LOANS HELD FOR INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2023

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loan Portfolio Held for Investment [Table Text Block]

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 September 30, 

As of December 31,

2023

2022

(In thousands)

Puerto Rico and Virgin Islands region:

Residential mortgage loans, mainly secured by first mortgages

$

2,353,679

$

2,417,900

Construction loans

102,327

34,772

Commercial mortgage loans 

1,780,008

1,834,204

Commercial and Industrial ("C&I") loans

2,088,274

1,860,109

Consumer loans

3,582,001

3,317,489

Loans held for investment

$

9,906,289

$

9,464,474

Florida region:

Residential mortgage loans, mainly secured by first mortgages

$

458,952

$

429,390

Construction loans

100,447

98,181

Commercial mortgage loans 

536,105

524,647

C&I loans

942,680

1,026,154

Consumer loans

6,459

9,979

Loans held for investment

$

2,044,643

$

2,088,351

Total:

Residential mortgage loans, mainly secured by first mortgages

$

2,812,631

$

2,847,290

Construction loans

202,774

132,953

Commercial mortgage loans 

2,316,113

2,358,851

C&I loans

(1)

3,030,954

2,886,263

Consumer loans

3,588,460

3,327,468

Loans held for investment

(2)

11,950,932

11,552,825

ACL on loans and finance leases

(263,615)

(260,464)

Loans held for investment, net

$

11,687,317

$

11,292,361

(1)

As of September 30, 2023 and December 31, 2022, includes $

807.6

 million and $

838.5

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

and for which the primary source of repayment at origination was not dependent upon such real estate.

(2)

Includes accretable fair value net purchase discounts of $

25.8

 million and $

29.3

 million as of September 30, 2023 and December 31, 2022, respectively.

Corporation's Aging of Loans Held for Investment Portfolio [Table Text Block]

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 September 30, 2023 and December 31, 2022 are as follows:

As of September 30, 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)

$

69,175

$

-

$

2,754

$

32,167

$

-

$

104,096

$

-

 Conventional residential mortgage loans

(2) (6)

2,633,303

-

31,328

11,958

31,946

2,708,535

1,910

Commercial loans:

 Construction loans 

(6)

199,293

1,834

-

7

1,640

202,774

973

 Commercial mortgage loans

(2) (6)

2,290,012

930

1,166

2,373

21,632

2,316,113

5,458

 C&I loans 

2,998,999

441

1,956

10,749

18,809

3,030,954

1,523

Consumer loans:

 Auto loans

1,826,679

52,755

10,648

-

13,103

1,903,185

102

 Finance leases

816,251

10,421

2,346

-

2,522

831,540

-

 Personal loans

367,428

5,708

2,840

-

1,874

377,850

-

 Credit cards

308,519

4,563

3,230

5,638

-

321,950

-

 Other consumer loans

148,251

2,399

1,647

-

1,638

153,935

1

 Total loans held for investment

$

11,657,910

$

79,051

$

57,915

$

62,892

$

93,164

$

11,950,932

$

9,967

(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 $

17.4

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of September 30, 2023.

(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 $

8.9

 million as of September 30, 2023 ($

8.0

 million conventional residential mortgage loans and $

0.9

 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 $

8.5

 million as of September 30, 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 $

8.7

 million as of September 30, 2023, primarily nonaccrual residential mortgage loans and C&I loans.

(5)

There were

no

 nonaccrual loans with no ACL in the Florida region as of September 30, 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, commercial mortgage loans, and construction loans past due 30-59 days, but less than two payments in arrears, as of September 30, 2023 amounted to $

6.9

 million, $

65.5

million, $

1.0

 million, and $

0.1

 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 as of December 31, 2022.

(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.

Corporation's Credit Quality Indicators by Loan [Table Text Block]

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 September 30, 2023, the gross charge -offs for the nine-month period

ended September 30, 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, were as follows:

As of September 30, 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

$

44,895

$

36,361

$

14,939

$

-

$

-

$

3,824

$

-

$

100,019

$

31,879

 Criticized:

 Special Mention

-

-

-

-

-

-

-

-

-

 Substandard

-

-

-

-

-

2,308

-

2,308

2,893

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total construction loans

$

44,895

$

36,361

$

14,939

$

-

$

-

$

6,132

$

-

$

102,327

$

34,772

 Charge-offs on construction loans

$

-

$

-

$

-

$

-

$

-

$

42

$

-

$

42

COMMERCIAL MORTGAGE

 Risk Ratings:

 Pass

$

118,701

$

382,403

$

138,404

$

318,372

$

278,814

$

355,823

$

1,153

$

1,593,670

$

1,655,728

 Criticized:

 Special Mention

-

4,438

-

33,670

-

112,829

-

150,937

145,415

 Substandard

-

127

-

-

2,825

31,639

-

34,591

33,061

 Doubtful

-

-

-

-

-

810

-

810

-

 Loss

-

-

-

-

-

-

-

-

-

 Total commercial mortgage loans

$

118,701

$

386,968

$

138,404

$

352,042

$

281,639

$

501,101

$

1,153

$

1,780,008

$

1,834,204

 Charge-offs on commercial mortgage loans

$

-

$

-

$

-

$

-

$

-

$

107

$

-

$

107

C&I

 Risk Ratings:

 Pass

$

216,614

$

293,433

$

165,637

$

171,386

$

284,636

$

188,691

$

697,937

$

2,018,334

$

1,789,572

 Criticized:

 Special Mention

546

-

-

-

492

2,469

33,448

36,955

43,224

 Substandard

1

-

385

617

13,439

18,178

365

32,985

27,313

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total C&I loans

$

217,161

$

293,433

$

166,022

$

172,003

$

298,567

$

209,338

$

731,750

$

2,088,274

$

1,860,109

 Charge-offs on C&I loans

$

-

$

-

$

-

$

-

$

-

$

218

$

57

$

275

(1) Excludes accrued interest receivable.

As of September 30, 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

$

787

$

54,329

$

39,004

$

-

$

-

$

-

$

236

$

94,356

$

98,181

 Criticized:

 Special Mention

-

-

6,091

-

-

-

-

6,091

-

 Substandard

-

-

-

-

-

-

-

-

-

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total construction loans

$

787

$

54,329

$

45,095

$

-

$

-

$

-

$

236

$

100,447

$

98,181

 Charge-offs on construction loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

COMMERCIAL MORTGAGE

 Risk Ratings:

 Pass

$

22,043

$

185,268

$

63,924

$

40,330

$

50,661

$

119,451

$

29,008

$

510,685

$

503,184

 Criticized:

 Special Mention

-

-

-

-

13,080

11,172

-

24,252

20,295

 Substandard

-

-

-

1,168

-

-

-

1,168

1,168

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total commercial mortgage loans

$

22,043

$

185,268

$

63,924

$

41,498

$

63,741

$

130,623

$

29,008

$

536,105

$

524,647

 Charge-offs on commercial mortgage loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

C&I

 Risk Ratings:

 Pass

$

80,515

$

271,894

$

172,186

$

57,897

$

135,159

$

54,973

$

122,583

$

895,207

$

979,151

 Criticized:

 Special Mention

-

-

19,532

-

11,878

11,169

-

42,579

17,905

 Substandard

-

-

-

632

191

3,185

-

4,008

29,098

 Doubtful

-

-

-

-

-

886

-

886

-

 Loss

-

-

-

-

-

-

-

-

-

 Total C&I loans

$

80,515

$

271,894

$

191,718

$

58,529

$

147,228

$

70,213

$

122,583

$

942,680

$

1,026,154

 Charge-offs on C&I loans

$

-

$

-

$

-

$

-

$

-

$

6,202

$

-

$

6,202

(1) Excludes accrued interest receivable.

As of September 30, 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

$

45,682

$

90,690

$

53,943

$

-

$

-

$

3,824

$

236

$

194,375

$

130,060

 Criticized:

 Special Mention

-

-

6,091

-

-

-

-

6,091

-

 Substandard

-

-

-

-

-

2,308

-

2,308

2,893

 Doubtful

-

-

-

-

-

-

-

-

-

 Loss

-

-

-

-

-

-

-

-

-

 Total construction loans

$

45,682

$

90,690

$

60,034

$

-

$

-

$

6,132

$

236

$

202,774

$

132,953

 Charge-offs on construction loans

$

-

$

-

$

-

$

-

$

-

$

42

$

-

$

42

COMMERCIAL MORTGAGE

 Risk Ratings:

 Pass

$

140,744

$

567,671

$

202,328

$

358,702

$

329,475

$

475,274

$

30,161

$

2,104,355

$

2,158,912

 Criticized:

 Special Mention

-

4,438

-

33,670

13,080

124,001

-

175,189

165,710

 Substandard

-

127

-

1,168

2,825

31,639

-

35,759

34,229

 Doubtful

-

-

-

-

-

810

-

810

-

 Loss

-

-

-

-

-

-

-

-

-

 Total commercial mortgage loans

$

140,744

$

572,236

$

202,328

$

393,540

$

345,380

$

631,724

$

30,161

$

2,316,113

$

2,358,851

 Charge-offs on commercial mortgage loans

$

-

$

-

$

-

$

-

$

-

$

107

$

-

$

107

C&I

 Risk Ratings:

 Pass

$

297,129

$

565,327

$

337,823

$

229,283

$

419,795

$

243,664

$

820,520

$

2,913,541

$

2,768,723

 Criticized:

 Special Mention

546

-

19,532

-

12,370

13,638

33,448

79,534

61,129

 Substandard

1

-

385

1,249

13,630

21,363

365

36,993

56,411

 Doubtful

-

-

-

-

-

886

-

886

-

 Loss

-

-

-

-

-

-

-

-

-

 Total C&I loans

$

297,676

$

565,327

$

357,740

$

230,532

$

445,795

$

279,551

$

854,333

$

3,030,954

$

2,886,263

 Charge-offs on C&I loans

$

-

$

-

$

-

$

-

$

-

$

6,420

$

57

$

6,477

(1) Excludes accrued interest receivable.

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

accrual status as of September 30, 2023, the gross charge -offs for the nine-month period ended September 30, 2023 by origination

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

As of September 30, 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

$

220

$

686

$

1,455

$

660

$

1,104

$

99,007

$

-

$

103,132

$

117,416

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

220

$

686

$

1,455

$

660

$

1,104

$

99,007

$

-

$

103,132

$

117,416

Conventional residential mortgage loans:

Accrual Status:

Performing

$

114,791

$

168,507

$

69,903

$

30,088

$

44,999

$

1,797,010

$

-

$

2,225,298

$

2,265,013

Non-Performing

-

-

35

-

174

25,040

-

25,249

35,471

Total conventional residential mortgage loans

$

114,791

$

168,507

$

69,938

$

30,088

$

45,173

$

1,822,050

$

-

$

2,250,547

$

2,300,484

Total:

Accrual Status:

Performing

$

115,011

$

169,193

$

71,358

$

30,748

$

46,103

$

1,896,017

$

-

$

2,328,430

$

2,382,429

Non-Performing

-

-

35

-

174

25,040

-

25,249

35,471

Total residential mortgage loans in Puerto Rico

and Virgin Islands Region

$

115,011

$

169,193

$

71,393

$

30,748

$

46,277

$

1,921,057

$

-

$

2,353,679

$

2,417,900

Charge-offs on residential mortgage loans

$

-

$

-

$

-

$

3

$

-

$

2,619

$

-

$

2,622

(1)

Excludes accrued interest receivable.

As of September 30, 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

$

-

$

-

$

-

$

-

$

-

$

964

$

-

$

964

$

742

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

-

$

-

$

-

$

-

$

964

$

-

$

964

$

742

Conventional residential mortgage loans:

Accrual Status:

Performing

$

71,543

$

78,806

$

47,891

$

29,868

$

27,387

$

195,796

$

-

$

451,291

$

421,347

Non-Performing

-

16

-

-

257

6,424

-

6,697

7,301

Total conventional residential mortgage loans

$

71,543

$

78,822

$

47,891

$

29,868

$

27,644

$

202,220

$

-

$

457,988

$

428,648

Total:

Accrual Status:

Performing

$

71,543

$

78,806

$

47,891

$

29,868

$

27,387

$

196,760

$

-

$

452,255

$

422,089

Non-Performing

-

16

-

-

257

6,424

-

6,697

7,301

Total residential mortgage loans in Florida region

$

71,543

$

78,822

$

47,891

$

29,868

$

27,644

$

203,184

$

-

$

458,952

$

429,390

Charge-offs on residential mortgage loans

$

-

$

-

$

-

$

-

$

-

$

6

$

-

$

6

(1)

Excludes accrued interest receivable.

As of September 30, 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

$

220

$

686

$

1,455

$

660

$

1,104

$

99,971

$

-

$

104,096

$

118,158

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

220

$

686

$

1,455

$

660

$

1,104

$

99,971

$

-

$

104,096

$

118,158

Conventional residential mortgage loans:

Accrual Status:

Performing

$

186,334

$

247,313

$

117,794

$

59,956

$

72,386

$

1,992,806

$

-

$

2,676,589

$

2,686,360

Non-Performing

-

16

35

-

431

31,464

-

31,946

42,772

Total conventional residential mortgage loans

$

186,334

$

247,329

$

117,829

$

59,956

$

72,817

$

2,024,270

$

-

$

2,708,535

$

2,729,132

Total:

Accrual Status:

Performing

$

186,554

$

247,999

$

119,249

$

60,616

$

73,490

$

2,092,777

$

-

$

2,780,685

$

2,804,518

Non-Performing

-

16

35

-

431

31,464

-

31,946

42,772

Total residential mortgage loans

$

186,554

$

248,015

$

119,284

$

60,616

$

73,921

$

2,124,241

$

-

$

2,812,631

$

2,847,290

Charge-offs on residential mortgage loans

$

-

$

-

$

-

$

3

$

-

$

2,625

$

-

$

2,628

(1)

Excludes accrued interest receivable.

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

status as of September 30, 2023, the gross charge-offs for the nine-month period ended September 30, 2023 by portfolio classes and

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

As of September 30, 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:

Auto loans:

Accrual Status:

Performing

$

483,036

$

567,954

$

414,852

$

195,698

$

149,360

$

77,639

$

-

$

1,888,539

$

1,783,782

Non-Performing

1,271

3,122

2,654

1,407

2,472

2,141

-

13,067

10,596

Total auto loans

$

484,307

$

571,076

$

417,506

$

197,105

$

151,832

$

79,780

$

-

$

1,901,606

$

1,794,378

Charge-offs on auto loans

$

630

$

5,420

$

3,412

$

1,391

$

1,811

$

1,237

$

-

$

13,901

Finance leases:

Accrual Status:

Performing

$

243,524

$

258,990

$

162,169

$

70,224

$

60,539

$

33,572

$

-

$

829,018

$

716,585

Non-Performing

7

741

466

434

305

569

-

2,522

1,645

Total finance leases

$

243,531

$

259,731

$

162,635

$

70,658

$

60,844

$

34,141

$

-

$

831,540

$

718,230

Charge-offs on finance leases

$

172

$

1,182

$

921

$

419

$

446

$

579

$

-

$

3,719

Personal loans:

Accrual Status:

Performing

$

133,568

$

133,763

$

37,159

$

19,132

$

33,558

$

18,492

$

-

$

375,672

$

351,664

Non-Performing

162

1,146

196

71

161

138

-

1,874

1,248

Total personal loans

$

133,730

$

134,909

$

37,355

$

19,203

$

33,719

$

18,630

$

-

$

377,546

$

352,912

Charge-offs on personal loans

$

242

$

5,765

$

2,137

$

892

$

1,812

$

1,077

$

-

$

11,925

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

321,950

$

321,950

$

311,731

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

321,950

$

321,950

$

311,731

Charge-offs on credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

13,294

$

13,294

Other consumer loans:

Accrual Status:

Performing

$

69,063

$

40,513

$

11,921

$

6,396

$

6,377

$

4,442

$

9,071

$

147,783

$

139,116

Non-Performing

323

671

184

52

91

160

95

1,576

1,122

Total other consumer loans

$

69,386

$

41,184

$

12,105

$

6,448

$

6,468

$

4,602

$

9,166

$

149,359

$

140,238

Charge-offs on other consumer loans

$

662

$

5,418

$

1,853

$

446

$

851

$

297

$

354

$

9,881

Total:

Performing

$

929,191

$

1,001,220

$

626,101

$

291,450

$

249,834

$

134,145

$

331,021

$

3,562,962

$

3,302,878

Non-Performing

1,763

5,680

3,500

1,964

3,029

3,008

95

19,039

14,611

Total consumer loans in Puerto Rico and Virgin

Islands region

$

930,954

$

1,006,900

$

629,601

$

293,414

$

252,863

$

137,153

$

331,116

$

3,582,001

$

3,317,489

Charge-offs on total consumer loans

$

1,706

$

17,785

$

8,323

$

3,148

$

4,920

$

3,190

$

13,648

$

52,720

(1)

Excludes accrued interest receivable.

As of September 30, 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

$

-

$

-

$

-

$

-

$

187

$

1,356

$

-

$

1,543

$

3,617

Non-Performing

-

-

-

-

-

36

-

36

76

Total auto loans

$

-

$

-

$

-

$

-

$

187

$

1,392

$

-

$

1,579

$

3,693

Charge-offs on auto loans

$

-

$

-

$

-

$

-

$

23

$

263

$

-

$

286

Finance leases:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Charge-offs on finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Personal loans:

Accrual Status:

Performing

$

231

$

-

$

71

$

2

$

-

$

-

$

-

$

304

$

334

Non-Performing

-

-

-

-

-

-

-

-

-

Total personal loans

$

231

$

-

$

71

$

2

$

-

$

-

$

-

$

304

$

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

$

55

$

47

$

225

$

451

$

-

$

2,295

$

1,441

$

4,514

$

5,833

Non-Performing

-

-

-

-

-

20

42

62

119

Total other consumer loans

$

55

$

47

$

225

$

451

$

-

$

2,315

$

1,483

$

4,576

$

5,952

Charge-offs on other consumer loans

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Total:

Performing

$

286

$

47

$

296

$

453

$

187

$

3,651

$

1,441

$

6,361

$

9,784

Non-Performing

-

-

-

-

-

56

42

98

195

Total consumer loans in Florida region

$

286

$

47

$

296

$

453

$

187

$

3,707

$

1,483

$

6,459

$

9,979

Charge-offs on total consumer loans

$

-

$

-

$

-

$

-

$

23

$

263

$

-

$

286

(1)

Excludes accrued interest receivable.

As of September 30, 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

$

483,036

$

567,954

$

414,852

$

195,698

$

149,547

$

78,995

$

-

$

1,890,082

$

1,787,399

Non-Performing

1,271

3,122

2,654

1,407

2,472

2,177

-

13,103

10,672

Total auto loans

$

484,307

$

571,076

$

417,506

$

197,105

$

152,019

$

81,172

$

-

$

1,903,185

$

1,798,071

Charge-offs on auto loans

$

630

$

5,420

$

3,412

$

1,391

$

1,834

$

1,500

$

-

$

14,187

Finance leases:

Accrual Status:

Performing

$

243,524

$

258,990

$

162,169

$

70,224

$

60,539

$

33,572

$

-

$

829,018

$

716,585

Non-Performing

7

741

466

434

305

569

-

2,522

1,645

Total finance leases

$

243,531

$

259,731

$

162,635

$

70,658

$

60,844

$

34,141

$

-

$

831,540

$

718,230

Charge-offs on finance leases

$

172

$

1,182

$

921

$

419

$

446

$

579

$

-

$

3,719

Personal loans:

Accrual Status:

Performing

$

133,799

$

133,763

$

37,230

$

19,134

$

33,558

$

18,492

$

-

$

375,976

$

351,998

Non-Performing

162

1,146

196

71

161

138

-

1,874

1,248

Total personal loans

$

133,961

$

134,909

$

37,426

$

19,205

$

33,719

$

18,630

$

-

$

377,850

$

353,246

Charge-offs on personal loans

$

242

$

5,765

$

2,137

$

892

$

1,812

$

1,077

$

-

$

11,925

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

321,950

$

321,950

$

311,731

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

321,950

$

321,950

$

311,731

Charge-offs on credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

13,294

$

13,294

Other consumer loans:

Accrual Status:

Performing

$

69,118

$

40,560

$

12,146

$

6,847

$

6,377

$

6,737

$

10,512

$

152,297

$

144,949

Non-Performing

323

671

184

52

91

180

137

1,638

1,241

Total other consumer loans

$

69,441

$

41,231

$

12,330

$

6,899

$

6,468

$

6,917

$

10,649

$

153,935

$

146,190

Charge-offs on other consumer loans

$

662

$

5,418

$

1,853

$

446

$

851

$

297

$

354

$

9,881

Total:

Performing

$

929,477

$

1,001,267

$

626,397

$

291,903

$

250,021

$

137,796

$

332,462

$

3,569,323

$

3,312,662

Non-Performing

1,763

5,680

3,500

1,964

3,029

3,064

137

19,137

14,806

Total consumer loans

$

931,240

$

1,006,947

$

629,897

$

293,867

$

253,050

$

140,860

$

332,599

$

3,588,460

$

3,327,468

Charge-offs on total consumer loans

$

1,706

$

17,785

$

8,323

$

3,148

$

4,943

$

3,453

$

13,648

$

53,006

(1)

Excludes accrued interest receivable.

Collateral Pledged [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loan Portfolio Held for Investment [Table Text Block]

As of September 30, 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

$

27,341

$

1,596

$

68

$

27,409

$

1,596

Commercial loans:

Construction loans

-

-

956

956

-

Commercial mortgage loans

12,525

1,651

44,722

57,247

1,651

C&I loans 

12,062

2,105

6,649

18,711

2,105

Consumer loans:

Personal loans

28

-

-

28

-

Other consumer loans

162

17

-

162

17

$

52,118

$

5,369

$

52,395

$

104,513

$

5,369

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

TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Troubled Debt Restructurings On Financing Receivables Table [Text Block]

Quarter Ended September 30,2023

Payment Delay Only

Forbearance

Payment Plan

Trial

Modification

Interest Rate

Reduction

Term

Extension

Combination

of Interest

Rate

Reduction

and Term

Extension

Other

Total

Percentage

of Total by

Portfolio

Classes

(In thousands)

Conventional residential mortgage loans

$

-

$

-

$

401

$

-

$

-

$

-

$

-

$

401

0.01%

Construction loans

-

-

-

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

2,225

-

-

2,225

0.10%

C&I loans

-

-

-

192

-

-

-

192

0.01%

Consumer loans:

Auto loans

-

-

-

-

74

59

608

(1)

741

0.04%

Personal loans

-

-

-

-

67

87

-

154

0.04%

Credit cards

-

-

-

368

(2)

-

-

-

368

0.11%

Other consumer loans

-

-

-

-

54

4

4

(1)

62

0.04%

 Total modifications

$

-

$

-

$

401

$

560

$

2,420

$

150

$

612

$

4,143

Nine-Month Period Ended September 30,2023

Payment Delay Only

Forbearance

Payment Plan

Trial

Modification

Interest Rate

Reduction

Term

Extension

Combination

of Interest

Rate

Reduction

and Term

Extension

Other

Total

Percentage

of Total by

Portfolio

Classes

(In thousands)

Conventional residential mortgage loans

$

-

$

-

$

610

$

-

$

687

$

239

$

-

$

1,536

0.05%

Construction loans

-

-

-

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

2,225

30,170

-

32,395

1.40%

C&I loans

-

-

-

192

185

-

-

377

0.01%

Consumer loans:

Auto loans

-

-

-

-

234

153

1,511

(1)

1,898

0.10%

Personal loans

-

-

-

-

132

165

-

297

0.08%

Credit cards

-

-

-

1,033

(2)

-

-

-

1,033

0.32%

Other consumer loans

-

-

-

-

311

90

28

(1)

429

0.28%

 Total modifications

$

-

$

-

$

610

$

1,225

$

3,774

$

30,817

$

1,539

$

37,965

(1)

Modification consists of reduction to 0% interest rate for remaining loan term to borrowers in bankruptcy proceedings or consumer credit counseling programs unless dismissal occurs.

(2)

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

The following tables present by portfolio classes the financial effects of the modifications granted to borrowers experiencing

financial difficulty, other than those associated to payment delay, during the quarter and nine-month period ended September

30,2023. The financial effects of the modifications associated to payment delay were discussed above and, as such, were excluded

from the tables below:

Quarter Ended September 30, 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)

(In thousands)

Conventional residential mortgage loans

-

%

-

-

%

-

Construction loans

-

%

-

-

%

-

Commercial mortgage loans

-

%

13

-

%

-

C&I loans

0.45

%

-

-

%

-

Consumer loans:

Auto loans

-

%

31

2.27

%

25

Personal loans

-

%

35

3.61

%

41

Credit cards

16.67

%

-

-

%

-

Other consumer loans

-

%

22

2.00

%

10

Nine-Month Period Ended September 30, 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)

(In thousands)

Conventional residential mortgage loans

-

%

105

2.95

%

105

Construction loans

-

%

-

-

%

-

Commercial mortgage loans

-

%

13

0.25

%

64

C&I loans

0.45

%

72

-

%

-

Consumer loans:

Auto loans

-

%

27

3.10

%

28

Personal loans

-

%

35

4.29

%

33

Credit cards

16.27

%

-

-

%

-

Other consumer loans

-

%

26

1.74

%

23

The following table presents by portfolio classes the performance of loans modified during the nine-month period ended

September 30, 2023 that were granted to borrowers experiencing financial difficulty:

Nine-Month Period Ended September 30, 2023

30-59

60-89

90+

Total

Delinquency

Current

Total

(In thousands)

Conventional residential mortgage loans

$

71

$

-

$

-

$

71

$

1,465

$

1,536

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

32,395

32,395

C&I loans

-

-

-

-

377

377

Consumer loans:

Auto loans

22

-

-

22

1,876

1,898

Personal loans

15

-

-

15

282

297

Credit cards

149

35

-

184

849

1,033

Other consumer loans

34

17

15

(1)

66

363

429

 Total modifications

$

291

$

52

$

15

$

358

$

37,607

$

37,965

(1)

Consists of loan modifications 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 and nine-month period ended September

30, 2023, and that had been modified after January 1, 2023.

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

 The following provides additional disclosures previously required by ASC Subtopic 310-40, Receivables - Troubled Debt

Restructurings by Creditors, related to the quarter and nine-month period ended September 30, 2022. Prior to the adoption of ASU

2022-02, a restructuring of a loan constituted a TDR if the creditor, for economic or legal reasons related to the borrower's financial

difficulties, granted 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 audited consolidated financial statements included

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

during the quarter and nine-month period ended September 30, 2022:

Quarter Ended September 30,2022

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

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

-

$

132

$

-

$

-

$

1,022

$

1,154

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

C&I loans

495

-

-

-

-

495

Consumer loans:

Auto loans

661

42

84

-

-

787

Finance leases

-

82

-

-

-

82

Personal loans

-

75

58

-

-

133

Credit cards

252

(2)

-

-

-

-

252

Other consumer loans

10

56

-

19

-

85

Total TDRs 

$

1,418

$

387

$

142

$

19

$

1,022

$

2,988

(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.

Nine-Month Period Ended September 30,2022

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

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

215

$

1,484

$

190

$

-

$

3,709

$

5,598

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

245

5,178

-

467

5,890

C&I loans

895

-

-

825

1,083

2,803

Consumer loans:

Auto loans

2,120

126

264

-

-

2,510

Finance leases

-

451

-

-

18

469

Personal loans

99

135

84

-

-

318

Credit cards

647

(2)

-

-

-

-

647

Other consumer loans

93

188

-

37

-

318

Total TDRs 

$

4,069

$

2,629

$

5,716

$

862

$

5,277

$

18,553

(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.

Quarter Ended September 30,2022

Nine-Month Period Ended September 30,2022

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

12

$

1,220

$

1,154

49

$

5,668

$

5,598

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

3

5,897

5,890

C&I loans

3

495

495

15

3,031

2,803

Consumer loans:

 Auto loans

35

790

787

123

2,512

2,510

 Finance leases

5

82

82

26

469

469

 Personal loans

7

116

133

19

301

318

 Credit Cards

50

251

252

139

646

647

 Other consumer loans

29

83

85

77

311

318

 Total TDRs

141

$

3,037

$

2,988

451

$

18,835

$

18,553

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 and nine-month period ended September 30, 2022, and had become TDR

loans during the 12-months preceding the default date, were as follows:

Quarter Ended September 30,2022

Nine-Month Period Ended September 30,2022

Number of contracts

Amortized Cost

Number of contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

1

$

50

5

$

534

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

31

776

75

1,674

Finance leases

-

-

1

16

Personal loans

-

-

-

-

Credit cards

14

60

39

201

Other consumer loans

1

2

5

19

Total

47

$

888

125

$

2,444