OTHER REAL ESTATE OWNED (OREO)

12 Months Ended

Dec. 31, 2024

OTHER REAL ESTATE OWNED (OREO) [Abstract]

OTHER REAL ESTATE OWNED (OREO)

NOTE 7

–

OTHER REAL ESTATE OWNED (“OREO”)

The following table presents the OREO inventory as of the indicated dates:

December 31, 2024

December 31, 2023

(In thousands)

OREO balances, carrying value:

Residential

(1)

$

12,897

$

20,261

Construction

522

1,601

Commercial

 (2)

3,887

10,807

Total

$

17,306

$

32,669

(1)

Excludes $

5.2

 million and $

16.6

 million as of December 31, 2024 and 2023, respectively, of foreclosures that met the conditions of ASC Subtopic 310-40 “Reclassification of Residential

Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” and are presented as a receivable as part of other assets in the consolidated statements of financial condition.

(2)

Decrease was mainly associated with the sale of a $

5.3

 million commercial real estate OREO property in Puerto Rico during 2024 at a gain of $

2.3

 million.

See Note 23 – “Fair Value” for information on subsequent measurement adjustments recorded on OREO properties reported as part

of “Net gain on OREO operations” in the consolidated statements of income during the years ended December 31, 2024, 2023, and

2022.