,137		2,200
Total TDRs	1,210	$	172,811	$	171,586	18	$	271	$	271	1,228	$	173,082	$	171,857

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 years ended December 31, 2020, 2019, and 2018, and had become TDR loans during the 12-months preceding the default date, were as follows:

	Year Ended December 31,
	2020			2019			2018
Puerto Rico and Virgin Islands region	Number of contracts	Amortized Cost		Number of contracts	Amortized Cost		Number of contracts	Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans	10	$	2,380	11	$	2,019	15	$	1,994
Construction loans	-		-	-		-	-		-
Commercial mortgage loans	-		-	-		-	-		-
C&I loans	3		124	-		-	-		-
Consumer loans:
Auto loans	55		947	130		2,221	62		1,003
Finance leases	1		5	1		14	1		22
Personal loans	1		7	1		9	2		26
Credit cards	47		228	-		-	-		-
Other consumer loans	58		209	77		238	54		180
Total Puerto Rico and Virgin Islands region	175	$	3,900	220	$	4,501	134	$	3,225

	Year Ended December 31,
	2020			2019			2018
Florida region	Number of contracts	Amortized Cost		Number of contracts	Amortized Cost		Number of contracts	Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans	-	$	-	-	$	-	-	$	-
Construction loans	-		-	-		-	-		-
Commercial mortgage loans	-		-	-		-	-		-
C&I loans	-		-	-		-	-		-
Consumer loans:
Auto loans	-		-	-		-	-		-
Finance leases	-		-	-		-	-		-
Personal loans	-		-	-		-	-		-
Credit cards	-		-	-		-	-		-
Other consumer loans	-		-	-		-	-		-
Total in Florida region	-	$	-	-	$	-	-	$	-

	Year Ended December 31,
	2020			2019			2018
Total	Number of contracts	Amortized Cost		Number of contracts	Amortized Cost		Number of contracts	Amortized Cost
(Dollars in thousands)
Conventional residential mortgage loans	10	$	2,380	11	$	2,019	15	$	1,994
Construction loans	-		-	-		-	-		-
Commercial mortgage loans	-		-	-		-	-		-
C&I loans	3		124	-		-	-		-
Consumer loans:
Auto loans	55		947	130		2,221	62		1,003
Finance leases	1		5	1		14	1		22
Personal loans	1		7	1		9	2		26
Credit cards	47		228	-		-	-		-
Other consumer loans	58		209	77		238	54		180
Total	175	$	3,900	220	$	4,501	134	$	3,225

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. In general, 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 tables provide additional information about the volume of this type of loan restructuring as of December 31, 2020, 2019, and 2018, and its effect on the ACL in 2020, 2019 and 2018:

	Year Ended
	December 31, 2020
(In thousands)	Commercial Mortgage loans		C&I loans		Construction loans		Total
Beginning balance of A/B Notes	$	22,749	$	26,596	$	1,883	$	51,228
New TDR loan splits		-		-		-		-
Increase to existing TDRs		-		738		-		738
Paid-off and partial payments		(3,187)		(284)		(321)		(3,792)
Charge-offs		(3,087)		-		-		(3,087)
Ending balance of A/B Notes	$	16,475	$	27,050	$	1,562	$	45,087

	Year Ended
	December 31, 2019
(In thousands)	Commercial Mortgage loans		C&I loans		Construction loans		Total
Beginning balance of A/B Notes	$	3,003	$	28,406	$	2,431	$	33,840
New TDR loan splits		20,059		-		-		20,059
Increase to existing TDRs		-		-		-		-
Paid-off and partial payments		(313)		(1,810)		(548)		(2,671)
Charge-offs		-		-		-		-
Ending balance of A/B Notes	$	22,749	$	26,596	$	1,883	$	51,228

	Year Ended
	December 31, 2018
(In thousands)	Commercial Mortgage loans		C&I loans		Construction loans		Total
Beginning balance of A/B Notes	$	3,098	$	32,479	$	-	$	35,577
New TDR loan splits		29,601		-		2,503		32,104
Increase to existing TDRs		-		-		-		-
Paid-off and partial payments		(29,696)		(4,073)		(72)		(33,841)
Charge-offs		-		-		-		-
Ending balance of A/B Notes	$	3,003	$	28,406	$	2,431	$	33,840

	Year Ended
	December 31, 2020
(In thousands)	Commercial Mortgage loans		C&I loans		Construction loans		Total
ACL at the beginning of the year for A/B Notes	$	3,516	$	14	$	-	$	3,530
Impact of adopting ASC 326		(415)		89		-		(326)
(Releases) charges to the provision
for credit losses		(14)		298		-		284
Charge-offs		(3,087)		-		-		(3,087)
ACL at the end of the year for A/B Notes	$	-	$	401	$	-	$	401

	Year Ended
	December 31, 2019
(In thousands)	Commercial Mortgage loans		C&I loans		Construction loans		Total
ACL at the beginning of the year for A/B Notes	$	-	$	473	$	-	$	473
Charges (releases) to the provision
for credit losses		3,516		(459)		-		3,057
Charge-offs		-		-		-		-
ACL at the end of the year for A/B Notes	$	3,516	$	14	$	-	$	3,530

	Year Ended
	December 31, 2018
(In thousands)	Commercial Mortgage loans		C&I loans		Construction loans		Total
ACL at the beginning of the year for A/B Notes	$	-	$	3,846	$	-	$	3,846
(Releases) Charges to the provision
for credit losses		(7,416)		(3,373)		-		(10,789)
Net loan loss recoveries		7,416		-		-		7,416
ACL at the end of the year for A/B Notes	$	-	$	473	$	-	$	473

Approximately $38.5 million of the December 31, 2020 balance of loans restructured using the A/B note restructure workout strategy were in accrual status as of December 31, 2020.