LOANS HELD FOR INVESTMENT

3 Months Ended

Mar. 31, 2023

LOANS HELD FOR INVESTMENT [Abstract]

LOAN HELD FOR INVESTMENT

NOTE 3 – LOANS HELD FOR INVESTMENT 

The following table provides information about the loan portfolio held for investment by portfolio segment and disaggregated by

geographic locations as of the indicated dates:

As of March 31, 

As of December 31,

2023

2022

(In thousands)

Puerto Rico and Virgin Islands region:

Residential mortgage loans, mainly secured by first mortgages

$

2,381,782

$

2,417,900

Construction loans

48,195

34,772

Commercial mortgage loans 

1,829,173

1,834,204

Commercial and Industrial ("C&I") loans

1,941,228

1,860,109

Consumer loans

3,398,245

3,317,489

Loans held for investment

$

9,598,623

$

9,464,474

Florida region:

Residential mortgage loans, mainly secured by first mortgages

$

429,746

$

429,390

Construction loans

95,469

98,181

Commercial mortgage loans 

524,486

524,647

C&I loans

920,961

1,026,154

Consumer loans

8,700

9,979

Loans held for investment

$

1,979,362

$

2,088,351

Total:

Residential mortgage loans, mainly secured by first mortgages

$

2,811,528

$

2,847,290

Construction loans

143,664

132,953

Commercial mortgage loans 

2,353,659

2,358,851

C&I loans

(1)

2,862,189

2,886,263

Consumer loans

3,406,945

3,327,468

Loans held for investment

(2)

11,577,985

11,552,825

ACL on loans and finance leases

(265,567)

(260,464)

Loans held for investment, net

$

11,312,418

$

11,292,361

(1)

As of March 31, 2023 and December 31, 2022, includes $

837.8

 million and $

838.5

 million, respectively, of commercial loans that were secured by real estate and

the primary source of repayment at origination was not dependent upon the real estate.

(2)

Includes accretable fair value net purchase discounts of $

28.3

 million and $

29.3

 million as of March 31, 2023 and December 31, 2022, respectively.

When a loan is placed on nonaccrual status, any accrued but uncollected interest income is reversed and charged against interest

income and the amortization of any net deferred fees is suspended. The amount of accrued interest reversed against interest income

totaled $

0.6

 million and $

0.4

 million for the quarters ended March 31, 2023 and 2022, respectively. For the quarters ended March 31,

2023 and 2022, the cash interest income recognized on nonaccrual loans amounted to $

0.5

 million and $

0.4

 million, respectively.

As of March 31, 2023, the recorded investment on residential mortgage loans collateralized by residential real estate property that

were in the process of foreclosure amounted to $

62.6

 million, including $

27.2

 million of FHA/VA government-guaranteed mortgage

loans, and $

8.8

 million of PCD loans acquired prior to the adoption, on January 1, 2020, of CECL.

The Corporation commences the

foreclosure process on residential real estate loans when a borrower becomes

120

 days delinquent. Foreclosure procedures and

timelines vary depending on whether the property is located in a judicial or non-judicial state. Occasionally, foreclosures may be

delayed due to, among other reasons, mandatory mediations, bankruptcy, court delays, and title issues.

As of March 31, 2023

Days Past Due and Accruing

Current

30-59

60-89

90+

(1) (2) (3)

Nonaccrual

(4)

Total loans held

for investment

Nonaccrual

Loans with no

ACL

(5)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

 FHA/VA government-guaranteed loans

(1) (3) (6)

$

67,977

$

-

$

1,869

$

41,723

$

-

$

111,569

$

-

 Conventional residential mortgage loans

(2) (6)

2,626,542

-

23,367

13,640

36,410

2,699,959

2,250

Commercial loans:

 Construction loans 

141,870

-

-

-

1,794

143,664

972

 Commercial mortgage loans

(2) (6)

2,323,116

509

507

7,929

21,598

2,353,659

15,787

 C&I loans 

2,840,568

1,438

424

6,355

13,404

2,862,189

1,858

Consumer loans:

 Auto loans

1,780,593

34,754

6,380

-

11,138

1,832,865

3,342

 Finance leases

743,656

8,056

1,562

-

2,208

755,482

344

 Personal loans

353,214

4,160

2,098

-

1,263

360,735

-

 Credit cards

299,387

3,989

2,518

4,733

-

310,627

-

 Other consumer loans

143,035

1,916

958

-

1,327

147,236

21

 Total loans held for investment

$

11,319,958

$

54,822

$

39,683

$

74,380

$

89,142

$

11,577,985

$

24,574

(1)

It is the Corporation's policy to report delinquent Federal Housing Authority (“FHA”)/Veterans Affairs (“VA”) government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed

to nonaccrual loans. 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 $

25.9

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes purchased credit deteriorated ("PCD") loans previously accounted for under ASC Subtopic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" ("ASC Subtopic 310-30") for which

the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement.

These loans 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 portion of

such loans contractually past due 90 days or more, amounting to $

10.4

 million as of March 31, 2023 ($

9.4

 million conventional residential mortgage loans and $

1.0

 million commercial mortgage loans), is presented in

the loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

7.1

 million as of March 31, 2023. 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.

(4)

Nonaccrual loans in the Florida region amounted to $

15.2

 million as of March 31, 2023, primarily nonaccrual residential mortgage loans and C&I loans.

(5)

Includes $

0.3

 million of nonaccrual C&I loans with no ACL in the Florida region as of March 31, 2023.

(6)

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 March 31, 2023 amounted to $

5.3

 million, $

60.7

 million, and $

1.1

 million,

respectively.

As of December 31, 2022

Days Past Due and Accruing

Current

30-59

60-89

90+

(1)(2)(3)

Nonaccrual

(4)

Total loans held

for investment

Nonaccrual

Loans with no

ACL

(5)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

 FHA/VA government-guaranteed loans

(1) (3) (6)

$

67,116

$

-

$

2,586

$

48,456

$

-

$

118,158

$

-

 Conventional residential mortgage loans

(2) (6)

2,643,909

-

25,630

16,821

42,772

2,729,132

2,292

Commercial loans:

 Construction loans

130,617

-

-

128

2,208

132,953

977

 Commercial mortgage loans

(2) (6)

2,330,094

300

2,367

3,771

22,319

2,358,851

15,991

 C&I loans 

2,868,989

1,984

1,128

6,332

7,830

2,886,263

3,300

Consumer loans:

 Auto loans

1,740,271

40,039

7,089

-

10,672

1,798,071

2,136

 Finance leases

707,646

7,148

1,791

-

1,645

718,230

330

 Personal loans

346,366

3,738

1,894

-

1,248

353,246

-

 Credit cards

301,013

3,705

2,238

4,775

-

311,731

-

 Other consumer loans

141,687

1,804

1,458

-

1,241

146,190

-

 Total loans held for investment

$

11,277,708

$

58,718

$

46,181

$

80,283

$

89,935

$

11,552,825

$

25,026

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans. 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 $

28.2

 million of residential mortgage loans

guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption

of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans 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 portion of such loans contractually past due 90 days or more, amounting to $

12.0

 million as of December 31, 2022 ($

11.0

 million conventional

residential mortgage loans and $

1.0

 million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

10.3

 million as of December 31, 2022. 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.

(4)

Nonaccrual loans in the Florida region amounted to $

8.3

 million as of December 31, 2022, primarily nonaccrual residential mortgage loans.

(5)

Includes $

0.3

 million of nonaccrual C&I loans with no ACL in the Florida region as of December 31, 2022.

(6)

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, 2022 amounted to $

6.1

 million, $

65.2

 million, and $

1.6

 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, C&I, and

construction loans individually to classify the loans’ credit risk. As mentioned above, the Corporation periodically reviews its

commercial and construction loans 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 debt securities, as

discussed in Note 3 – Debt Securities, to the audited consolidated financial statements included in the 2022 Annual Report on Form

10-K.

For residential mortgage and consumer loans, the Corporation also evaluates credit quality based on its interest accrual status. 

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by

origination year based on the internal credit-risk category as of March 31, 2023, the gross charge -offs for the quarter ended March 31,

2023 by portfolio classes and by origination year, and the amortized cost of commercial and construction loans by portfolio classes

based on the internal credit-risk category as of December 31, 2022, was as follows:

As of March 31, 2023

Puerto Rico and Virgin Islands region

Term Loans

As of December 31, 2022

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

 Risk Ratings:

 Pass

$

6,479

$

16,509

$

18,842

$

-

$

-

$

3,885

$

-

$

45,715

$

31,879

 Criticized:

 Special Mention

-

-

-

-

-

-

-

-

-

 Substandard

-

-

-

-

-

2,480

-

2,480

2,893

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total construction loans

$

6,479

$

16,509

$

18,842

$

-

$

-

$

6,365

$

-

$

48,195

$

34,772

 Charge-offs on construction loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

COMMERCIAL MORTGAGE

 Risk Ratings:

 Pass

$

67,469

$

391,295

$

139,536

$

325,141

$

301,638

$

400,794

$

478

$

1,626,351

$

1,655,728

 Criticized:

 Special Mention

-

1,177

-

36,546

75

131,350

-

169,148

145,415

 Substandard

-

132

-

-

2,797

30,745

-

33,674

33,061

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total commercial mortgage loans

$

67,469

$

392,604

$

139,536

$

361,687

$

304,510

$

562,889

$

478

$

1,829,173

$

1,834,204

 Charge-offs on commercial mortgage loans

$

-

$

-

$

-

$

-

$

-

$

18

$

-

$

18

C&I

 Risk Ratings:

 Pass

$

70,739

$

303,603

$

188,155

$

181,284

$

308,225

$

254,283

$

565,758

$

1,872,047

$

1,789,572

 Criticized:

 Special Mention

-

132

839

-

1,029

12,885

32,322

47,207

43,224

 Substandard

-

-

396

652

13,430

7,117

379

21,974

27,313

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total C&I loans

$

70,739

$

303,735

$

189,390

$

181,936

$

322,684

$

274,285

$

598,459

$

1,941,228

$

1,860,109

 Charge-offs on C&I loans

$

-

$

-

$

-

$

-

$

-

$

63

$

55

$

118

(1) Excludes accrued interest receivable.

As of March 31, 2023

Term Loans

As of December 31, 2022

Florida region

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

 Risk Ratings:

 Pass

$

107

$

50,019

$

42,867

$

-

$

-

$

-

$

2,476

$

95,469

$

98,181

 Criticized:

 Special Mention

-

-

-

-

-

-

-

-

-

 Substandard

-

-

-

-

-

-

-

-

-

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total construction loans

$

107

$

50,019

$

42,867

$

-

$

-

$

-

$

2,476

$

95,469

$

98,181

 Charge-offs on construction loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

COMMERCIAL MORTGAGE

 Risk Ratings:

 Pass

$

3,529

$

177,392

$

70,147

$

41,024

$

51,320

$

140,177

$

19,551

$

503,140

$

503,184

 Criticized:

 Special Mention

-

-

-

6,947

13,231

-

-

20,178

20,295

 Substandard

-

-

-

1,168

-

-

-

1,168

1,168

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total commercial mortgage loans

$

3,529

$

177,392

$

70,147

$

49,139

$

64,551

$

140,177

$

19,551

$

524,486

$

524,647

 Charge-offs on commercial mortgage loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

C&I

 Risk Ratings:

 Pass

$

36,642

$

276,868

$

134,512

$

75,953

$

183,443

$

72,650

$

92,816

$

872,884

$

979,151

 Criticized:

 Special Mention

-

-

19,677

-

5,974

11,725

-

37,376

17,905

 Substandard

-

-

-

264

195

2,854

300

3,613

29,098

 Doubtful

-

-

-

-

-

7,088

-

7,088

-

 Loss

-

-

-

-

-

-

-

-

-

 Total C&I loans

$

36,642

$

276,868

$

154,189

$

76,217

$

189,612

$

94,317

$

93,116

$

920,961

$

1,026,154

 Charge-offs on C&I loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

(1) Excludes accrued interest receivable.

As of March 31, 2023

Total

Term Loans

As of December 31, 2022

Amortized Cost Basis by Origination Year (1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

 Risk Ratings:

 Pass

$

6,586

$

66,528

$

61,709

$

-

$

-

$

3,885

$

2,476

$

141,184

$

130,060

 Criticized:

 Special Mention

-

-

-

-

-

-

-

-

-

 Substandard

-

-

-

-

-

2,480

-

2,480

2,893

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total construction loans

$

6,586

$

66,528

$

61,709

$

-

$

-

$

6,365

$

2,476

$

143,664

$

132,953

 Charge-offs on construction loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

COMMERCIAL MORTGAGE

 Risk Ratings:

 Pass

$

70,998

$

568,687

$

209,683

$

366,165

$

352,958

$

540,971

$

20,029

$

2,129,491

$

2,158,912

 Criticized:

 Special Mention

-

1,177

-

43,493

13,306

131,350

-

189,326

165,710

 Substandard

-

132

-

1,168

2,797

30,745

-

34,842

34,229

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total commercial mortgage loans

$

70,998

$

569,996

$

209,683

$

410,826

$

369,061

$

703,066

$

20,029

$

2,353,659

$

2,358,851

 Charge-offs on commercial mortgage loans

$

-

$

-

$

-

$

-

$

-

$

18

$

-

$

18

C&I

 Risk Ratings:

 Pass

$

107,381

$

580,471

$

322,667

$

257,237

$

491,668

$

326,933

$

658,574

$

2,744,931

$

2,768,723

 Criticized:

 Special Mention

-

132

20,516

-

7,003

24,610

32,322

84,583

61,129

 Substandard

-

-

396

916

13,625

9,971

679

25,587

56,411

 Doubtful

-

-

-

-

-

7,088

-

7,088

-

 Loss

-

-

-

-

-

-

-

-

-

 Total C&I loans

$

107,381

$

580,603

$

343,579

$

258,153

$

512,296

$

368,602

$

691,575

$

2,862,189

$

2,886,263

 Charge-offs on C&I loans

$

-

$

-

$

-

$

-

$

-

$

63

$

55

$

118

(1) Excludes accrued interest receivable.

Accrued interest receivable on loans totaled $

49.4

 million as of March 31, 2023 ($

53.1

 million as of December 31, 2022), was

reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition

and is excluded from the estimate of credit losses.

The following tables present information about collateral dependent loans that were individually evaluated for purposes of

determining the ACL as of March 31, 2023 and December 31, 2022

As of March 31, 2023

Collateral Dependent Loans -

With Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost 

Related

Allowance

Amortized Cost

Amortized Cost 

Related

Allowance

(In thousands)

Residential mortgage loans:

Conventional residential mortgage loans

$

34,257

$

2,410

$

152

$

34,409

$

2,410

Commercial loans:

Construction loans

-

-

956

956

-

Commercial mortgage loans

2,449

896

61,851

64,300

896

C&I loans 

1,789

347

13,331

15,120

347

Consumer loans:

Personal loans

55

1

-

55

1

Other consumer loans

-

-

-

-

-

$

38,550

$

3,654

$

76,290

$

114,840

$

3,654

The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan

portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in

historical data or forecasted data incorporated in the quantitative models. The underlying collateral for residential mortgage and

consumer collateral dependent loans consisted of single-family residential properties, and for commercial and construction loans

consisted primarily of office buildings, multifamily residential properties, and retail establishments. The weighted-average loan-to-

value coverage for collateral dependent loans as of March 31, 2023 was

69

%, compared to

70

% as of December 31, 2022, which was

not considered a significant change in the extent to which collateral secured these loans.

Purchases and Sales of Loans

In the ordinary course of business, the Corporation enters into securitization transactions and whole loan sales with GNMA and

GSEs, such as FNMA and FHLMC. During the quarters ended March 31, 2023 and 2022, loans pooled into GNMA MBS amounted to

approximately $

29.4

 million and $

41.5

 million, respectively, for which the Corporation recognized a net gain on sale of $

0.9

 million

and $

1.3

 million, respectively. Also, during the quarter ended March 31, 2023, the Corporation sold approximately $

8.0

 million of

performing residential mortgage loans to FNMA, of which the Corporation recognized a net gain on sale of $

0.2

 million. In addition,

during the quarter ended March 31, 2022, the Corporation sold approximately $

50.0

 million and $

2.4

 million of performing residential

mortgage loans to FNMA and FHLMC, respectively, of which the Corporation recognized a net gain on sale of $

2.1

 million and $

0.1

million, 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 pooled into GNMA MBS, the Corporation, as servicer, holds an option to repurchase individual delinquent loans issued

on or after January 1, 2003 when certain delinquency criteria are met. This option gives the Corporation the unilateral ability, but not

the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. Since the Corporation is considered

to have regained effective control over the loans, it is required to recognize the loans and a corresponding repurchase liability

regardless of its intent to repurchase the loans. As of March 31, 2023 and December 31, 2022, rebooked GNMA delinquent loans that

were included in the residential mortgage loan portfolio amounted to $

7.1

 million and $

10.4

 million, respectively. 

During the quarters ended March 31, 2023 and 2022, the Corporation repurchased, pursuant to the aforementioned repurchase

option, $

1.5

 million and $

0.5

 million, respectively, of loans previously pooled into GNMA MBS. The principal balance of these loans

is fully guaranteed, and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent

interest payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA,

which are computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to

maintain acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA.

Historically, losses on these 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’s risk of

loss with respect to these loans is also minimal as these repurchased loans are generally performing loans with documentation

deficiencies. 

No

 significant purchases of loans were executed during the first quarter of 2023. During the quarter ended March 31, 2022, the

Corporation purchased certain C&I loan participations in the Florida region totaling $

46.4

 million.

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

$

11.6

 billion as of March 31, 2023, credit risk concentration was approximately

80

% in Puerto Rico,

17

% in the U.S., and

3

% in the

USVI and BVI.

As of March 31, 2023, the Corporation had $

170.9

 million outstanding in loans extended to the Puerto Rico government, its

municipalities and public corporations, compared to $

169.8

 million as of December 31, 2022. As of March 31, 2023, approximately

$

102.7

 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by assigned

property tax revenues, and $

28.0

 million of loans which are supported by one or more specific sources of municipal revenues. 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. In addition to loans

extended to municipalities, the Corporation’s exposure to the Puerto Rico government as of March 31, 2023 included $

10.2

 million in

loans granted to an affiliate of the Puerto

Rico Electric

Power Authority (“PREPA”) and $

30.0

 million in loans to agencies or public

corporations of the Puerto Rico government. 

In addition, as of March 31, 2023, the Corporation had $

82.9

 million in exposure to residential mortgage loans that are guaranteed

by the PRHFA, a government instrumentality that has been designated as a covered entity under PROMESA, compared to $

84.7

million as of December 31, 2022. 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 Corporation also has credit exposure to USVI government entities. As of March 31, 2023, the Corporation had

$

38.7

 million in

loans to USVI government public corporations, compared to $

38.0

 million as of December 31, 2022. As of March 31, 2023, all loans

were currently performing and up to date on principal and interest payments.

Loss Mitigation Program for Borrowers Experiencing Financial Difficulty

The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program. Depending

upon the nature of a borrower’s financial condition, restructurings or loan modifications through this program are provided, as well as

other restructurings of individual C&I, commercial mortgage, construction, and residential mortgage loans. The Corporation may also

modify contractual terms to comply with regulations regarding the treatment of certain bankruptcy filings and discharge situations.

See Note 1 – Basis of Presentation and Significant Accounting Policies, for additional information related to the accounting policies of

loan modifications granted to borrowers experiencing financial difficulty.

The loan modifications granted to borrowers experiencing financial difficulty that are associated to payment delays typically

include the following:

-

Forbearance plans – Payments of either interest and/or principal are deferred for a pre-established period of time, generally not

exceeding six months in any given year. The deferred interest and/or principal is repaid as either a lump sum payment at

maturity date or by extending the loan’s maturity date by the number of forbearance months granted. 

-

Payment plans – Borrowers are allowed to pay the regular monthly payment plus the pre-established delinquent amounts

during a period generally not exceeding six months. At the end of the payment plan, the borrower is required to resume making

its regularly scheduled loan payments.

-

Trial modifications – These types of loan modifications are granted for residential mortgage loans. Borrower s continue making

reduced monthly payments during the trial period, which is generally of up to six months. The reduced payments that are made

by the borrower during the trial period will result in a payment delay with respect to the original contractual terms of the loan

since the loan has not yet been contractually modified. After successful completion of the trial period, the mortgage loan is

contractually modified.

Modifications in the form of a reduction in interest rate, term extension, an other-than-insignificant payment delay, or any

combination of these types of loan modifications that have occurred in the current reporting period to a borrower experiencing

financial difficulty are disclosed in the tables below.

The below disclosures relate to loan modifications granted to borrowers experiencing financial difficulty in which there was a

change in the timing and/or amount of contractual cash flows in the form of any of the aforementioned types of modifications,

including restructurings that resulted in a more-than-insignificant payment delay. These disclosures exclude $

0.9

 million in

restructured residential mortgage loans that are government -guaranteed (e.g., FHA/VA loans) and were modified during the quarter

ended March 31, 2023.

Quarter Ended March 31, 2022

Number of contracts

Pre-modification Amortized

Cost

Post-modification Amortized

Cost

(Dollars in thousands)

Conventional residential mortgage loans

23

$

2,996

$

2,993

Construction loans

-

-

-

Commercial mortgage loans

-

-

-

C&I loans

1

5

5

Consumer loans:

 Auto loans

51

995

993

 Finance leases

13

264

264

 Personal loans

5

78

78

 Credit Cards

44

189

189

 Other consumer loans

27

146

148

 Total TDRs

164

$

4,673

$

4,670

Loan modifications considered TDR loans that defaulted (failure by the borrower to make payments of either principal, interest, or

both for a period of 90 days or more) during the quarter ended March 31, 2022, and had become TDR loans during the 12-months

preceding the default date, were as follows:

Quarter Ended March 31, 2022

Number of contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

3

$

389

Construction loans

-

-

Commercial mortgage loans

-

-

C&I loans

-

-

Consumer loans:

 Auto loans

24

522

 Finance leases

1

16

 Personal loans

-

-

 Credit cards

11

79

 Other consumer loans

2

11

 Total TDRs

41

$

1,017

As of March 31, 2023

As of

December 31,

2022

Term Loans

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

Puerto Rico and Virgin Islands Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

-

$

696

$

448

$

765

$

1,557

$

107,368

$

-

$

110,834

$

117,416

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

696

$

448

$

765

$

1,557

$

107,368

$

-

$

110,834

$

117,416

Conventional residential mortgage loans:

Accrual Status:

Performing

$

24,859

$

171,599

$

74,692

$

31,497

$

47,705

$

1,891,603

$

-

$

2,241,955

$

2,265,013

Non-Performing

-

-

35

-

-

28,958

-

28,993

35,471

Total conventional residential mortgage loans

$

24,859

$

171,599

$

74,727

$

31,497

$

47,705

$

1,920,561

$

-

$

2,270,948

$

2,300,484

Total:

Accrual Status:

Performing

$

24,859

$

172,295

$

75,140

$

32,262

$

49,262

$

1,998,971

$

-

$

2,352,789

$

2,382,429

Non-Performing

-

-

35

-

-

28,958

-

28,993

35,471

Total residential mortgage loans in Puerto Rico

and Virgin Islands Region

$

24,859

$

172,295

$

75,175

$

32,262

$

49,262

$

2,027,929

$

-

$

2,381,782

$

2,417,900

Charge-offs on residential mortgage loans

$

-

$

-

$

-

$

3

$

-

$

980

$

-

$

983

(1)

Excludes accrued interest receivable.

As of March 31, 2023

As of

December 31,

2022

Term Loans

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

Florida Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

735

$

-

$

735

$

742

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

-

$

-

$

-

$

-

$

735

$

-

$

735

$

742

Conventional residential mortgage loans:

Accrual Status:

Performing

$

13,232

$

81,619

$

48,991

$

31,157

$

29,403

$

217,192

$

-

$

421,594

$

421,347

Non-Performing

-

-

-

-

265

7,152

-

7,417

7,301

Total conventional residential mortgage loans

$

13,232

$

81,619

$

48,991

$

31,157

$

29,668

$

224,344

$

-

$

429,011

$

428,648

Total:

Accrual Status:

Performing

$

13,232

$

81,619

$

48,991

$

31,157

$

29,403

$

217,927

$

-

$

422,329

$

422,089

Non-Performing

-

-

-

-

265

7,152

-

7,417

7,301

Total residential mortgage loans in Florida region

$

13,232

$

81,619

$

48,991

$

31,157

$

29,668

$

225,079

$

-

$

429,746

$

429,390

Charge-offs on residential mortgage loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

(1)

Excludes accrued interest receivable.

As of March 31, 2023

As of

December 31,

2022

Term Loans

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

Total:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

-

$

696

$

448

$

765

$

1,557

$

108,103

$

-

$

111,569

$

118,158

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

696

$

448

$

765

$

1,557

$

108,103

$

-

$

111,569

$

118,158

Conventional residential mortgage loans:

Accrual Status:

Performing

$

38,091

$

253,218

$

123,683

$

62,654

$

77,108

$

2,108,795

$

-

$

2,663,549

$

2,686,360

Non-Performing

-

-

35

-

265

36,110

-

36,410

42,772

Total conventional residential mortgage loans

$

38,091

$

253,218

$

123,718

$

62,654

$

77,373

$

2,144,905

$

-

$

2,699,959

$

2,729,132

Total:

Accrual Status:

Performing

$

38,091

$

253,914

$

124,131

$

63,419

$

78,665

$

2,216,898

$

-

$

2,775,118

$

2,804,518

Non-Performing

-

-

35

-

265

36,110

-

36,410

42,772

Total residential mortgage loans

$

38,091

$

253,914

$

124,166

$

63,419

$

78,930

$

2,253,008

$

-

$

2,811,528

$

2,847,290

Charge-offs on residential mortgage loans

$

-

$

-

$

-

$

3

$

-

$

980

$

-

$

983

(1)

Excludes accrued interest receivable.

As of March 31, 2023

As of

December 31,

2022

Term Loans

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

Puerto Rico and Virgin Islands Regions:

Auto loans:

Accrual Status:

Performing

$

165,925

$

638,402

$

478,373

$

234,358

$

186,331

$

115,561

$

-

$

1,818,950

$

1,783,782

Non-Performing

-

2,419

2,243

1,347

2,708

2,399

-

11,116

10,596

Total auto loans

$

165,925

$

640,821

$

480,616

$

235,705

$

189,039

$

117,960

$

-

$

1,830,066

$

1,794,378

Charge-offs on auto loans

$

19

$

1,827

$

1,210

$

467

$

632

$

365

$

-

$

4,520

Finance leases:

Accrual Status:

Performing

$

78,870

$

282,486

$

183,061

$

82,206

$

74,421

$

52,230

$

-

$

753,274

$

716,585

Non-Performing

-

551

222

433

376

626

-

2,208

1,645

Total finance leases

$

78,870

$

283,037

$

183,283

$

82,639

$

74,797

$

52,856

$

-

$

755,482

$

718,230

Charge-offs on finance leases

$

-

$

227

$

270

$

97

$

185

$

200

$

-

$

979

Personal loans:

Accrual Status:

Performing

$

44,647

$

163,311

$

49,275

$

25,703

$

46,765

$

29,411

$

-

$

359,112

$

351,664

Non-Performing

-

490

188

117

229

239

-

1,263

1,248

Total personal loans

$

44,647

$

163,801

$

49,463

$

25,820

$

46,994

$

29,650

$

-

$

360,375

$

352,912

Charge-offs on personal loans

$

-

$

1,517

$

840

$

279

$

680

$

384

$

-

$

3,700

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

310,627

$

310,627

$

311,731

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

310,627

$

310,627

$

311,731

Charge-offs on credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

4,057

$

4,057

Other consumer loans:

Accrual Status:

Performing

$

23,413

$

66,230

$

17,612

$

8,219

$

9,851

$

6,468

$

8,700

$

140,493

$

139,116

Non-Performing

-

540

171

59

104

230

98

1,202

1,122

Total other consumer loans

$

23,413

$

66,770

$

17,783

$

8,278

$

9,955

$

6,698

$

8,798

$

141,695

$

140,238

Charge-offs on other consumer loans

$

14

$

1,842

$

762

$

174

$

326

$

178

$

91

$

3,387

Total:

Performing

$

312,855

$

1,150,429

$

728,321

$

350,486

$

317,368

$

203,670

$

319,327

$

3,382,456

$

3,302,878

Non-Performing

-

4,000

2,824

1,956

3,417

3,494

98

15,789

14,611

Total consumer loans in Puerto Rico and Virgin

Islands region

$

312,855

$

1,154,429

$

731,145

$

352,442

$

320,785

$

207,164

$

319,425

$

3,398,245

$

3,317,489

Charge-offs on total consumer loans

$

33

$

5,413

$

3,082

$

1,017

$

1,823

$

1,127

$

4,148

$

16,643

(1)

Excludes accrued interest receivable.

As of March 31, 2023

As of

December 31,

2022

Term Loans

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

Florida Region:

Auto loans:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

259

$

2,518

$

-

$

2,777

$

3,617

Non-Performing

-

-

-

-

-

22

-

22

76

Total auto loans

$

-

$

-

$

-

$

-

$

259

$

2,540

$

-

$

2,799

$

3,693

Charge-offs on auto loans

$

-

$

-

$

-

$

-

$

8

$

147

$

-

$

155

Finance leases:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Charge-offs on finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Personal loans:

Accrual Status:

Performing

$

274

$

8

$

71

$

7

$

-

$

-

$

-

$

360

$

334

Non-Performing

-

-

-

-

-

-

-

-

-

Total personal loans

$

274

$

8

$

71

$

7

$

-

$

-

$

-

$

360

$

334

Charge-offs on personal loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Charge-offs on credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Other consumer loans:

Accrual Status:

Performing

$

-

$

49

$

229

$

460

$

-

$

2,455

$

2,223

$

5,416

$

5,833

Non-Performing

-

-

-

-

-

21

104

125

119

Total other consumer loans

$

-

$

49

$

229

$

460

$

-

$

2,476

$

2,327

$

5,541

$

5,952

Charge-offs on other consumer loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Total:

Performing

$

274

$

57

$

300

$

467

$

259

$

4,973

$

2,223

$

8,553

$

9,784

Non-Performing

-

-

-

-

-

43

104

147

195

Total consumer loans in Florida region

$

274

$

57

$

300

$

467

$

259

$

5,016

$

2,327

$

8,700

$

9,979

Charge-offs on total consumer loans

$

-

$

-

$

-

$

-

$

8

$

147

$

-

$

155

(1)

Excludes accrued interest receivable.

As of March 31, 2023

As of

December 31,

2022

Term Loans

Amortized Cost Basis by Origination Year

(1)

2023

2022

2021

2020

2019

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

Total:

Auto loans:

Accrual Status:

Performing

$

165,925

$

638,402

$

478,373

$

234,358

$

186,590

$

118,079

$

-

$

1,821,727

$

1,787,399

Non-Performing

-

2,419

2,243

1,347

2,708

2,421

-

11,138

10,672

Total auto loans

$

165,925

$

640,821

$

480,616

$

235,705

$

189,298

$

120,500

$

-

$

1,832,865

$

1,798,071

Charge-offs on auto loans

$

19

$

1,827

$

1,210

$

467

$

640

$

512

$

-

$

4,675

Finance leases:

Accrual Status:

Performing

$

78,870

$

282,486

$

183,061

$

82,206

$

74,421

$

52,230

$

-

$

753,274

$

716,585

Non-Performing

-

551

222

433

376

626

-

2,208

1,645

Total finance leases

$

78,870

$

283,037

$

183,283

$

82,639

$

74,797

$

52,856

$

-

$

755,482

$

718,230

Charge-offs on finance leases

$

-

$

227

$

270

$

97

$

185

$

200

$

-

$

979

Personal loans:

Accrual Status:

Performing

$

44,921

$

163,319

$

49,346

$

25,710

$

46,765

$

29,411

$

-

$

359,472

$

351,998

Non-Performing

-

490

188

117

229

239

-

1,263

1,248

Total personal loans

$

44,921

$

163,809

$

49,534

$

25,827

$

46,994

$

29,650

$

-

$

360,735

$

353,246

Charge-offs on personal loans

$

-

$

1,517

$

840

$

279

$

680

$

384

$

-

$

3,700

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

310,627

$

310,627

$

311,731

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

310,627

$

310,627

$

311,731

Charge-offs on credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

4,057

$

4,057

Other consumer loans:

Accrual Status:

Performing

$

23,413

$

66,279

$

17,841

$

8,679

$

9,851

$

8,923

$

10,923

$

145,909

$

144,949

Non-Performing

-

540

171

59

104

251

202

1,327

1,241

Total other consumer loans

$

23,413

$

66,819

$

18,012

$

8,738

$

9,955

$

9,174

$

11,125

$

147,236

$

146,190

Charge-offs on other consumer loans

$

14

$

1,842

$

762

$

174

$

326

$

178

$

91

$

3,387

Total:

Performing

$

313,129

$

1,150,486

$

728,621

$

350,953

$

317,627

$

208,643

$

321,550

$

3,391,009

$

3,312,662

Non-Performing

-

4,000

2,824

1,956

3,417

3,537

202

15,936

14,806

Total consumer loans

$

313,129

$

1,154,486

$

731,445

$

352,909

$

321,044

$

212,180

$

321,752

$

3,406,945

$

3,327,468

Charge-offs on total consumer loans

$

33

$

5,413

$

3,082

$

1,017

$

1,831

$

1,274

$

4,148

$

16,798

(1)

Excludes accrued interest receivable.

As of December 31, 2022

Collateral Dependent Loans -

With Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost 

Related

Allowance

Amortized Cost 

Amortized Cost 

Related

Allowance

(In thousands)

Residential mortgage loans:

Conventional residential mortgage loans

$

36,206

$

2,571

$

-

$

36,206

$

2,571

Commercial loans:

Construction loans

-

-

956

956

-

Commercial mortgage loans

2,466

897

62,453

64,919

897

C&I loans 

1,513

322

17,590

19,103

322

Consumer loans:

Personal loans

56

1

64

120

1

Other consumer loans

207

29

-

207

29

$

40,448

$

3,820

$

81,063

$

121,511

$

3,820

The Corporation’s aging of the loan portfolio held for investment, as well as information about nonaccrual loans with no ACL, by

portfolio classes as of March 31, 2023 and December 31, 2022 are as follows:

The following tables present the amortized cost of residential mortgage loans by portfolio classes and by origination year based on

accrual status as of March 31, 2023, the gross charge-offs for the quarter ended March 31, 2023 by portfolio classes and by origination

year, and the amortized cost of residential mortgage loans by portfolio classes based on accrual status as of December 31, 2022:

The following tables present the amortized cost of consumer loans by portfolio classes and by origination year based on accrual

status as of March 31, 2023, the gross charge-offs for the quarter ended March 31, 2023 by portfolio classes and by origination, and

the amortized cost of consumer loans by portfolio classes based on accrual status as of December 31, 2022:

The following table presents the amortized cost basis as of March 31, 2023 of loans modified to borrowers experiencing financial

difficulty during the quarter ended March 31, 2023, by portfolio classes and type of modification granted, and the percentage of these

modified loans relative to the total period-end amortized cost basis of receivables in the portfolio class:

Quarter Ended March 31, 2023

Payment Delay Only

Forbearance

Payment

Plan

Trial

Modification

Interest

Rate

Reduction

Term

Extension

Combination of

Interest Rate

Reduction and

Term Extension

Forgiveness

of principal

and/or

interest

Other

Total

Percentage of

Total by

Portfolio

Classes

(In thousands)

Conventional residential mortgage loans

$

-

$

-

$

332

$

-

$

433

$

115

$

-

$

-

$

880

0.03%

Construction loans

-

-

-

-

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

-

-

-

-

C&I loans

-

-

-

-

-

-

-

40

(1)

40

0.00%

Consumer loans:

Auto loans

-

-

-

-

89

38

-

584

(1)

711

0.04%

Personal loans

-

-

-

-

28

14

-

-

42

0.01%

Credit cards

-

-

-

289

(2)

-

-

-

-

289

0.09%

Other consumer loans

-

-

-

-

132

60

-

26

(1)

218

0.15%

 Total modifications

$

-

$

-

$

332

$

289

$

682

$

227

$

-

$

650

$

2,180

(1)

Modification consists of court mandated reduction to 0% interest rate for remaining loan term to borrowers in bankruptcy proceedings unless dismissal occurs.

(2)

Modification consists of reduction in interest rate and revocation of revolving line privileges.

Quarter Ended March 31, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate and

extension of

maturity

Forgiveness of

principal and/or

interest

Other

(1)

Total

(In thousands)

Conventional residential mortgage loans

$

215

$

731

$

190

$

-

$

1,857

$

2,993

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

C&I loans

-

-

-

-

5

5

Consumer loans:

Auto loans

792

54

147

-

-

993

Finance leases

-

246

-

-

18

264

Personal loans

-

60

18

-

-

78

Credit cards

(2)

189

-

-

-

-

189

Other consumer loans

33

106

-

9

-

148

Total TDRs

$

1,229

$

1,197

$

355

$

9

$

1,880

$

4,670

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, 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.

(2)

Concession consists of reduction in interest rate and revocation of revolving line privileges.

The following table presents the financial effects of the modifications granted to borrowers experiencing financial difficulty

during the quarter ended March 31, 2023, by portfolio classes, other than those associated to payment delay. The qualitative financial

effects of the modifications associated to payment delay were discussed above, and as such, were excluded from the table below:

Quarter Ended March 31, 2023

Combination of Interest Rate Reduction

and Term Extension

Weighted-Average

Interest Rate

Reduction (%)

Weighted-Average

Term Extension (in

months)

Weighted-Average

Interest Rate

Reduction (%)

Weighted-Average

Term Extension (in

months)

Weighted-Average

Forgiveness of

Principal and/or

Interest

(In thousands)

Conventional residential mortgage loans

-

98

2.11%

141

$

-

Construction loans

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

C&I loans

-

-

-

-

-

Consumer loans:

Auto loans

-

22

2.88%

28

-

Personal loans

-

30

3.36%

12

-

Credit cards

16.04%

-

-

-

-

Other consumer loans

-

27

1.96%

26

-

The following table presents the performance of loans modified during the quarter ended March 31, 2023 that were granted to

borrowers experiencing financial difficulty, by portfolio classes:

Quarter Ended March 31, 2023

30-59

60-89

90+

Total

Delinquency

Current

Total

(In thousands)

Conventional residential mortgage loans

$

-

$

-

$

-

$

-

$

880

$

880

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

C&I loans

-

-

-

-

40

40

Consumer loans:

Auto loans

44

138

-

182

529

711

Personal loans

-

-

-

-

42

42

Credit cards

103

89

-

192

97

289

Other consumer loans

-

-

-

-

218

218

 Total modifications

$

147

$

227

$

-

$

374

$

1,806

$

2,180

Troubled Debt Restructuring (“TDR”) Disclosures Prior to Adoption of ASU 2022-02

Prior to the adoption of ASU 2022-02, a restructuring of a loan constituted a TDR if the creditor, for economic or legal reason

related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. See Note 1

“Nature of Business and Summary of Significant Accounting Policies” and Note 4 “Loans Held for Investment” to the Consolidated

Financial Statements in the 2022 Annual Report on Form 10-K for additional discussion of TDRs. The following tables present TDR

loans completed during the quarter ended March 31, 2022:

There were no loans modified to borrowers experiencing financial difficulty on or after January 1, 2023, which had a payment

default (failure by the borrower to make payments of either principal, interest, or both for a period of 90 days or more) during the

quarter ended March 31, 2023.