COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-12647 | |
Entity Registrant Name | OFG Bancorp | |
Entity Incorporation, State or Country Code | PR | |
Entity Tax Identification Number | 66-0538893 | |
Entity Address, Address Line One | 254 Muñoz Rivera Avenue | |
Entity Address, City or Town | San Juan | |
Entity Address, Country | PR | |
Entity Address, Postal Zip Code | 00918 | |
City Area Code | 787 | |
Local Phone Number | 771-6800 | |
Title of 12(b) Security | Common shares, par value $1.00 per share | |
Trading Symbol | OFG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,057,806 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001030469 | |
Current Fiscal Year End Date | --12-31 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 528,626 | $ 546,146 |
Money market investments | 4,073 | 4,161 |
Total cash and cash equivalents | 532,699 | 550,307 |
Restricted cash | 0 | 157 |
Investments: | ||
Trading securities, at fair value, with amortized cost of $163 (December 31, 2022 - $162) | 14 | 9 |
Investment securities available-for-sale, at fair value, with amortized cost of $1,663,633 (December 31, 2022 - $1,522,812); no allowance for credit losses “ACL” | 1,513,153 | 1,412,776 |
Investment securities held-to-maturity, at amortized cost, with fair value of $441,759 (December 31, 2022 - $469,186); no allowance for credit losses | 519,145 | 535,070 |
Equity securities | 42,162 | 23,667 |
Total investments | 2,074,474 | 1,971,522 |
Loans: | ||
Loans held-for-sale, at lower of cost or fair value | 25,846 | 40,587 |
Loans held for investment, net of allowance for credit losses of $157,529 (December 31, 2022 - $152,673) | 7,104,206 | 6,682,649 |
Total loans | 7,130,052 | 6,723,236 |
Other assets: | ||
Foreclosed real estate | 9,555 | 11,214 |
Accrued interest receivable | 67,868 | 62,402 |
Deferred tax asset, net | 11,121 | 55,485 |
Premises and equipment, net | 103,040 | 106,820 |
Customers' liability on acceptances | 30,984 | 28,607 |
Servicing assets | 50,601 | 50,921 |
Goodwill | 84,241 | 84,241 |
Other intangible assets | 22,419 | 27,593 |
Operating lease right-of-use assets | 20,011 | 25,363 |
Other assets | 120,073 | 120,912 |
Total assets | 10,257,138 | 9,818,780 |
Deposits: | ||
Demand deposits | 4,894,958 | 5,176,758 |
Savings accounts | 2,216,162 | 2,227,965 |
Time deposits | 1,430,433 | 1,163,641 |
Total deposits | 8,541,553 | 8,568,364 |
Borrowings: | ||
Balance of Borrowing | 150,701 | 0 |
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | 300,774 | 26,716 |
Other borrowings | 0 | 318 |
Total borrowings | 451,475 | 27,034 |
Other liabilities: | ||
Acceptances executed and outstanding | 30,984 | 28,607 |
Operating lease liabilities | 22,269 | 27,370 |
Accrued expenses and other liabilities | 115,394 | 124,999 |
Total liabilities | 9,161,675 | 8,776,374 |
Commitments and contingencies (See Note 20) | ||
Stockholders’ equity: | ||
Common stock, $1 par value; 100,000,000 shares authorized; 59,885,234 shares issued: 47,057,806 shares outstanding (December 31, 2022 - 59,885,234 shares issued; 47,581,375 shares outstanding) | 59,885 | 59,885 |
Additional paid-in capital | 637,389 | 636,793 |
Legal surplus | 146,774 | 133,901 |
Retained earnings | 607,466 | 516,371 |
Treasury stock, at cost, 12,827,428 shares (December 31, 2022 - 12,303,859 shares) | (228,374) | (211,135) |
Accumulated other comprehensive loss, net of tax of $22,803 (December 31, 2022 - $16,221) | (127,677) | (93,409) |
Total stockholders’ equity | 1,095,463 | 1,042,406 |
Total liabilities and stockholders’ equity | $ 10,257,138 | $ 9,818,780 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Trading securities, amortized cost | $ 163 | $ 162 |
Investment securities available-for-sale, amortized cost | 1,663,633 | 1,522,812 |
Investment securities available-for-sale, allowance for credit loss | 0 | 0 |
Investment securities held-to-maturity, fair value | 441,759 | 469,186 |
Investment securities held-to-maturity, allowance for credit loss | 0 | 0 |
Loans held for investment, allowance for credit losses | $ 157,529 | $ 152,673 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 59,885,234 | 59,885,234 |
Common stock, outstanding (in shares) | 47,057,806 | 47,581,375 |
Treasury stock, at cost (in shares) | 12,827,428 | 12,303,859 |
Accumulated other comprehensive income, tax (benefit) expense | $ 22,803 | $ 16,221 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans | $ 142,139 | $ 116,240 | $ 405,968 | $ 335,162 |
Mortgage-backed securities | 12,556 | 9,665 | 33,223 | 21,424 |
Investment securities and other | 11,013 | 8,770 | 33,490 | 13,260 |
Total interest income | 165,708 | 134,675 | 472,681 | 369,846 |
Interest expense: | ||||
Deposits | 20,819 | 7,987 | 49,232 | 21,972 |
Securities sold under agreements to repurchase | 728 | 0 | 728 | 0 |
Advances from FHLB and other borrowings | 2,374 | 178 | 5,393 | 555 |
Subordinated capital notes | 0 | 0 | 0 | 521 |
Total interest expense | 23,921 | 8,165 | 55,353 | 23,048 |
Net interest income | 141,787 | 126,510 | 417,328 | 346,798 |
Provision for credit losses | 16,430 | 7,120 | 40,919 | 15,362 |
Net interest income after provision for credit losses | 125,357 | 119,390 | 376,409 | 331,436 |
Non-interest income: | ||||
Banking service revenue | 17,303 | 17,234 | 52,256 | 52,937 |
Wealth management revenue | 7,691 | 8,173 | 23,005 | 24,300 |
Mortgage banking activities | 5,410 | 4,891 | 14,533 | 15,476 |
Total banking and financial service revenues | 30,404 | 30,298 | 89,794 | 92,713 |
Sale of securities | 0 | 0 | (1,149) | 0 |
Early extinguishment of debt | 0 | 0 | 0 | 42 |
Other non-interest income | 295 | 322 | 1,028 | 5,681 |
Total non-interest income | 30,699 | 30,620 | 89,673 | 98,436 |
Non-interest expense: | ||||
Compensation and employee benefits | 38,095 | 35,332 | 114,409 | 104,830 |
Occupancy, equipment and infrastructure costs | 14,887 | 12,638 | 43,506 | 37,415 |
Electronic banking charges | 10,662 | 9,965 | 31,260 | 29,473 |
Information technology expenses | 7,106 | 5,270 | 20,712 | 15,602 |
Professional and service fees | 4,810 | 6,441 | 15,193 | 19,224 |
Taxes, other than payroll and income taxes | 3,407 | 3,324 | 9,944 | 9,897 |
Insurance | 2,433 | 2,394 | 8,039 | 7,458 |
Loan servicing and clearing expenses | 1,715 | 2,144 | 5,848 | 6,309 |
Advertising, business promotion, and strategic initiatives | 2,206 | 1,926 | 6,304 | 5,815 |
Communication | 1,040 | 982 | 3,229 | 3,230 |
Printing, postage, stationery and supplies | 922 | 878 | 2,518 | 2,755 |
Director and investor relations | 269 | 261 | 1,047 | 856 |
Foreclosed real estate and other repossessed assets (income) loss, net of expenses | (27) | 573 | (1,554) | (2,313) |
Other | 2,633 | 5,364 | 8,811 | 13,354 |
Total non-interest expense | 90,158 | 87,492 | 269,266 | 253,905 |
Income before income taxes | 65,898 | 62,518 | 196,816 | 175,967 |
Income tax expense | 21,025 | 20,599 | 61,541 | 56,095 |
Net income available to common shareholders | $ 44,873 | $ 41,919 | $ 135,275 | $ 119,872 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.95 | $ 0.88 | $ 2.86 | $ 2.49 |
Diluted (in dollars per share) | $ 0.95 | $ 0.87 | $ 2.84 | $ 2.47 |
Average common shares outstanding and equivalents (in shares) | 47,392 | 47,926 | 47,605 | 48,594 |
Cash dividends per share of common stock (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.66 | $ 0.50 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 44,873 | $ 41,919 | $ 135,275 | $ 119,872 |
Other comprehensive income (loss) before tax: | ||||
Unrealized loss on securities available-for-sale | (45,176) | (63,929) | (41,593) | (129,534) |
Realized loss on sale of securities available-for-sale | 0 | 0 | 1,149 | 0 |
Unrealized (loss) gain on cash flow hedges | (120) | 245 | (406) | 1,214 |
Other comprehensive loss before taxes | (45,296) | (63,684) | (40,850) | (128,320) |
Income tax effect | 7,183 | 9,297 | 6,582 | 19,271 |
Other comprehensive loss after taxes | (38,113) | (54,387) | (34,268) | (109,049) |
Comprehensive income (loss) | $ 6,760 | $ (12,468) | $ 101,007 | $ 10,823 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Legal surplus | Retained earnings | Treasury stock | Accumulated other comprehensive (loss) income, net of tax | |
Balance at beginning of year at Dec. 31, 2021 | $ 59,885 | $ 637,061 | $ 117,677 | $ 399,949 | $ (150,572) | $ 5,160 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 2,915 | |||||||
Lapsed restricted stock units | (4,453) | 3,544 | ||||||
Transfer from retained earnings | 11,752 | |||||||
Net income | $ 119,872 | 119,872 | ||||||
Cash dividends declared on common stock | [1] | (24,012) | ||||||
Stocks repurchased | (64,110) | (64,110) | ||||||
Transfer to legal surplus | (11,752) | |||||||
Other comprehensive loss, net of tax | (109,049) | (109,049) | ||||||
Balance at end of year at Sep. 30, 2022 | 993,867 | 59,885 | 635,523 | 129,429 | 484,057 | (211,138) | (103,889) | |
Balance at beginning of year at Jun. 30, 2022 | 59,885 | 634,612 | 125,365 | 455,590 | (211,138) | (49,502) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 911 | |||||||
Lapsed restricted stock units | 0 | 0 | ||||||
Transfer from retained earnings | 4,064 | |||||||
Net income | 41,919 | 41,919 | ||||||
Cash dividends declared on common stock | [1] | (9,388) | ||||||
Stocks repurchased | 0 | |||||||
Transfer to legal surplus | (4,064) | |||||||
Other comprehensive loss, net of tax | (54,387) | (54,387) | ||||||
Balance at end of year at Sep. 30, 2022 | 993,867 | 59,885 | 635,523 | 129,429 | 484,057 | (211,138) | (103,889) | |
Balance at beginning of year at Dec. 31, 2022 | 1,042,406 | 59,885 | 636,793 | 133,901 | 516,371 | (211,135) | (93,409) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 3,723 | |||||||
Lapsed restricted stock units | (3,127) | 1,414 | ||||||
Transfer from retained earnings | 12,873 | |||||||
Net income | 135,275 | 135,275 | ||||||
Cash dividends declared on common stock | [1] | (31,307) | ||||||
Stocks repurchased | (18,653) | (18,653) | ||||||
Transfer to legal surplus | 12,900 | (12,873) | ||||||
Other comprehensive loss, net of tax | (34,268) | (34,268) | ||||||
Balance at end of year at Sep. 30, 2023 | 1,095,463 | 59,885 | 637,389 | 146,774 | 607,466 | (228,374) | (127,677) | |
Balance at beginning of year at Jun. 30, 2023 | 59,885 | 636,051 | 142,567 | 577,042 | (226,230) | (89,564) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 1,354 | |||||||
Lapsed restricted stock units | (16) | 42 | ||||||
Transfer from retained earnings | 4,207 | |||||||
Net income | 44,873 | 44,873 | ||||||
Cash dividends declared on common stock | [1] | (10,242) | ||||||
Stocks repurchased | (2,186) | |||||||
Transfer to legal surplus | (4,207) | |||||||
Other comprehensive loss, net of tax | (38,113) | (38,113) | ||||||
Balance at end of year at Sep. 30, 2023 | $ 1,095,463 | $ 59,885 | $ 637,389 | $ 146,774 | $ 607,466 | $ (228,374) | $ (127,677) | |
[1]Dividends declared per common share during the quarter ended September 30, 2023 - $0.22 (September 30, 2022 - $0.20). Dividends declared per common share during the nine-month period ended September 30, 2023 - $0.66 (September 30, 2022 - $0.50). |
UNAUDITED CONSOLIDATED STATEM_6
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.20 | $ 0.20 | $ 0.66 | $ 0.50 |
UNAUDITED CONSOLIDATED STATEM_7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 135,275 | $ 119,872 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan origination fees and fair value premiums on loans | 1,182 | 827 |
Amortization of investment securities (discounts), net of accretion of premiums | (3,185) | 254 |
Amortization of other intangible assets | 5,174 | 6,431 |
Net change in operating leases | 251 | 270 |
Depreciation and amortization of premises and equipment | 15,290 | 10,593 |
Deferred income tax expense, net | 50,947 | 52,229 |
Provision for credit losses | 40,919 | 15,362 |
Stock-based compensation | 3,723 | 2,915 |
(Gain) loss on: | ||
Sale of securities | 1,149 | 0 |
Sale of loans | (327) | (503) |
Early extinguishment of debt | 0 | (42) |
Foreclosed real estate and other repossessed assets | (5,820) | (11,077) |
Sale of other assets | 17 | (4,761) |
Originations and purchases of loans held-for-sale | (67,235) | (152,350) |
Proceeds from sale of loans held-for-sale | 8,012 | 93,756 |
Net decrease (increase) in: | ||
Accrued interest receivable | (5,474) | (2,885) |
Servicing assets | 320 | (1,088) |
Other assets | 287 | 13,154 |
Net increase (decrease) in: | ||
Accrued interest on deposits and borrowings | 1,373 | (238) |
Accrued expenses and other liabilities | 6,255 | (27,173) |
Net cash provided by operating activities | 188,133 | 115,546 |
Purchases of: | ||
Investment securities available-for-sale | (492,155) | (1,120,589) |
Investment securities held-to-maturity | 0 | (196,742) |
FHLB stock | (15,081) | (122) |
Equity securities | (5,136) | (4,234) |
Maturities and redemptions of: | ||
Investment securities available-for-sale | 219,907 | 102,045 |
Investment securities held-to-maturity | 16,843 | 23,463 |
FHLB stock | 2,098 | 62 |
Proceeds from sales of: | ||
Investment securities available-for-sale | 202,133 | 0 |
Foreclosed real estate and other repossessed assets, including write-offs | 45,409 | 38,219 |
Premises and equipment | 38 | 4,762 |
Origination and purchase of loans, excluding loans held-for-sale | (2,652,868) | (2,144,528) |
Principal repayment of loans | 2,141,933 | 1,831,475 |
Additions to premises and equipment | (11,609) | (24,828) |
Net cash used in investing activities | (548,488) | (1,491,017) |
Net (decrease) increase in: | ||
Deposits | (30,281) | 290,105 |
Securities sold under agreements to repurchase | 150,632 | 0 |
Subordinated capital notes | 0 | (36,041) |
FHLB advances and other borrowings | 273,068 | (1,280) |
Exercise of stock options and restricted units lapsed, net | (1,713) | (909) |
Purchase of treasury stock | (18,653) | (64,110) |
Dividends paid on common stock | (30,463) | (20,511) |
Net cash provided by financing activities | 342,590 | 167,254 |
Net change in cash, cash equivalents and restricted cash | (17,765) | (1,208,217) |
Cash, cash equivalents and restricted cash at beginning of period | 550,464 | 2,023,650 |
Cash, cash equivalents and restricted cash at end of period | 532,699 | 815,433 |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Statements of Financial Condition: | ||
Cash and due from banks | 528,626 | 810,281 |
Money market investments | 4,073 | 4,988 |
Restricted cash | 0 | 164 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 532,699 | 815,433 |
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities: | ||
Interest paid | 50,017 | 18,370 |
Income taxes paid | 3,438 | 4,428 |
Operating lease liabilities paid | 7,487 | 7,581 |
Mortgage loans held-for-sale securitized into mortgage-backed securities | 69,964 | 80,428 |
Transfer from loans to foreclosed real estate and other repossessed assets | 38,233 | 29,118 |
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | 6,471 | 18,571 |
Reclassification of loans held-for-sale portfolio to held-for-investment portfolio | 8,596 | 18,000 |
Financed sales of foreclosed real estate | 488 | 1,092 |
Delinquent loans booked under the GNMA buy-back option | 18,227 | 29,050 |
Conversion of debt security to equity security | $ 376 | $ 1,500 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations OFG is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. OFG operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer and investment adviser, Oriental Financial Services LLC (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”), a captive reinsurance company, OFG Reinsurance Ltd (“OFG Reinsurance”), and OFG Ventures LLC (“OFG Ventures”), which holds investments. Through these subsidiaries and their respective divisions, OFG provides a wide range of banking and financial services such as commercial, consumer and mortgage lending, auto leasing and lending, financial planning, insurance sales, money management, investment banking and securities brokerage services, as well as corporate and individual trust services. Effective December 31, 2022, OFG sold its retirement plan administration business, which was operated under a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”), which thereafter ceased its operations. The results for the nine-month period ended September 30, 2022 included OPC operations. Securities Sold Under Agreements to Repurchase Oriental sells securities under agreements to repurchase the same or similar securities. Oriental retains effective control over the securities sold under these agreements. Accordingly, such agreements are treated as financing arrangements, and the obligations to repurchase the securities sold are reflected as liabilities. The securities underlying the financing agreements remain included in the asset accounts. The counterparty to repurchase agreements generally has the right to repledge the securities received as collateral. Basis of Presentation The accompanying unaudited consolidated financial statements of OFG have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, these consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of OFG on a consolidated basis, and all such adjustments are of a normal recurring nature. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in OFG’s annual report on Form 10-K for the fiscal year ended December 31, 2022 (the “2022 Form 10-K”). Operating results for the nine-month period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. OFG evaluated subsequent events through the filing date of this report with the SEC and has recorded or disclosed those material events or transactions as described within the accompanying consolidated financial statements and notes. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses. Recently Adopted Accounting Standards Updates Financial Instruments—Credit Losses Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board issued ASU 2022-02 to address the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-402 and amend the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. OFG adopted the guidance related to the elimination of the recognition and measurement of TDRs and the enhancement of disclosures for loan restructurings for borrowers experiencing financial difficulty as of January 1, 2023, using the prospective transition method. As of our adoption date, all restructurings, including restructurings for borrowers experiencing financial difficulty, are evaluated to determine whether they result in a new loan or a continuation of an existing loan. Loan restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan as the terms of the restructured loans are typically not at market rates. When a loan is restructured under ASU 2022-02, we continue to measure impairment on the loan using a discounted cash flow approach that utilizes the loan’s restructured terms, including the post-restructuring interest rate, which does not result in any material changes to the allowance for credit losses. We also adopted the disclosure guidance related to the presentation of gross write-offs by year of origination in our vintage disclosures on January 1, 2023. At the adoption of this guidance on January 1, 2023, there was no material impact on our financial statements. Refer to Note 4 – Loans for new disclosures. |
RESTRICTED CASH
RESTRICTED CASH | 9 Months Ended |
Sep. 30, 2023 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH OFG had a contract with the Federal National Mortgage Association (the “FNMA”) which required collateral to guarantee the repurchase, if necessary, of loans sold with recourse. At December 31, 2022, OFG had delivered as collateral cash amounting to approximately $157 thousand. On May 1, 2023, OFG and a third-party servicer terminated a subservicing agreement by mutual agreement. Pursuant to such termination, the third-party servicer became the direct servicer of the FNMA loans sold with recourse, thereby relieving OFG of its obligation to deliver collateral with respect to such loans. Therefore, no collateral was delivered at September 30, 2023. The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits, excluding government deposits that are secured with pledged collateral. The amount of those minimum average reserve balances for the week that covered September 30, 2023 was $480.5 million (December 31, 2022 - $482.9 million). At September 30, 2023 and December 31, 2022, the Bank complied with this requirement. Cash and due from bank, as well as other short-term highly liquid securities, are used to cover the required average reserve balances. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Money Market Investments OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At September 30, 2023 and December 31, 2022, money market instruments included as part of cash and cash equivalents amounted to $4.1 million and $4.2 million, respectively. Investment Securities The amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of the securities owned by OFG at September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 1 to 5 years $ 7,717 $ — $ 430 $ 7,287 1.76 % Due from 5 to 10 years 48,962 — 4,373 44,589 2.00 % Due after 10 years 1,204,722 — 94,878 1,109,844 3.91 % Total FNMA and FHLMC certificates 1,261,401 — 99,681 1,161,720 3.82 % GNMA Securities Due from 1 to 5 years $ 10,143 $ — $ 585 $ 9,558 1.71 % Due from 5 to 10 years 18,234 4 1,490 16,748 2.18 % Due after 10 years 361,250 375 48,547 313,078 3.23 % Total GNMA certificates 389,627 379 50,622 339,384 3.15 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 10,199 — 530 9,669 1.78 % Due from 5 to 10 years 147 — 2 145 2.14 % Due after 10 years 882 — 21 861 5.07 % Total CMOs issued by US government-sponsored agencies 11,228 — 553 10,675 2.04 % Total mortgage-backed securities 1,662,256 379 150,856 1,511,779 3.65 % Investment securities US Treasury securities Due less than 1 year 739 — — 739 5.45 % Other debt securities Due from 1 to 5 years 638 — 3 635 3.19 % Total investment securities 1,377 — 3 1,374 4.40 % Total securities available for sale $ 1,663,633 $ 379 $ 150,859 $ 1,513,153 3.65 % September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 320,249 $ — $ 74,607 $ 245,642 1.72 % Investment securities US Treasury securities Due less than 1 year $ 198,896 $ — $ 2,779 $ 196,117 3.34 % Total securities held to maturity $ 519,145 $ — $ 77,386 $ 441,759 2.34 % December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 1 to 5 years $ 10,155 — $ 550 $ 9,605 1.76 % Due from 5 to 10 years 59,167 — 3,764 55,403 2.00 % Due after 10 years 768,381 59 65,332 703,108 2.87 % Total FNMA and FHLMC certificates 837,703 59 69,646 768,116 2.79 % GNMA Securities Due from 1 to 5 years 12,505 — 632 11,873 1.66 % Due from 5 to 10 years 24,575 14 1,585 23,004 2.13 % Due after 10 years 320,417 892 36,652 284,657 2.90 % Total GNMA certificates 357,497 906 38,869 319,534 2.80 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 14,190 — 755 13,435 1.78 % Due from 5 to 10 years 485 — 10 475 2.14 % Due after 10 years 959 — 18 941 5.06 % Total CMOs issued by US government-sponsored agencies 15,634 — 783 14,851 1.99 % Total mortgage-backed securities 1,210,834 965 109,298 1,102,501 2.79 % Investment securities US Treasury securities Due less than 1 year 310,862 — 1,729 309,133 3.34 % Other debt securities Due from 1 to 5 years 1,116 30 4 1,142 4.45 % Total investment securities 311,978 30 1,733 310,275 3.35 % Total securities available for sale $ 1,522,812 $ 995 $ 111,031 $ 1,412,776 2.90 % December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 337,435 $ — $ 62,358 $ 275,077 1.71 % Investment securities US Treasury securities Due from 1 to 5 years 197,635 — 3,526 194,109 3.36 % Total securities held to maturity $ 535,070 $ — $ 65,884 $ 469,186 2.30 % Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average yield on debt securities available-for-sale is based on amortized cost and does not give effect to changes in fair value. Weighted average yields on tax-exempt obligations have been computed on a fully taxable equivalent basis. At September 30, 2023 and December 31, 2022, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption. Investment securities at September 30, 2023 include $671.8 million pledged to secure securities sold under agreements to repurchase, government deposits and regulatory collateral, of which $462.9 million serve as collateral for public funds. For regulatory collateral, the secured parties are not permitted to sell or repledge it. Investment securities as of December 31, 2022 include $294.2 million pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $293.7 million serve as collateral for public funds. At both September 30, 2023 and December 31, 2022, the Bank’s international banking entities held short-term US Treasury securities in the amount of $325 thousand and $325 thousand, respectively, as the legal reserve required for international banking entities under Puerto Rico law. These instruments cannot be withdrawn or transferred without the prior written approval of the Office of the Commissioner of Financial Institutions of Puerto Rico (the “OCFI”). During the nine-month periods ended September 30, 2023 and 2022, OFG retained securitized GNMA pools totaling $52.8 million and $80.4 million amortized cost, respectively, at a yield of 5.20% and 3.53%, respectively, from its own originations. Also, during the nine-month period ended September 30, 2023, OFG retained FNMA pools totaling $17.2 million, at a yield of 5.37%, from its own originations. OFG did not retain FNMA pools during the nine-month period ended September 30, 2022. During the nine-month periods ended September 30, 2023 and 2022, OFG purchased $1.5 million and $411.0 million, respectively, of available for sale US Treasury securities. Nine-Month Period Ended September 30, 2023 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Investment securities US Treasury securities $ 202,133 $ 203,282 $ — $ 1,149 There were no sales of securities during the nine-month period ended September 30, 2022. The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2023 12 months or more Amortized Unrealized Fair (In thousands) Securities available-for-sale FNMA and FHLMC certificates $ 750,699 $ 91,423 $ 659,276 GNMA certificates 292,915 48,099 244,816 CMOs issued by US Government-sponsored agencies 11,228 553 10,675 Other debt securities 139 3 136 $ 1,054,981 $ 140,078 $ 914,903 Held-to-maturity FNMA and FHLMC certificates $ 320,249 $ 74,607 $ 245,642 US Treasury securities 198,896 2,779 196,117 $ 519,145 $ 77,386 $ 441,759 September 30, 2023 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale FNMA and FHLMC certificates $ 510,701 $ 8,257 $ 502,444 GNMA certificates 84,757 2,523 82,234 $ 595,458 $ 10,780 $ 584,678 September 30, 2023 Total Amortized Unrealized Fair (In thousands) Securities available-for-sale FNMA and FHLMC certificates $ 1,261,401 $ 99,681 $ 1,161,720 GNMA certificates 377,672 50,622 327,050 CMOs issued by US Government-sponsored agencies 11,228 553 10,675 Other debt securities 139 3 136 $ 1,650,440 $ 150,859 $ 1,499,581 Held-to-maturity FNMA and FHLMC certificates $ 320,249 $ 74,607 $ 245,642 US Treasury securities 198,896 2,779 196,117 $ 519,145 $ 77,386 $ 441,759 December 31, 2022 12 months or more Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 337 $ 7 $ 330 FNMA and FHLMC certificates 88,600 18,989 69,611 GNMA certificates 82,074 14,031 68,043 $ 171,011 $ 33,027 $ 137,984 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 December 31, 2022 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,297 $ 776 $ 14,521 FNMA and FHLMC certificates 745,566 50,657 694,909 GNMA certificates 251,835 24,838 226,997 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,323,800 $ 78,004 $ 1,245,796 Held-to-maturity US Treasury securities $ 197,635 $ 3,526 $ 194,109 December 31, 2022 Total Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,634 $ 783 $ 14,851 FNMA and FHLMC certificates 834,166 69,646 764,520 GNMA certificates 333,909 38,869 295,040 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,494,811 $ 111,031 $ 1,383,780 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 US Treasury securities 197,635 3,526 194,109 $ 535,070 $ 65,884 $ 469,186 |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS | LOANS OFG’s loan portfolio is composed of four segments: commercial, mortgage, consumer, and auto. Loans are further segregated into classes which OFG uses when assessing and monitoring the risk and performance of the portfolio. The composition of the amortized cost basis of OFG’s loan portfolio at September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 Non-PCD PCD Total Non-PCD PCD Total (In thousands) Commercial loans: Commercial secured by real estate $ 1,001,062 $ 125,635 $ 1,126,697 $ 974,202 $ 138,678 $ 1,112,880 Other commercial and industrial 984,473 14,222 998,695 854,442 20,474 874,916 US commercial loans 707,593 — 707,593 642,133 — 642,133 2,693,128 139,857 2,832,985 2,470,777 159,152 2,629,929 Mortgage 648,414 955,596 1,604,010 675,793 1,028,428 1,704,221 Consumer: Personal loans 561,185 284 561,469 480,620 338 480,958 Credit lines 11,169 288 11,457 12,826 300 13,126 Credit cards 40,030 — 40,030 42,872 — 42,872 Overdraft 239 — 239 301 — 301 612,623 572 613,195 536,619 638 537,257 Auto 2,208,993 2,552 2,211,545 1,958,257 5,658 1,963,915 6,163,158 1,098,577 7,261,735 5,641,446 1,193,876 6,835,322 Allowance for credit losses (148,210) (9,319) (157,529) (141,841) (10,832) (152,673) Total loans held for investment, net 6,014,948 1,089,258 7,104,206 5,499,605 1,183,044 6,682,649 Mortgage loans held for sale 564 — 564 19,499 — 19,499 Other loans held for sale 25,282 — 25,282 21,088 — 21,088 Total loans held for sale 25,846 — 25,846 40,587 — 40,587 Total loans, net $ 6,040,794 $ 1,089,258 $ 7,130,052 $ 5,540,192 $ 1,183,044 $ 6,723,236 During the quarter ended September 30, 2023, OFG transferred to held for sale a US commercial loan amounting to $2.0 million, net of $2.7 million charge-off, which was subsequently sold in October 2023. During the quarter ended September 30, 2023, OFG transferred to held for sale a small portfolio of non-performing small business commercial loans amounting to $4.4 million, net of a $906 thousand charge-off recognized during the quarter. At September 30, 2023 and December 31, 2022, OFG had carrying balances of $68.3 million and $73.7 million, respectively, in loans held for investment granted to the Puerto Rico government or its instrumentalities as part of the commercial loan segment. The Bank’s loans to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities in current status. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations. The tables below present the aging of the amortized cost of loans held for investment at September 30, 2023 and December 31, 2022, by class of loans. Mortgage loans past due include $18.2 million and $32.6 million of delinquent loans in the Government National Mortgage Association (“GNMA”) buy-back option program at September 30, 2023 and December 31, 2022, respectively. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option. September 30, 2023 30-59 Days 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial loans: Commercial secured by real estate $ 1,581 $ 759 $ 4,159 $ 6,499 $ 994,563 $ 1,001,062 $ — Other commercial and industrial 2,657 337 5,284 8,278 976,195 984,473 — US commercial loans 332 — — 332 707,261 707,593 — 4,570 1,096 9,443 15,109 2,678,019 2,693,128 — Mortgage 5,539 8,841 34,508 48,888 599,526 648,414 2,899 Consumer: Personal loans 5,891 3,171 2,626 11,688 549,497 561,185 — Credit lines 54 126 71 251 10,918 11,169 — Credit cards 608 265 565 1,438 38,592 40,030 — Overdraft 45 — — 45 194 239 — 6,598 3,562 3,262 13,422 599,201 612,623 — Auto 97,901 41,377 16,301 155,579 2,053,414 2,208,993 — Total loans $ 114,608 $ 54,876 $ 63,514 $ 232,998 $ 5,930,160 $ 6,163,158 $ 2,899 As of September 30, 2023, total past due loans exclude $8.1 million of past due commercial loans held for sale. December 31, 2022 30-59 Day 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial loans: Commercial secured by real estate $ 923 $ 164 $ 6,147 $ 7,234 $ 966,968 $ 974,202 $ — Other commercial and industrial 943 720 3,225 4,888 849,554 854,442 — US commercial loans — — — — 642,133 642,133 — 1,866 884 9,372 12,122 2,458,655 2,470,777 — Mortgage 9,267 5,848 56,714 71,829 603,964 675,793 3,856 Consumer: Personal loans 4,263 2,669 2,314 9,246 471,374 480,620 — Credit lines 500 154 117 771 12,055 12,826 — Credit cards 730 486 682 1,898 40,974 42,872 — Overdraft 91 2 — 93 208 301 — 5,584 3,311 3,113 12,008 524,611 536,619 — Auto 75,237 36,954 19,613 131,804 1,826,453 1,958,257 — Total loans $ 91,954 $ 46,997 $ 88,812 $ 227,763 $ 5,413,683 $ 5,641,446 $ 3,856 As of December 31, 2022, total past due loans exclude $21.1 million of past due commercial loans held for sale. Upon adoption of the CECL methodology, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, purchased credit deteriorated (“PCD”) loans are not included in the preceding two tables. Non-accrual Loans The following table presents the amortized cost basis of loans held for investment on nonaccrual status as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total (In thousands) (In thousands) Non-PCD: Commercial loans: Commercial secured by real estate $ 3,150 $ 7,971 $ 11,121 $ 4,091 $ 17,098 $ 21,189 Other commercial and industrial 4,790 859 5,649 2,769 885 3,654 US commercial loans 19,879 — 19,879 9,589 — 9,589 27,819 8,830 36,649 16,449 17,983 34,432 Mortgage 12,013 5,379 17,392 11,719 11,522 23,241 Consumer: Personal loans 2,718 4 2,722 1,950 379 2,329 Personal lines of credit 71 — 71 116 — 116 Credit cards 566 — 566 683 — 683 3,355 4 3,359 2,749 379 3,128 Auto 16,296 5 16,301 19,612 1 19,613 Total $ 59,483 $ 14,218 $ 73,701 $ 50,529 $ 29,885 $ 80,414 PCD: Commercial loans: Commercial secured by real estate $ 3,089 $ 2,533 $ 5,622 $ 2,807 $ 6,084 $ 8,891 Other commercial and industrial — 1,066 1,066 — 36 36 3,089 3,599 6,688 2,807 6,120 8,927 Mortgage 253 — 253 259 — 259 Consumer: Personal loans 7 — 7 — — — 7 — 7 — — — Total $ 3,349 $ 3,599 $ 6,948 $ 3,066 $ 6,120 $ 9,186 Total non-accrual loans $ 62,832 $ 17,817 $ 80,649 $ 53,595 $ 36,005 $ 89,600 The determination of nonaccrual or accrual status of PCD loans is made at the pool level, not the individual loan level. As of September 30, 2023 and December 31, 2022, total commercial non-accrual loans exclude $8.5 million and $27.8 million of non-accrual commercial loans held for sale, respectively. Delinquent residential mortgage loans insured or guaranteed under applicable FHA and Veterans Administration (“VA”) programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans. At December 31, 2022, loans whose terms have been extended and which were classified as troubled-debt restructurings that were not included in non-accrual loans amounted to $145.2 million as they were performing under their modified terms. Modifications to Debtors Experiencing Financial Difficulty OFG’s loss mitigation program was designed to ensure that borrowers experiencing financial difficulties have the opportunity to continue paying their obligations. The loss mitigation alternatives are divided depending on the borrower’s hardship and their ability to continue with regular payment or with a new modified payment plan. The loss mitigation program provides alternatives for home retention or disposition options avoiding foreclosure proceedings and collateral retention. OFG offers various types of loan modifications to borrowers experiencing financial difficulty in the form of an interest rate reduction, an other-than-insignificant payment delay, a term extension, interest or principal forbearance or forgiveness, or any combination of these types of concessions. On January 1, 2023, OFG adopted ASU 2022-02, which eliminated the recognition and measurement of TDRs and enhanced disclosures for loan restructurings for borrowers experiencing financial difficulty, using the prospective transition method. At September 30, 2023, the amortized cost of modified loans excludes $110 thousand of accrued interest receivable. Accrued interest receivable on loans is included in the “accrued interest receivable” line in OFG’s consolidated statements of financial condition. The following tables present the amortized cost basis as of September 30, 2023 of loans held for investment that were modified during the quarter and nine-month period ended September 30, 2023, disaggregated by class of financing receivable and type of concession granted. Interest Rate Reduction Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Commercial loans: US commercial loans 6,824 0.96 % 6,824 0.96 % Consumer: Personal loans 40 0.01 % 40 0.01 % Auto 30 — % 30 — % Total $ 6,894 $ 6,894 Term Extension Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Commercial loans: Commercial secured by real estate $ 629 0.06 % $ 6,328 0.56 % Other commercial and industrial 36 0.00 % 80 0.01 % 665 0.02 % 6,408 0.23 % Mortgage 771 0.05 % 5,040 0.31 % Total $ 1,436 $ 11,448 Principal Forbearance/Forgiveness Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Mortgage $ — — % $ 98 0.01 % Combination - Term Extension and Interest Rate Reduction Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis (In thousands) % of Total Class of Financing Receivable Amortized Cost Basis (In thousands) % of Total Class of Financing Receivable Mortgage 117 0.01 % $ 723 0.05 % Consumer: Personal loans — — % 82 0.01 % Total $ 117 $ 805 Combination - Term Extension and Principal Forgiveness/Forbearance Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Commercial loans: US commercial loans $ — — % $ 4,286 0.61 % Mortgage — — % 447 0.03 % Total $ — $ 4,733 Our credit loss estimation methodology incorporates a lifetime approach, utilizing modeled loan performance based on the historical experience of loans with similar risk characteristics, adjusted for current conditions, and reasonable and supportable forecasts. The model considers extensive historical loss experience, including the impact of loss mitigation programs offered to borrowers facing financial difficulty and projected loss severity from loan defaults, and is applied consistently across all portfolio segments. Additionally, our allowance for credit losses is recorded on each asset upon origination or acquisition and is based on historical loss information, including modifications made to borrowers facing financial difficulty. Changes to the allowance for credit losses are generally not recorded upon modification, as the effects of most modifications are already considered in the estimation methodology. Refer to Note 5 – Allowance for Credit Losses for additional information. The following table presents the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarter and nine-month period ended September 30, 2023. The financial effect of the combined modifications is presented separately by type of modification. Quarter Ended September 30, 2023 Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (In months) Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) Commercial loans: Commercial loans secured by real estate — % 14 $ — US Commercial loans 1.95 % 0 — — % 14 $ — Mortgage 1.25 % 349 $ — Consumer: Personal loans 4.00 % 0 $ — Auto 3.00 % 0 $ — Nine-Month Period Ended September 30, 2023 Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (In months) Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) Commercial loans: Commercial loans secured by real estate — % 23 $ — US Commercial loans 1.95 % 31 2,973 — % 54 $ 2,973 Mortgage 1.94 % 227 $ 24 Consumer: Personal loans 2.98 % 81 $ — Auto 3.00 % 0 $ — During the nine-month period ended September 30, 2023, OFG agreed to modify the terms of a US commercial loan with unpaid principal balance of $8.9 million by extending its term and forgiving $4.6 million of its principal balance in exchange for the company’s private stock with a fair value of $1.6 million. In addition, OFG agreed to modify the terms of another US commercial loan with unpaid principal balance of $4.4 million by forgiving all its unpaid principal balance in exchange for the company’s private stock with a fair value of $279 thousand. The following table presents the amortized cost basis as of September 30, 2023 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior nine-months. Nine-Month Period Ended September 30, 2023 Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted Interest Rate Reduction Term Extension Principal Forgiveness/Forbearance Combination - Term Extension and Interest Rate Reduction Total (In thousands) Mortgage $ — $ 415 $ — $ — $ 415 A payment default for a financial difficulty modification loan is defined as reaching 90 days past due with respect to principal and/or interest payments or when the borrower missed three consecutive monthly payments since modification. Payment defaults is one of the factors considered when projecting future cash flows in the calculation of the allowance for credit losses of loans. OFG closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents an aging of the loans held for investment that have been modified during the nine-month period ended September 30, 2023. September 30, 2023 30-59 Day 60-89 Days 90+ Days Total Past Current Total (In thousands) Commercial loans: Commercial loans secured by real estate $ — $ — $ — $ — $ 6,328 $ 6,328 Other commercial and industrial — — — — 80 80 US commercial loans — — — — 11,110 11,110 — — — — 17,518 17,518 Mortgage 566 133 415 1,114 5,194 6,308 Consumer: Personal loans — — — — 122 122 — — — — 122 122 Auto — — — — 30 30 Total $ 566 $ 133 $ 415 $ 1,114 $ 22,864 $ 23,978 At September 30, 2023, the total amortized cost of modified loans to borrowers experiencing financial difficulty includes $4.5 million of government-guaranteed loans ( e.g., FHA/VA). There were no outstanding commitments to lend additional funds to debtors experiencing financial difficulties at September 30, 2023. Troubled Debt Restructurings (“TDRs”) Disclosures Prior to the Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, OFG offered various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consisted of the deferral of interest and/or principal payments due to deterioration in the borrowers’ financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructuring. Loans that were restructured in a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the historical TDR accounting until the relevant loans are paid off, liquidated or subsequently modified. Refer to “Note 1 – Summary of Significant Accounting Policies” in our 2022 Form 10-K for more information on TDR accounting and disclosure requirements, and “Note 1 – Summary of Significant Accounting Policies” in this report for more information on our adoption of ASU 2022-02. The amount of outstanding commitments to lend additional funds to commercial borrowers whose terms were modified in TDRs amounted to $3.2 million at December 31, 2022. The following table presents the troubled-debt restructurings in all loan portfolios as of December 31, 2022: December 31, 2022 Accruing Non-accruing Total Related Allowance (In thousands) Commercial loans: Commercial secured by real estate $ 31,437 $ 13,187 $ 44,624 $ 181 Other commercial and industrial 2,272 354 2,626 42 US commercial loans 7,132 — 7,132 89 40,841 13,541 54,382 312 Mortgage 102,387 6,773 109,160 2,495 Consumer: Personal loans 1,850 15 1,865 73 Auto 77 — 77 3 Total loans $ 145,155 $ 20,329 $ 165,484 $ 2,883 The following tables present the troubled-debt restructurings by loan portfolios and modification type as of December 31, 2022 : December 31, 2022 Reduction in interest rate Maturity or term extension Combination of reduction in interest rate and extension of maturity Forbearance Total (In thousands) Commercial loans: Commercial secured by real estate $ 7,746 $ 29,454 $ 7,424 $ — $ 44,624 Other commercial and industrial 785 1,367 474 — 2,626 US commercial loans 7,132 — — — 7,132 15,663 30,821 7,898 — 54,382 Mortgage 31,709 8,020 35,194 34,237 109,160 Consumer: Personal loans 825 176 793 71 1,865 Auto 39 — 20 18 77 Total loans $ 48,236 $ 39,017 $ 43,905 $ 34,326 $ 165,484 At December 31, 2022, TDR mortgage loans included $43.5 million of government-guaranteed loans ( e.g., FHA/VA). Upon adoption of CECL, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans were not included in the TDR tables. Loan modifications that were considered TDR loans completed during the quarter and nine-month period ended September 30, 2022: Quarter Ended September 30, 2022 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 10 1,344 4.45 % 214 1,447 3.67 % 292 Commercial 1 170 5.75 % 66 169 5.75 % 114 Consumer 1 40 10.70 % 72 40 10.95 % 60 Nine-Months Ended September 30, 2022 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 82 $ 10,377 4.60 % 266 $ 10,918 3.64 % 341 Commercial 5 38,873 3.57 % 131 38,729 3.64 % 184 Consumer 3 62 13.72 % 75 62 10.95 % 67 The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month period ended September 30, 2022: Twelve-month period ended September 30, 2022 Number of Contracts Recorded Investment (Dollars in thousands) Mortgage 9 $ 1,087 As of September 30, 2023 and December 31, 2022, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $24.1 million and $14.9 million, respectively. OFG commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent. Puerto Rico and the USVI require the foreclosure to be processed through the respective territory’s courts. Foreclosure timelines vary according to local law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediation, bankruptcy, court delays and property title issues. Collateral-dependent Loans The table below presents the amortized cost of commercial collateral-dependent loans held for investment at September 30, 2023 and December 31, 2022 , by class of loans. September 30, December 31, 2023 2022 (In thousands) Commercial loans secured by real estate $ 8,605 $ 8,805 PCD loans, except for single-pooled loans, are not included in the table above as their unit of account is the loan pool. Credit Quality Indicators OFG categorizes its loans into loan grades based on relevant information about the ability of borrowers to service their debts, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans. OFG uses the following definitions for loan grades: Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards. Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable. Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future. Loans not meeting the criteria above that are analyzed individually as part of the process described above are considered to be pass loans. On January 1, 2023, OFG adopted ASU 2022-02 which requires public companies to include current year-to-date period gross charge-offs by year of origination as described in the tables below. As of September 30, 2023, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows. Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 106,717 $ 220,049 $ 171,767 $ 122,158 $ 82,940 $ 156,508 $ 70,693 $ 930,832 Special Mention — 1,806 6,642 17,542 15,754 10,785 172 52,701 Substandard — 407 1,279 752 2,655 11,894 527 17,514 Doubtful — — — — — 15 — 15 Loss — — — — — — — — Total commercial secured by real estate 106,717 222,262 179,688 140,452 101,349 179,202 71,392 1,001,062 Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Commercial secured by real estate: Current nine month period gross charge-offs — — 265 — 94 821 — 1,180 Other commercial and industrial: Loan grade: Pass 194,795 105,699 126,074 38,982 8,260 15,818 483,884 973,512 Special Mention 21 1,805 13 5,706 36 126 14 7,721 Substandard 10 144 833 617 942 126 568 3,240 Doubtful — — — — — — — — Loss — — — — — — — — Total other commercial and industrial: 194,826 107,648 126,920 45,305 9,238 16,070 484,466 984,473 Other commercial and industrial: Current nine month period gross charge-offs — 41 878 11 9 1,180 — 2,119 US commercial loans: Loan grade: Pass 119,438 68,167 75,965 45,371 29,698 8,089 320,863 667,591 Special Mention — 7,841 6,566 — — — — 14,407 Substandard 11,111 — — — — 5,716 8,768 25,595 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 130,549 76,008 82,531 45,371 29,698 13,805 329,631 707,593 US commercial loans: Current nine month period gross charge-offs 33 1,156 — — — 8,637 — 9,826 Total commercial loans $ 432,092 $ 405,918 $ 389,139 $ 231,128 $ 140,285 $ 209,077 $ 885,489 $ 2,693,128 Total current nine month period gross charge-offs $ 33 $ 1,197 $ 1,143 $ 11 $ 103 $ 10,638 $ — $ 13,125 As of December 31, 2022, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows. Term Loans Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 220,035 $ 177,775 $ 110,809 $ 118,518 $ 50,454 $ 159,721 $ 69,523 $ 906,835 Special Mention 1,899 — 6,007 17,004 2,095 13,934 439 41,378 Substandard 103 8,410 345 405 473 14,722 1,185 25,643 Doubtful — — — — — 15 331 346 Loss — — — — — — — — Total commercial secured by real estate 222,037 186,185 117,161 135,927 53,022 188,392 71,478 974,202 Other commercial and industrial: Loan grade: Pass 123,659 198,776 67,147 35,678 13,807 7,863 397,944 844,874 Special Mention 3 60 31 654 1,819 21 3,823 6,411 Substandard 112 — 260 472 280 74 1,920 3,118 Doubtful — — — — — — 39 39 Loss — — — — — — — — Total other commercial and industrial: 123,774 198,836 67,438 36,804 15,906 7,958 403,726 854,442 US commercial loans: Loan grade: Pass 81,155 92,688 43,965 33,827 49,356 — 308,183 609,174 Special Mention 6,346 — — — — — 1,122 7,468 Substandard 3,363 — 8,090 — 4,449 — 9,589 25,491 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 90,864 92,688 52,055 33,827 53,805 — 318,894 642,133 Total commercial loans $ 436,675 $ 477,709 $ 236,654 $ 206,558 $ 122,733 $ 196,350 $ 794,098 $ 2,470,777 At September 30, 2023 and December 31, 2022 , the balance of revolving commercial loans converted to term loans was $121.1 million and $78.0 million, respectively. OFG considers the performance of the loan portfolio and its impact on the allowance for credit losses. For mortgage and consumer loan classes, OFG also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of September 30, 2023: Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Mortgage: Payment performance: Performing $ 27,314 $ 19,752 $ 23,745 $ 16,065 $ 14,722 $ 521,462 $ — $ 623,060 Nonperforming — 114 182 109 482 24,467 — 25,354 Total mortgage loans: 27,314 19,866 23,927 16,174 15,204 545,929 — 648,414 Mortgage: Current nine month period gross charge-offs — — — — — 610 — 610 Consumer: Personal loans: Payment performance: Performing 224,566 208,788 77,158 21,839 18,006 8,106 — 558,463 Nonperforming 423 1,477 505 153 98 66 — 2,722 Total personal loans 224,989 210,265 77,663 21,992 18,104 8,172 — 561,185 Personal loans: Current nine month period gross charge-offs 492 7,581 3,461 638 1,172 637 — 13,981 Credit lines: Payment performance: Performing — — — — — — 11,097 11,097 Nonperforming — — — — — — 72 72 Total credit lines — — — — — — 11,169 11,169 Credit lines: Current nine month period gross charge-offs — — — — — — 313 313 Credit cards: Payment performance: Performing — — — — — — 39,464 39,464 Nonperforming — — — — — — 566 566 Total credit cards — — — — — — 40,030 40,030 Credit cards: Current nine month period gross charge-offs — — — — — — 2,124 2,124 Overdrafts: Payment performance: Performing — — — — — — 239 239 Nonperforming — — — — — — — — Total overdrafts — — — — — — 239 239 Overdrafts: Current nine month period gross charge-offs — — — — — — 434 434 Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Total consumer loans 224,989 210,265 77,663 21,992 18,104 8,172 51,438 612,623 Total consumer current nine month period gross charge-offs 492 7,581 3,461 638 1,172 637 2,871 16,852 Total mortgage and consumer loans $ 252,303 $ 230,131 $ 101,590 $ 38,166 $ 33,308 $ 554,101 $ 51,438 $ 1,261,037 Total mortgage and consumer current nine month period gross charge-offs $ 492 $ 7,581 $ 3,461 $ 638 $ 1,172 $ 1,247 $ 2,871 $ 17,462 The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2022 : Term Loans Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Mortgage: Payment performance: Performing $ 18,700 $ 25,274 $ 16,175 $ 15,457 $ 16,790 $ 549,885 $ — $ 642,281 Nonperforming — — 110 574 241 32,587 — 33,512 Total mortgage loans: 18,700 25,274 16,285 16,031 17,031 582,472 — 675,793 Consumer: Personal loans: Payment performance: Performing 284,183 112,591 31,876 31,850 12,022 5,768 — 478,290 Nonperforming 831 661 111 300 81 346 — 2,330 Total personal loans 285,014 113,252 31,987 32,150 12,103 6,114 — 480,620 Credit lines: Payment performance: Performing — — — — — — 12,710 12,710 Nonperforming — — — — — — 116 116 Total credit lines — — — — — — 12,826 12,826 Credit cards: Payment performance: Performing — — — — — — 42,189 42,189 Nonperforming — — — — — — 683 683 Total credit cards — — — — — — 42,872 42,872 Overdrafts: Payment performance: Performing — — — — — — 301 301 Nonperforming — — — — — — — — Total overdrafts — — — — — — 301 301 Total consumer loans 285,014 113,252 31,987 32,150 12,103 6,114 55,999 536,619 Total mortgage and consumer loans $ 303,714 $ 138,526 $ 48,272 $ 48,181 $ 29,134 $ 588,586 $ 55,999 $ 1,212,412 At September 30, 2023 and December 31, 2022 , there were no mortgage and consumer revolving loans that converted to term loans. OFG evaluates credit quality for auto loans based on FICO score. The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of September 30, 2023: Term Loans Total 2023 2022 2021 2020 2019 Prior (In thousands) Auto: FICO score: 1-660 121,234 195,732 124,437 60,882 44,959 47,229 594,473 661-699 130,962 128,534 65,830 30,251 21,784 19,694 397,055 700+ 367,239 339,488 197,162 113,239 99,649 75,429 1,192,206 No FICO 4,564 6,792 4,882 2,502 4,441 2,078 25,259 Total auto loans $ 623,999 $ 670,546 $ 392,311 $ 206,874 $ 170,833 $ 144,430 $ 2,208,993 Auto: Current nine month period gross charge-offs $ 1,120 $ 12,271 $ 7,848 $ 2,945 $ 2,402 $ 2,520 $ 29,106 The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of December 31, 2022 : Term Loans Total 2022 2021 2020 2019 2018 Prior (In thousands) Auto: FICO score: 1-660 178,426 143,926 72,148 58,069 44,156 31,980 528,705 661-699 171,723 93,359 42,388 31,033 21,283 13,518 373,304 700+ 375,845 235,743 144,783 135,517 88,597 47,499 1,027,984 No FICO 7,766 6,553 3,741 5,873 3,008 1,323 28,264 Total auto loans $ 733,760 $ 479,581 $ 263,060 $ 230,492 $ 157,044 $ 94,320 $ 1,958,257 Upon adoption of CECL, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the preceding two tables. As of September 30, 2023 and December 31, 2022 , accrued interest receivable on loans totaled $59.9 million and $58.1 million, respectively, and is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to “Note 10 – Accrued Interest Receivable and Other Assets” for more information on accrued interest receivable on loans. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES OFG measures its allowance for credit losses based on management’s best estimate of lifetime expected credit losses inherent in OFG’s relevant financial assets. The ACL is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. Also included in the ACL are qualitative reserves to cover losses that are expected but, in OFG’s assessment, may not be adequately represented in the quantitative methods or the economic assumptions. In its loss forecasting framework, OFG incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. The scenarios that are chosen each quarter and the amount of weighting given to each scenario depend on a variety of factors, including recent economic events, leading economic indicators, views of internal as well as third-party economists and industry trends. For more information on OFG’s credit loss accounting policies, including the allowance for credit losses, see “Note 1 – Summary of Significant Accounting Policies” included in OFG’s 2022 Form 10-K. At September 30, 2023, OFG used an economic probability-weighted scenario approach consisting of the baseline and moderate recession scenarios, giving more weight to the baseline scenario, except for the US loan segment that uses a higher probability level in the moderate recessionary scenario. In addition, the ACL at September 30, 2023 continues to include qualitative reserves for certain segments that OFG views as higher risk that may not be fully recognized through its quantitative models, such as auto loan portfolio credit trends and the evolution of risk ratings applied to the commercial loans and collateral changes in real estate portfolios. There are still many unknown variables, including the results of the government’s fiscal and monetary actions resulting from the effect of inflation and geopolitical tension. As of September 30, 2023, the allowance for credit losses increased by $4.9 million when compared to December 31, 2022. The provision for credit losses for the nine-month period ended September 30, 2023 reflected a provision of $23.8 million related to the growth in loan balances, a provision of $14.7 million related to commercial-specific loan reserves, mainly in the US commercial loan portfolio, and $5.1 million associated with qualitative adjustments mostly to the auto loan and US commercial loan portfolios. The increases to the provision were partially offset by releases of $3.2 million for changes in the economic and loss rate models. The net charge-offs for the nine-month period ended September 30, 2023, amounted to $35.6 million, an increase of $19.1 million when compared to the same period of 2022. The increase is mainly due to increases of $8.3 million in commercial loans, $5.7 million in consumer loans, $2.4 million in mortgage loans and $2.7 million in auto loans. During nine-month period ended September 30, 2023, OFG charged-off $9.8 million for three US commercial loans and $906 thousand for a small portfolio of non-performing small business commercial loans that were transferred to the held for sale category at the end of the period; partially offset by a recovery of $3.7 million from the sale of older, fully charged off auto and consumer loans. The following tables present the activity in OFG’s allowance for credit losses by segment for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 48,604 $ 8,670 $ 25,666 $ 67,227 $ 150,167 Provision for (recapture of) credit losses 1,103 (273) 6,026 9,804 16,660 Charge-offs (8,254) (218) (5,894) (10,458) (24,824) Recoveries 174 185 655 5,193 6,207 Balance at end of period $ 41,627 $ 8,364 $ 26,453 $ 71,766 $ 148,210 PCD: Balance at beginning of period $ 1,408 $ 8,297 $ 8 $ 43 $ 9,756 Provision for (recapture of) credit losses 60 (226) 15 (67) (218) Charge-offs (690) (148) (39) (37) (914) Recoveries 494 80 23 98 695 Balance at end of period $ 1,272 $ 8,003 $ 7 $ 37 $ 9,319 Total allowance for credit losses at end of period $ 42,899 $ 16,367 $ 26,460 $ 71,803 $ 157,529 Nine-Month Period Ended September 30, 2023 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 39,158 $ 9,571 $ 23,264 $ 69,848 $ 141,841 Provision for (recapture of) credit losses 14,857 (1,332) 16,517 10,900 40,942 Charge-offs (13,125) (610) (16,852) (29,106) (59,693) Recoveries 737 735 3,524 20,124 25,120 Balance at end of period $ 41,627 $ 8,364 $ 26,453 $ 71,766 $ 148,210 PCD: Balance at beginning of period $ 1,388 $ 9,359 $ 14 $ 71 $ 10,832 Provision for (recapture of) credit losses 1,376 (1,719) 293 (475) (525) Charge-offs (2,794) (224) (376) (158) (3,552) Recoveries 1,302 587 76 599 2,564 Balance at end of period $ 1,272 $ 8,003 $ 7 $ 37 $ 9,319 Total allowance for credit losses at end of period $ 42,899 $ 16,367 $ 26,460 $ 71,803 $ 157,529 Quarter Ended September 30, 2022 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 42,014 $ 11,906 $ 23,109 $ 66,867 $ 143,896 Provision for (recapture of) credit losses 3,108 (1,741) 4,555 4,325 10,247 Charge-offs (6,485) (14) (4,163) (7,964) (18,626) Recoveries 214 280 732 5,674 6,900 Balance at end of period $ 38,851 $ 10,431 $ 24,233 $ 68,902 $ 142,417 PCD: Balance at beginning of period $ 2,427 $ 12,541 $ 20 $ 155 $ 15,143 Recapture of credit losses (786) (1,735) (40) (216) (2,777) Charge-offs (23) (270) (9) (56) (358) Recoveries 268 191 47 231 737 Balance at end of period $ 1,886 $ 10,727 $ 18 $ 114 $ 12,745 Total allowance for credit losses at end of period $ 40,737 $ 21,158 $ 24,251 $ 69,016 $ 155,162 Nine-Month Period Ended September 30, 2022 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 32,262 $ 15,299 $ 19,141 $ 65,363 $ 132,065 Provision for (recapture of) credit losses 15,663 (7,281) 13,039 9,691 31,112 Charge-offs (9,936) (276) (10,129) (22,282) (42,623) Recoveries 862 2,689 2,182 16,130 21,863 Balance at end of period $ 38,851 $ 10,431 $ 24,233 $ 68,902 $ 142,417 PCD: Balance at beginning of period $ 4,508 $ 19,018 $ 34 $ 312 $ 23,872 Recapture of credit losses (6,105) (8,766) (43) (506) (15,420) Charge-offs (57) (1,587) (56) (245) (1,945) Recoveries 3,540 2,062 83 553 6,238 Balance at end of period $ 1,886 $ 10,727 $ 18 $ 114 $ 12,745 Total allowance for credit losses at end of period $ 40,737 $ 21,158 $ 24,251 $ 69,016 $ 155,162 |
FORECLOSED REAL ESTATE
FORECLOSED REAL ESTATE | 9 Months Ended |
Sep. 30, 2023 | |
Other Real Estate [Abstract] | |
FORECLOSED REAL ESTATE | FORECLOSED REAL ESTATE The following table presents the activity related to foreclosed real estate for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ 10,639 $ 15,061 $ 11,214 $ 15,039 Additions 1,879 1,454 6,513 7,183 Sales (3,799) (3,919) (10,451) (11,866) Decline in value (538) (322) (937) (736) Other adjustments 1,374 2,287 3,216 4,941 Balance at end of period $ 9,555 $ 14,561 $ 9,555 $ 14,561 |
SERVICING ASSETS
SERVICING ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
SERVICING ASSETS | SERVICING ASSETS OFG periodically sells or securitizes mortgage loans while retaining the obligation to perform the servicing of such loans. In addition, OFG may purchase or assume the right to service mortgage loans originated by others. Whenever OFG undertakes an obligation to service a loan, management assesses whether a servicing asset and/or liability should be recognized. A servicing asset is recognized whenever the compensation for servicing is expected to more than adequately compensate OFG for servicing the loans. Likewise, a servicing liability would be recognized in the event that servicing fees to be received are not expected to adequately compensate OFG for its expected cost. At September 30, 2023, the fair value of mortgage servicing rights was $50.6 million ($50.9 million — December 31, 2022). The following table presents the changes in servicing rights measured using the fair value method for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Fair value at beginning of period $ 49,966 $ 49,280 $ 50,921 $ 48,973 Servicing from mortgage securitization or asset transfers 453 666 1,818 2,935 Changes due to payments on loans (1,060) (1,191) (3,210) (4,168) Changes in fair value due to changes in valuation model inputs or assumptions 1,242 1,306 1,072 2,321 Fair value at end of period $ 50,601 $ 50,061 $ 50,601 $ 50,061 The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of September 30, 2023 and 2022: Nine-Month Period Ended September 30, 2023 2022 Constant prepayment rate 3.33% - 20.40% 3.38% - 20.36% Discount rate 10.00% - 15.50% 10.00% - 15.50% The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows: September 30, December 31, 2023 2022 (In thousands) Mortgage-related servicing asset Carrying value of mortgage servicing asset $ 50,601 $ 50,921 Weighted average life (in years) 7.7 7.8 Constant prepayment rate Decrease in fair value due to 10% adverse change $ (922) $ (956) Decrease in fair value due to 20% adverse change $ (1,812) $ (1,880) Discount rate Decrease in fair value due to 10% adverse change $ (2,224) $ (2,265) Decrease in fair value due to 20% adverse change $ (4,279) $ (4,356) These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows. Servicing fee income is based on a contractual percentage of the outstanding principal balance and is recorded as income when earned and included in the mortgage banking activities section in the consolidated statement of operations. Servicing fees on mortgage loans for the quarters ended September 30, 2023 and 2022 totaled $4.6 million and $5.1 million, respectively. Servicing fees on mortgage loans for the nine-month periods ended September 30, 2023 and 2022 totaled $14.4 million and $15.3 million, respectively. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES OFG’s overall interest rate risk-management strategy incorporates, from time to time, the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. Derivative instruments that were used as part of OFG’s interest rate risk-management strategy included interest rate swaps and caps. As of December 31, 2022, the notional amount of derivative contracts outstanding was $26.6 million with a gross fair value of $406 thousand, which was included in other assets in the consolidated statement of financial condition. The gross fair value of derivatives liabilities was zero at December 31, 2022. The impact of master netting agreements was not material. As of September 30, 2023, there were no derivative contracts outstanding. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill by reportable business segment is included in the table below. Refer to “ Note 24 – Business Segments” for additional information on OFG’s reportable business segments. Banking Wealth Management Treasury Total (In thousands) September 30, 2023 $ 84,063 $ 178 $ — $ 84,241 December 31, 2022 $ 84,063 $ 178 $ — $ 84,241 There were no changes in the carrying amount of goodwill during the quarters and nine-month periods ended September 30, 2023 and 2022. There were no accumulated impairment losses at September 30, 2023 and December 31, 2022. Relevant events and circumstances for evaluating whether it is more likely than not that the fair value of a reporting segment is less than its carrying amount may include macroeconomic conditions (such as deterioration of the Puerto Rico economy or the liquidity for Puerto Rico securities or loans secured by assets in Puerto Rico), adverse changes in legal factors or in the business climate, adverse actions by a regulator, unanticipated competition, the loss of key employees, natural disasters, or similar events. OFG performed its annual impairment review of goodwill during the fourth quarter of 2022 using October 31, 2022 as the annual evaluation date and concluded that there was no impairment at December 31, 2022. During the nine-month period ended September 30, 2023, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of the goodwill. Based on this assessment, no impairments were identified at September 30, 2023. The following table reflects the components of other intangible assets subject to amortization at September 30, 2023 and December 31, 2022: Gross Accumulated Net (In thousands) September 30, 2023 Core deposit intangibles $ 41,507 $ 24,338 $ 17,169 Customer relationship intangibles 12,693 7,443 5,250 Total other intangible assets $ 54,200 $ 31,781 $ 22,419 December 31, 2022 Core deposit intangibles $ 41,507 $ 20,376 $ 21,131 Customer relationship intangibles 12,693 6,231 6,462 Total other intangible assets $ 54,200 $ 26,607 $ 27,593 In connection with previous acquisitions, OFG recorded core deposit intangibles representing the value of checking and savings deposits acquired. In addition, OFG recorded customer relationship intangibles representing the value of customer relationships acquired with the acquisitions of insurance agencies. During the nine-month period ended September 30, 2023, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of other intangible assets. Based on this assessment, no impairments were identified at September 30, 2023. Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended September 30, 2023 and 2022 was $1.7 million and $2.1 million, respectively. Amortization of other intangible assets for the nine-month periods ended September 30, 2023 and 2022, was $5.2 million and $6.4 million, respectively. Year Ending December 31, (In thousands) 2023 $ 6,898 2024 5,913 2025 4,927 2026 3,942 2027 2,956 Thereafter 2,957 |
ACCRUED INTEREST RECEIVABLE AND
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Interest Receivable and Other Assets [Abstract] | |
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS | ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS Accrued interest receivable at September 30, 2023 and December 31, 2022 consists of the following: September 30, December 31, 2023 2022 (In thousands) Loans $ 59,909 $ 58,144 Investments 7,959 4,258 $ 67,868 $ 62,402 Accrued interest receivable on loans that participated in the Hurricane Fiona and Covid-19 deferral programs amounted to $20.5 million at September 30, 2023, of which $19.5 million corresponded to loans in current status. Accrued interest receivable on loans that participated in the Hurricane Fiona and Covid-19 deferral program amounted to $21.8 million at December 31, 2022, of which $20.7 million corresponded to loans in current status. OFG estim ates expected credit losses on accrued interest receivable for loans that participated in moratorium programs. An allowance has been established for loans with delinquency status in 30 to 89 days past due and is calculated by applying the corresponding loan projected loss factors to the accrued interest receivable balance. At September 30, 2023 and December 31, 2022, the allowance for credit losses for accrued interest receivable for loans that participated in moratorium programs amounted to $153 thousand and $144 thousand, respectively, and is included in accrued interest receivable in the statement of financial condition. Other assets at September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, 2023 2022 (In thousands) Prepaid expenses $ 67,545 $ 54,875 Other repossessed assets 4,432 4,617 Accounts receivable and other assets 48,096 61,420 $ 120,073 $ 120,912 Prepaid expenses amounting to $67.5 million at September 30, 2023, include prepaid municipal, property and income taxes aggregating to $56.8 million. At December 31, 2022 prepaid expenses amounted to $54.9 million, including prepaid municipal, property and income taxes aggregating to $47.2 million. Other repossessed assets totaled $4.4 million and $4.6 million at September 30, 2023 and December 31, 2022, respectively, and consist of repossessed automobiles, which are recorded at their net realizable value. |
DEPOSITS AND RELATED INTEREST
DEPOSITS AND RELATED INTEREST | 9 Months Ended |
Sep. 30, 2023 | |
Deposits and Related Interest [Abstract] | |
DEPOSITS AND RELATED INTEREST | DEPOSITS AND RELATED INTEREST Total deposits, including related accrued interest payable, as of September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, 2023 2022 (In thousands) Non-interest-bearing demand deposits $ 2,571,068 $ 2,630,458 Interest-bearing savings and demand deposits 4,540,052 4,774,265 Retail certificates of deposit 1,075,238 979,545 Institutional certificates of deposit 352,259 172,725 Total core deposits 8,538,617 8,556,993 Brokered deposits 2,936 11,371 Total deposits $ 8,541,553 $ 8,568,364 At September 30, 2023 and December 31, 2022, the aggregate amount of uninsured deposits was $3.747 billion and $3.498 billion, respectively. The weighted average interest rate of OFG’s deposits was 0.70% and 0.41%, respectively, at September 30, 2023 and December 31, 2022. Interest expense for the quarters and nine-month periods ended September 30, 2023 and 2022 was as follows: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Demand and savings deposits $ 13,772 $ 6,299 $ 32,864 $ 16,376 Certificates of deposit 7,047 1,688 16,368 5,596 $ 20,819 $ 7,987 $ 49,232 $ 21,972 At September 30, 2023 and December 31, 2022, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $702.0 million and $384.4 million, respectively. At September 30, 2023 and December 31, 2022, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $390.6 million and $284.2 million, respectively. These public funds were collateralized with commercial loans and securities amounting to $491.0 million and $367.3 million at September 30, 2023 and December 31, 2022, respectively. Excluding accrued interest of approximately $1.3 million and $682 thousand, the scheduled maturities of certificates of deposit at September 30, 2023 and December 31, 2022 are as follows: September 30, 2023 Period-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 260,003 $ 81,888 Over 3 months through 6 months 196,868 81,844 Over 6 months through 1 year 311,164 88,901 768,035 252,633 Over 1 through 2 years 476,048 203,379 Over 2 through 3 years 107,977 12,130 Over 3 through 4 years 29,362 2,657 Over 4 through 5 years 46,117 2,939 Over 5 years 1,625 — $ 1,429,164 $ 473,738 December 31, 2022 Period-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 238,776 $ 29,503 Over 3 months through 6 months 152,940 18,238 Over 6 months through 1 year 262,976 59,093 654,692 106,834 Over 1 through 2 years 279,034 64,109 Over 2 through 3 years 136,732 26,481 Over 3 through 4 years 51,505 8,276 Over 4 through 5 years 39,888 2,230 Over 5 years 1,108 — $ 1,162,959 $ 207,930 The tables of scheduled maturities of certificates of deposits above include individual retirement accounts and brokered deposits. The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $606 thousand and $495 thousand as of September 30, 2023 and December 31, 2022, respectively. |
BORROWINGS AND RELATED INTEREST
BORROWINGS AND RELATED INTEREST | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND RELATED INTEREST | BORROWINGS AND RELATED INTEREST Securities Sold under Agreements to Repurchase At September 30, 2023, securities underlying agreements to repurchase were delivered to, and are being held by, the counterparties with whom the repurchase agreements were transacted. The counterparties have agreed to resell to OFG the same or similar securities at the maturity of these agreements. The purpose of these transactions is to provide financing for OFG’s securities portfolio. The following table shows OFG’s repurchase agreements, excluding accrued interest in the amount of $68 thousand at September 30, 2023: September 30, 2023 (In thousands) Short-term fixed-rate repurchase agreements, with a weighted average interest rate of 5.47% $ 150,633 Repurchase agreements’ maturities were as follows: September 30, 2023 (In thousands) Under 90 days $ 150,633 All of the repurchase agreements referred to above with maturity dates up to the date of this report were renewed as short-term repurchase agreements. The following securities were sold under agreements to repurchase: September 30, 2023 Underlying Securities Amortized Cost of Underlying Securities Balance of Borrowing Approximate Fair Value of Underlying Securities Weighted Average Interest Rate of Security (In thousands) FNMA and FHMLC Certificates $ 183,004 $ 150,633 $ 161,973 2.95 % There were no repurchase agreements at December 31, 2022. Advances from the Federal Home Loan Bank of New York Advances are received from the FHLB under an agreement whereby OFG is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At September 30, 2023 and December 31, 2022, these advances were secured by mortgage and commercial loans amounting to $954.9 million and $951.1 million, respectively. Also, at September 30, 2023 and December 31, 2022, OFG had an additional borrowing capacity with the FHLB of $346.4 million and $628.1 million, respectively. At September 30, 2023 and December 31, 2022, the weighted average remaining maturity of FHLB advances was 1.4 years and 3 days, respectively. The original terms of the outstanding short-term and long-term advances at September 30, 2023 are 3 days and 2 years, respectively. The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $774 thousand and $103 thousand at September 30, 2023 and December 31, 2022, respectively: September 30, December 31, 2023 2022 (In thousands) Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 5.59% (December 31, 2022 - 4.46%) $ 100,000 $ 26,613 Long-term fixed-rate advance from FHLB, with a weighted average interest rate of 4.52% 200,000 — $ 300,000 $ 26,613 Advances from FHLB mature as follows: September 30, December 31, 2023 2022 (In thousands) Under 90 days $ 100,000 $ 26,613 Over one to three years 200,000 — $ 300,000 $ 26,613 All of the advances referred to above with maturity dates up to the date of this report were renewed as short-term advances. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets and Liabilities | OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES OFG’s securities sold under agreements to repurchase have a right of set-off with the respective counterparty under the supplemental terms of the master repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the related agreements and any other amount or obligation owed in respect of any other agreement or transaction between them. Security collateral posted to open and maintain a master netting agreement with a counterparty, in the form of cash and securities, may from time to time be segregated in an account at a third-party custodian pursuant to an account control agreement. The following table presents the potential effect of rights of set-off associated with OFG’s recognized financial assets and liabilities at September 30, 2023: September 30, 2023 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amount of Financial Cash Net (In thousands) Securities sold under agreements to repurchase 150,633 — 150,633 161,973 — (11,340) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES OFG is subject to the provisions of the Puerto Rico Internal Revenue Code of 2011, as amended (the “PR Code”). The PR Code imposes a maximum statutory corporate tax rate of 37.5%. OFG has operations in the U.S. through its wholly owned subsidiaries OPC, OFG Ventures, and OFG USA LLC (“OFG USA”), which is a direct subsidiary of the Bank, and has two branches in the USVI. The United States subsidiaries are subject to federal income taxes at the corporate level, while the USVI branches are subject to federal income taxes under a mirror system and a 10% surtax included in the maximum tax rate. OPC is subject to Florida state taxes, OFG USA is subject to North Carolina state taxes, and current investments in OFG Ventures are subject to state taxes in Missouri. In addition, OFG’s wholly owned subsidiary, OFG Reinsurance Ltd., is tax exempt in Grand Cayman. Effective December 30, 2022, OFG sold its pension plan administration operations in OPC and thereafter OPC ceased its operations. As of September 30, 2023 and December 31, 2022, OFG’s net deferred tax asset, net of a valuation allowance of $8.3 million and $9.1 million, respectively, amounted to $11.1 million and $55.5 million, respectively. The decrease in valuation allowance of $883 thousand was mainly related to OFG’s operations at the holding company level. The decrease in net deferred tax asset of $44.4 million was mainly related with the utilization of $112.4 million charge-offs during the nine-month period ended September 30, 2023. In assessing the realizability of the deferred tax asset, management considers whether it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of the deferred tax asset is dependent upon the generation of future income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future income, and tax planning strategies in making this assessment. Based upon the assessment of positive and negative evidence, the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax asset are deductible, and provisions of certain closing agreements, management believes it is more likely than not that OFG will realize the benefits of these deductible differences, net of the existing valuation allowances, at September 30, 2023. The amount of the deferred tax asset that is considered realizable could be reduced in the near term if there are changes in estimates of future taxable income. OFG maintained an effective tax rate (“ETR”) lower than the statutory rate for the nine-month periods ended September 30, 2023 and 2022 of 31.3% and 31.9%, respectively, the decrease is mainly related to an exempt income and a discrete tax windfall on stock options recognized during the period. The expected ETR for 2023 is 31.4%. OFG classifies unrecognized tax benefits in other liabilities. These gross unrecognized tax benefits would affect the ETR if realized. At September 30, 2023, the amount of unrecognized tax benefits was $918 thousand (December 31, 2022 - $867 thousand). Income tax expense for the quarters ended September 30, 2023 and 2022 was $21.0 million and $20.6 million, respectively. Income tax expense for the nine-month periods ended September 30, 2023 and 2022, was $61.5 million and $56.1 million, respectively. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Capital Disclosure [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements OFG (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on OFG’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, OFG and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. OFG and the Bank have elected to exclude accumulated comprehensive income related to both available for sale securities and derivative valuations from Common Equity Tier 1 Capital. OFG’s and the Bank’s actual capital amounts and ratios as of September 30, 2023 and December 31, 2022 were as follows: Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) OFG Bancorp Ratios As of September 30, 2023 Total capital to risk-weighted assets $ 1,224,963 15.31 % $ 840,075 10.50 % $ 800,071 10.00 % Tier 1 capital to risk-weighted assets $ 1,124,599 14.06 % $ 680,060 8.50 % $ 640,057 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,124,599 14.06 % $ 560,050 7.00 % $ 520,046 6.50 % Tier 1 capital to average total assets $ 1,124,599 11.03 % $ 407,737 4.00 % $ 509,672 5.00 % As of December 31, 2022 Total capital to risk-weighted assets $ 1,132,658 14.89 % $ 798,574 10.50 % $ 760,547 10.00 % Tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 646,465 8.50 % $ 608,437 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 532,383 7.00 % $ 494,355 6.50 % Tier 1 capital to average total assets $ 1,037,385 10.36 % $ 400,445 4.00 % $ 500,557 5.00 % Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) Bank Ratios As of September 30, 2023 Total capital to risk-weighted assets $ 1,120,234 14.09 % $ 834,814 10.50 % $ 795,061 10.00 % Tier 1 capital to risk-weighted assets $ 1,020,488 12.84 % $ 675,802 8.50 % $ 636,049 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,020,488 12.84 % $ 556,543 7.00 % $ 516,790 6.50 % Tier 1 capital to average total assets $ 1,020,488 10.12 % $ 403,339 4.00 % $ 504,174 5.00 % As of December 31, 2022 Total capital to risk-weighted assets $ 1,028,126 13.61 % $ 793,124 10.50 % $ 755,356 10.00 % Tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 642,053 8.50 % $ 604,285 8.00 % Common equity tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 528,749 7.00 % $ 490,981 6.50 % Tier 1 capital to average total assets $ 933,494 9.42 % $ 396,525 4.00 % $ 495,656 5.00 % |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Common Stock At both September 30, 2023 and December 31, 2022, common stock amounted to $59.9 million. Additional Paid-in Capital Additional paid-in capital represents contributed capital in excess of par value of common stock, net of the costs of issuance. At both September 30, 2023 and December 31, 2022, accumulated common stock issuance costs charged against additional paid-in capital amounted to $13.6 million. Legal Surplus The Puerto Rico Banking Act requires that a minimum of 10% of the Bank’s net income for the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid-in capital on common and preferred stock. At September 30, 2023 and December 31, 2022, the Bank’s legal surplus amounted to $146.8 million and $133.9 million, respectively. During the nine-month period ended September 30, 2023, OFG transferred $12.9 million to the legal surplus account. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders. Treasury Stock In January 2022, OFG announced the approval by the Board of Directors of a stock repurchase program for the purchase of up to $100 million of its outstanding shares of common stock. The shares of common stock repurchased are held by OFG as treasury shares. During the nine-month period ended September 30, 2023, OFG repurchased 743,699 shares for a total of $18.7 million at an average price of $25.08 per share. During the nine-month period ended September 30, 2022, OFG repurchased 2,351,868 shares for a total of $64.1 million, at an average price of $27.26 per share. At September 30, 2023, the number of shares that may yet be purchased under the $100 million program is estimated at 577,260 and was calculated by dividing the remaining balance of $17.2 million by $29.86 (closing price of OFG’s common stock at September 30, 2023). OFG did not repurchase any shares of its common stock during the nine-month periods ended September 30, 2023 and 2022, other than through its publicly announced stock repurchase program. The activity in connection with common shares held in treasury by OFG for the nine-month periods ended September 30, 2023 and 2022 is set forth below: Nine-Month Period Ended September 30, 2023 2022 Shares Dollar Shares Dollar (In thousands, except shares data) Beginning of period 12,303,859 $ 211,135 10,248,882 $ 150,572 Common shares used upon lapse of restricted stock units and options (220,130) (1,414) (278,788) (3,544) Common shares repurchased as part of the stock repurchase programs 743,699 18,653 2,351,868 64,110 End of period 12,827,428 $ 228,374 12,321,962 $ 211,138 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss, net of income taxes, as of September 30, 2023 and December 31, 2022 consisted of: September 30, December 31, 2023 2022 (In thousands) Unrealized loss on securities available-for-sale $ (150,480) $ (110,036) Income tax effect of unrealized loss on securities available-for-sale 22,803 16,373 Net unrealized loss on securities available-for-sale (127,677) (93,663) Unrealized gain on cash flow hedges — 406 Income tax effect of unrealized gain on cash flow hedges — (152) Net unrealized gain on cash flow hedges — 254 Accumulated other comprehensive loss, net of income taxes $ (127,677) $ (93,409) The following table presents changes in accumulated other comprehensive loss by component, net of taxes, for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (89,639) $ 75 $ (89,564) Other comprehensive loss before reclassifications (38,040) (2,449) (40,489) Amounts reclassified out of accumulated other comprehensive loss 2 2,374 2,376 Other comprehensive loss (38,038) (75) (38,113) Ending balance $ (127,677) $ — $ (127,677) Nine-Month Period Ended September 30, 2023 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (93,663) $ 254 $ (93,409) Other comprehensive loss before reclassifications (32,871) (5,647) (38,518) Amounts reclassified out of accumulated other comprehensive (loss) income (1,143) 5,393 4,250 Other comprehensive loss (34,014) (254) (34,268) Ending balance $ (127,677) $ — $ (127,677) Quarter Ended September 30, 2022 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (49,606) $ 104 $ (49,502) Other comprehensive loss before reclassifications (54,541) (26) (54,567) Amounts reclassified out of accumulated other comprehensive income 2 178 180 Other comprehensive (loss) income (54,539) 152 (54,387) Ending balance $ (104,145) $ 256 $ (103,889) Nine-Month Period Ended September 30, 2022 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ 5,663 $ (503) $ 5,160 Other comprehensive (loss) income before reclassifications (109,814) 204 (109,610) Amounts reclassified out of accumulated other comprehensive income 6 555 561 Other comprehensive (loss) income (109,808) 759 (109,049) Ending balance $ (104,145) $ 256 $ (103,889) The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and nine-month periods ended September 30, 2023 and 2022: Amount reclassified out of accumulated other comprehensive loss Quarter Ended September 30, Affected Line Item in 2023 2022 (In thousands) Cash flow hedges: Interest-rate contracts $ 2,374 $ 178 Net interest expense Available-for-sale securities: Tax effect from changes in tax rates 2 2 Income tax expense $ 2,376 $ 180 Affected Line Item in Amount reclassified out of accumulated other comprehensive loss nine-month period ended September 30, 2023 2022 (In thousands) Cash flow hedges: Interest-rate contracts $ 5,393 $ 555 Net interest expense Available-for-sale securities: Loss on sale of investments (1,149) — Net loss on sale of securities Tax effect from changes in tax rates 6 6 Income tax expense $ 4,250 $ 561 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The calculation of earnings per common share for the quarters and nine-month periods ended September 30, 2023 and 2022 is as follows: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands, except per share data) Income available to common shareholders $ 44,873 $ 41,919 $ 135,275 $ 119,872 Average common shares outstanding 47,114 47,558 47,325 48,188 Effect of dilutive securities: Average potential common shares-options 278 368 280 406 Total weighted average common shares outstanding and equivalents 47,392 47,926 47,605 48,594 Earnings per common share - basic $ 0.95 $ 0.88 $ 2.86 $ 2.49 Earnings per common share - diluted $ 0.95 $ 0.87 $ 2.84 $ 2.47 For the quarters ended September 30, 2023 and 2022, weighted-average restricted stock units with an anti-dilutive effect on earnings per share not included in the calculation amounted to 245 and zero, respectively. For the nine-month periods ended September 30, 2023 and 2022, weighted-average restricted stock units with an anti-dilutive effect on earnings per share not included in the calculation amounted to 1,791 and 1,070, respectively. During the first quarter of 2023, OFG increased its quarterly common stock cash dividend to $0.22 per share from $0.20 per share in the quarter ended December 31, 2022. |
GUARANTEES
GUARANTEES | 9 Months Ended |
Sep. 30, 2023 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES At September 30, 2023 and December 31, 2022, the notional amount of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $28.1 million and $24.7 million, respectively. OFG has a liability for residential mortgage loans sold subject to credit recourse pursuant to FHLMC's, GNMA's, and FNMA's residential mortgage loan sales and securitization programs. On May 1, 2023, OFG and a third-party servicer terminated a subservicing agreement by mutual agreement. Pursuant to such termination, the third-party servicer assumed the direct servicing of the mortgage loans sold subject to credit recourse, thereby relieving OFG of its recourse obligations under such programs. At September 30, 2023 and December 31, 2022, the unpaid principal balance of residential mortgage loans sold subject to credit recourse under FHLMC's and FNMA's residential mortgage loan sales programs was $101.3 million and $110.9 million, respectively. The estimated losses to be absorbed under the credit recourse arrangements were recorded as a liability when the credit recourse was assumed and are updated on a quarterly basis. At September 30, 2023, OFG's liability for estimated credit losses related to loans sold with credit recourse amounted to $175 thousand (December 31, 2022– $147 thousand). The following table shows the changes in OFG’s liability for estimated losses from these credit recourse agreements, included in the consolidated statements of financial condition during the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ 150 $ 174 $ 147 $ 294 Net recoveries (charge-offs/terminations) 25 (6) 28 (126) Balance at end of period $ 175 $ 168 $ 175 $ 168 The expected loss, which represents the amount expected to be lost on a given loan, considers the probability of default and loss severity. The probability of default represents the probability that a loan in good standing would become 120 days delinquent, in which case OFG is obligated to repurchase the loan. If a borrower defaults, pursuant to the credit recourse provided, OFG is required to repurchase the loan or reimburse the third-party investor for the incurred loss. The maximum potential amount of future payments that OFG would be required to make under the recourse arrangements is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarters ended September 30, 2023 and 2022, OFG repurchased $251 thousand and $119 thousand, respectively, in mortgage loans. During the nine-month periods ended September 30, 2023 and 2022, OFG repurchased $861 thousand and $1.5 million, respectively, in such mortgage loans. If a borrower defaults, OFG has rights to the underlying collateral securing the mortgage loan. OFG suffers losses on these mortgage loans when the proceeds from a foreclosure sale of the collateral property are less than the outstanding principal balance of the loan, any uncollected interest advanced, and the costs of holding and disposing the related property. When OFG sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. OFG’s mortgage operations division groups conforming mortgage loans into pools which are exchanged for FNMA and GNMA mortgage-backed securities, which are generally sold to private investors, or are sold directly to FNMA or other private investors for cash. As required under such mortgage-backed securities programs, quality review procedures are performed by OFG to ensure that asset guideline qualifications are met. To the extent the loans do not meet specified characteristics, OFG may be required to repurchase such loans or indemnify for losses and bear any subsequent loss related to the loans. During the quarter ended September 30, 2023, OFG repurchased $2.5 million (September 30, 2022 – $5.0 million) of unpaid principal balance in mortgage loans, excluding mortgage loans subject to the credit recourse provision. During the nine-month period ended September 30, 2023, OFG repurchased $8.9 million (September 30, 2022 –$20.3 million) of unpaid principal balance in mortgage loans, excluding mortgage loans subject to such credit recourse provision. At September 30, 2023 and December 31, 2022, OFG had a $845 thousand and a $1.4 million liability, respectively, for the estimated credit losses related to these loans. During the quarters ended September 30, 2023 and 2022, OFG recognized $25 thousand and $6 thousand in gains, net of reserves, respectively, from the repurchase of residential mortgage loans sold subject to credit recourse, and $199 thousand in gains and $210 thousand in losses, respectively, from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties. During the nine-month periods ended September 30, 2023 and 2022, OFG recognized $147 thousand and $127 thousand, respectively, in gains from the repurchase of residential mortgage loans sold subject to credit recourse, and $103 thousand in gains and $261 thousand in losses, respectively, from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties. At September 30, 2023, OFG serviced $5.6 billion (December 31, 2022 - $5.8 billion) in mortgage loans for third parties. Servicing agreements relating to the mortgage-backed securities programs of FNMA and GNMA, and to mortgage loans sold or serviced to certain other investors, including FHLMC, require OFG to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. OFG generally recovers funds advanced pursuant to these arrangements from the mortgage owner, from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and VA insurance and guarantee programs. However, in the meantime, OFG must absorb the cost of the funds it advances during the time the advance is outstanding. OFG must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and OFG would not receive any future servicing income with respect to that loan. At September 30, 2023, the outstanding balance of funds advanced by OFG under such mortgage loan servicing agreements was approximately $4.4 million (December 31, 2022 - $7.8 million). To the extent the mortgage loans underlying OFG’s servicing portfolio experience increased delinquencies, OFG would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments In the normal course of business, OFG becomes a party to credit-related financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby and commercial letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated statements of financial condition. The contract or notional amount of those instruments reflects the extent of OFG’s involvement in particular types of financial instruments. OFG’s exposure to credit losses in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit, including commitments under credit card arrangements, and commercial letters of credit is represented by the contractual notional amounts of those instruments, which do not necessarily represent the amounts potentially subject to risk. In addition, the measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are identified. OFG uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Credit-related financial instruments at September 30, 2023 and December 31, 2022 were as follows: September 30, December 31, 2023 2022 (In thousands) Commitments to extend credit $ 1,291,292 $ 1,403,118 Commercial letters of credit 396 1,082 Commitments to extend credit represent agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. OFG evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by OFG upon the extension of credit, is based on management’s credit evaluation of the counterparty. At September 30, 2023 and December 31, 2022, commitments to extend credit consisted mainly of undisbursed available amounts on commercial lines of credit, construction loans, and revolving credit card arrangements. Since many of the unused commitments are expected to expire unused or be only partially used, the total amount of these unused commitments does not necessarily represent future cash requirements. Commercial letters of credit are issued or confirmed to guarantee payment of customers’ payables or receivables in short-term international trade transactions. Generally, drafts will be drawn when the underlying transaction is consummated as intended. However, the short-term nature of this instrument serves to mitigate the risk associated with these contracts. The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at September 30, 2023 and December 31, 2022, is as follows: September 30, December 31, 2023 2022 (In thousands) Standby letters of credit and financial guarantees $ 28,116 $ 24,749 Loans sold with recourse 101,343 110,891 Standby letters of credit and financial guarantees are written conditional commitments issued by OFG to guarantee the payment and/or performance of a customer to a third party (“beneficiary”). If the customer fails to comply with the agreement, the beneficiary may draw on the standby letter of credit or financial guarantee as a remedy. The amount of credit risk involved in issuing letters of credit in the event of non-performance is the face amount of the letter of credit or financial guarantee. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The amount of collateral obtained, if it is deemed necessary by OFG upon extension of credit, is based on management’s credit evaluation of the customer. At September 30, 2023 and December 31, 2022, the allowance for credit losses for off-balance sheet credit exposures corresponding to commitments to extend credit and standby letters of credit amounted to $1.2 million and $734 thousand, respectively, and is included in other liabilities in the statement of financial condition. At September 30, 2023 and December 31, 2022, OFG maintained other non-credit commitments amounting to $19.7 million and $21.5 million, respectively, primarily for the acquisition of equity securities. In addition, as we continue to transform OFG with a focus on simplification and building a culture of excellence and customer service, we continue to invest in technology. Some of our technology investments are table stakes and require to continuously upgrade our systems. Others require us to focus our technology on investments that drive our strategy, namely digital, data analytics, cloud migration, cyber security, and our sales and service capabilities. At September 30, 2023 and December 31, 2022, OFG had commitments for capital expenditures in technology amounting to $5.7 million and $8.6 million, respectively. Contingencies OFG and its subsidiaries are defendants in a number of legal proceedings incidental to their business. In the ordinary course of business, OFG and its subsidiaries are also subject to governmental and regulatory examinations. Certain subsidiaries of OFG, including the Bank (and its subsidiary, OIB), Oriental Financial Services and Oriental Insurance, are subject to regulation by various U.S., Puerto Rico and other regulators. OFG seeks to resolve all arbitration, litigation and regulatory matters in the manner management believes is in the best interests of OFG and its shareholders, and contests allegations of liability or wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. In accordance with applicable accounting guidance, OFG establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, OFG, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, OFG will establish an accrued liability and record a corresponding amount of expense. At September 30, 2023 and December 31, 2022, this accrued liability amounted to $1.2 million and $2.4 million, respectively. OFG continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Subject to the accounting and disclosure framework under the provisions of ASC 450, it is the opinion of OFG’s management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of all matters would not be likely to have a material adverse effect on the consolidated statements of financial condition of OFG. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on OFG’s consolidated results of operations or cash flows in particular quarterly or annual periods. OFG has evaluated all arbitration, litigation and regulatory matters where the likelihood of a potential loss is deemed reasonably possible. OFG has determined that the estimate of the reasonably possible loss is not significant. |
OPERATING LEASES
OPERATING LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Lessee Disclosure [Abstract] | |
OPERATING LEASES | OPERATING LEASES Substantially all leases in which OFG is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2038. OFG’s leases do not contain residual value guarantees or material variable lease payments. All leases are classified as operating leases and are included on the consolidated statements of financial condition as a right-of-use asset and a corresponding lease liability. OFG leases to others certain space in its principal offices for terms extending through 2024; all are operating leases. Operating Lease Cost Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 Statement of Operations (In thousands) Lease costs $ 5,130 $ 5,188 $ 7,738 $ 7,851 Occupancy and equipment Variable lease costs 674 873 1,021 1,157 Occupancy and equipment Short-term lease cost 335 448 483 730 Occupancy and equipment Lease income (62) (129) (79) (181) Occupancy and equipment Total lease cost $ 6,077 $ 6,380 $ 9,163 $ 9,557 Operating Lease Assets and Liabilities September 30, December 31, 2023 2022 Statement of Financial Condition Classification (In thousands) Right-of-use assets $ 20,011 $ 25,363 Operating lease right-of-use assets Lease Liabilities $ 22,269 $ 27,370 Operating leases liabilities September 30, December 31, 2023 2022 (In thousands) Weighted-average remaining lease term 4.8 years 5.1 years Weighted-average discount rate 7.0 % 6.8 % Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2023 were as follows: Minimum Rent As of September 30, 2023 (In thousands) 2024 $ 2,331 2025 7,512 2026 5,324 2027 3,227 2028 2,377 Thereafter 5,772 Total lease payments $ 26,543 Less imputed interest 4,274 Present value of lease liabilities $ 22,269 OFG, as lessor, leases and subleases real property to tenants under operating leases. As of September 30, 2023, no material lease concessions have been granted to tenants. As of September 30, 2023, OFG, as lessee, has not requested any lease concessions. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS OFG follows the fair value measurement framework under U.S. Generally Accepted Accounting Principles (“GAAP”). Fair Value Measurement The fair value measurement framework defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This framework also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Money market investments The fair value of money market investments is based on the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments. Investment securities The fair value of investment securities is based on valuations obtained from an independent pricing provider, ICE Data Pricing (formerly known as IDC) (“ICE”). ICE is a well-recognized pricing company and an established leader in financial information. Such securities are classified as Level 1 or Level 2, depending on the basis for determining fair value. At December 31, 2022, OFG held one security categorized as other debt that was classified as Level 3. The estimated fair value of this security was determined by using an adjusted third-party model to calculate the present value of projected future cash flows. The assumptions were highly uncertain and included primarily market discount rates and current spread. The assumptions used were drawn from similar securities that were actively traded in the market and have similar risk characteristics. The valuation was performed on a quarterly basis. At September 30, 2023 there were no securities classified as Level 3. Derivative instruments The fair value of the interest rate swaps was largely a function of the financial market’s expectations regarding the future direction of interest rates. Accordingly, current market values were not necessarily indicative of the future impact of derivative instruments on earnings. This depended, for the most part, on the shape of the yield curve, the level of interest rates, as well as the expectations for rates in the future. The fair value of most of these derivative instruments was based on observable market parameters, which included discounting the instruments’ cash flows using the U.S. dollar LIBOR-based discount rates (or its fallback benchmark when applicable), and also applying yield curves that accounted for the industry sector and the credit rating of the counterparty and/or OFG. Certain other derivative instruments with limited market activity were valued using externally developed models that considered unobservable market parameters. Based on their valuation methodology, derivative instruments were classified as Level 2. At September 30, 2023 there were no derivative instruments outstanding. Servicing assets Servicing assets do not trade in an active market with readily observable prices. Servicing assets are priced using a discounted cash flow model. The valuation model considers servicing fees, portfolio characteristics, prepayment assumptions, delinquency rates, late charges, other ancillary revenues, cost to service and other economic factors. Due to the unobservable nature of certain valuation inputs, the servicing rights are classified as Level 3. Foreclosed real estate Foreclosed real estate includes real estate properties securing residential mortgage and commercial loans. The fair value of foreclosed real estate may be determined using an external appraisal, broker price opinion or an internal valuation. These foreclosed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals. Other repossessed assets Other repossessed assets are mainly composed of repossessed automobiles. The fair value of the repossessed automobiles may be determined using internal valuation and an external appraisal. These repossessed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals. Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below: September 30, 2023 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 739 $ 1,512,414 $ — $ 1,513,153 Trading securities — 14 — 14 Money market investments 4,073 — — 4,073 Servicing assets — — 50,601 50,601 $ 4,812 $ 1,512,428 $ 50,601 $ 1,567,841 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 8,605 $ 8,605 Foreclosed real estate — — 9,555 9,555 Other repossessed assets — — 4,432 4,432 Mortgage loans held for sale — — 564 564 Other loans held for sale $ — $ — 25,282 25,282 $ — $ — $ 48,438 $ 48,438 December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 309,133 $ 1,103,237 $ 406 $ 1,412,776 Trading securities — 9 — 9 Money market investments 4,161 — — 4,161 Derivative assets — 406 — 406 Servicing assets — — 50,921 50,921 $ 313,294 $ 1,103,652 $ 51,327 $ 1,468,273 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 8,805 $ 8,805 Foreclosed real estate — — 11,214 11,214 Other repossessed assets — — 4,617 4,617 Mortgage loans held for sale — — 19,499 19,499 Other loans held for sale $ — $ — $ 21,088 21,088 $ — $ — $ 65,223 $ 65,223 The fair value information included in the tables above for non-recurring fair value measurements is not as of period-end, except for the mortgage loans held for sale. Instead, it is as of the date that the fair value measurement was recorded during the periods ended September 30, 2023 and December 31, 2022, and excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date. The tables below present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended September 30, 2023 and 2022: Level 3 Instruments Only Quarter Ended September 30, 2023 2022 Other debt securities available for sale Servicing Assets Total Other debt securities available for sale Servicing Assets Total (In thousands) Balance at beginning period $ 413 $ 49,966 $ 50,379 $ 1,581 $ 49,280 $ 50,861 New instruments acquired — 453 453 376 666 1,042 Principal repayments and amortization — (1,060) (1,060) — (1,191) (1,191) Instrument converted to equity security (413) — (413) (1,581) — (1,581) Gains included in earnings — 1,242 1,242 — 1,306 1,306 Gains included in other comprehensive income — — — 23 — 23 Balance at end of period $ — $ 50,601 $ 50,601 $ 399 $ 50,061 $ 50,460 Nine-Month Period Ended September 30, 2023 2023 2022 Other debt securities available for sale Servicing Assets Total Other debt securities available for sale Servicing Assets Total (In thousands) Balance at beginning period $ 406 $ 50,921 $ 51,327 $ 1,530 $ 48,973 $ 50,503 New instruments acquired — 1,818 1,818 376 2,935 3,311 Principal repayments and amortization — (3,210) (3,210) — (4,168) (4,168) Instrument converted to equity security (406) — (406) (1,581) — (1,581) Gains included in earnings — 1,072 1,072 — 2,321 2,321 Gains included in other comprehensive income — — — 74 — 74 Balance at end of period $ — $ 50,601 $ 50,601 $ 399 $ 50,061 $ 50,460 There were no transfers in and/or out of Level 3 for financial instruments measured at fair value on a recurring basis during the quarters and nine-month periods ended September 30, 2023 and 2022. Servicing assets gains included in earnings during the quarters and nine-month periods ended September 30, 2023 and 2022 were included as mortgage servicing activities in the consolidated statements of operations. For more information on the qualitative information about Level 3 fair value measurements, see Note 7 – Servicing Assets. During the quarters and nine-month periods ended September 30, 2023 and 2022, there were purchases and sales of assets and liabilities measured at fair value on a recurring basis. The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at September 30, 2023 and December 31, 2022: September 30, 2023 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Servicing assets $ 50,601 Cash flow valuation Constant prepayment rate 3.33% - 20.40% 5.70 % Discount rate 10.00% - 15.50% 11.45 % Collateral dependent loans $ 8,605 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 17.01 % Foreclosed real estate $ 9,555 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 11.62 % Other repossessed assets $ 4,432 Fair value of property Estimated net realizable value less disposition costs 29.00% - 77.00% 59.97 % Mortgage loans held for sale $ 564 Market prices Pricing and execution whole loan 94.66% - 97.92% 96.70 % Other loans held for sale $ 25,282 Bids or sales contract prices Estimated market value 52.00% - 103.20% 84.80 % December 31, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Other debt securities available-for-sale $ 406 Cash flow valuation Credit Rating Baa1 - Baa3 Baa2 Probability of Default Rate 0.15% - 2.12% 0.15 % Recovery Rate 34.73% 34.73 % Servicing assets $ 50,921 Cash flow valuation Constant prepayment rate 3.43% - 21.20% 5.66 % Discount rate 10.00% - 15.50% 11.45 % Collateral dependent loans $ 8,805 Fair value of property Appraised value less disposition costs 10.20% - 51.20% 17.11 % Foreclosed real estate $ 11,214 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 11.81 % Other repossessed assets $ 4,617 Fair value of property Estimated net realizable value less disposition costs 22.00% - 80.00% 58.49 % Mortgage loans held for sale $ 19,499 Fair value of property Estimated net realizable value 83.25% - 102.43% 71.86% Other loans held for sale $ 21,088 Bids or sales contract prices Estimated market value 100.00% - 103.20% 74.65% Information about Sensitivity to Changes in Significant Unobservable Inputs Servicing assets – The significant unobservable inputs used in the fair value measurement of OFG’s servicing assets are constant prepayment rates and discount rates. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows. Fair Value of Financial Instruments The information about the estimated fair value of financial instruments required by GAAP is presented hereunder. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of OFG. The estimated fair value is subjective in nature, involves uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could affect these fair value estimates. The fair value estimates do not take into consideration the value of future business and the value of assets and liabilities that are not financial instruments. Other significant tangible and intangible assets that are not considered financial instruments include the value of long-term customer relationships of retail deposits, and premises and equipment. The estimated fair value and carrying value of OFG’s financial instruments at September 30, 2023 and December 31, 2022 was as follows: September 30, December 31, 2023 2022 Fair Carrying Fair Carrying (In thousands) Financial Assets: Level 1 Cash and cash equivalents $ 532,699 $ 532,699 $ 550,307 $ 550,307 Restricted cash $ — $ — $ 157 $ 157 Investment securities available-for-sale $ 739 $ 739 $ 309,133 $ 309,133 Level 2 Financial Assets: Trading securities $ 14 $ 14 $ 9 $ 9 Investment securities available-for-sale $ 1,512,414 $ 1,512,414 $ 1,103,237 $ 1,103,237 Investment securities held-to-maturity $ 441,759 $ 519,145 $ 469,186 $ 535,070 Federal Home Loan Bank (FHLB) stock $ 18,988 $ 18,988 $ 6,005 $ 6,005 Equity securities $ 23,174 $ 23,174 $ 17,662 $ 17,662 Derivative assets $ — $ — $ 406 $ 406 Level 3 Financial Assets: Investment securities available for sale $ — $ — $ 406 $ 406 Total loans, net of allowance for credit losses $ 6,916,132 $ 7,130,052 $ 6,467,878 $ 6,723,236 Accrued interest receivable $ 67,868 $ 67,868 $ 62,402 $ 62,402 Servicing assets $ 50,601 $ 50,601 $ 50,921 $ 50,921 Accounts receivable and other assets $ 48,096 $ 48,096 $ 61,014 $ 61,014 Financial Liabilities: Deposits $ 8,545,617 $ 8,541,553 $ 8,556,300 $ 8,568,364 Securities sold under agreements to repurchase $ 150,658 $ 150,701 $ — $ — Advances from FHLB $ 297,532 $ 300,774 $ 26,716 $ 26,716 Other borrowings $ — $ — $ 318 $ 318 Accrued expenses and other liabilities $ 115,394 $ 115,394 $ 124,999 $ 124,999 The following methods and assumptions were used to estimate the fair values of significant financial instruments at September 30, 2023 and December 31, 2022: • Cash and cash equivalents (including money market investments and time deposits with other banks), restricted cash, accrued interest receivable, accounts receivable and other assets, accrued expenses and other liabilities, and other borrowings have been valued at the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments. • Investments in FHLB stock are valued at their redemption value. • The fair value of investment securities, including trading securities, is based on quoted market prices, when available or prices provided from contracted pricing providers, or market prices provided by recognized broker-dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument. Equity securities do not have readily available fair values and are measured at cost, less any impairment. The estimated fair value of the convertible note in other debt securities available for sale outstanding at December 31, 2022 was determined by using an adjusted third-party cash flow valuation model to calculate the present value of projected future cash flows. The assumptions used, which were highly uncertain and required a high degree of judgment, included primarily market discount rates, current spreads, duration, leverage, default, and loss rates. The assumptions used were drawn from a wide array of data sources, including the performance of the collateral underlying each deal. The valuation, which was obtained at least on a quarterly basis, was analyzed and its assumptions were evaluated and incorporated in either an internal-based valuation model, when deemed necessary, or compared to counterparties’ prices and agreed by management. • The fair value of servicing asset is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions. • The fair values of the derivative instruments outstanding at December 31, 2022, which included interest rate swaps and forward-settlement swaps, were based on the net discounted value of the contractual projected cash flows of both the pay-fixed receive-variable legs of the contracts. The projected cash flows were based on the forward yield curve and discounted using current estimated market rates. • The fair value of the loan portfolio (including non-performing loans) is based on the exit market price, which is estimated by segregating by type, such as mortgage, commercial, consumer, and auto loans. Each loan segment is further segmented into fixed and adjustable interest rates. The fair value is calculated by discounting contractual cash flows, adjusted for prepayment estimates (voluntary and involuntary), if any, using estimated current market discount rates that reflect the credit and interest rate risk inherent in the loan. The fair value of other loans held for sale is based on bids or sales prices agreed with third parties. • The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is based on the discounted value of the contractual cash flows, using estimated current market discount rates for deposits of similar remaining maturities. • The fair value of long-term borrowings, which include securities sold under agreements to repurchase and advances from FHLB is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates. |
BANKING AND FINANCIAL SERVICE R
BANKING AND FINANCIAL SERVICE REVENUES | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Interest [Abstract] | |
BANKING AND FINANCIAL SERVICE REVENUES | BANKING AND FINANCIAL SERVICE REVENUES The following table presents the major categories of banking and financial service revenues for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) (In thousands) Banking service revenues: Electronic banking fees $ 13,447 $ 13,335 $ 40,416 $ 40,509 Checking accounts fees 2,233 2,332 6,638 6,702 Savings accounts fees 333 332 993 937 Credit life commissions 90 70 314 665 Branch service commissions 352 319 1,098 979 Servicing and other loan fees 668 621 2,251 2,427 International fees 174 217 536 702 Miscellaneous income 6 8 10 16 Total banking service revenues 17,303 17,234 52,256 52,937 Wealth management revenue: Insurance income 3,607 3,906 11,146 10,758 Broker fees 1,945 1,601 5,525 5,204 Trust fees 2,139 2,489 6,298 7,796 Retirement plan and administration fees — 177 36 542 Total wealth management revenue 7,691 8,173 23,005 24,300 Mortgage banking activities: Net servicing fees 4,764 5,206 12,256 13,408 Net gains on sale of mortgage loans and valuation 450 (116) 2,009 2,192 Net gain (loss) on repurchased loans and other 196 (199) 268 (124) Total mortgage banking activities 5,410 4,891 14,533 15,476 Total banking and financial service revenues $ 30,404 $ 30,298 $ 89,794 $ 92,713 OFG recognizes the revenue from banking services, wealth management and mortgage banking based on the nature and timing of revenue streams from contracts with customers: Banking Service Revenues Electronic banking fees are credit and debit card processing services, use of the Bank’s ATMs by non-customers, debit card interchange income and service charges on deposit accounts. Revenue is recorded once the contracted service has been provided. Service charges on checking and saving accounts is recognized as consumer periodic maintenance revenue once the service is rendered, while overdraft and late charges revenues are recorded after the contracted service has been provided. Other income as credit life and branch service commissions, servicing and other loan fees, international fees, and miscellaneous income recognized as banking services revenue are out of the scope of ASC 606 – Revenue from Contracts with Customers. Wealth Management Revenue Insurance income from commissions and sale of annuities are recorded once the sale has been completed. Brokers fees consist of two categories: • Sales commissions generated by advisers for their clients’ purchases and sales of securities and other investment products, which are collected once the stand-alone transactions are completed at trade date or as earned, and managed account fees which are fees charged to advisers’ clients’ accounts on OFG’s corporate advisory platform. These revenues do not cover future services, as a result there is no need to allocate the amount received to any other service. • Fees for providing distribution services related to mutual funds, net of compensation paid to a service provider who provides such services, as well as trailer fees (also known as 12b-1 fees). These fees are considered variable and are recognized over time, as the uncertainty of the fees to be received is resolved as the net asset value of the mutual fund is determined and investor activity occurs. Fees do not cover future services, as a result there is no need to allocate the amount received to any other service. Trust fees are revenues related to fiduciary services provided to 401K retirement plans, an IRA trust, and retirement plans, which include investment management, payment of distributions, if any, safekeeping, custodial services of plan assets, servicing of Trust officers, on-going due diligence of the Trust, recordkeeping of transactions, and investment advisory services provided to a registered investment company. Fees are billed based on services contracted. Negotiated fees are detailed in the contract. Fees collected in advance are amortized over the term of the contract. Fees are collected on a monthly basis once the administrative service has been completed. The monthly fee does not include future services. Retirement plan and administration fees are revenues related to the payment received from the clients of OPC for assistance with the planning, design and administration of retirement plans, acting as third-party administrator for such plans, and daily record keeping services of retirement plans. Fees are collected once the stand-alone transaction was completed at trade date. Fees do not cover future services, as a result there is no need to allocate the amount received to any other service. Effective December 31, 2022, OFG sold its retirement plan administration business which was operated under OPC, which thereafter ceased its operations. Mortgage Banking Activities Mortgage banking activities such as servicing fees, gain on sale of mortgage loans and valuation, and loss on repurchased loans and other are out of the scope of ASC 606. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS OFG segregates its businesses into the following segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as OFG’s organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. OFG measures the performance of these segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. OFG’s methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodical basis and may change if the conditions warrant. Banking includes the Bank’s branches and traditional banking products such as deposits and commercial, consumer, auto loans, and mortgage loans. Mortgage banking activities are carried out by the Bank’s mortgage banking division, whose principal activity is to originate mortgage loans for OFG’s own portfolio. As part of its mortgage banking activities, OFG may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities. Wealth Management is comprised of the Bank’s trust division, Oriental Financial Services, Oriental Insurance, OFG Reinsurance and OPC. The core operations of this segment are financial planning, money management and investment banking, securities brokerage services, investment advisory services, insurance, corporate and individual trust and retirement services, as well as retirement plan administration services up to December 31, 2022, when OPC sold its retirement plan administration business. The Treasury segment encompasses all of OFG’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices. Following are the results of operations and the selected financial information by operating segment for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 Banking Wealth Treasury Total Major Eliminations Consolidated (In thousands) Interest income $ 145,667 $ 8 $ 23,905 $ 169,580 $ (3,872) $ 165,708 Interest expense (20,662) — (7,131) (27,793) 3,872 (23,921) Net interest income 125,005 8 16,774 141,787 — 141,787 Provision for credit losses 16,371 — 59 16,430 — 16,430 Non-interest income 23,211 7,487 1 30,699 — 30,699 Non-interest expenses (85,536) (3,778) (844) (90,158) — (90,158) Intersegment revenue 487 — — 487 (487) — Intersegment expenses — (337) (150) (487) 487 — Income before income taxes 46,796 3,380 15,722 65,898 — 65,898 Income tax expense (benefit) 20,994 (4) 35 21,025 — 21,025 Net income $ 25,802 $ 3,384 $ 15,687 $ 44,873 $ — $ 44,873 Total assets $ 8,742,283 $ 34,380 $ 2,523,536 $ 11,300,199 $ (1,043,061) $ 10,257,138 Nine-Month Period Ended September 30, 2023 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 418,091 $ 19 $ 67,872 $ 485,982 $ (13,301) $ 472,681 Interest expense (48,867) — (19,787) (68,654) 13,301 (55,353) Net interest income 369,224 19 48,085 417,328 — 417,328 Provision for credit losses 40,828 — 91 40,919 — 40,919 Non-interest income 68,190 22,631 (1,148) 89,673 — 89,673 Non-interest expenses (254,777) (11,871) (2,618) (269,266) — (269,266) Intersegment revenue 1,610 — — 1,610 (1,610) — Intersegment expenses — (1,096) (514) (1,610) 1,610 — Income before income taxes $ 143,419 $ 9,683 $ 43,714 $ 196,816 $ — $ 196,816 Income tax expense 61,463 16 62 61,541 — 61,541 Net income $ 81,956 $ 9,667 $ 43,652 $ 135,275 $ — $ 135,275 Total assets $ 8,742,283 $ 34,380 $ 2,523,536 $ 11,300,199 $ (1,043,061) $ 10,257,138 Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, an international banking entity organized pursuant to the Puerto Rico International Banking Center Regulatory Act, as amended, which operates as a unit within the Bank. The time deposit with a balance of $308.9 million and $467.0 million at September 30, 2023 and 2022, respectively, is included in the Treasury Segment with its corresponding interest expense, to fund Oriental Overseas operations, which is included in the Banking Segment with its corresponding interest income, and are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year period was mainly as a result of Federal Open Market Committee of the Board of Governors of the Federal Reserve System (“FRB”) federal funds rate increases and higher average balance. Quarter Ended September 30, 2022 Banking Wealth Treasury Total Major Eliminations Consolidated (In thousands) Interest income $ 117,939 $ 6 $ 18,829 $ 136,774 $ (2,099) $ 134,675 Interest expense (7,891) — (2,373) (10,264) 2,099 (8,165) Net interest income 110,048 6 16,456 126,510 — 126,510 Provision for credit losses 7,059 — 61 7,120 — 7,120 Non-interest income 22,310 8,310 — 30,620 — 30,620 Non-interest expenses (82,026) (4,635) (831) (87,492) — (87,492) Intersegment revenue 588 — — 588 (588) — Intersegment expenses — (412) (176) (588) 588 — Income before income taxes 43,861 3,269 15,388 62,518 — 62,518 Income tax expense 20,589 1 9 20,599 — 20,599 Net income $ 23,272 $ 3,268 $ 15,379 $ 41,919 $ — $ 41,919 Total assets $ 8,179,384 $ 27,839 $ 2,823,826 $ 11,031,049 $ (972,870) $ 10,058,179 Nine-Month Period Ended September 30, 2022 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 337,017 $ 16 $ 35,787 $ 372,820 $ (2,974) $ 369,846 Interest expense (21,796) — (4,226) (26,022) 2,974 (23,048) Net interest income 315,221 16 31,561 346,798 — 346,798 Provision for (recapture of) credit losses 15,403 — (41) 15,362 — 15,362 Non-interest income 73,662 24,724 50 98,436 — 98,436 Non-interest expenses (237,477) (14,015) (2,413) (253,905) — (253,905) Intersegment revenue 1,645 — — 1,645 (1,645) — Intersegment expenses — (1,131) (514) (1,645) 1,645 — Income before income taxes $ 137,648 $ 9,594 $ 28,725 $ 175,967 $ — $ 175,967 Income tax expense 56,067 1 27 56,095 — 56,095 Net income $ 81,581 $ 9,593 $ 28,698 $ 119,872 $ — $ 119,872 Total assets $ 8,179,384 $ 27,839 $ 2,823,826 $ 11,031,049 $ (972,870) $ 10,058,179 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 44,873 | $ 41,919 | $ 135,275 | $ 119,872 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations OFG is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. OFG operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer and investment adviser, Oriental Financial Services LLC (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”), a captive reinsurance company, OFG Reinsurance Ltd (“OFG Reinsurance”), and OFG Ventures LLC (“OFG Ventures”), which holds investments. Through these subsidiaries and their respective divisions, OFG provides a wide range of banking and financial services such as commercial, consumer and mortgage lending, auto leasing and lending, financial planning, insurance sales, money management, investment banking and securities brokerage services, as well as corporate and individual trust services. Effective December 31, 2022, OFG sold its retirement plan administration business, which was operated under a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”), which thereafter ceased its operations. The results for the nine-month period ended September 30, 2022 included OPC operations. Basis of Presentation The accompanying unaudited consolidated financial statements of OFG have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, these consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Oriental sells securities under agreements to repurchase the same or similar securities. Oriental retains effective control over the securities sold under these agreements. Accordingly, such agreements are treated as financing arrangements, and the obligations to repurchase the securities sold are reflected as liabilities. The securities underlying the financing agreements remain included in the asset accounts. The counterparty to repurchase agreements generally has the right to repledge the securities received as collateral. |
Recently Adopted Accounting Standards Updates and Accounting Standards Updated Not Yet Adopted | Recently Adopted Accounting Standards UpdatesFinancial Instruments—Credit Losses Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board issued ASU 2022-02 to address the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-402 and amend the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. OFG adopted the guidance related to the elimination of the recognition and measurement of TDRs and the enhancement of disclosures for loan restructurings for borrowers experiencing financial difficulty as of January 1, 2023, using the prospective transition method. As of our adoption date, all restructurings, including restructurings for borrowers experiencing financial difficulty, are evaluated to determine whether they result in a new loan or a continuation of an existing loan. Loan restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan as the terms of the restructured loans are typically not at market rates. When a loan is restructured under ASU 2022-02, we continue to measure impairment on the loan using a discounted cash flow approach that utilizes the loan’s restructured terms, including the post-restructuring interest rate, which does not result in any material changes to the allowance for credit losses. We also adopted the disclosure guidance related to the presentation of gross write-offs by year of origination in our vintage disclosures on January 1, 2023. At the adoption of this guidance on January 1, 2023, there was no material impact on our financial statements. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | The amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of the securities owned by OFG at September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 1 to 5 years $ 7,717 $ — $ 430 $ 7,287 1.76 % Due from 5 to 10 years 48,962 — 4,373 44,589 2.00 % Due after 10 years 1,204,722 — 94,878 1,109,844 3.91 % Total FNMA and FHLMC certificates 1,261,401 — 99,681 1,161,720 3.82 % GNMA Securities Due from 1 to 5 years $ 10,143 $ — $ 585 $ 9,558 1.71 % Due from 5 to 10 years 18,234 4 1,490 16,748 2.18 % Due after 10 years 361,250 375 48,547 313,078 3.23 % Total GNMA certificates 389,627 379 50,622 339,384 3.15 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 10,199 — 530 9,669 1.78 % Due from 5 to 10 years 147 — 2 145 2.14 % Due after 10 years 882 — 21 861 5.07 % Total CMOs issued by US government-sponsored agencies 11,228 — 553 10,675 2.04 % Total mortgage-backed securities 1,662,256 379 150,856 1,511,779 3.65 % Investment securities US Treasury securities Due less than 1 year 739 — — 739 5.45 % Other debt securities Due from 1 to 5 years 638 — 3 635 3.19 % Total investment securities 1,377 — 3 1,374 4.40 % Total securities available for sale $ 1,663,633 $ 379 $ 150,859 $ 1,513,153 3.65 % September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 320,249 $ — $ 74,607 $ 245,642 1.72 % Investment securities US Treasury securities Due less than 1 year $ 198,896 $ — $ 2,779 $ 196,117 3.34 % Total securities held to maturity $ 519,145 $ — $ 77,386 $ 441,759 2.34 % December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 1 to 5 years $ 10,155 — $ 550 $ 9,605 1.76 % Due from 5 to 10 years 59,167 — 3,764 55,403 2.00 % Due after 10 years 768,381 59 65,332 703,108 2.87 % Total FNMA and FHLMC certificates 837,703 59 69,646 768,116 2.79 % GNMA Securities Due from 1 to 5 years 12,505 — 632 11,873 1.66 % Due from 5 to 10 years 24,575 14 1,585 23,004 2.13 % Due after 10 years 320,417 892 36,652 284,657 2.90 % Total GNMA certificates 357,497 906 38,869 319,534 2.80 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 14,190 — 755 13,435 1.78 % Due from 5 to 10 years 485 — 10 475 2.14 % Due after 10 years 959 — 18 941 5.06 % Total CMOs issued by US government-sponsored agencies 15,634 — 783 14,851 1.99 % Total mortgage-backed securities 1,210,834 965 109,298 1,102,501 2.79 % Investment securities US Treasury securities Due less than 1 year 310,862 — 1,729 309,133 3.34 % Other debt securities Due from 1 to 5 years 1,116 30 4 1,142 4.45 % Total investment securities 311,978 30 1,733 310,275 3.35 % Total securities available for sale $ 1,522,812 $ 995 $ 111,031 $ 1,412,776 2.90 % December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 337,435 $ — $ 62,358 $ 275,077 1.71 % Investment securities US Treasury securities Due from 1 to 5 years 197,635 — 3,526 194,109 3.36 % Total securities held to maturity $ 535,070 $ — $ 65,884 $ 469,186 2.30 % |
Schedule of Gross Realized Gains and Losses by Category | Nine-Month Period Ended September 30, 2023 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Investment securities US Treasury securities $ 202,133 $ 203,282 $ — $ 1,149 |
Schedule of Unrealized Gains and Losses by Category | The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2023 12 months or more Amortized Unrealized Fair (In thousands) Securities available-for-sale FNMA and FHLMC certificates $ 750,699 $ 91,423 $ 659,276 GNMA certificates 292,915 48,099 244,816 CMOs issued by US Government-sponsored agencies 11,228 553 10,675 Other debt securities 139 3 136 $ 1,054,981 $ 140,078 $ 914,903 Held-to-maturity FNMA and FHLMC certificates $ 320,249 $ 74,607 $ 245,642 US Treasury securities 198,896 2,779 196,117 $ 519,145 $ 77,386 $ 441,759 September 30, 2023 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale FNMA and FHLMC certificates $ 510,701 $ 8,257 $ 502,444 GNMA certificates 84,757 2,523 82,234 $ 595,458 $ 10,780 $ 584,678 September 30, 2023 Total Amortized Unrealized Fair (In thousands) Securities available-for-sale FNMA and FHLMC certificates $ 1,261,401 $ 99,681 $ 1,161,720 GNMA certificates 377,672 50,622 327,050 CMOs issued by US Government-sponsored agencies 11,228 553 10,675 Other debt securities 139 3 136 $ 1,650,440 $ 150,859 $ 1,499,581 Held-to-maturity FNMA and FHLMC certificates $ 320,249 $ 74,607 $ 245,642 US Treasury securities 198,896 2,779 196,117 $ 519,145 $ 77,386 $ 441,759 December 31, 2022 12 months or more Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 337 $ 7 $ 330 FNMA and FHLMC certificates 88,600 18,989 69,611 GNMA certificates 82,074 14,031 68,043 $ 171,011 $ 33,027 $ 137,984 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 December 31, 2022 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,297 $ 776 $ 14,521 FNMA and FHLMC certificates 745,566 50,657 694,909 GNMA certificates 251,835 24,838 226,997 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,323,800 $ 78,004 $ 1,245,796 Held-to-maturity US Treasury securities $ 197,635 $ 3,526 $ 194,109 December 31, 2022 Total Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,634 $ 783 $ 14,851 FNMA and FHLMC certificates 834,166 69,646 764,520 GNMA certificates 333,909 38,869 295,040 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,494,811 $ 111,031 $ 1,383,780 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 US Treasury securities 197,635 3,526 194,109 $ 535,070 $ 65,884 $ 469,186 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The composition of the amortized cost basis of OFG’s loan portfolio at September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 Non-PCD PCD Total Non-PCD PCD Total (In thousands) Commercial loans: Commercial secured by real estate $ 1,001,062 $ 125,635 $ 1,126,697 $ 974,202 $ 138,678 $ 1,112,880 Other commercial and industrial 984,473 14,222 998,695 854,442 20,474 874,916 US commercial loans 707,593 — 707,593 642,133 — 642,133 2,693,128 139,857 2,832,985 2,470,777 159,152 2,629,929 Mortgage 648,414 955,596 1,604,010 675,793 1,028,428 1,704,221 Consumer: Personal loans 561,185 284 561,469 480,620 338 480,958 Credit lines 11,169 288 11,457 12,826 300 13,126 Credit cards 40,030 — 40,030 42,872 — 42,872 Overdraft 239 — 239 301 — 301 612,623 572 613,195 536,619 638 537,257 Auto 2,208,993 2,552 2,211,545 1,958,257 5,658 1,963,915 6,163,158 1,098,577 7,261,735 5,641,446 1,193,876 6,835,322 Allowance for credit losses (148,210) (9,319) (157,529) (141,841) (10,832) (152,673) Total loans held for investment, net 6,014,948 1,089,258 7,104,206 5,499,605 1,183,044 6,682,649 Mortgage loans held for sale 564 — 564 19,499 — 19,499 Other loans held for sale 25,282 — 25,282 21,088 — 21,088 Total loans held for sale 25,846 — 25,846 40,587 — 40,587 Total loans, net $ 6,040,794 $ 1,089,258 $ 7,130,052 $ 5,540,192 $ 1,183,044 $ 6,723,236 |
Schedule of Aging of Recorded Investment in Gross Loans | September 30, 2023 30-59 Days 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial loans: Commercial secured by real estate $ 1,581 $ 759 $ 4,159 $ 6,499 $ 994,563 $ 1,001,062 $ — Other commercial and industrial 2,657 337 5,284 8,278 976,195 984,473 — US commercial loans 332 — — 332 707,261 707,593 — 4,570 1,096 9,443 15,109 2,678,019 2,693,128 — Mortgage 5,539 8,841 34,508 48,888 599,526 648,414 2,899 Consumer: Personal loans 5,891 3,171 2,626 11,688 549,497 561,185 — Credit lines 54 126 71 251 10,918 11,169 — Credit cards 608 265 565 1,438 38,592 40,030 — Overdraft 45 — — 45 194 239 — 6,598 3,562 3,262 13,422 599,201 612,623 — Auto 97,901 41,377 16,301 155,579 2,053,414 2,208,993 — Total loans $ 114,608 $ 54,876 $ 63,514 $ 232,998 $ 5,930,160 $ 6,163,158 $ 2,899 December 31, 2022 30-59 Day 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial loans: Commercial secured by real estate $ 923 $ 164 $ 6,147 $ 7,234 $ 966,968 $ 974,202 $ — Other commercial and industrial 943 720 3,225 4,888 849,554 854,442 — US commercial loans — — — — 642,133 642,133 — 1,866 884 9,372 12,122 2,458,655 2,470,777 — Mortgage 9,267 5,848 56,714 71,829 603,964 675,793 3,856 Consumer: Personal loans 4,263 2,669 2,314 9,246 471,374 480,620 — Credit lines 500 154 117 771 12,055 12,826 — Credit cards 730 486 682 1,898 40,974 42,872 — Overdraft 91 2 — 93 208 301 — 5,584 3,311 3,113 12,008 524,611 536,619 — Auto 75,237 36,954 19,613 131,804 1,826,453 1,958,257 — Total loans $ 91,954 $ 46,997 $ 88,812 $ 227,763 $ 5,413,683 $ 5,641,446 $ 3,856 |
Schedule of Investment in Loans on Non-Accrual Status | The following table presents the amortized cost basis of loans held for investment on nonaccrual status as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total Non-accrual with Allowance for Credit Loss Non-accrual with no Allowance for Credit Loss Total (In thousands) (In thousands) Non-PCD: Commercial loans: Commercial secured by real estate $ 3,150 $ 7,971 $ 11,121 $ 4,091 $ 17,098 $ 21,189 Other commercial and industrial 4,790 859 5,649 2,769 885 3,654 US commercial loans 19,879 — 19,879 9,589 — 9,589 27,819 8,830 36,649 16,449 17,983 34,432 Mortgage 12,013 5,379 17,392 11,719 11,522 23,241 Consumer: Personal loans 2,718 4 2,722 1,950 379 2,329 Personal lines of credit 71 — 71 116 — 116 Credit cards 566 — 566 683 — 683 3,355 4 3,359 2,749 379 3,128 Auto 16,296 5 16,301 19,612 1 19,613 Total $ 59,483 $ 14,218 $ 73,701 $ 50,529 $ 29,885 $ 80,414 PCD: Commercial loans: Commercial secured by real estate $ 3,089 $ 2,533 $ 5,622 $ 2,807 $ 6,084 $ 8,891 Other commercial and industrial — 1,066 1,066 — 36 36 3,089 3,599 6,688 2,807 6,120 8,927 Mortgage 253 — 253 259 — 259 Consumer: Personal loans 7 — 7 — — — 7 — 7 — — — Total $ 3,349 $ 3,599 $ 6,948 $ 3,066 $ 6,120 $ 9,186 Total non-accrual loans $ 62,832 $ 17,817 $ 80,649 $ 53,595 $ 36,005 $ 89,600 |
Schedule of Troubled Debt Restructurings | The following tables present the amortized cost basis as of September 30, 2023 of loans held for investment that were modified during the quarter and nine-month period ended September 30, 2023, disaggregated by class of financing receivable and type of concession granted. Interest Rate Reduction Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Commercial loans: US commercial loans 6,824 0.96 % 6,824 0.96 % Consumer: Personal loans 40 0.01 % 40 0.01 % Auto 30 — % 30 — % Total $ 6,894 $ 6,894 Term Extension Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Commercial loans: Commercial secured by real estate $ 629 0.06 % $ 6,328 0.56 % Other commercial and industrial 36 0.00 % 80 0.01 % 665 0.02 % 6,408 0.23 % Mortgage 771 0.05 % 5,040 0.31 % Total $ 1,436 $ 11,448 Principal Forbearance/Forgiveness Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Mortgage $ — — % $ 98 0.01 % Combination - Term Extension and Interest Rate Reduction Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis (In thousands) % of Total Class of Financing Receivable Amortized Cost Basis (In thousands) % of Total Class of Financing Receivable Mortgage 117 0.01 % $ 723 0.05 % Consumer: Personal loans — — % 82 0.01 % Total $ 117 $ 805 Combination - Term Extension and Principal Forgiveness/Forbearance Quarter Ended September 30, 2023 Nine-Month Period Ended September 30, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Commercial loans: US commercial loans $ — — % $ 4,286 0.61 % Mortgage — — % 447 0.03 % Total $ — $ 4,733 The following table presents the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarter and nine-month period ended September 30, 2023. The financial effect of the combined modifications is presented separately by type of modification. Quarter Ended September 30, 2023 Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (In months) Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) Commercial loans: Commercial loans secured by real estate — % 14 $ — US Commercial loans 1.95 % 0 — — % 14 $ — Mortgage 1.25 % 349 $ — Consumer: Personal loans 4.00 % 0 $ — Auto 3.00 % 0 $ — Nine-Month Period Ended September 30, 2023 Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (In months) Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) Commercial loans: Commercial loans secured by real estate — % 23 $ — US Commercial loans 1.95 % 31 2,973 — % 54 $ 2,973 Mortgage 1.94 % 227 $ 24 Consumer: Personal loans 2.98 % 81 $ — Auto 3.00 % 0 $ — The following table presents the troubled-debt restructurings in all loan portfolios as of December 31, 2022: December 31, 2022 Accruing Non-accruing Total Related Allowance (In thousands) Commercial loans: Commercial secured by real estate $ 31,437 $ 13,187 $ 44,624 $ 181 Other commercial and industrial 2,272 354 2,626 42 US commercial loans 7,132 — 7,132 89 40,841 13,541 54,382 312 Mortgage 102,387 6,773 109,160 2,495 Consumer: Personal loans 1,850 15 1,865 73 Auto 77 — 77 3 Total loans $ 145,155 $ 20,329 $ 165,484 $ 2,883 The following tables present the troubled-debt restructurings by loan portfolios and modification type as of December 31, 2022 : December 31, 2022 Reduction in interest rate Maturity or term extension Combination of reduction in interest rate and extension of maturity Forbearance Total (In thousands) Commercial loans: Commercial secured by real estate $ 7,746 $ 29,454 $ 7,424 $ — $ 44,624 Other commercial and industrial 785 1,367 474 — 2,626 US commercial loans 7,132 — — — 7,132 15,663 30,821 7,898 — 54,382 Mortgage 31,709 8,020 35,194 34,237 109,160 Consumer: Personal loans 825 176 793 71 1,865 Auto 39 — 20 18 77 Total loans $ 48,236 $ 39,017 $ 43,905 $ 34,326 $ 165,484 Loan modifications that were considered TDR loans completed during the quarter and nine-month period ended September 30, 2022: Quarter Ended September 30, 2022 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 10 1,344 4.45 % 214 1,447 3.67 % 292 Commercial 1 170 5.75 % 66 169 5.75 % 114 Consumer 1 40 10.70 % 72 40 10.95 % 60 Nine-Months Ended September 30, 2022 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 82 $ 10,377 4.60 % 266 $ 10,918 3.64 % 341 Commercial 5 38,873 3.57 % 131 38,729 3.64 % 184 Consumer 3 62 13.72 % 75 62 10.95 % 67 The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month period ended September 30, 2022: Twelve-month period ended September 30, 2022 Number of Contracts Recorded Investment (Dollars in thousands) Mortgage 9 $ 1,087 |
Financing Receivable, Modified, Past Due | The following table presents an aging of the loans held for investment that have been modified during the nine-month period ended September 30, 2023. September 30, 2023 30-59 Day 60-89 Days 90+ Days Total Past Current Total (In thousands) Commercial loans: Commercial loans secured by real estate $ — $ — $ — $ — $ 6,328 $ 6,328 Other commercial and industrial — — — — 80 80 US commercial loans — — — — 11,110 11,110 — — — — 17,518 17,518 Mortgage 566 133 415 1,114 5,194 6,308 Consumer: Personal loans — — — — 122 122 — — — — 122 122 Auto — — — — 30 30 Total $ 566 $ 133 $ 415 $ 1,114 $ 22,864 $ 23,978 |
Schedule of the Amortized Cost of Collateral-Dependent Loans Held for Investment | The table below presents the amortized cost of commercial collateral-dependent loans held for investment at September 30, 2023 and December 31, 2022 , by class of loans. September 30, December 31, 2023 2022 (In thousands) Commercial loans secured by real estate $ 8,605 $ 8,805 |
Schedule of Credit Quality Indicators of Loans | As of September 30, 2023, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows. Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 106,717 $ 220,049 $ 171,767 $ 122,158 $ 82,940 $ 156,508 $ 70,693 $ 930,832 Special Mention — 1,806 6,642 17,542 15,754 10,785 172 52,701 Substandard — 407 1,279 752 2,655 11,894 527 17,514 Doubtful — — — — — 15 — 15 Loss — — — — — — — — Total commercial secured by real estate 106,717 222,262 179,688 140,452 101,349 179,202 71,392 1,001,062 Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Commercial secured by real estate: Current nine month period gross charge-offs — — 265 — 94 821 — 1,180 Other commercial and industrial: Loan grade: Pass 194,795 105,699 126,074 38,982 8,260 15,818 483,884 973,512 Special Mention 21 1,805 13 5,706 36 126 14 7,721 Substandard 10 144 833 617 942 126 568 3,240 Doubtful — — — — — — — — Loss — — — — — — — — Total other commercial and industrial: 194,826 107,648 126,920 45,305 9,238 16,070 484,466 984,473 Other commercial and industrial: Current nine month period gross charge-offs — 41 878 11 9 1,180 — 2,119 US commercial loans: Loan grade: Pass 119,438 68,167 75,965 45,371 29,698 8,089 320,863 667,591 Special Mention — 7,841 6,566 — — — — 14,407 Substandard 11,111 — — — — 5,716 8,768 25,595 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 130,549 76,008 82,531 45,371 29,698 13,805 329,631 707,593 US commercial loans: Current nine month period gross charge-offs 33 1,156 — — — 8,637 — 9,826 Total commercial loans $ 432,092 $ 405,918 $ 389,139 $ 231,128 $ 140,285 $ 209,077 $ 885,489 $ 2,693,128 Total current nine month period gross charge-offs $ 33 $ 1,197 $ 1,143 $ 11 $ 103 $ 10,638 $ — $ 13,125 As of December 31, 2022, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows. Term Loans Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 220,035 $ 177,775 $ 110,809 $ 118,518 $ 50,454 $ 159,721 $ 69,523 $ 906,835 Special Mention 1,899 — 6,007 17,004 2,095 13,934 439 41,378 Substandard 103 8,410 345 405 473 14,722 1,185 25,643 Doubtful — — — — — 15 331 346 Loss — — — — — — — — Total commercial secured by real estate 222,037 186,185 117,161 135,927 53,022 188,392 71,478 974,202 Other commercial and industrial: Loan grade: Pass 123,659 198,776 67,147 35,678 13,807 7,863 397,944 844,874 Special Mention 3 60 31 654 1,819 21 3,823 6,411 Substandard 112 — 260 472 280 74 1,920 3,118 Doubtful — — — — — — 39 39 Loss — — — — — — — — Total other commercial and industrial: 123,774 198,836 67,438 36,804 15,906 7,958 403,726 854,442 US commercial loans: Loan grade: Pass 81,155 92,688 43,965 33,827 49,356 — 308,183 609,174 Special Mention 6,346 — — — — — 1,122 7,468 Substandard 3,363 — 8,090 — 4,449 — 9,589 25,491 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 90,864 92,688 52,055 33,827 53,805 — 318,894 642,133 Total commercial loans $ 436,675 $ 477,709 $ 236,654 $ 206,558 $ 122,733 $ 196,350 $ 794,098 $ 2,470,777 Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Mortgage: Payment performance: Performing $ 27,314 $ 19,752 $ 23,745 $ 16,065 $ 14,722 $ 521,462 $ — $ 623,060 Nonperforming — 114 182 109 482 24,467 — 25,354 Total mortgage loans: 27,314 19,866 23,927 16,174 15,204 545,929 — 648,414 Mortgage: Current nine month period gross charge-offs — — — — — 610 — 610 Consumer: Personal loans: Payment performance: Performing 224,566 208,788 77,158 21,839 18,006 8,106 — 558,463 Nonperforming 423 1,477 505 153 98 66 — 2,722 Total personal loans 224,989 210,265 77,663 21,992 18,104 8,172 — 561,185 Personal loans: Current nine month period gross charge-offs 492 7,581 3,461 638 1,172 637 — 13,981 Credit lines: Payment performance: Performing — — — — — — 11,097 11,097 Nonperforming — — — — — — 72 72 Total credit lines — — — — — — 11,169 11,169 Credit lines: Current nine month period gross charge-offs — — — — — — 313 313 Credit cards: Payment performance: Performing — — — — — — 39,464 39,464 Nonperforming — — — — — — 566 566 Total credit cards — — — — — — 40,030 40,030 Credit cards: Current nine month period gross charge-offs — — — — — — 2,124 2,124 Overdrafts: Payment performance: Performing — — — — — — 239 239 Nonperforming — — — — — — — — Total overdrafts — — — — — — 239 239 Overdrafts: Current nine month period gross charge-offs — — — — — — 434 434 Term Loans Revolving Total 2023 2022 2021 2020 2019 Prior (In thousands) Total consumer loans 224,989 210,265 77,663 21,992 18,104 8,172 51,438 612,623 Total consumer current nine month period gross charge-offs 492 7,581 3,461 638 1,172 637 2,871 16,852 Total mortgage and consumer loans $ 252,303 $ 230,131 $ 101,590 $ 38,166 $ 33,308 $ 554,101 $ 51,438 $ 1,261,037 Total mortgage and consumer current nine month period gross charge-offs $ 492 $ 7,581 $ 3,461 $ 638 $ 1,172 $ 1,247 $ 2,871 $ 17,462 The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2022 : Term Loans Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Mortgage: Payment performance: Performing $ 18,700 $ 25,274 $ 16,175 $ 15,457 $ 16,790 $ 549,885 $ — $ 642,281 Nonperforming — — 110 574 241 32,587 — 33,512 Total mortgage loans: 18,700 25,274 16,285 16,031 17,031 582,472 — 675,793 Consumer: Personal loans: Payment performance: Performing 284,183 112,591 31,876 31,850 12,022 5,768 — 478,290 Nonperforming 831 661 111 300 81 346 — 2,330 Total personal loans 285,014 113,252 31,987 32,150 12,103 6,114 — 480,620 Credit lines: Payment performance: Performing — — — — — — 12,710 12,710 Nonperforming — — — — — — 116 116 Total credit lines — — — — — — 12,826 12,826 Credit cards: Payment performance: Performing — — — — — — 42,189 42,189 Nonperforming — — — — — — 683 683 Total credit cards — — — — — — 42,872 42,872 Overdrafts: Payment performance: Performing — — — — — — 301 301 Nonperforming — — — — — — — — Total overdrafts — — — — — — 301 301 Total consumer loans 285,014 113,252 31,987 32,150 12,103 6,114 55,999 536,619 Total mortgage and consumer loans $ 303,714 $ 138,526 $ 48,272 $ 48,181 $ 29,134 $ 588,586 $ 55,999 $ 1,212,412 Term Loans Total 2023 2022 2021 2020 2019 Prior (In thousands) Auto: FICO score: 1-660 121,234 195,732 124,437 60,882 44,959 47,229 594,473 661-699 130,962 128,534 65,830 30,251 21,784 19,694 397,055 700+ 367,239 339,488 197,162 113,239 99,649 75,429 1,192,206 No FICO 4,564 6,792 4,882 2,502 4,441 2,078 25,259 Total auto loans $ 623,999 $ 670,546 $ 392,311 $ 206,874 $ 170,833 $ 144,430 $ 2,208,993 Auto: Current nine month period gross charge-offs $ 1,120 $ 12,271 $ 7,848 $ 2,945 $ 2,402 $ 2,520 $ 29,106 The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of December 31, 2022 : Term Loans Total 2022 2021 2020 2019 2018 Prior (In thousands) Auto: FICO score: 1-660 178,426 143,926 72,148 58,069 44,156 31,980 528,705 661-699 171,723 93,359 42,388 31,033 21,283 13,518 373,304 700+ 375,845 235,743 144,783 135,517 88,597 47,499 1,027,984 No FICO 7,766 6,553 3,741 5,873 3,008 1,323 28,264 Total auto loans $ 733,760 $ 479,581 $ 263,060 $ 230,492 $ 157,044 $ 94,320 $ 1,958,257 |
Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted | The following table presents the amortized cost basis as of September 30, 2023 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior nine-months. Nine-Month Period Ended September 30, 2023 Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted Interest Rate Reduction Term Extension Principal Forgiveness/Forbearance Combination - Term Extension and Interest Rate Reduction Total (In thousands) Mortgage $ — $ 415 $ — $ — $ 415 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Schedule of Gross Loan and Allowance for Credit Losses | The following tables present the activity in OFG’s allowance for credit losses by segment for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 48,604 $ 8,670 $ 25,666 $ 67,227 $ 150,167 Provision for (recapture of) credit losses 1,103 (273) 6,026 9,804 16,660 Charge-offs (8,254) (218) (5,894) (10,458) (24,824) Recoveries 174 185 655 5,193 6,207 Balance at end of period $ 41,627 $ 8,364 $ 26,453 $ 71,766 $ 148,210 PCD: Balance at beginning of period $ 1,408 $ 8,297 $ 8 $ 43 $ 9,756 Provision for (recapture of) credit losses 60 (226) 15 (67) (218) Charge-offs (690) (148) (39) (37) (914) Recoveries 494 80 23 98 695 Balance at end of period $ 1,272 $ 8,003 $ 7 $ 37 $ 9,319 Total allowance for credit losses at end of period $ 42,899 $ 16,367 $ 26,460 $ 71,803 $ 157,529 Nine-Month Period Ended September 30, 2023 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 39,158 $ 9,571 $ 23,264 $ 69,848 $ 141,841 Provision for (recapture of) credit losses 14,857 (1,332) 16,517 10,900 40,942 Charge-offs (13,125) (610) (16,852) (29,106) (59,693) Recoveries 737 735 3,524 20,124 25,120 Balance at end of period $ 41,627 $ 8,364 $ 26,453 $ 71,766 $ 148,210 PCD: Balance at beginning of period $ 1,388 $ 9,359 $ 14 $ 71 $ 10,832 Provision for (recapture of) credit losses 1,376 (1,719) 293 (475) (525) Charge-offs (2,794) (224) (376) (158) (3,552) Recoveries 1,302 587 76 599 2,564 Balance at end of period $ 1,272 $ 8,003 $ 7 $ 37 $ 9,319 Total allowance for credit losses at end of period $ 42,899 $ 16,367 $ 26,460 $ 71,803 $ 157,529 Quarter Ended September 30, 2022 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 42,014 $ 11,906 $ 23,109 $ 66,867 $ 143,896 Provision for (recapture of) credit losses 3,108 (1,741) 4,555 4,325 10,247 Charge-offs (6,485) (14) (4,163) (7,964) (18,626) Recoveries 214 280 732 5,674 6,900 Balance at end of period $ 38,851 $ 10,431 $ 24,233 $ 68,902 $ 142,417 PCD: Balance at beginning of period $ 2,427 $ 12,541 $ 20 $ 155 $ 15,143 Recapture of credit losses (786) (1,735) (40) (216) (2,777) Charge-offs (23) (270) (9) (56) (358) Recoveries 268 191 47 231 737 Balance at end of period $ 1,886 $ 10,727 $ 18 $ 114 $ 12,745 Total allowance for credit losses at end of period $ 40,737 $ 21,158 $ 24,251 $ 69,016 $ 155,162 Nine-Month Period Ended September 30, 2022 Commercial Mortgage Consumer Auto Total (In thousands) Non-PCD: Balance at beginning of period $ 32,262 $ 15,299 $ 19,141 $ 65,363 $ 132,065 Provision for (recapture of) credit losses 15,663 (7,281) 13,039 9,691 31,112 Charge-offs (9,936) (276) (10,129) (22,282) (42,623) Recoveries 862 2,689 2,182 16,130 21,863 Balance at end of period $ 38,851 $ 10,431 $ 24,233 $ 68,902 $ 142,417 PCD: Balance at beginning of period $ 4,508 $ 19,018 $ 34 $ 312 $ 23,872 Recapture of credit losses (6,105) (8,766) (43) (506) (15,420) Charge-offs (57) (1,587) (56) (245) (1,945) Recoveries 3,540 2,062 83 553 6,238 Balance at end of period $ 1,886 $ 10,727 $ 18 $ 114 $ 12,745 Total allowance for credit losses at end of period $ 40,737 $ 21,158 $ 24,251 $ 69,016 $ 155,162 |
FORECLOSED REAL ESTATE (Tables)
FORECLOSED REAL ESTATE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Real Estate [Abstract] | |
Schedule of Foreclosed Real Estate Rollforward | The following table presents the activity related to foreclosed real estate for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ 10,639 $ 15,061 $ 11,214 $ 15,039 Additions 1,879 1,454 6,513 7,183 Sales (3,799) (3,919) (10,451) (11,866) Decline in value (538) (322) (937) (736) Other adjustments 1,374 2,287 3,216 4,941 Balance at end of period $ 9,555 $ 14,561 $ 9,555 $ 14,561 |
SERVICING ASSETS (Tables)
SERVICING ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Changes in Serving Rights at Fair Value | The following table presents the changes in servicing rights measured using the fair value method for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Fair value at beginning of period $ 49,966 $ 49,280 $ 50,921 $ 48,973 Servicing from mortgage securitization or asset transfers 453 666 1,818 2,935 Changes due to payments on loans (1,060) (1,191) (3,210) (4,168) Changes in fair value due to changes in valuation model inputs or assumptions 1,242 1,306 1,072 2,321 Fair value at end of period $ 50,601 $ 50,061 $ 50,601 $ 50,061 |
Schedule of Key Economic Assumptions | The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of September 30, 2023 and 2022: Nine-Month Period Ended September 30, 2023 2022 Constant prepayment rate 3.33% - 20.40% 3.38% - 20.36% Discount rate 10.00% - 15.50% 10.00% - 15.50% |
Schedule of Sensitivity of Current Fair Value of Servicing Assets | The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows: September 30, December 31, 2023 2022 (In thousands) Mortgage-related servicing asset Carrying value of mortgage servicing asset $ 50,601 $ 50,921 Weighted average life (in years) 7.7 7.8 Constant prepayment rate Decrease in fair value due to 10% adverse change $ (922) $ (956) Decrease in fair value due to 20% adverse change $ (1,812) $ (1,880) Discount rate Decrease in fair value due to 10% adverse change $ (2,224) $ (2,265) Decrease in fair value due to 20% adverse change $ (4,279) $ (4,356) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill by reportable business segment is included in the table below. Refer to “ Note 24 – Business Segments” for additional information on OFG’s reportable business segments. Banking Wealth Management Treasury Total (In thousands) September 30, 2023 $ 84,063 $ 178 $ — $ 84,241 December 31, 2022 $ 84,063 $ 178 $ — $ 84,241 |
Schedule of Core Deposit, Customer Relationship and Other Intangibles | The following table reflects the components of other intangible assets subject to amortization at September 30, 2023 and December 31, 2022: Gross Accumulated Net (In thousands) September 30, 2023 Core deposit intangibles $ 41,507 $ 24,338 $ 17,169 Customer relationship intangibles 12,693 7,443 5,250 Total other intangible assets $ 54,200 $ 31,781 $ 22,419 December 31, 2022 Core deposit intangibles $ 41,507 $ 20,376 $ 21,131 Customer relationship intangibles 12,693 6,231 6,462 Total other intangible assets $ 54,200 $ 26,607 $ 27,593 |
Schedule of Estimated Amortization of Other Intangible Assets | The following table presents the estimated amortization of other intangible assets for each of the following periods. Year Ending December 31, (In thousands) 2023 $ 6,898 2024 5,913 2025 4,927 2026 3,942 2027 2,956 Thereafter 2,957 |
ACCRUED INTEREST RECEIVABLE A_2
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Interest Receivable and Other Assets [Abstract] | |
Schedule of Accrued Interest Receivable | Accrued interest receivable at September 30, 2023 and December 31, 2022 consists of the following: September 30, December 31, 2023 2022 (In thousands) Loans $ 59,909 $ 58,144 Investments 7,959 4,258 $ 67,868 $ 62,402 |
Schedule of Other Assets | Other assets at September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, 2023 2022 (In thousands) Prepaid expenses $ 67,545 $ 54,875 Other repossessed assets 4,432 4,617 Accounts receivable and other assets 48,096 61,420 $ 120,073 $ 120,912 |
DEPOSITS AND RELATED INTEREST (
DEPOSITS AND RELATED INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits and Related Interest [Abstract] | |
Schedule of Deposits by Component | Total deposits, including related accrued interest payable, as of September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, 2023 2022 (In thousands) Non-interest-bearing demand deposits $ 2,571,068 $ 2,630,458 Interest-bearing savings and demand deposits 4,540,052 4,774,265 Retail certificates of deposit 1,075,238 979,545 Institutional certificates of deposit 352,259 172,725 Total core deposits 8,538,617 8,556,993 Brokered deposits 2,936 11,371 Total deposits $ 8,541,553 $ 8,568,364 |
Schedule of Interest Expense | Interest expense for the quarters and nine-month periods ended September 30, 2023 and 2022 was as follows: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Demand and savings deposits $ 13,772 $ 6,299 $ 32,864 $ 16,376 Certificates of deposit 7,047 1,688 16,368 5,596 $ 20,819 $ 7,987 $ 49,232 $ 21,972 |
Time Deposit Maturities | Excluding accrued interest of approximately $1.3 million and $682 thousand, the scheduled maturities of certificates of deposit at September 30, 2023 and December 31, 2022 are as follows: September 30, 2023 Period-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 260,003 $ 81,888 Over 3 months through 6 months 196,868 81,844 Over 6 months through 1 year 311,164 88,901 768,035 252,633 Over 1 through 2 years 476,048 203,379 Over 2 through 3 years 107,977 12,130 Over 3 through 4 years 29,362 2,657 Over 4 through 5 years 46,117 2,939 Over 5 years 1,625 — $ 1,429,164 $ 473,738 December 31, 2022 Period-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 238,776 $ 29,503 Over 3 months through 6 months 152,940 18,238 Over 6 months through 1 year 262,976 59,093 654,692 106,834 Over 1 through 2 years 279,034 64,109 Over 2 through 3 years 136,732 26,481 Over 3 through 4 years 51,505 8,276 Over 4 through 5 years 39,888 2,230 Over 5 years 1,108 — $ 1,162,959 $ 207,930 |
BORROWINGS AND RELATED INTERE_2
BORROWINGS AND RELATED INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank Advances | The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $774 thousand and $103 thousand at September 30, 2023 and December 31, 2022, respectively: September 30, December 31, 2023 2022 (In thousands) Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 5.59% (December 31, 2022 - 4.46%) $ 100,000 $ 26,613 Long-term fixed-rate advance from FHLB, with a weighted average interest rate of 4.52% 200,000 — $ 300,000 $ 26,613 Advances from FHLB mature as follows: September 30, December 31, 2023 2022 (In thousands) Under 90 days $ 100,000 $ 26,613 Over one to three years 200,000 — $ 300,000 $ 26,613 |
Schedule of Repurchase Agreements | The following table shows OFG’s repurchase agreements, excluding accrued interest in the amount of $68 thousand at September 30, 2023: September 30, 2023 (In thousands) Short-term fixed-rate repurchase agreements, with a weighted average interest rate of 5.47% $ 150,633 Repurchase agreements’ maturities were as follows: September 30, 2023 (In thousands) Under 90 days $ 150,633 All of the repurchase agreements referred to above with maturity dates up to the date of this report were renewed as short-term repurchase agreements. The following securities were sold under agreements to repurchase: September 30, 2023 Underlying Securities Amortized Cost of Underlying Securities Balance of Borrowing Approximate Fair Value of Underlying Securities Weighted Average Interest Rate of Security (In thousands) FNMA and FHMLC Certificates $ 183,004 $ 150,633 $ 161,973 2.95 % There were no repurchase agreements at December 31, 2022. |
OFFSETTING OF FINANCIAL ASSET_2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Offsetting [Abstract] | |
Summary of Offsetting Liabilities | The following table presents the potential effect of rights of set-off associated with OFG’s recognized financial assets and liabilities at September 30, 2023: September 30, 2023 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amount of Financial Cash Net (In thousands) Securities sold under agreements to repurchase 150,633 — 150,633 161,973 — (11,340) |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Capital Disclosure [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations | OFG’s and the Bank’s actual capital amounts and ratios as of September 30, 2023 and December 31, 2022 were as follows: Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) OFG Bancorp Ratios As of September 30, 2023 Total capital to risk-weighted assets $ 1,224,963 15.31 % $ 840,075 10.50 % $ 800,071 10.00 % Tier 1 capital to risk-weighted assets $ 1,124,599 14.06 % $ 680,060 8.50 % $ 640,057 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,124,599 14.06 % $ 560,050 7.00 % $ 520,046 6.50 % Tier 1 capital to average total assets $ 1,124,599 11.03 % $ 407,737 4.00 % $ 509,672 5.00 % As of December 31, 2022 Total capital to risk-weighted assets $ 1,132,658 14.89 % $ 798,574 10.50 % $ 760,547 10.00 % Tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 646,465 8.50 % $ 608,437 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 532,383 7.00 % $ 494,355 6.50 % Tier 1 capital to average total assets $ 1,037,385 10.36 % $ 400,445 4.00 % $ 500,557 5.00 % Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) Bank Ratios As of September 30, 2023 Total capital to risk-weighted assets $ 1,120,234 14.09 % $ 834,814 10.50 % $ 795,061 10.00 % Tier 1 capital to risk-weighted assets $ 1,020,488 12.84 % $ 675,802 8.50 % $ 636,049 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,020,488 12.84 % $ 556,543 7.00 % $ 516,790 6.50 % Tier 1 capital to average total assets $ 1,020,488 10.12 % $ 403,339 4.00 % $ 504,174 5.00 % As of December 31, 2022 Total capital to risk-weighted assets $ 1,028,126 13.61 % $ 793,124 10.50 % $ 755,356 10.00 % Tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 642,053 8.50 % $ 604,285 8.00 % Common equity tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 528,749 7.00 % $ 490,981 6.50 % Tier 1 capital to average total assets $ 933,494 9.42 % $ 396,525 4.00 % $ 495,656 5.00 % |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity of Common Shares Held in Treasury | The activity in connection with common shares held in treasury by OFG for the nine-month periods ended September 30, 2023 and 2022 is set forth below: Nine-Month Period Ended September 30, 2023 2022 Shares Dollar Shares Dollar (In thousands, except shares data) Beginning of period 12,303,859 $ 211,135 10,248,882 $ 150,572 Common shares used upon lapse of restricted stock units and options (220,130) (1,414) (278,788) (3,544) Common shares repurchased as part of the stock repurchase programs 743,699 18,653 2,351,868 64,110 End of period 12,827,428 $ 228,374 12,321,962 $ 211,138 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss, net of income taxes, as of September 30, 2023 and December 31, 2022 consisted of: September 30, December 31, 2023 2022 (In thousands) Unrealized loss on securities available-for-sale $ (150,480) $ (110,036) Income tax effect of unrealized loss on securities available-for-sale 22,803 16,373 Net unrealized loss on securities available-for-sale (127,677) (93,663) Unrealized gain on cash flow hedges — 406 Income tax effect of unrealized gain on cash flow hedges — (152) Net unrealized gain on cash flow hedges — 254 Accumulated other comprehensive loss, net of income taxes $ (127,677) $ (93,409) The following table presents changes in accumulated other comprehensive loss by component, net of taxes, for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (89,639) $ 75 $ (89,564) Other comprehensive loss before reclassifications (38,040) (2,449) (40,489) Amounts reclassified out of accumulated other comprehensive loss 2 2,374 2,376 Other comprehensive loss (38,038) (75) (38,113) Ending balance $ (127,677) $ — $ (127,677) Nine-Month Period Ended September 30, 2023 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (93,663) $ 254 $ (93,409) Other comprehensive loss before reclassifications (32,871) (5,647) (38,518) Amounts reclassified out of accumulated other comprehensive (loss) income (1,143) 5,393 4,250 Other comprehensive loss (34,014) (254) (34,268) Ending balance $ (127,677) $ — $ (127,677) Quarter Ended September 30, 2022 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (49,606) $ 104 $ (49,502) Other comprehensive loss before reclassifications (54,541) (26) (54,567) Amounts reclassified out of accumulated other comprehensive income 2 178 180 Other comprehensive (loss) income (54,539) 152 (54,387) Ending balance $ (104,145) $ 256 $ (103,889) Nine-Month Period Ended September 30, 2022 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ 5,663 $ (503) $ 5,160 Other comprehensive (loss) income before reclassifications (109,814) 204 (109,610) Amounts reclassified out of accumulated other comprehensive income 6 555 561 Other comprehensive (loss) income (109,808) 759 (109,049) Ending balance $ (104,145) $ 256 $ (103,889) |
Schedule of Reclassifications Out of Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and nine-month periods ended September 30, 2023 and 2022: Amount reclassified out of accumulated other comprehensive loss Quarter Ended September 30, Affected Line Item in 2023 2022 (In thousands) Cash flow hedges: Interest-rate contracts $ 2,374 $ 178 Net interest expense Available-for-sale securities: Tax effect from changes in tax rates 2 2 Income tax expense $ 2,376 $ 180 Affected Line Item in Amount reclassified out of accumulated other comprehensive loss nine-month period ended September 30, 2023 2022 (In thousands) Cash flow hedges: Interest-rate contracts $ 5,393 $ 555 Net interest expense Available-for-sale securities: Loss on sale of investments (1,149) — Net loss on sale of securities Tax effect from changes in tax rates 6 6 Income tax expense $ 4,250 $ 561 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share | The calculation of earnings per common share for the quarters and nine-month periods ended September 30, 2023 and 2022 is as follows: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands, except per share data) Income available to common shareholders $ 44,873 $ 41,919 $ 135,275 $ 119,872 Average common shares outstanding 47,114 47,558 47,325 48,188 Effect of dilutive securities: Average potential common shares-options 278 368 280 406 Total weighted average common shares outstanding and equivalents 47,392 47,926 47,605 48,594 Earnings per common share - basic $ 0.95 $ 0.88 $ 2.86 $ 2.49 Earnings per common share - diluted $ 0.95 $ 0.87 $ 2.84 $ 2.47 |
GUARANTEES (Tables)
GUARANTEES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Guarantees [Abstract] | |
Schedule of Changes in Liability of Estimated Loss from Credit Recourse Agreement | The following table shows the changes in OFG’s liability for estimated losses from these credit recourse agreements, included in the consolidated statements of financial condition during the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ 150 $ 174 $ 147 $ 294 Net recoveries (charge-offs/terminations) 25 (6) 28 (126) Balance at end of period $ 175 $ 168 $ 175 $ 168 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Credit-Related Financial Instruments | Credit-related financial instruments at September 30, 2023 and December 31, 2022 were as follows: September 30, December 31, 2023 2022 (In thousands) Commitments to extend credit $ 1,291,292 $ 1,403,118 Commercial letters of credit 396 1,082 The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at September 30, 2023 and December 31, 2022, is as follows: September 30, December 31, 2023 2022 (In thousands) Standby letters of credit and financial guarantees $ 28,116 $ 24,749 Loans sold with recourse 101,343 110,891 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Lessee Disclosure [Abstract] | |
Schedule of Operating Lease Cost | Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 Statement of Operations (In thousands) Lease costs $ 5,130 $ 5,188 $ 7,738 $ 7,851 Occupancy and equipment Variable lease costs 674 873 1,021 1,157 Occupancy and equipment Short-term lease cost 335 448 483 730 Occupancy and equipment Lease income (62) (129) (79) (181) Occupancy and equipment Total lease cost $ 6,077 $ 6,380 $ 9,163 $ 9,557 |
Schedule of Operating Lease Assets and Liabilities | September 30, December 31, 2023 2022 Statement of Financial Condition Classification (In thousands) Right-of-use assets $ 20,011 $ 25,363 Operating lease right-of-use assets Lease Liabilities $ 22,269 $ 27,370 Operating leases liabilities |
Schedule of Operating Lease, Other Information | September 30, December 31, 2023 2022 (In thousands) Weighted-average remaining lease term 4.8 years 5.1 years Weighted-average discount rate 7.0 % 6.8 % |
Schedule of Future Minimum Payments for Operating Leases and Present Value | Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2023 were as follows: Minimum Rent As of September 30, 2023 (In thousands) 2024 $ 2,331 2025 7,512 2026 5,324 2027 3,227 2028 2,377 Thereafter 5,772 Total lease payments $ 26,543 Less imputed interest 4,274 Present value of lease liabilities $ 22,269 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities on Recurring and Non-Recurring Basis | Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below: September 30, 2023 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 739 $ 1,512,414 $ — $ 1,513,153 Trading securities — 14 — 14 Money market investments 4,073 — — 4,073 Servicing assets — — 50,601 50,601 $ 4,812 $ 1,512,428 $ 50,601 $ 1,567,841 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 8,605 $ 8,605 Foreclosed real estate — — 9,555 9,555 Other repossessed assets — — 4,432 4,432 Mortgage loans held for sale — — 564 564 Other loans held for sale $ — $ — 25,282 25,282 $ — $ — $ 48,438 $ 48,438 December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 309,133 $ 1,103,237 $ 406 $ 1,412,776 Trading securities — 9 — 9 Money market investments 4,161 — — 4,161 Derivative assets — 406 — 406 Servicing assets — — 50,921 50,921 $ 313,294 $ 1,103,652 $ 51,327 $ 1,468,273 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 8,805 $ 8,805 Foreclosed real estate — — 11,214 11,214 Other repossessed assets — — 4,617 4,617 Mortgage loans held for sale — — 19,499 19,499 Other loans held for sale $ — $ — $ 21,088 21,088 $ — $ — $ 65,223 $ 65,223 |
Schedule of Reconciliation of Assets and Liabilities Using Significant Unobservable Inputs (Level 3) | The tables below present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended September 30, 2023 and 2022: Level 3 Instruments Only Quarter Ended September 30, 2023 2022 Other debt securities available for sale Servicing Assets Total Other debt securities available for sale Servicing Assets Total (In thousands) Balance at beginning period $ 413 $ 49,966 $ 50,379 $ 1,581 $ 49,280 $ 50,861 New instruments acquired — 453 453 376 666 1,042 Principal repayments and amortization — (1,060) (1,060) — (1,191) (1,191) Instrument converted to equity security (413) — (413) (1,581) — (1,581) Gains included in earnings — 1,242 1,242 — 1,306 1,306 Gains included in other comprehensive income — — — 23 — 23 Balance at end of period $ — $ 50,601 $ 50,601 $ 399 $ 50,061 $ 50,460 Nine-Month Period Ended September 30, 2023 2023 2022 Other debt securities available for sale Servicing Assets Total Other debt securities available for sale Servicing Assets Total (In thousands) Balance at beginning period $ 406 $ 50,921 $ 51,327 $ 1,530 $ 48,973 $ 50,503 New instruments acquired — 1,818 1,818 376 2,935 3,311 Principal repayments and amortization — (3,210) (3,210) — (4,168) (4,168) Instrument converted to equity security (406) — (406) (1,581) — (1,581) Gains included in earnings — 1,072 1,072 — 2,321 2,321 Gains included in other comprehensive income — — — 74 — 74 Balance at end of period $ — $ 50,601 $ 50,601 $ 399 $ 50,061 $ 50,460 |
Schedule of Qualitative Information for Assets and Liabilities | The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at September 30, 2023 and December 31, 2022: September 30, 2023 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Servicing assets $ 50,601 Cash flow valuation Constant prepayment rate 3.33% - 20.40% 5.70 % Discount rate 10.00% - 15.50% 11.45 % Collateral dependent loans $ 8,605 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 17.01 % Foreclosed real estate $ 9,555 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 11.62 % Other repossessed assets $ 4,432 Fair value of property Estimated net realizable value less disposition costs 29.00% - 77.00% 59.97 % Mortgage loans held for sale $ 564 Market prices Pricing and execution whole loan 94.66% - 97.92% 96.70 % Other loans held for sale $ 25,282 Bids or sales contract prices Estimated market value 52.00% - 103.20% 84.80 % December 31, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Other debt securities available-for-sale $ 406 Cash flow valuation Credit Rating Baa1 - Baa3 Baa2 Probability of Default Rate 0.15% - 2.12% 0.15 % Recovery Rate 34.73% 34.73 % Servicing assets $ 50,921 Cash flow valuation Constant prepayment rate 3.43% - 21.20% 5.66 % Discount rate 10.00% - 15.50% 11.45 % Collateral dependent loans $ 8,805 Fair value of property Appraised value less disposition costs 10.20% - 51.20% 17.11 % Foreclosed real estate $ 11,214 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 11.81 % Other repossessed assets $ 4,617 Fair value of property Estimated net realizable value less disposition costs 22.00% - 80.00% 58.49 % Mortgage loans held for sale $ 19,499 Fair value of property Estimated net realizable value 83.25% - 102.43% 71.86% Other loans held for sale $ 21,088 Bids or sales contract prices Estimated market value 100.00% - 103.20% 74.65% |
Schedule of Estimated Fair Value and Carrying Value | The estimated fair value and carrying value of OFG’s financial instruments at September 30, 2023 and December 31, 2022 was as follows: September 30, December 31, 2023 2022 Fair Carrying Fair Carrying (In thousands) Financial Assets: Level 1 Cash and cash equivalents $ 532,699 $ 532,699 $ 550,307 $ 550,307 Restricted cash $ — $ — $ 157 $ 157 Investment securities available-for-sale $ 739 $ 739 $ 309,133 $ 309,133 Level 2 Financial Assets: Trading securities $ 14 $ 14 $ 9 $ 9 Investment securities available-for-sale $ 1,512,414 $ 1,512,414 $ 1,103,237 $ 1,103,237 Investment securities held-to-maturity $ 441,759 $ 519,145 $ 469,186 $ 535,070 Federal Home Loan Bank (FHLB) stock $ 18,988 $ 18,988 $ 6,005 $ 6,005 Equity securities $ 23,174 $ 23,174 $ 17,662 $ 17,662 Derivative assets $ — $ — $ 406 $ 406 Level 3 Financial Assets: Investment securities available for sale $ — $ — $ 406 $ 406 Total loans, net of allowance for credit losses $ 6,916,132 $ 7,130,052 $ 6,467,878 $ 6,723,236 Accrued interest receivable $ 67,868 $ 67,868 $ 62,402 $ 62,402 Servicing assets $ 50,601 $ 50,601 $ 50,921 $ 50,921 Accounts receivable and other assets $ 48,096 $ 48,096 $ 61,014 $ 61,014 Financial Liabilities: Deposits $ 8,545,617 $ 8,541,553 $ 8,556,300 $ 8,568,364 Securities sold under agreements to repurchase $ 150,658 $ 150,701 $ — $ — Advances from FHLB $ 297,532 $ 300,774 $ 26,716 $ 26,716 Other borrowings $ — $ — $ 318 $ 318 Accrued expenses and other liabilities $ 115,394 $ 115,394 $ 124,999 $ 124,999 |
BANKING AND FINANCIAL SERVICE_2
BANKING AND FINANCIAL SERVICE REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Commissions and Fees Revenues | The following table presents the major categories of banking and financial service revenues for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, Nine-Month Period Ended September 30, 2023 2022 2023 2022 (In thousands) (In thousands) Banking service revenues: Electronic banking fees $ 13,447 $ 13,335 $ 40,416 $ 40,509 Checking accounts fees 2,233 2,332 6,638 6,702 Savings accounts fees 333 332 993 937 Credit life commissions 90 70 314 665 Branch service commissions 352 319 1,098 979 Servicing and other loan fees 668 621 2,251 2,427 International fees 174 217 536 702 Miscellaneous income 6 8 10 16 Total banking service revenues 17,303 17,234 52,256 52,937 Wealth management revenue: Insurance income 3,607 3,906 11,146 10,758 Broker fees 1,945 1,601 5,525 5,204 Trust fees 2,139 2,489 6,298 7,796 Retirement plan and administration fees — 177 36 542 Total wealth management revenue 7,691 8,173 23,005 24,300 Mortgage banking activities: Net servicing fees 4,764 5,206 12,256 13,408 Net gains on sale of mortgage loans and valuation 450 (116) 2,009 2,192 Net gain (loss) on repurchased loans and other 196 (199) 268 (124) Total mortgage banking activities 5,410 4,891 14,533 15,476 Total banking and financial service revenues $ 30,404 $ 30,298 $ 89,794 $ 92,713 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Following are the results of operations and the selected financial information by operating segment for the quarters and nine-month periods ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 Banking Wealth Treasury Total Major Eliminations Consolidated (In thousands) Interest income $ 145,667 $ 8 $ 23,905 $ 169,580 $ (3,872) $ 165,708 Interest expense (20,662) — (7,131) (27,793) 3,872 (23,921) Net interest income 125,005 8 16,774 141,787 — 141,787 Provision for credit losses 16,371 — 59 16,430 — 16,430 Non-interest income 23,211 7,487 1 30,699 — 30,699 Non-interest expenses (85,536) (3,778) (844) (90,158) — (90,158) Intersegment revenue 487 — — 487 (487) — Intersegment expenses — (337) (150) (487) 487 — Income before income taxes 46,796 3,380 15,722 65,898 — 65,898 Income tax expense (benefit) 20,994 (4) 35 21,025 — 21,025 Net income $ 25,802 $ 3,384 $ 15,687 $ 44,873 $ — $ 44,873 Total assets $ 8,742,283 $ 34,380 $ 2,523,536 $ 11,300,199 $ (1,043,061) $ 10,257,138 Nine-Month Period Ended September 30, 2023 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 418,091 $ 19 $ 67,872 $ 485,982 $ (13,301) $ 472,681 Interest expense (48,867) — (19,787) (68,654) 13,301 (55,353) Net interest income 369,224 19 48,085 417,328 — 417,328 Provision for credit losses 40,828 — 91 40,919 — 40,919 Non-interest income 68,190 22,631 (1,148) 89,673 — 89,673 Non-interest expenses (254,777) (11,871) (2,618) (269,266) — (269,266) Intersegment revenue 1,610 — — 1,610 (1,610) — Intersegment expenses — (1,096) (514) (1,610) 1,610 — Income before income taxes $ 143,419 $ 9,683 $ 43,714 $ 196,816 $ — $ 196,816 Income tax expense 61,463 16 62 61,541 — 61,541 Net income $ 81,956 $ 9,667 $ 43,652 $ 135,275 $ — $ 135,275 Total assets $ 8,742,283 $ 34,380 $ 2,523,536 $ 11,300,199 $ (1,043,061) $ 10,257,138 Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, an international banking entity organized pursuant to the Puerto Rico International Banking Center Regulatory Act, as amended, which operates as a unit within the Bank. The time deposit with a balance of $308.9 million and $467.0 million at September 30, 2023 and 2022, respectively, is included in the Treasury Segment with its corresponding interest expense, to fund Oriental Overseas operations, which is included in the Banking Segment with its corresponding interest income, and are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year period was mainly as a result of Federal Open Market Committee of the Board of Governors of the Federal Reserve System (“FRB”) federal funds rate increases and higher average balance. Quarter Ended September 30, 2022 Banking Wealth Treasury Total Major Eliminations Consolidated (In thousands) Interest income $ 117,939 $ 6 $ 18,829 $ 136,774 $ (2,099) $ 134,675 Interest expense (7,891) — (2,373) (10,264) 2,099 (8,165) Net interest income 110,048 6 16,456 126,510 — 126,510 Provision for credit losses 7,059 — 61 7,120 — 7,120 Non-interest income 22,310 8,310 — 30,620 — 30,620 Non-interest expenses (82,026) (4,635) (831) (87,492) — (87,492) Intersegment revenue 588 — — 588 (588) — Intersegment expenses — (412) (176) (588) 588 — Income before income taxes 43,861 3,269 15,388 62,518 — 62,518 Income tax expense 20,589 1 9 20,599 — 20,599 Net income $ 23,272 $ 3,268 $ 15,379 $ 41,919 $ — $ 41,919 Total assets $ 8,179,384 $ 27,839 $ 2,823,826 $ 11,031,049 $ (972,870) $ 10,058,179 Nine-Month Period Ended September 30, 2022 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 337,017 $ 16 $ 35,787 $ 372,820 $ (2,974) $ 369,846 Interest expense (21,796) — (4,226) (26,022) 2,974 (23,048) Net interest income 315,221 16 31,561 346,798 — 346,798 Provision for (recapture of) credit losses 15,403 — (41) 15,362 — 15,362 Non-interest income 73,662 24,724 50 98,436 — 98,436 Non-interest expenses (237,477) (14,015) (2,413) (253,905) — (253,905) Intersegment revenue 1,645 — — 1,645 (1,645) — Intersegment expenses — (1,131) (514) (1,645) 1,645 — Income before income taxes $ 137,648 $ 9,594 $ 28,725 $ 175,967 $ — $ 175,967 Income tax expense 56,067 1 27 56,095 — 56,095 Net income $ 81,581 $ 9,593 $ 28,698 $ 119,872 $ — $ 119,872 Total assets $ 8,179,384 $ 27,839 $ 2,823,826 $ 11,031,049 $ (972,870) $ 10,058,179 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 0 | $ 157 | $ 164 |
Reserve required by local government | $ 480,500 | 482,900 | |
Securities Sold under Agreements to Repurchase | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 157 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Money market investments | $ 4,073 | $ 4,988 | $ 4,161 |
Restricted cash | 0 | 164 | 157 |
Securitized GNMA pools retained, amortized cost | $ 52,800 | $ 80,400 | |
Securitized GNMA pool retained, yield | 5.20% | 3.53% | |
Retained FNMA pools | $ 17,200 | $ 0 | |
FNMA pools retained, yield | 5.37% | ||
Proceeds from sale of available for sale securities | 0 | ||
Investment securities | US Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale, purchase price | $ 1,500 | $ 411,000 | |
Proceeds from sale of available for sale securities | 203,300 | ||
Loss on available for sale securities | 1,100 | ||
OIB | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted cash | 325 | 325 | |
Oriental Overseas | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted cash | 325 | 325 | |
Asset Pledged as Collateral | |||
Debt Securities, Available-for-sale [Line Items] | |||
Pledged assets | 671,800 | 294,200 | |
Asset Pledged as Collateral | Public Funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Pledged assets | $ 462,900 | $ 293,700 |
INVESTMENT SECURITIES (Investme
INVESTMENT SECURITIES (Investment Securities by Contractual Maturity - AFS) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,663,633 | $ 1,522,812 |
Gross Unrealized Gains | 379 | 995 |
Gross Unrealized Losses | 150,859 | 111,031 |
Fair Value | $ 1,513,153 | $ 1,412,776 |
Weighted Average Yield | 3.65% | 2.90% |
Mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,662,256 | $ 1,210,834 |
Gross Unrealized Gains | 379 | 965 |
Gross Unrealized Losses | 150,856 | 109,298 |
Fair Value | $ 1,511,779 | $ 1,102,501 |
Weighted Average Yield | 3.65% | 2.79% |
Mortgage-backed securities | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,261,401 | $ 837,703 |
Gross Unrealized Gains | 0 | 59 |
Gross Unrealized Losses | 99,681 | 69,646 |
Fair Value | $ 1,161,720 | $ 768,116 |
Weighted Average Yield | 3.82% | 2.79% |
Mortgage-backed securities | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 389,627 | $ 357,497 |
Gross Unrealized Gains | 379 | 906 |
Gross Unrealized Losses | 50,622 | 38,869 |
Fair Value | $ 339,384 | $ 319,534 |
Weighted Average Yield | 3.15% | 2.80% |
Mortgage-backed securities | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 11,228 | $ 15,634 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 553 | 783 |
Fair Value | $ 10,675 | $ 14,851 |
Weighted Average Yield | 2.04% | 1.99% |
Mortgage-backed securities | Due from 1 to 5 years | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 7,717 | $ 10,155 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 430 | 550 |
Fair Value | $ 7,287 | $ 9,605 |
Weighted Average Yield | 1.76% | 1.76% |
Mortgage-backed securities | Due from 1 to 5 years | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 10,143 | $ 12,505 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 585 | 632 |
Fair Value | $ 9,558 | $ 11,873 |
Weighted Average Yield | 1.71% | 1.66% |
Mortgage-backed securities | Due from 1 to 5 years | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 10,199 | $ 14,190 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 530 | 755 |
Fair Value | $ 9,669 | $ 13,435 |
Weighted Average Yield | 1.78% | 1.78% |
Mortgage-backed securities | Due from 5 to 10 years | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 48,962 | $ 59,167 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,373 | 3,764 |
Fair Value | $ 44,589 | $ 55,403 |
Weighted Average Yield | 2% | 2% |
Mortgage-backed securities | Due from 5 to 10 years | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 18,234 | $ 24,575 |
Gross Unrealized Gains | 4 | 14 |
Gross Unrealized Losses | 1,490 | 1,585 |
Fair Value | $ 16,748 | $ 23,004 |
Weighted Average Yield | 2.18% | 2.13% |
Mortgage-backed securities | Due from 5 to 10 years | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 147 | $ 485 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2 | 10 |
Fair Value | $ 145 | $ 475 |
Weighted Average Yield | 2.14% | 2.14% |
Mortgage-backed securities | Due after 10 years | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,204,722 | $ 768,381 |
Gross Unrealized Gains | 0 | 59 |
Gross Unrealized Losses | 94,878 | 65,332 |
Fair Value | $ 1,109,844 | $ 703,108 |
Weighted Average Yield | 3.91% | 2.87% |
Mortgage-backed securities | Due after 10 years | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 361,250 | $ 320,417 |
Gross Unrealized Gains | 375 | 892 |
Gross Unrealized Losses | 48,547 | 36,652 |
Fair Value | $ 313,078 | $ 284,657 |
Weighted Average Yield | 3.23% | 2.90% |
Mortgage-backed securities | Due after 10 years | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 882 | $ 959 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 21 | 18 |
Fair Value | $ 861 | $ 941 |
Weighted Average Yield | 5.07% | 5.06% |
Investment securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,377 | $ 311,978 |
Gross Unrealized Gains | 0 | 30 |
Gross Unrealized Losses | 3 | 1,733 |
Fair Value | $ 1,374 | $ 310,275 |
Weighted Average Yield | 4.40% | 3.35% |
Investment securities | Due less than 1 year | US Treasury securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 739 | $ 310,862 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1,729 |
Fair Value | $ 739 | $ 309,133 |
Weighted Average Yield | 5.45% | 3.34% |
Investment securities | Due from 1 to 5 years | Other debt securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 638 | $ 1,116 |
Gross Unrealized Gains | 0 | 30 |
Gross Unrealized Losses | 3 | 4 |
Fair Value | $ 635 | $ 1,142 |
Weighted Average Yield | 3.19% | 4.45% |
INVESTMENT SECURITIES (Invest_2
INVESTMENT SECURITIES (Investment Securities by Contractual Maturity - HTM) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 519,145 | $ 535,070 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 77,386 | 65,884 |
Debt Securities, Held-to-Maturity, Fair Value | $ 441,759 | $ 469,186 |
Weighted Average Yield | 2.34% | 2.30% |
Due less than 1 year | Investment securities | US Treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 198,896 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 2,779 | |
Debt Securities, Held-to-Maturity, Fair Value | $ 196,117 | |
Weighted Average Yield | 3.34% | |
Due from 1 to 5 years | Investment securities | US Treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 197,635 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 3,526 | |
Debt Securities, Held-to-Maturity, Fair Value | $ 194,109 | |
Weighted Average Yield | 3.36% | |
Due after 10 years | Mortgage-backed securities | FNMA and FHLMC certificates | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 320,249 | $ 337,435 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 74,607 | 62,358 |
Debt Securities, Held-to-Maturity, Fair Value | $ 245,642 | $ 275,077 |
Weighted Average Yield | 1.72% | 1.71% |
INVESTMENT SECURITIES (Sale of
INVESTMENT SECURITIES (Sale of securities available-for-sale) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Investments [Line Items] | ||
Investment securities available-for-sale | $ 202,133 | $ 0 |
Proceeds from sale of available for sale securities | $ 0 | |
Investment securities | US Treasury securities | ||
Schedule of Investments [Line Items] | ||
Investment securities available-for-sale | 202,133 | |
Proceeds from sale of available for sale securities | 203,282 | |
Gross Gains | 0 | |
Loss on available for sale securities | $ 1,149 |
INVESTMENT SECURITIES (Unrealiz
INVESTMENT SECURITIES (Unrealized Gains and Losses by Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | $ 1,054,981 | $ 171,011 |
Less than 12 months | 595,458 | 1,323,800 |
Amortized Cost | 1,650,440 | 1,494,811 |
Held-to-Maturity, Amortized Cost | ||
12 months or more | 519,145 | |
Total | 519,145 | 535,070 |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 140,078 | 33,027 |
Less than 12 months | 10,780 | 78,004 |
Total | 150,859 | 111,031 |
Held-to-Maturity, Unrealized Loss | ||
12 months or more | 77,386 | |
Total | 77,386 | 65,884 |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 914,903 | 137,984 |
Less than 12 months | 584,678 | 1,245,796 |
Total | 1,499,581 | 1,383,780 |
Held-to-Maturity, Fair Value | ||
12 months or more | 441,759 | |
Total | 441,759 | 469,186 |
FNMA and FHLMC certificates | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 750,699 | 88,600 |
Less than 12 months | 510,701 | 745,566 |
Amortized Cost | 1,261,401 | 834,166 |
Held-to-Maturity, Amortized Cost | ||
12 months or more | 320,249 | 337,435 |
Total | 320,249 | 337,435 |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 91,423 | 18,989 |
Less than 12 months | 8,257 | 50,657 |
Total | 99,681 | 69,646 |
Held-to-Maturity, Unrealized Loss | ||
12 months or more | 74,607 | 62,358 |
Total | 74,607 | 62,358 |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 659,276 | 69,611 |
Less than 12 months | 502,444 | 694,909 |
Total | 1,161,720 | 764,520 |
Held-to-Maturity, Fair Value | ||
12 months or more | 245,642 | 275,077 |
Total | 245,642 | 275,077 |
GNMA Securities | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 292,915 | 82,074 |
Less than 12 months | 84,757 | 251,835 |
Amortized Cost | 377,672 | 333,909 |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 48,099 | 14,031 |
Less than 12 months | 2,523 | 24,838 |
Total | 50,622 | 38,869 |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 244,816 | 68,043 |
Less than 12 months | 82,234 | 226,997 |
Total | 327,050 | 295,040 |
CMOs issued by US Government-sponsored agencies | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 11,228 | 337 |
Less than 12 months | 15,297 | |
Amortized Cost | 11,228 | 15,634 |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 553 | 7 |
Less than 12 months | 776 | |
Total | 553 | 783 |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 10,675 | 330 |
Less than 12 months | 14,521 | |
Total | 10,675 | 14,851 |
Other debt securities | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 139 | |
Less than 12 months | 240 | |
Amortized Cost | 139 | 240 |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 3 | |
Less than 12 months | 4 | |
Total | 3 | 4 |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 136 | |
Less than 12 months | 236 | |
Total | 136 | 236 |
US Treasury securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Less than 12 months | 310,862 | |
Amortized Cost | 310,862 | |
Held-to-Maturity, Amortized Cost | ||
12 months or more | 198,896 | |
Less than 12 months | 197,635 | |
Total | 198,896 | 197,635 |
Securities Available-for-Sale, Unrealized Loss | ||
Less than 12 months | 1,729 | |
Total | 1,729 | |
Held-to-Maturity, Unrealized Loss | ||
12 months or more | 2,779 | |
Less than 12 months | 3,526 | |
Total | 2,779 | 3,526 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months | 309,133 | |
Total | 309,133 | |
Held-to-Maturity, Fair Value | ||
12 months or more | 196,117 | |
Less than 12 months | 194,109 | |
Total | $ 196,117 | $ 194,109 |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) portfolioSegment | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) portfolioSegment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loan portfolio segments | portfolioSegment | 4 | 4 | |||
Increase (decrease) in net charge-offs | $ 19,100 | ||||
Total Loans | $ 7,261,735 | 7,261,735 | $ 6,835,322 | ||
Total loans held for sale | 25,846 | 25,846 | 40,587 | ||
Total | 165,484 | ||||
Accrued interest receivable on modified loans | 110 | ||||
Net interest income | 141,787 | $ 126,510 | 417,328 | $ 346,798 | |
Recorded investment of residential mortgage loans collateralized and in process of foreclosure | 24,100 | 24,100 | 14,900 | ||
Balance of revolving loans converted to term loans, amount | 121,100 | 121,100 | 78,000 | ||
Accrued interest receivable | 67,868 | 67,868 | 62,402 | ||
Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest receivable | 59,909 | 59,909 | 58,144 | ||
Non-accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 20,329 | ||||
Accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 145,155 | ||||
Non-PCD | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs | (24,824) | (18,626) | (59,693) | (42,623) | |
Total Loans | 6,163,158 | 6,163,158 | 5,641,446 | ||
Total loans held for sale | 25,846 | 25,846 | 40,587 | ||
Non-PCD | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans | 232,998 | 232,998 | 227,763 | ||
Mortgage Loans - GNMA Buy-Back Option Program | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Delinquent loans | 18,200 | 18,200 | 32,600 | ||
Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in net charge-offs | 2,400 | ||||
Charge-offs | (610) | ||||
Total Loans | 1,604,010 | 1,604,010 | 1,704,221 | ||
Total loans held for sale | $ 564 | $ 564 | 19,499 | ||
Total | 109,160 | ||||
Recorded Investment | 1,087 | ||||
Mortgage | Government Guaranteed Loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due | 90 days | 90 days | |||
Nonaccrual status | 12 months | ||||
Total | $ 4,500 | $ 4,500 | 43,500 | ||
Mortgage | Non-accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 6,773 | ||||
Mortgage | Accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 102,387 | ||||
Mortgage | Non-PCD | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs | (218) | (14) | (610) | (276) | |
Total Loans | 648,414 | 648,414 | 675,793 | ||
Total loans held for sale | 564 | 564 | 19,499 | ||
Mortgage | Non-PCD | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans | 48,888 | 48,888 | 71,829 | ||
Commercial loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in net charge-offs | 8,300 | ||||
Charge-offs | (13,125) | ||||
Total Loans | 2,832,985 | 2,832,985 | 2,629,929 | ||
Total loans held for sale | 25,282 | 25,282 | 21,088 | ||
Total | 54,382 | ||||
Commitment to lend additional funds | 0 | 0 | 3,200 | ||
Commercial loans | Non-accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans held for sale | 8,500 | 8,500 | 27,800 | ||
Total | 13,541 | ||||
Commercial loans | Accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 40,841 | ||||
Commercial loans | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans held for sale | 8,100 | 8,100 | 21,100 | ||
Commercial loans | Non-PCD | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs | (8,254) | $ (6,485) | (13,125) | $ (9,936) | |
Total Loans | 2,693,128 | 2,693,128 | 2,470,777 | ||
Total loans held for sale | 25,282 | 25,282 | 21,088 | ||
Commercial loans | Non-PCD | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans | 15,109 | 15,109 | 12,122 | ||
Commercial loans | US commercial loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transferred to held-for-sale | 2,000 | ||||
Charge-offs | (2,700) | (9,800) | |||
Total Loans | 707,593 | 707,593 | 642,133 | ||
Total | 7,132 | ||||
Unpaid principal balance | 8,900 | ||||
Private stock value | 1,600 | ||||
Commercial loans | US commercial loans | Principal Forgiveness | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unpaid principal balance | 4,600 | ||||
Commercial loans | US commercial loans | Non-accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 0 | ||||
Commercial loans | US commercial loans | Accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 7,132 | ||||
Commercial loans | US commercial loans | Non-PCD | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs | (9,826) | ||||
Total Loans | 707,593 | 707,593 | 642,133 | ||
Commercial loans | US commercial loans | Non-PCD | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans | 332 | 332 | 0 | ||
Commercial loans | Other US commercial loans | Principal Forgiveness | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unpaid principal balance | 4,400 | ||||
Private stock value | 279 | ||||
Commercial loans | Small business commercial loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transferred to held-for-sale | 4,400 | ||||
Charge-offs | (906) | ||||
Commercial loans | Puerto Rico | Government | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans | 68,300 | 68,300 | 73,700 | ||
Mortgage and consumer loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs | (17,462) | ||||
Balance of revolving loans converted to term loans, amount | 0 | 0 | 0 | ||
Mortgage and consumer loans | Non-PCD | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans | $ 1,261,037 | $ 1,261,037 | $ 1,212,412 |
LOANS (Composition of Loan Port
LOANS (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 7,261,735 | $ 6,835,322 | ||||
Allowance for credit losses | (157,529) | (152,673) | $ (155,162) | |||
Total loans held for investment, net | 7,104,206 | 6,682,649 | ||||
Total loans held for sale | 25,846 | 40,587 | ||||
Total loans | 7,130,052 | 6,723,236 | ||||
Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 2,832,985 | 2,629,929 | ||||
Allowance for credit losses | (42,899) | (40,737) | ||||
Total loans held for sale | 25,282 | 21,088 | ||||
Mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 1,604,010 | 1,704,221 | ||||
Allowance for credit losses | (16,367) | (21,158) | ||||
Total loans held for sale | 564 | 19,499 | ||||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 613,195 | 537,257 | ||||
Allowance for credit losses | (26,460) | (24,251) | ||||
Auto | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 2,211,545 | 1,963,915 | ||||
Allowance for credit losses | (71,803) | (69,016) | ||||
Non-PCD | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 6,163,158 | 5,641,446 | ||||
Allowance for credit losses | (148,210) | $ (150,167) | (141,841) | (142,417) | $ (143,896) | $ (132,065) |
Total loans held for investment, net | 6,014,948 | 5,499,605 | ||||
Total loans held for sale | 25,846 | 40,587 | ||||
Total loans | 6,040,794 | 5,540,192 | ||||
Non-PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 2,693,128 | 2,470,777 | ||||
Allowance for credit losses | (41,627) | (48,604) | (39,158) | (38,851) | (42,014) | (32,262) |
Total loans held for sale | 25,282 | 21,088 | ||||
Non-PCD | Mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 648,414 | 675,793 | ||||
Allowance for credit losses | (8,364) | (8,670) | (9,571) | (10,431) | (11,906) | (15,299) |
Total loans held for sale | 564 | 19,499 | ||||
Non-PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 612,623 | 536,619 | ||||
Allowance for credit losses | (26,453) | (25,666) | (23,264) | (24,233) | (23,109) | (19,141) |
Non-PCD | Auto | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 2,208,993 | 1,958,257 | ||||
Allowance for credit losses | (71,766) | (67,227) | (69,848) | (68,902) | (66,867) | (65,363) |
PCD | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 1,098,577 | 1,193,876 | ||||
Allowance for credit losses | (9,319) | (9,756) | (10,832) | (12,745) | (15,143) | (23,872) |
Total loans held for investment, net | 1,089,258 | 1,183,044 | ||||
Total loans held for sale | 0 | 0 | ||||
Total loans | 1,089,258 | 1,183,044 | ||||
PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 139,857 | 159,152 | ||||
Allowance for credit losses | (1,272) | (1,408) | (1,388) | (1,886) | (2,427) | (4,508) |
Total loans held for sale | 0 | 0 | ||||
PCD | Mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 955,596 | 1,028,428 | ||||
Allowance for credit losses | (8,003) | (8,297) | (9,359) | (10,727) | (12,541) | (19,018) |
Total loans held for sale | 0 | 0 | ||||
PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 572 | 638 | ||||
Allowance for credit losses | (7) | (8) | (14) | (18) | (20) | (34) |
PCD | Auto | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 2,552 | 5,658 | ||||
Allowance for credit losses | (37) | $ (43) | (71) | $ (114) | $ (155) | $ (312) |
Commercial secured by real estate | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 1,126,697 | 1,112,880 | ||||
Commercial secured by real estate | Non-PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 1,001,062 | 974,202 | ||||
Commercial secured by real estate | PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 125,635 | 138,678 | ||||
Other commercial and industrial | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 998,695 | 874,916 | ||||
Other commercial and industrial | Non-PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 984,473 | 854,442 | ||||
Other commercial and industrial | PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 14,222 | 20,474 | ||||
US commercial loans | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 707,593 | 642,133 | ||||
US commercial loans | Non-PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 707,593 | 642,133 | ||||
US commercial loans | PCD | Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 0 | 0 | ||||
Personal loans | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 561,469 | 480,958 | ||||
Personal loans | Non-PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 561,185 | 480,620 | ||||
Personal loans | PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 284 | 338 | ||||
Credit lines | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 11,457 | 13,126 | ||||
Credit lines | Non-PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 11,169 | 12,826 | ||||
Credit lines | PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 288 | 300 | ||||
Credit cards | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 40,030 | 42,872 | ||||
Credit cards | Non-PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 40,030 | 42,872 | ||||
Credit cards | PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 0 | 0 | ||||
Overdraft | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 239 | 301 | ||||
Overdraft | Non-PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | 239 | 301 | ||||
Overdraft | PCD | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 0 | $ 0 |
LOANS (Aging of Recorded Invest
LOANS (Aging of Recorded Investment in Gross Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 7,261,735 | $ 6,835,322 |
Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 6,163,158 | 5,641,446 |
Loans 90+ Days Past Due and Still Accruing | 2,899 | 3,856 |
30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 114,608 | 91,954 |
60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 54,876 | 46,997 |
90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 63,514 | 88,812 |
Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 232,998 | 227,763 |
Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,930,160 | 5,413,683 |
Commercial loans: | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,832,985 | 2,629,929 |
Commercial loans: | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,693,128 | 2,470,777 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Commercial loans: | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,570 | 1,866 |
Commercial loans: | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,096 | 884 |
Commercial loans: | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 9,443 | 9,372 |
Commercial loans: | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 15,109 | 12,122 |
Commercial loans: | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,678,019 | 2,458,655 |
Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,604,010 | 1,704,221 |
Mortgage | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 648,414 | 675,793 |
Loans 90+ Days Past Due and Still Accruing | 2,899 | 3,856 |
Mortgage | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,539 | 9,267 |
Mortgage | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 8,841 | 5,848 |
Mortgage | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 34,508 | 56,714 |
Mortgage | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 48,888 | 71,829 |
Mortgage | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 599,526 | 603,964 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 613,195 | 537,257 |
Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 612,623 | 536,619 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Consumer | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 6,598 | 5,584 |
Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,562 | 3,311 |
Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,262 | 3,113 |
Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 13,422 | 12,008 |
Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 599,201 | 524,611 |
Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,211,545 | 1,963,915 |
Auto | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,208,993 | 1,958,257 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Auto | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 97,901 | 75,237 |
Auto | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 41,377 | 36,954 |
Auto | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 16,301 | 19,613 |
Auto | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 155,579 | 131,804 |
Auto | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,053,414 | 1,826,453 |
Commercial secured by real estate: | Commercial loans: | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,126,697 | 1,112,880 |
Commercial secured by real estate: | Commercial loans: | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,001,062 | 974,202 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Commercial secured by real estate: | Commercial loans: | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,581 | 923 |
Commercial secured by real estate: | Commercial loans: | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 759 | 164 |
Commercial secured by real estate: | Commercial loans: | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,159 | 6,147 |
Commercial secured by real estate: | Commercial loans: | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 6,499 | 7,234 |
Commercial secured by real estate: | Commercial loans: | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 994,563 | 966,968 |
Other commercial and industrial | Commercial loans: | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 984,473 | 854,442 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Other commercial and industrial | Commercial loans: | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,657 | 943 |
Other commercial and industrial | Commercial loans: | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 337 | 720 |
Other commercial and industrial | Commercial loans: | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,284 | 3,225 |
Other commercial and industrial | Commercial loans: | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 8,278 | 4,888 |
Other commercial and industrial | Commercial loans: | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 976,195 | 849,554 |
US commercial loans: | Commercial loans: | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 707,593 | 642,133 |
US commercial loans: | Commercial loans: | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 707,593 | 642,133 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
US commercial loans: | Commercial loans: | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 332 | 0 |
US commercial loans: | Commercial loans: | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
US commercial loans: | Commercial loans: | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
US commercial loans: | Commercial loans: | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 332 | 0 |
US commercial loans: | Commercial loans: | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 707,261 | 642,133 |
Personal loans | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 561,469 | 480,958 |
Personal loans | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 561,185 | 480,620 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Personal loans | Consumer | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,891 | 4,263 |
Personal loans | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,171 | 2,669 |
Personal loans | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,626 | 2,314 |
Personal loans | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 11,688 | 9,246 |
Personal loans | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 549,497 | 471,374 |
Credit lines | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 11,457 | 13,126 |
Credit lines | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 11,169 | 12,826 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Credit lines | Consumer | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 54 | 500 |
Credit lines | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 126 | 154 |
Credit lines | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 71 | 117 |
Credit lines | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 251 | 771 |
Credit lines | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 10,918 | 12,055 |
Credit cards | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 40,030 | 42,872 |
Credit cards | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 40,030 | 42,872 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Credit cards | Consumer | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 608 | 730 |
Credit cards | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 265 | 486 |
Credit cards | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 565 | 682 |
Credit cards | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,438 | 1,898 |
Credit cards | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 38,592 | 40,974 |
Overdraft | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 239 | 301 |
Overdraft | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 239 | 301 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Overdraft | Consumer | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 45 | 91 |
Overdraft | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 2 |
Overdraft | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Overdraft | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 45 | 93 |
Overdraft | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 194 | $ 208 |
LOANS (Investment in Loans on N
LOANS (Investment in Loans on Non-Accrual Status) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | $ 62,832 | $ 53,595 |
Non-accrual with no Allowance for Credit Loss | 17,817 | 36,005 |
Total | 80,649 | 89,600 |
Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 59,483 | 50,529 |
Non-accrual with no Allowance for Credit Loss | 14,218 | 29,885 |
Total | 73,701 | 80,414 |
PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 3,349 | 3,066 |
Non-accrual with no Allowance for Credit Loss | 3,599 | 6,120 |
Total | 6,948 | 9,186 |
Commercial loans: | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 27,819 | 16,449 |
Non-accrual with no Allowance for Credit Loss | 8,830 | 17,983 |
Total | 36,649 | 34,432 |
Commercial loans: | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 3,089 | 2,807 |
Non-accrual with no Allowance for Credit Loss | 3,599 | 6,120 |
Total | 6,688 | 8,927 |
Mortgage | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 12,013 | 11,719 |
Non-accrual with no Allowance for Credit Loss | 5,379 | 11,522 |
Total | 17,392 | 23,241 |
Mortgage | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 253 | 259 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 253 | 259 |
Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 3,355 | 2,749 |
Non-accrual with no Allowance for Credit Loss | 4 | 379 |
Total | 3,359 | 3,128 |
Consumer | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 7 | 0 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 7 | 0 |
Auto | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 16,296 | 19,612 |
Non-accrual with no Allowance for Credit Loss | 5 | 1 |
Total | 16,301 | 19,613 |
Commercial secured by real estate: | Commercial loans: | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 3,150 | 4,091 |
Non-accrual with no Allowance for Credit Loss | 7,971 | 17,098 |
Total | 11,121 | 21,189 |
Commercial secured by real estate: | Commercial loans: | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 3,089 | 2,807 |
Non-accrual with no Allowance for Credit Loss | 2,533 | 6,084 |
Total | 5,622 | 8,891 |
Other commercial and industrial | Commercial loans: | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 4,790 | 2,769 |
Non-accrual with no Allowance for Credit Loss | 859 | 885 |
Total | 5,649 | 3,654 |
Other commercial and industrial | Commercial loans: | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 0 | 0 |
Non-accrual with no Allowance for Credit Loss | 1,066 | 36 |
Total | 1,066 | 36 |
US commercial loans | Commercial loans: | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 19,879 | 9,589 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 19,879 | 9,589 |
Personal loans | Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 2,718 | 1,950 |
Non-accrual with no Allowance for Credit Loss | 4 | 379 |
Total | 2,722 | 2,329 |
Personal loans | Consumer | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 7 | 0 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 7 | 0 |
Credit lines | Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 71 | 116 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 71 | 116 |
Credit cards | Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 566 | 683 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | $ 566 | $ 683 |
LOANS (Troubled-Amortized Cost
LOANS (Troubled-Amortized Cost Basis Debt Restructuring Loan Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Extended Maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 1,436 | $ 11,448 | ||
Combination - Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | 117 | 805 | ||
Extended Maturity and Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | 0 | 4,733 | ||
Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | 6,894 | 6,894 | ||
Commercial loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 169 | $ 38,729 | ||
Commercial loans | Extended Maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 665 | $ 6,408 | ||
Percentage of Total Class of Financing Receivable | 0.02% | 0.23% | ||
Commercial loans | Commercial secured by real estate: | Extended Maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 629 | $ 6,328 | ||
Percentage of Total Class of Financing Receivable | 0.06% | 0.56% | ||
Commercial loans | Other commercial and industrial | Extended Maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 36 | $ 80 | ||
Percentage of Total Class of Financing Receivable | 0% | 0.01% | ||
Commercial loans | US commercial loans | Extended Maturity and Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 4,286 | ||
Percentage of Total Class of Financing Receivable | 0% | 0.61% | ||
Commercial loans | US commercial loans | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 6,824 | $ 6,824 | ||
Percentage of Total Class of Financing Receivable | 0.96% | 0.96% | ||
Mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | 10,918 | |||
Mortgage | Extended Maturity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 771 | $ 5,040 | ||
Percentage of Total Class of Financing Receivable | 0.05% | 0.31% | ||
Mortgage | Forbearance | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 98 | ||
Percentage of Total Class of Financing Receivable | 0% | 0.01% | ||
Mortgage | Combination - Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 117 | $ 723 | ||
Percentage of Total Class of Financing Receivable | 0.01% | 0.05% | ||
Mortgage | Extended Maturity and Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 447 | ||
Percentage of Total Class of Financing Receivable | 0% | 0.03% | ||
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 40 | $ 62 | ||
Consumer | Personal loans | Combination - Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 82 | ||
Percentage of Total Class of Financing Receivable | 0% | 0.01% | ||
Consumer | Personal loans | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 40 | $ 40 | ||
Percentage of Total Class of Financing Receivable | 0.01% | 0.01% | ||
Auto | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 30 | $ 30 | ||
Percentage of Total Class of Financing Receivable | 0% | 0% |
LOANS (Effect of Combined Modif
LOANS (Effect of Combined Modifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Interest Rate Reduction | 0% | 0% |
Weighted-Average Term Extension (In months) | 14 months | 54 months |
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) | $ 0 | $ 2,973 |
Commercial loans | Commercial secured by real estate: | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Interest Rate Reduction | 0% | 0% |
Weighted-Average Term Extension (In months) | 14 months | 23 months |
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) | $ 0 | $ 0 |
Commercial loans | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Interest Rate Reduction | 1.95% | 1.95% |
Weighted-Average Term Extension (In months) | 0 months | 31 months |
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) | $ 0 | $ 2,973 |
Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Interest Rate Reduction | 1.25% | 1.94% |
Weighted-Average Term Extension (In months) | 349 months | 227 months |
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) | $ 0 | $ 24 |
Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Interest Rate Reduction | 4% | 2.98% |
Weighted-Average Term Extension (In months) | 0 months | 81 months |
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) | $ 0 | $ 0 |
Auto | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Interest Rate Reduction | 3% | 3% |
Weighted-Average Term Extension (In months) | 0 months | 0 months |
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands) | $ 0 | $ 0 |
LOANS (Loans Held For Investmen
LOANS (Loans Held For Investment That Subsequently Defaulted) (Details) - Mortgage $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment | $ 415 |
Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment | 0 |
Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment | 415 |
Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment | 0 |
Combination - Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment | $ 0 |
LOANS (Aging of Loans Held For
LOANS (Aging of Loans Held For Investment) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | $ 23,978 |
30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 566 |
60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 133 |
90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 415 |
Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 1,114 |
Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 22,864 |
Commercial loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 17,518 |
Commercial loans | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 17,518 |
Commercial loans | Commercial secured by real estate: | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 6,328 |
Commercial loans | Commercial secured by real estate: | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Commercial secured by real estate: | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Commercial secured by real estate: | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Commercial secured by real estate: | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Commercial secured by real estate: | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 6,328 |
Commercial loans | Other commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 80 |
Commercial loans | Other commercial and industrial | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Other commercial and industrial | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Other commercial and industrial | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Other commercial and industrial | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | Other commercial and industrial | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 80 |
Commercial loans | US commercial loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 11,110 |
Commercial loans | US commercial loans | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | US commercial loans | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | US commercial loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | US commercial loans | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Commercial loans | US commercial loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 11,110 |
Mortgage | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 6,308 |
Mortgage | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 566 |
Mortgage | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 133 |
Mortgage | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 415 |
Mortgage | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 1,114 |
Mortgage | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 5,194 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 122 |
Consumer | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 122 |
Consumer | Personal loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 122 |
Consumer | Personal loans | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | Personal loans | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | Personal loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | Personal loans | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Consumer | Personal loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 122 |
Auto | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 30 |
Auto | 30-59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Auto | 60-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Auto | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Auto | Total Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | 0 |
Auto | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Loans | $ 30 |
LOANS (Troubled-Debt Restructur
LOANS (Troubled-Debt Restructuring Loan Portfolio) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 165,484 |
Related Allowance | 2,883 |
Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 145,155 |
Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 20,329 |
Commercial loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 54,382 |
Related Allowance | 312 |
Commercial loans | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 40,841 |
Commercial loans | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 13,541 |
Commercial loans | Commercial secured by real estate: | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 44,624 |
Related Allowance | 181 |
Commercial loans | Commercial secured by real estate: | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 31,437 |
Commercial loans | Commercial secured by real estate: | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 13,187 |
Commercial loans | Other commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 2,626 |
Related Allowance | 42 |
Commercial loans | Other commercial and industrial | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 2,272 |
Commercial loans | Other commercial and industrial | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 354 |
Commercial loans | US commercial loans: | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,132 |
Related Allowance | 89 |
Commercial loans | US commercial loans: | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,132 |
Commercial loans | US commercial loans: | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Mortgage | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 109,160 |
Related Allowance | 2,495 |
Mortgage | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 102,387 |
Mortgage | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 6,773 |
Consumer | Personal loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,865 |
Related Allowance | 73 |
Consumer | Personal loans | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,850 |
Consumer | Personal loans | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 15 |
Auto | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 77 |
Related Allowance | 3 |
Auto | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 77 |
Auto | Non-accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 0 |
LOANS (Troubled-Debt Restruct_2
LOANS (Troubled-Debt Restructurings By Loan Portfolio And Modification Type) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 165,484 |
Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 48,236 |
Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 39,017 |
Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 43,905 |
Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 34,326 |
Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 145,155 |
Commercial loans: | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 54,382 |
Commercial loans: | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 15,663 |
Commercial loans: | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 30,821 |
Commercial loans: | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,898 |
Commercial loans: | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial loans: | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 40,841 |
Commercial loans: | Commercial secured by real estate: | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 44,624 |
Commercial loans: | Commercial secured by real estate: | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,746 |
Commercial loans: | Commercial secured by real estate: | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 29,454 |
Commercial loans: | Commercial secured by real estate: | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,424 |
Commercial loans: | Commercial secured by real estate: | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial loans: | Commercial secured by real estate: | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 31,437 |
Commercial loans: | Other commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 2,626 |
Commercial loans: | Other commercial and industrial | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 785 |
Commercial loans: | Other commercial and industrial | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,367 |
Commercial loans: | Other commercial and industrial | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 474 |
Commercial loans: | Other commercial and industrial | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial loans: | Other commercial and industrial | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 2,272 |
Commercial loans: | US commercial loans: | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,132 |
Commercial loans: | US commercial loans: | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,132 |
Commercial loans: | US commercial loans: | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial loans: | US commercial loans: | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial loans: | US commercial loans: | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial loans: | US commercial loans: | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 7,132 |
Mortgage | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 109,160 |
Mortgage | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 31,709 |
Mortgage | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 8,020 |
Mortgage | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 35,194 |
Mortgage | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 34,237 |
Mortgage | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 102,387 |
Consumer | Personal loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,865 |
Consumer | Personal loans | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,850 |
Consumer | Personal loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,865 |
Consumer | Personal loans | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 825 |
Consumer | Personal loans | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 176 |
Consumer | Personal loans | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 793 |
Consumer | Personal loans | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 71 |
Auto | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 77 |
Auto | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 39 |
Auto | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Auto | Combination of reduction in interest rate and extension of maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 20 |
Auto | Forbearance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 18 |
Auto | Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 77 |
LOANS (TDR Pre_Post Modificatio
LOANS (TDR Pre/Post Modifications) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) contract | Sep. 30, 2022 USD ($) contract | |
Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 10 | |
Pre-Modification Outstanding Recorded Investment | $ 1,344 | |
Pre-Modification Weighted Average Rate | 4.45% | |
Pre-Modification Weighted Average Term (in Months) | 214 months | |
Post-Modification Outstanding Recorded Investment | $ 1,447 | |
Post-Modification Weighted Average Rate | 3.67% | |
Post-Modification Weighted Average Term (in Months) | 292 months | |
Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 82 | |
Pre-Modification Outstanding Recorded Investment | $ 10,377 | |
Pre-Modification Weighted Average Rate | 4.60% | |
Pre-Modification Weighted Average Term (in Months) | 266 months | |
Post-Modification Outstanding Recorded Investment | $ 10,918 | |
Post-Modification Weighted Average Rate | 3.64% | |
Post-Modification Weighted Average Term (in Months) | 341 months | |
Commercial loans: | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 1 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 170 | $ 38,873 |
Pre-Modification Weighted Average Rate | 5.75% | 3.57% |
Pre-Modification Weighted Average Term (in Months) | 66 months | 131 months |
Post-Modification Outstanding Recorded Investment | $ 169 | $ 38,729 |
Post-Modification Weighted Average Rate | 5.75% | 3.64% |
Post-Modification Weighted Average Term (in Months) | 114 months | 184 months |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 40 | $ 62 |
Pre-Modification Weighted Average Rate | 10.70% | 13.72% |
Pre-Modification Weighted Average Term (in Months) | 72 months | 75 months |
Post-Modification Outstanding Recorded Investment | $ 40 | $ 62 |
Post-Modification Weighted Average Rate | 10.95% | 10.95% |
Post-Modification Weighted Average Term (in Months) | 60 months | 67 months |
LOANS (Troubled Debt Restructur
LOANS (Troubled Debt Restructurings, Rolling Twelve Months) (Details) - Mortgage $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | contract | 9 |
Recorded Investment | $ | $ 1,087 |
LOANS (Aging of the Amortized C
LOANS (Aging of the Amortized Cost of Collateral-Dependent Loans Held For Investment) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commercial loans | Commercial secured by real estate: | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost of collateral-dependent loans held for investment | $ 8,605 | $ 8,805 |
LOANS (Credit Quality Indicator
LOANS (Credit Quality Indicators of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | $ 7,261,735 | $ 7,261,735 | $ 6,835,322 | ||
Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 6,163,158 | 6,163,158 | 5,641,446 | ||
Total | 24,824 | $ 18,626 | 59,693 | $ 42,623 | |
Commercial loans: | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 2,832,985 | 2,832,985 | 2,629,929 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 33 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 1,197 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 1,143 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 11 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 103 | ||||
Prior, charge-offs | 10,638 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 0 | ||||
Total | 13,125 | ||||
Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 432,092 | 432,092 | 436,675 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 405,918 | 405,918 | 477,709 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 389,139 | 389,139 | 236,654 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 231,128 | 231,128 | 206,558 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 140,285 | 140,285 | 122,733 | ||
Prior | 209,077 | 209,077 | 196,350 | ||
Revolving Loans Amortized Cost Basis | 885,489 | 885,489 | 794,098 | ||
Total Loans | 2,693,128 | 2,693,128 | 2,470,777 | ||
Total | 8,254 | 6,485 | 13,125 | 9,936 | |
Mortgage | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 1,604,010 | 1,604,010 | 1,704,221 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 0 | ||||
Prior, charge-offs | 610 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 0 | ||||
Total | 610 | ||||
Mortgage | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 27,314 | 27,314 | 18,700 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 19,866 | 19,866 | 25,274 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 23,927 | 23,927 | 16,285 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 16,174 | 16,174 | 16,031 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 15,204 | 15,204 | 17,031 | ||
Prior | 545,929 | 545,929 | 582,472 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 648,414 | 648,414 | 675,793 | ||
Total | 218 | 14 | 610 | 276 | |
Mortgage | Performing | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 27,314 | 27,314 | 18,700 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 19,752 | 19,752 | 25,274 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 23,745 | 23,745 | 16,175 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 16,065 | 16,065 | 15,457 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 14,722 | 14,722 | 16,790 | ||
Prior | 521,462 | 521,462 | 549,885 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 623,060 | 623,060 | 642,281 | ||
Mortgage | Nonperforming | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 114 | 114 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 182 | 182 | 110 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 109 | 109 | 574 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 482 | 482 | 241 | ||
Prior | 24,467 | 24,467 | 32,587 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 25,354 | 25,354 | 33,512 | ||
Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 613,195 | 613,195 | 537,257 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 492 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 7,581 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 3,461 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 638 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 1,172 | ||||
Prior, charge-offs | 637 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 2,871 | ||||
Total | 16,852 | ||||
Consumer | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 224,989 | 224,989 | 285,014 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 210,265 | 210,265 | 113,252 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 77,663 | 77,663 | 31,987 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 21,992 | 21,992 | 32,150 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 18,104 | 18,104 | 12,103 | ||
Prior | 8,172 | 8,172 | 6,114 | ||
Revolving Loans Amortized Cost Basis | 51,438 | 51,438 | 55,999 | ||
Total Loans | 612,623 | 612,623 | 536,619 | ||
Total | 5,894 | 4,163 | 16,852 | 10,129 | |
Mortgage and consumer loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 492 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 7,581 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 3,461 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 638 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 1,172 | ||||
Prior, charge-offs | 1,247 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 2,871 | ||||
Total | 17,462 | ||||
Mortgage and consumer loans | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 252,303 | 252,303 | 303,714 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 230,131 | 230,131 | 138,526 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 101,590 | 101,590 | 48,272 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 38,166 | 38,166 | 48,181 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 33,308 | 33,308 | 29,134 | ||
Prior | 554,101 | 554,101 | 588,586 | ||
Revolving Loans Amortized Cost Basis | 51,438 | 51,438 | 55,999 | ||
Total Loans | 1,261,037 | 1,261,037 | 1,212,412 | ||
Auto | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 2,211,545 | 2,211,545 | 1,963,915 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 1,120 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 12,271 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 7,848 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 2,945 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 2,402 | ||||
Prior, charge-offs | 2,520 | ||||
Total | 29,106 | ||||
Auto | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 623,999 | 623,999 | 733,760 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 670,546 | 670,546 | 479,581 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 392,311 | 392,311 | 263,060 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 206,874 | 206,874 | 230,492 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 170,833 | 170,833 | 157,044 | ||
Prior | 144,430 | 144,430 | 94,320 | ||
Total Loans | 2,208,993 | 2,208,993 | 1,958,257 | ||
Total | 10,458 | $ 7,964 | 29,106 | $ 22,282 | |
Auto | 1-660 | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 121,234 | 121,234 | 178,426 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 195,732 | 195,732 | 143,926 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 124,437 | 124,437 | 72,148 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 60,882 | 60,882 | 58,069 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 44,959 | 44,959 | 44,156 | ||
Prior | 47,229 | 47,229 | 31,980 | ||
Total Loans | 594,473 | 594,473 | 528,705 | ||
Auto | 661-699 | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 130,962 | 130,962 | 171,723 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 128,534 | 128,534 | 93,359 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 65,830 | 65,830 | 42,388 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 30,251 | 30,251 | 31,033 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 21,784 | 21,784 | 21,283 | ||
Prior | 19,694 | 19,694 | 13,518 | ||
Total Loans | 397,055 | 397,055 | 373,304 | ||
Auto | 700+ | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 367,239 | 367,239 | 375,845 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 339,488 | 339,488 | 235,743 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 197,162 | 197,162 | 144,783 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 113,239 | 113,239 | 135,517 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 99,649 | 99,649 | 88,597 | ||
Prior | 75,429 | 75,429 | 47,499 | ||
Total Loans | 1,192,206 | 1,192,206 | 1,027,984 | ||
Auto | No FICO | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 4,564 | 4,564 | 7,766 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 6,792 | 6,792 | 6,553 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 4,882 | 4,882 | 3,741 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 2,502 | 2,502 | 5,873 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 4,441 | 4,441 | 3,008 | ||
Prior | 2,078 | 2,078 | 1,323 | ||
Total Loans | 25,259 | 25,259 | 28,264 | ||
Commercial secured by real estate: | Commercial loans: | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 1,126,697 | 1,126,697 | 1,112,880 | ||
Commercial secured by real estate: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 106,717 | 106,717 | 222,037 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 222,262 | 222,262 | 186,185 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 179,688 | 179,688 | 117,161 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 140,452 | 140,452 | 135,927 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 101,349 | 101,349 | 53,022 | ||
Prior | 179,202 | 179,202 | 188,392 | ||
Revolving Loans Amortized Cost Basis | 71,392 | 71,392 | 71,478 | ||
Total Loans | 1,001,062 | 1,001,062 | 974,202 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 265 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 94 | ||||
Prior, charge-offs | 821 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 0 | ||||
Total | 1,180 | ||||
Other commercial and industrial | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 194,826 | 194,826 | 123,774 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 107,648 | 107,648 | 198,836 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 126,920 | 126,920 | 67,438 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 45,305 | 45,305 | 36,804 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 9,238 | 9,238 | 15,906 | ||
Prior | 16,070 | 16,070 | 7,958 | ||
Revolving Loans Amortized Cost Basis | 484,466 | 484,466 | 403,726 | ||
Total Loans | 984,473 | 984,473 | 854,442 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 41 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 878 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 11 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 9 | ||||
Prior, charge-offs | 1,180 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 0 | ||||
Total | 2,119 | ||||
US commercial loans: | Commercial loans: | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 707,593 | 707,593 | 642,133 | ||
Total | 2,700 | 9,800 | |||
US commercial loans: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 130,549 | 130,549 | 90,864 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 76,008 | 76,008 | 92,688 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 82,531 | 82,531 | 52,055 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 45,371 | 45,371 | 33,827 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 29,698 | 29,698 | 53,805 | ||
Prior | 13,805 | 13,805 | 0 | ||
Revolving Loans Amortized Cost Basis | 329,631 | 329,631 | 318,894 | ||
Total Loans | 707,593 | 707,593 | 642,133 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 33 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 1,156 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 0 | ||||
Prior, charge-offs | 8,637 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 0 | ||||
Total | 9,826 | ||||
Personal loans | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 492 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 7,581 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 3,461 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 638 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 1,172 | ||||
Prior, charge-offs | 637 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 0 | ||||
Total | 13,981 | ||||
Personal loans | Consumer | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 224,989 | 224,989 | 285,014 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 210,265 | 210,265 | 113,252 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 77,663 | 77,663 | 31,987 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 21,992 | 21,992 | 32,150 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 18,104 | 18,104 | 12,103 | ||
Prior | 8,172 | 8,172 | 6,114 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 561,185 | 561,185 | 480,620 | ||
Personal loans | Consumer | Performing | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 224,566 | 224,566 | 284,183 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 208,788 | 208,788 | 112,591 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 77,158 | 77,158 | 31,876 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 21,839 | 21,839 | 31,850 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 18,006 | 18,006 | 12,022 | ||
Prior | 8,106 | 8,106 | 5,768 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 558,463 | 558,463 | 478,290 | ||
Personal loans | Consumer | Nonperforming | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 423 | 423 | 831 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 1,477 | 1,477 | 661 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 505 | 505 | 111 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 153 | 153 | 300 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 98 | 98 | 81 | ||
Prior | 66 | 66 | 346 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 2,722 | 2,722 | 2,330 | ||
Credit lines | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 11,457 | 11,457 | 13,126 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 0 | ||||
Prior, charge-offs | 0 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 313 | ||||
Total | 313 | ||||
Credit lines | Consumer | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 11,169 | 11,169 | 12,826 | ||
Total Loans | 11,169 | 11,169 | 12,826 | ||
Credit lines | Consumer | Performing | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 11,097 | 11,097 | 12,710 | ||
Total Loans | 11,097 | 11,097 | 12,710 | ||
Credit lines | Consumer | Nonperforming | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 72 | 72 | 116 | ||
Total Loans | 72 | 72 | 116 | ||
Credit cards | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 40,030 | 40,030 | 42,872 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 0 | ||||
Prior, charge-offs | 0 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 2,124 | ||||
Total | 2,124 | ||||
Credit cards | Consumer | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 40,030 | 40,030 | 42,872 | ||
Total Loans | 40,030 | 40,030 | 42,872 | ||
Credit cards | Consumer | Performing | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 39,464 | 39,464 | 42,189 | ||
Total Loans | 39,464 | 39,464 | 42,189 | ||
Credit cards | Consumer | Nonperforming | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 566 | 566 | 683 | ||
Total Loans | 566 | 566 | 683 | ||
Overdraft | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | 239 | 239 | 301 | ||
Term loans amortized by cost basis, in current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs | 0 | ||||
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs | 0 | ||||
Prior, charge-offs | 0 | ||||
Revolving Loans Amortized Cost Basis, gross charge-offs | 434 | ||||
Total | 434 | ||||
Overdraft | Consumer | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 239 | 239 | 301 | ||
Total Loans | 239 | 239 | 301 | ||
Overdraft | Consumer | Performing | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 239 | 239 | 301 | ||
Total Loans | 239 | 239 | 301 | ||
Overdraft | Consumer | Nonperforming | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 0 | 0 | 0 | ||
Pass | Commercial secured by real estate: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 106,717 | 106,717 | 220,035 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 220,049 | 220,049 | 177,775 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 171,767 | 171,767 | 110,809 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 122,158 | 122,158 | 118,518 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 82,940 | 82,940 | 50,454 | ||
Prior | 156,508 | 156,508 | 159,721 | ||
Revolving Loans Amortized Cost Basis | 70,693 | 70,693 | 69,523 | ||
Total Loans | 930,832 | 930,832 | 906,835 | ||
Pass | Other commercial and industrial | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 194,795 | 194,795 | 123,659 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 105,699 | 105,699 | 198,776 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 126,074 | 126,074 | 67,147 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 38,982 | 38,982 | 35,678 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 8,260 | 8,260 | 13,807 | ||
Prior | 15,818 | 15,818 | 7,863 | ||
Revolving Loans Amortized Cost Basis | 483,884 | 483,884 | 397,944 | ||
Total Loans | 973,512 | 973,512 | 844,874 | ||
Pass | US commercial loans: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 119,438 | 119,438 | 81,155 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 68,167 | 68,167 | 92,688 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 75,965 | 75,965 | 43,965 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 45,371 | 45,371 | 33,827 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 29,698 | 29,698 | 49,356 | ||
Prior | 8,089 | 8,089 | 0 | ||
Revolving Loans Amortized Cost Basis | 320,863 | 320,863 | 308,183 | ||
Total Loans | 667,591 | 667,591 | 609,174 | ||
Special Mention | Commercial secured by real estate: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 1,899 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 1,806 | 1,806 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 6,642 | 6,642 | 6,007 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 17,542 | 17,542 | 17,004 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 15,754 | 15,754 | 2,095 | ||
Prior | 10,785 | 10,785 | 13,934 | ||
Revolving Loans Amortized Cost Basis | 172 | 172 | 439 | ||
Total Loans | 52,701 | 52,701 | 41,378 | ||
Special Mention | Other commercial and industrial | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 21 | 21 | 3 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 1,805 | 1,805 | 60 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 13 | 13 | 31 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 5,706 | 5,706 | 654 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 36 | 36 | 1,819 | ||
Prior | 126 | 126 | 21 | ||
Revolving Loans Amortized Cost Basis | 14 | 14 | 3,823 | ||
Total Loans | 7,721 | 7,721 | 6,411 | ||
Special Mention | US commercial loans: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 6,346 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 7,841 | 7,841 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 6,566 | 6,566 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 1,122 | ||
Total Loans | 14,407 | 14,407 | 7,468 | ||
Substandard | Commercial secured by real estate: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 103 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 407 | 407 | 8,410 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 1,279 | 1,279 | 345 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 752 | 752 | 405 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 2,655 | 2,655 | 473 | ||
Prior | 11,894 | 11,894 | 14,722 | ||
Revolving Loans Amortized Cost Basis | 527 | 527 | 1,185 | ||
Total Loans | 17,514 | 17,514 | 25,643 | ||
Substandard | Other commercial and industrial | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 10 | 10 | 112 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 144 | 144 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 833 | 833 | 260 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 617 | 617 | 472 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 942 | 942 | 280 | ||
Prior | 126 | 126 | 74 | ||
Revolving Loans Amortized Cost Basis | 568 | 568 | 1,920 | ||
Total Loans | 3,240 | 3,240 | 3,118 | ||
Substandard | US commercial loans: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 11,111 | 11,111 | 3,363 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 8,090 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 4,449 | ||
Prior | 5,716 | 5,716 | 0 | ||
Revolving Loans Amortized Cost Basis | 8,768 | 8,768 | 9,589 | ||
Total Loans | 25,595 | 25,595 | 25,491 | ||
Doubtful | Commercial secured by real estate: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 15 | 15 | 15 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 331 | ||
Total Loans | 15 | 15 | 346 | ||
Doubtful | Other commercial and industrial | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 39 | ||
Total Loans | 0 | 0 | 39 | ||
Doubtful | US commercial loans: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 0 | 0 | 0 | ||
Loss | Commercial secured by real estate: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 0 | 0 | 0 | ||
Loss | Other commercial and industrial | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | 0 | 0 | 0 | ||
Loss | US commercial loans: | Commercial loans: | Non-PCD | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 | 0 | ||
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total Loans | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES (Na
ALLOWANCE FOR CREDIT LOSSES (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Decrease in allowance for credit losses | $ (4,900) | |||
Provision for (recapture of) credit losses | $ 16,430 | $ 7,120 | 40,919 | $ 15,362 |
Net charge-off | (35,600) | |||
Increase (decrease) in net charge-offs | 19,100 | |||
Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 24,824 | 18,626 | 59,693 | 42,623 |
Recoveries | 6,207 | 6,900 | 25,120 | 21,863 |
Qualitative Reserve | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | 5,100 | |||
Changes in Economic and Loss Rate Models and Miscellaneous Reserves | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | (3,200) | |||
Commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | 14,700 | |||
Increase (decrease) in net charge-offs | 8,300 | |||
Charge-offs | 13,125 | |||
Commercial loans | US commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 2,700 | $ 9,800 | ||
Number of commercial loans | loan | 3 | |||
Commercial loans | Small business commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | $ 906 | |||
Commercial loans | Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 8,254 | 6,485 | 13,125 | 9,936 |
Recoveries | 174 | 214 | 737 | 862 |
Commercial loans | Non-PCD | US commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 9,826 | |||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Increase (decrease) in net charge-offs | 5,700 | |||
Charge-offs | 16,852 | |||
Consumer | Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 5,894 | 4,163 | 16,852 | 10,129 |
Recoveries | 655 | 732 | 3,524 | 2,182 |
Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Increase (decrease) in net charge-offs | 2,400 | |||
Charge-offs | 610 | |||
Mortgage | Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 218 | 14 | 610 | 276 |
Recoveries | 185 | 280 | 735 | 2,689 |
Consumer And Automobile And Leasing Portfolio Segments | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Recoveries | 3,700 | |||
Auto | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Increase (decrease) in net charge-offs | 2,700 | |||
Charge-offs | 29,106 | |||
Auto | Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Charge-offs | 10,458 | 7,964 | 29,106 | 22,282 |
Recoveries | $ 5,193 | $ 5,674 | 20,124 | $ 16,130 |
Financing Receivable, Loan Growth Member | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | $ 23,800 |
ALLOWANCE FOR CREDIT LOSSES (Al
ALLOWANCE FOR CREDIT LOSSES (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 152,673 | |||
Balance at end of period | $ 157,529 | $ 155,162 | 157,529 | $ 155,162 |
Commercial loans: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (13,125) | |||
Balance at end of period | 42,899 | 40,737 | 42,899 | 40,737 |
Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (610) | |||
Balance at end of period | 16,367 | 21,158 | 16,367 | 21,158 |
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (16,852) | |||
Balance at end of period | 26,460 | 24,251 | 26,460 | 24,251 |
Auto | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (29,106) | |||
Balance at end of period | 71,803 | 69,016 | 71,803 | 69,016 |
Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 150,167 | 143,896 | 141,841 | 132,065 |
Provision for (recapture of) credit losses | 16,660 | 10,247 | 40,942 | 31,112 |
Charge-offs | (24,824) | (18,626) | (59,693) | (42,623) |
Recoveries | 6,207 | 6,900 | 25,120 | 21,863 |
Balance at end of period | 148,210 | 142,417 | 148,210 | 142,417 |
Non-PCD | Commercial loans: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 48,604 | 42,014 | 39,158 | 32,262 |
Provision for (recapture of) credit losses | 1,103 | 3,108 | 14,857 | 15,663 |
Charge-offs | (8,254) | (6,485) | (13,125) | (9,936) |
Recoveries | 174 | 214 | 737 | 862 |
Balance at end of period | 41,627 | 38,851 | 41,627 | 38,851 |
Non-PCD | Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 8,670 | 11,906 | 9,571 | 15,299 |
Provision for (recapture of) credit losses | (273) | (1,741) | (1,332) | (7,281) |
Charge-offs | (218) | (14) | (610) | (276) |
Recoveries | 185 | 280 | 735 | 2,689 |
Balance at end of period | 8,364 | 10,431 | 8,364 | 10,431 |
Non-PCD | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 25,666 | 23,109 | 23,264 | 19,141 |
Provision for (recapture of) credit losses | 6,026 | 4,555 | 16,517 | 13,039 |
Charge-offs | (5,894) | (4,163) | (16,852) | (10,129) |
Recoveries | 655 | 732 | 3,524 | 2,182 |
Balance at end of period | 26,453 | 24,233 | 26,453 | 24,233 |
Non-PCD | Auto | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 67,227 | 66,867 | 69,848 | 65,363 |
Provision for (recapture of) credit losses | 9,804 | 4,325 | 10,900 | 9,691 |
Charge-offs | (10,458) | (7,964) | (29,106) | (22,282) |
Recoveries | 5,193 | 5,674 | 20,124 | 16,130 |
Balance at end of period | 71,766 | 68,902 | 71,766 | 68,902 |
PCD | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 9,756 | 15,143 | 10,832 | 23,872 |
Provision for (recapture of) credit losses | (218) | (2,777) | (525) | (15,420) |
Charge-offs | (914) | (358) | (3,552) | (1,945) |
Recoveries | 695 | 737 | 2,564 | 6,238 |
Balance at end of period | 9,319 | 12,745 | 9,319 | 12,745 |
PCD | Commercial loans: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1,408 | 2,427 | 1,388 | 4,508 |
Provision for (recapture of) credit losses | 60 | (786) | 1,376 | (6,105) |
Charge-offs | (690) | (23) | (2,794) | (57) |
Recoveries | 494 | 268 | 1,302 | 3,540 |
Balance at end of period | 1,272 | 1,886 | 1,272 | 1,886 |
PCD | Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 8,297 | 12,541 | 9,359 | 19,018 |
Provision for (recapture of) credit losses | (226) | (1,735) | (1,719) | (8,766) |
Charge-offs | (148) | (270) | (224) | (1,587) |
Recoveries | 80 | 191 | 587 | 2,062 |
Balance at end of period | 8,003 | 10,727 | 8,003 | 10,727 |
PCD | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 8 | 20 | 14 | 34 |
Provision for (recapture of) credit losses | 15 | (40) | 293 | (43) |
Charge-offs | (39) | (9) | (376) | (56) |
Recoveries | 23 | 47 | 76 | 83 |
Balance at end of period | 7 | 18 | 7 | 18 |
PCD | Auto | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 43 | 155 | 71 | 312 |
Provision for (recapture of) credit losses | (67) | (216) | (475) | (506) |
Charge-offs | (37) | (56) | (158) | (245) |
Recoveries | 98 | 231 | 599 | 553 |
Balance at end of period | $ 37 | $ 114 | $ 37 | $ 114 |
FORECLOSED REAL ESTATE (Foreclo
FORECLOSED REAL ESTATE (Foreclosed Real Estate Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Real Estate Owned Activity [Roll Forward] | ||||
Foreclosed real estate beginning balance | $ 10,639 | $ 15,061 | $ 11,214 | $ 15,039 |
Additions | 1,879 | 1,454 | 6,513 | 7,183 |
Sales | (3,799) | (3,919) | (10,451) | (11,866) |
Decline in value | (538) | (322) | (937) | (736) |
Other adjustments | 1,374 | 2,287 | 3,216 | 4,941 |
Foreclosed real estate ending balance | $ 9,555 | $ 14,561 | $ 9,555 | $ 14,561 |
SERVICING ASSETS (Narrative) (D
SERVICING ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | ||||||||
Fair value of servicing asset | $ 50,601 | $ 50,061 | $ 50,601 | $ 50,061 | $ 49,966 | $ 50,921 | $ 49,280 | $ 48,973 |
Servicing fees on mortgage loans | 668 | 621 | 2,251 | 2,427 | ||||
Conventional Mortgage Loan | ||||||||
Servicing Assets at Fair Value [Line Items] | ||||||||
Servicing fees on mortgage loans | $ 4,600 | $ 5,100 | $ 14,400 | $ 15,300 |
SERVICING ASSETS (Changes in Se
SERVICING ASSETS (Changes in Serving Rights at Fair Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Fair value at beginning of period | $ 49,966 | $ 49,280 | $ 50,921 | $ 48,973 |
Servicing from mortgage securitization or asset transfers | 453 | 666 | 1,818 | 2,935 |
Changes due to payments on loans | (1,060) | (1,191) | (3,210) | (4,168) |
Changes in fair value due to changes in valuation model inputs or assumptions | 1,242 | 1,306 | 1,072 | 2,321 |
Fair value at end of period | $ 50,601 | $ 50,061 | $ 50,601 | $ 50,061 |
SERVICING ASSETS (Key Economic
SERVICING ASSETS (Key Economic Assumptions) (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Constant prepayment rate | 3.33% | 3.38% |
Discount rate | 10% | 10% |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Constant prepayment rate | 20.40% | 20.36% |
Discount rate | 15.50% | 15.50% |
SERVICING ASSETS (Sensitivity o
SERVICING ASSETS (Sensitivity of Current Fair Value of Servicing Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Carrying value of mortgage servicing asset | $ 50,601 | $ 50,921 |
Weighted average life (in years) | 7 years 8 months 12 days | 7 years 9 months 18 days |
Constant prepayment rate - Decrease in fair value due to 10% adverse change | $ (922) | $ (956) |
Constant prepayment rate - Decrease in fair value due to 20% adverse change | (1,812) | (1,880) |
Discount rate - Decrease in fair value due to 10% adverse change | (2,224) | (2,265) |
Discount rate - Decrease in fair value due to 20% adverse change | $ (4,279) | $ (4,356) |
DERIVATIVES (Details)
DERIVATIVES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional amount of derivative contracts outstanding | $ 0 | $ 26,600 |
Derivative assets | 406 | |
Derivative liabilities | $ 0 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 84,241 | $ 84,241 |
Banking | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 84,063 | 84,063 |
Wealth Management | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 178 | 178 |
Treasury | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Increase (decrease) in carrying amount of goodwill | $ 0 | $ 0 | $ 0 | $ 0 | |
Accumulated impairment losses | 0 | 0 | $ 0 | ||
Impairment of goodwill | $ 0 | ||||
Amortization of intangible assets | $ 1,700 | $ 2,100 | $ 5,174 | $ 6,431 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Core Deposit, Customer Relationship and Other Intangibles) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 54,200 | $ 54,200 |
Accumulated Amortization | 31,781 | 26,607 |
Net Carrying Value | 22,419 | 27,593 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 41,507 | 41,507 |
Accumulated Amortization | 24,338 | 20,376 |
Net Carrying Value | 17,169 | 21,131 |
Customer relationship intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,693 | 12,693 |
Accumulated Amortization | 7,443 | 6,231 |
Net Carrying Value | $ 5,250 | $ 6,462 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated Amortization of Other Intangible Assets) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 6,898 |
2024 | 5,913 |
2025 | 4,927 |
2026 | 3,942 |
2027 | 2,956 |
Thereafter | $ 2,957 |
ACCRUED INTEREST RECEIVABLE A_3
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Schedule of Accrued Interest Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 67,868 | $ 62,402 |
Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | 59,909 | 58,144 |
Investments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 7,959 | $ 4,258 |
ACCRUED INTEREST RECEIVABLE A_4
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other assets [Line Items] | ||
Prepaid expenses | $ 67,545 | $ 54,875 |
Prepaid municipal, property, and income taxes | 56,800 | 47,200 |
Other repossessed assets | 4,432 | 4,617 |
COVID-19 and Hurricane Fiona Deferral Program Loans | ||
Other assets [Line Items] | ||
Accrued interest receivable | 20,500 | 21,800 |
COVID-19 and Hurricane Fiona Deferral Program Loans | Accrued Income Receivable | ||
Other assets [Line Items] | ||
Allowance for credit losses | 153 | 144 |
COVID-19 and Hurricane Fiona Deferral Program Loans | Current | ||
Other assets [Line Items] | ||
Accrued interest receivable | $ 19,500 | $ 20,700 |
ACCRUED INTEREST RECEIVABLE A_5
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Other Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Interest Receivable and Other Assets [Abstract] | ||
Prepaid expenses | $ 67,545 | $ 54,875 |
Other repossessed assets | 4,432 | 4,617 |
Accounts receivable and other assets | 48,096 | 61,420 |
Other assets | $ 120,073 | $ 120,912 |
DEPOSITS AND RELATED INTEREST_2
DEPOSITS AND RELATED INTEREST (Deposits by Components) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits and Related Interest [Abstract] | ||
Non-interest-bearing demand deposits | $ 2,571,068 | $ 2,630,458 |
Interest-bearing savings and demand deposits | 4,540,052 | 4,774,265 |
Retail certificates of deposit | 1,075,238 | 979,545 |
Institutional certificates of deposit | 352,259 | 172,725 |
Total core deposits | 8,538,617 | 8,556,993 |
Brokered deposits | 2,936 | 11,371 |
Total deposits | $ 8,541,553 | $ 8,568,364 |
DEPOSITS AND RELATED INTEREST_3
DEPOSITS AND RELATED INTEREST (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits and Related Interest [Line Items] | ||
Uninsured deposits | $ 3,747,000 | $ 3,498,000 |
Weighted average interest rate of deposits | 0.70% | 0.41% |
Time deposits in denominations in excess of $250,000 | $ 702,000 | $ 384,400 |
Deposits | 8,541,553 | 8,568,364 |
Public funds collateral investments | 491,000 | 367,300 |
Accrued interest on time deposits | 1,300 | 682 |
Overdrafts in demand deposit accounts | 606 | 495 |
Government | Puerto Rico | ||
Deposits and Related Interest [Line Items] | ||
Deposits | $ 390,600 | $ 284,200 |
DEPOSITS AND RELATED INTEREST_4
DEPOSITS AND RELATED INTEREST (Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deposits and Related Interest [Abstract] | ||||
Demand and savings deposits | $ 13,772 | $ 6,299 | $ 32,864 | $ 16,376 |
Certificates of deposit | 7,047 | 1,688 | 16,368 | 5,596 |
Total | $ 20,819 | $ 7,987 | $ 49,232 | $ 21,972 |
DEPOSITS AND RELATED INTEREST_5
DEPOSITS AND RELATED INTEREST (Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Year-end amount, Within One Year | ||
Three months or less | $ 260,003 | $ 238,776 |
Over 3 months through 6 months | 196,868 | 152,940 |
Over 6 months through 1 year | 311,164 | 262,976 |
Within one year | 768,035 | 654,692 |
Year-end amount, after one year: | ||
Over 1 through 2 years | 476,048 | 279,034 |
Over 2 through 3 years | 107,977 | 136,732 |
Over 3 through 4 years | 29,362 | 51,505 |
Over 4 through 5 years | 46,117 | 39,888 |
Over 5 years | 1,625 | 1,108 |
Certificates of deposit | 1,429,164 | 1,162,959 |
Uninsured amount, within one year: | ||
Three months or less | 81,888 | 29,503 |
Over 3 months through 6 months | 81,844 | 18,238 |
Over 6 months through 1 year | 88,901 | 59,093 |
Within one year | 252,633 | 106,834 |
Uninsured amount, after one year: | ||
Over 1 through 2 years | 203,379 | 64,109 |
Over 2 through 3 years | 12,130 | 26,481 |
Over 3 through 4 years | 2,657 | 8,276 |
Over 4 through 5 years | 2,939 | 2,230 |
Over 5 years | 0 | 0 |
Uninsured amount | $ 473,738 | $ 207,930 |
BORROWINGS AND RELATED INTERE_3
BORROWINGS AND RELATED INTEREST (Securities Sold under Agreements to Repurchase) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Securities Sold under Agreements to Repurchase | |
Debt Instrument [Line Items] | |
Accrued interest payable | $ 68 |
BORROWINGS AND RELATED INTERE_4
BORROWINGS AND RELATED INTEREST (OFG’s Repurchase Agreements, Excluding Accrued Interest) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Balance of Borrowing | $ 150,701 | $ 0 |
FNMA and FHMLC Certificates | ||
Debt Instrument [Line Items] | ||
Amortized Cost of Underlying Securities | 183,004 | |
Balance of Borrowing | 150,633 | |
Approximate Fair Value of Underlying Securities | $ 161,973 | |
Weighted Average Interest Rate of Security | 2.95% | |
Securities Sold under Agreements to Repurchase | ||
Debt Instrument [Line Items] | ||
Balance of Borrowing | $ 0 | |
Securities Sold under Agreements to Repurchase | Under 90 days | ||
Debt Instrument [Line Items] | ||
Balance of Borrowing | $ 150,633 | |
Securities Sold under Agreements to Repurchase | Short-term Fixed-rate Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Balance of Borrowing | $ 150,633 | |
Weighted Average Interest Rate of Security | 5.47% |
BORROWINGS AND RELATED INTERE_5
BORROWINGS AND RELATED INTEREST (Advances from the Federal Home Loan Bank of New York) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Additional borrowing capacity | $ 346,400 | $ 628,100 |
Weighted average period remaining maturity of FHLB advances | 1 year 4 months 24 days | 3 days |
Advances from the Federal Home Loan Bank | Federal Loan Home Bank Advances Short Term Period | ||
Debt Instrument [Line Items] | ||
Original debt instrument term of FHLB advances | 3 days | |
Asset Pledged as Collateral | Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Total Loans | $ 954,900 | $ 951,100 |
Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Minimum amount of qualifying collateral | 110% | |
Accrued interest payable | $ 774 | $ 103 |
Advances from the Federal Home Loan Bank | Long-Term Fixed-Rate Advances from FHLB | ||
Debt Instrument [Line Items] | ||
Original debt instrument term of FHLB advances | 2 years |
BORROWINGS AND RELATED INTERE_6
BORROWINGS AND RELATED INTEREST (Schedule of Federal Home Loan Bank Advances And Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | $ 300,774 | $ 26,716 |
Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | 300,000 | 26,613 |
Long-Term Fixed-Rate Advances from FHLB | Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | $ 200,000 | 0 |
Weighted average interest rate of FHLB advances | 4.52% | |
Over one to three years | Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | $ 200,000 | $ 0 |
Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of FHLB advances | 5.59% | 4.46% |
Advances from the Federal Home Loan Bank | Federal Loan Home Bank Advances Short Term Period | ||
Debt Instrument [Line Items] | ||
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | $ 100,000 | $ 26,613 |
Advances from the Federal Home Loan Bank | Under 90 days | ||
Debt Instrument [Line Items] | ||
Advances from the Federal Home Loan Bank of New York (the “FHLB”) | $ 100,000 | $ 26,613 |
OFFSETTING OF FINANCIAL ASSET_3
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Offsetting Liabilities) (Details) - Securities Sold Under Agreements To Repurchase $ in Thousands | Sep. 30, 2023 USD ($) |
Offsetting Liabilities [Line Items] | |
Gross Amount of Recognized Liabilities | $ 150,633 |
Gross Amounts Offset in the Statement of Financial Condition | 0 |
Net Amount of Liabilities Presented in Statement of Financial Condition | 150,633 |
Financial Instruments | 161,973 |
Cash Collateral Provided | 0 |
Net Amount | $ (11,340) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Statutory tax rate (as a percent) | 37.50% | ||||
Valuation allowance | $ 8,300 | $ 8,300 | $ 9,100 | ||
Deferred tax asset, net | 11,100 | 11,100 | 55,500 | ||
Increase (decrease) in valuation allowance | (883) | ||||
Decrease deferred tax asset | (44,400) | ||||
Deferred loan charge-offs | (112,400) | $ (112,400) | |||
Effective tax rate (as a percent) | 31.30% | 31.90% | |||
Expected effective tax rate for 2023 | 31.40% | ||||
Unrecognized tax benefits | 918 | $ 918 | $ 867 | ||
Income tax expense (benefit) | $ 21,025 | $ 20,599 | $ 61,541 | $ 56,095 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
OFG Bancorp | ||
Amount | ||
Actual - Total capital to risk-weighted assets | $ 1,224,963 | $ 1,132,658 |
Actual - Tier 1 capital to risk-weighted assets | 1,124,599 | 1,037,385 |
Actual - Common equity tier 1 capital to risk-weighted assets | 1,124,599 | 1,037,385 |
Actual - Tier 1 capital to average total assets | 1,124,599 | 1,037,385 |
Minimum Capital Requirement - Total capital to risk-weighted assets | 840,075 | 798,574 |
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets | 680,060 | 646,465 |
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets | 560,050 | 532,383 |
Minimum Capital Requirement - Tier 1 capital to average total assets | 407,737 | 400,445 |
Minimum to be Well Capitalized - Total capital to risk-weighted assets | 800,071 | 760,547 |
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets | 640,057 | 608,437 |
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets | 520,046 | 494,355 |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | $ 509,672 | $ 500,557 |
Ratio | ||
Actual - total capital to risk-weighted assets | 0.1531 | 0.1489 |
Actual - Tier 1 capital to risk-weighted assets | 0.1406 | 0.1364 |
Actual - Common equity tier 1 capital to risk-weighted assets | 0.1406 | 0.1364 |
Actual - Tier 1 capital to average total assets | 0.1103 | 0.1036 |
Minimum Capital Requirement - Total capital to risk-weighted assets | 0.1050 | 0.1050 |
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets | 0.0850 | 0.0850 |
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets | 0.0700 | 0.0700 |
Minimum Capital Requirement - Tier 1 capital to average total assets | 0.0400 | 0.0400 |
Minimum to be Well Capitalized - Total capital to risk-weighted assets | 0.1000 | 0.1000 |
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets | 0.0800 | 0.0800 |
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets | 0.0650 | 0.0650 |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | 0.0500 | 0.0500 |
Bank | ||
Amount | ||
Actual - Total capital to risk-weighted assets | $ 1,120,234 | $ 1,028,126 |
Actual - Tier 1 capital to risk-weighted assets | 1,020,488 | 933,494 |
Actual - Common equity tier 1 capital to risk-weighted assets | 1,020,488 | 933,494 |
Actual - Tier 1 capital to average total assets | 1,020,488 | 933,494 |
Minimum Capital Requirement - Total capital to risk-weighted assets | 834,814 | 793,124 |
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets | 675,802 | 642,053 |
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets | 556,543 | 528,749 |
Minimum Capital Requirement - Tier 1 capital to average total assets | 403,339 | 396,525 |
Minimum to be Well Capitalized - Total capital to risk-weighted assets | 795,061 | 755,356 |
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets | 636,049 | 604,285 |
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets | 516,790 | 490,981 |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | $ 504,174 | $ 495,656 |
Ratio | ||
Actual - total capital to risk-weighted assets | 0.1409 | 0.1361 |
Actual - Tier 1 capital to risk-weighted assets | 0.1284 | 0.1236 |
Actual - Common equity tier 1 capital to risk-weighted assets | 0.1284 | 0.1236 |
Actual - Tier 1 capital to average total assets | 0.1012 | 0.0942 |
Minimum Capital Requirement - Total capital to risk-weighted assets | 0.1050 | 0.1050 |
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets | 0.0850 | 0.0850 |
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets | 0.0700 | 0.0700 |
Minimum Capital Requirement - Tier 1 capital to average total assets | 0.0400 | 0.0400 |
Minimum to be Well Capitalized - Total capital to risk-weighted assets | 0.1000 | 0.1000 |
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets | 0.0800 | 0.0800 |
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets | 0.0650 | 0.0650 |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | 0.0500 | 0.0500 |
STOCKHOLDERS_ EQUITY (Narrative
STOCKHOLDERS’ EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jan. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock | $ 59,885 | $ 59,885 | ||
Legal surplus | 146,774 | 133,901 | ||
Transfer to legal surplus | 12,900 | |||
Stock repurchase program, authorized amount | $ 100,000 | $ 100,000 | ||
Shares repurchased during period (in shares) | 743,699 | 2,351,868 | ||
Common shares repurchased as part of the stock repurchase programs | $ 18,653 | $ 64,110 | ||
Share repurchased, average price per share (in dollars per share) | $ 25.08 | $ 27.26 | ||
Stock repurchase program, remaining number of shares authorized to be repurchased (in shares) | 577,260 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 17,200 | |||
Share price (in dollars per share) | $ 29.86 | |||
Shares purchased (in shares) | 0 | 0 | ||
Common stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Accumulated common stock issuance costs charged against paid in capital | $ 13,600 | $ 13,600 |
STOCKHOLDERS_ EQUITY (Activity
STOCKHOLDERS’ EQUITY (Activity of Common Shares Held in Treasury) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Shares | ||
Beginning of period (in shares) | 12,303,859 | 10,248,882 |
Common shares used upon lapse of restricted stock units and options (in shares) | (220,130) | (278,788) |
Common shares repurchased as part of the stock repurchase programs (in shares) | 743,699 | 2,351,868 |
End of period (in shares) | 12,827,428 | 12,321,962 |
Dollar Amount | ||
Beginning of period | $ 211,135 | $ 150,572 |
Common shares used upon lapse of restricted stock units and options | (1,414) | (3,544) |
Common shares repurchased as part of the stock repurchase programs | 18,653 | 64,110 |
End of period | $ 228,374 | $ 211,138 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Accumulated Comprehensive Income, Net of Income Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized gain on cash flow hedges | $ (120) | $ 245 | $ (406) | $ 1,214 | |
Accumulated other comprehensive loss, net of income taxes | (127,677) | (127,677) | $ (93,409) | ||
AOCI Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss, net of income taxes | (127,677) | (127,677) | (93,409) | ||
Net unrealized gain (loss) on securities available-for-sale | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized loss on securities available-for-sale | (150,480) | (110,036) | |||
Income tax effect of unrealized loss on securities available-for-sale | 22,803 | 16,373 | |||
Net unrealized loss on securities available-for-sale | $ (127,677) | (127,677) | (93,663) | ||
Net unrealized gain (loss) on cash flow hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized gain on cash flow hedges | 0 | 406 | |||
Income tax effect of unrealized gain on cash flow hedges | 0 | (152) | |||
Net unrealized gain on cash flow hedges | $ 0 | $ 254 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Changes in Other Comprehensive Income by Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | $ 1,042,406 | |||
Other comprehensive loss before reclassifications | $ (40,489) | $ (54,567) | (38,518) | $ (109,610) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 2,376 | 180 | 4,250 | 561 |
Other comprehensive loss | (38,113) | (54,387) | (34,268) | (109,049) |
Balance at end of year | 1,095,463 | 993,867 | 1,095,463 | 993,867 |
Accumulated other comprehensive loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | (89,564) | (49,502) | (93,409) | 5,160 |
Balance at end of year | (127,677) | (103,889) | (127,677) | (103,889) |
Net unrealized gain (loss) on securities available-for-sale | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | (89,639) | (49,606) | (93,663) | 5,663 |
Other comprehensive loss before reclassifications | (38,040) | (54,541) | (32,871) | (109,814) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 2 | 2 | (1,143) | 6 |
Other comprehensive loss | (38,038) | (54,539) | (34,014) | (109,808) |
Balance at end of year | (127,677) | (104,145) | (127,677) | (104,145) |
Net unrealized gain (loss) on cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | 75 | 104 | 254 | (503) |
Other comprehensive loss before reclassifications | (2,449) | (26) | (5,647) | 204 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 2,374 | 178 | 5,393 | 555 |
Other comprehensive loss | (75) | 152 | (254) | 759 |
Balance at end of year | $ 0 | $ 256 | $ 0 | $ 256 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE LOSS (Reclassifications Out of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest expense | $ 23,921 | $ 8,165 | $ 55,353 | $ 23,048 |
Income tax expense | 21,025 | 20,599 | 61,541 | 56,095 |
Net income | 44,873 | 41,919 | 135,275 | 119,872 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 2,376 | 180 | 4,250 | 561 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gain (loss) on securities available-for-sale | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss on sale of investments | (1,149) | 0 | ||
Income tax expense | 2 | 2 | 6 | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | Net unrealized gain (loss) on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest expense | $ 2,374 | $ 178 | $ 5,393 | $ 555 |
EARNINGS PER COMMON SHARE (Sche
EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Income available to common shareholders | $ 44,873 | $ 41,919 | $ 135,275 | $ 119,872 |
Average common shares outstanding (in shares) | 47,114 | 47,558 | 47,325 | 48,188 |
Average potential common shares-options (in shares) | 278 | 368 | 280 | 406 |
Total weighted average common shares outstanding and equivalents (in shares) | 47,392 | 47,926 | 47,605 | 48,594 |
Earnings per common share - basic (in dollars per share) | $ 0.95 | $ 0.88 | $ 2.86 | $ 2.49 |
Earnings per common share - diluted (in dollars per share) | $ 0.95 | $ 0.87 | $ 2.84 | $ 2.47 |
EARNINGS PER COMMON SHARE (Narr
EARNINGS PER COMMON SHARE (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||||
Weighted average stock options with an anti dilutive effect excluded from calculation of earnings per share (in shares) | 245 | 0 | 1,791 | 1,070 | ||
Quarterly common stock cash dividend (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.20 | $ 0.20 | $ 0.66 | $ 0.50 |
GUARANTEES (Narrative) (Details
GUARANTEES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Guarantor Obligations [Line Items] | |||||
Acquired standby letters of credit and financial guarantees | $ 28,100 | $ 28,100 | $ 24,700 | ||
Repurchased loans not subject to credit recourse provision | 2,500 | $ 5,000 | 8,900 | $ 20,300 | |
Gain on early extinguishment of debt | 0 | 0 | 0 | 42 | |
Amount of serviced loans | 5,600,000 | 5,600,000 | 5,800,000 | ||
Funds advanced to investors under servicing agreements | 4,400 | 4,400 | 7,800 | ||
Recourse | |||||
Guarantor Obligations [Line Items] | |||||
Loans sold with recourse | 101,343 | 101,343 | 110,891 | ||
Liability for estimated credit losses to loans sold with credit recourse | 175 | 175 | 147 | ||
Repurchased GNMA | 251 | 119 | 861 | 1,500 | |
Gain on early extinguishment of debt | 25 | 6 | 147 | 127 | |
Nonrecourse | |||||
Guarantor Obligations [Line Items] | |||||
Gain on early extinguishment of debt | 199 | $ (210) | 103 | $ (261) | |
Loan serviced under representation warranties | Nonrecourse | |||||
Guarantor Obligations [Line Items] | |||||
Loans sold with recourse | $ 845 | $ 845 | $ 1,400 |
GUARANTEES (Changes in Liabilit
GUARANTEES (Changes in Liability of Estimated Loss from Credit Recourse Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Balance at beginning of period | $ 150 | $ 174 | $ 147 | $ 294 |
Net recoveries (charge-offs/terminations) | 25 | (6) | 28 | (126) |
Balance at end of period | $ 175 | $ 168 | $ 175 | $ 168 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Summarized Credit-Related Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 1,291,292 | $ 1,403,118 |
Commercial letters of credit | 396 | 1,082 |
Standby letters of credit and financial guarantees | 28,116 | 24,749 |
Recourse | ||
Other Commitments [Line Items] | ||
Loans sold with recourse | $ 101,343 | $ 110,891 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
Allowance for credit losses for off-balance sheet | $ 1,200 | $ 734 |
Other non-credit commitments | 19,700 | 21,500 |
Contingency loss accrued liability | 1,200 | 2,400 |
Technology Commitments | ||
Other Commitments [Line Items] | ||
Commitments for capital expenditures in technology | $ 5,700 | $ 8,600 |
OPERATING LEASES (Operating Lea
OPERATING LEASES (Operating Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee Disclosure [Abstract] | ||||
Lease costs | $ 5,130 | $ 5,188 | $ 7,738 | $ 7,851 |
Variable lease costs | 674 | 873 | 1,021 | 1,157 |
Short-term lease cost | 335 | 448 | 483 | 730 |
Lease income | (62) | (129) | (79) | (181) |
Total lease cost | $ 6,077 | $ 6,380 | $ 9,163 | $ 9,557 |
OPERATING LEASES (Operating L_2
OPERATING LEASES (Operating Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Right-of-use assets | $ 20,011 | $ 25,363 |
Lease Liabilities | $ 22,269 | $ 27,370 |
OPERATING LEASES (Operating L_3
OPERATING LEASES (Operating Lease Terms) (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term (in years) | 4 years 9 months 18 days | 5 years 1 month 6 days |
Weighted-average discount rate (percentage) | 7% | 6.80% |
OPERATING LEASES (Future Minimu
OPERATING LEASES (Future Minimum Payments for Operating Leases and Present Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
2024 | $ 2,331 | |
2025 | 7,512 | |
2026 | 5,324 | |
2027 | 3,227 | |
2028 | 2,377 | |
Thereafter | 5,772 | |
Total lease payments | 26,543 | |
Less imputed interest | 4,274 | |
Present value of lease liabilities | $ 22,269 | $ 27,370 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Dec. 31, 2022 security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers for financial instruments measured at fair value on a recurring basis | $ | $ 0 | $ 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of security categorized as other debt | security | 0 | 1 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities on Recurring and Non-Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | $ 14 | $ 9 | ||||
Money market investments | 4,073 | 4,161 | $ 4,988 | |||
Derivative assets | 406 | |||||
Servicing assets | 50,601 | $ 49,966 | 50,921 | 50,061 | $ 49,280 | $ 48,973 |
Foreclosed real estate | 9,555 | $ 10,639 | 11,214 | $ 14,561 | $ 15,061 | $ 15,039 |
Other repossessed assets | 4,432 | 4,617 | ||||
Recurring fair value measurements | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities available-for-sale | 1,513,153 | 1,412,776 | ||||
Trading securities | 14 | 9 | ||||
Money market investments | 4,073 | 4,161 | ||||
Derivative assets | 406 | |||||
Servicing assets | 50,601 | 50,921 | ||||
Total | 1,567,841 | 1,468,273 | ||||
Recurring fair value measurements | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities available-for-sale | 739 | 309,133 | ||||
Trading securities | 0 | 0 | ||||
Money market investments | 4,073 | 4,161 | ||||
Derivative assets | 0 | |||||
Servicing assets | 0 | 0 | ||||
Total | 4,812 | 313,294 | ||||
Recurring fair value measurements | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities available-for-sale | 1,512,414 | 1,103,237 | ||||
Trading securities | 14 | 9 | ||||
Money market investments | 0 | 0 | ||||
Derivative assets | 406 | |||||
Servicing assets | 0 | 0 | ||||
Total | 1,512,428 | 1,103,652 | ||||
Recurring fair value measurements | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities available-for-sale | 0 | 406 | ||||
Trading securities | 0 | 0 | ||||
Money market investments | 0 | 0 | ||||
Derivative assets | 0 | |||||
Servicing assets | 50,601 | 50,921 | ||||
Total | 50,601 | 51,327 | ||||
Non-recurring fair value measurements | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Collateral dependent loans | 8,605 | 8,805 | ||||
Foreclosed real estate | 9,555 | 11,214 | ||||
Other repossessed assets | 4,432 | 4,617 | ||||
Mortgage loans held for sale | 564 | 19,499 | ||||
Other loans held for sale | 25,282 | 21,088 | ||||
Total | 48,438 | 65,223 | ||||
Non-recurring fair value measurements | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Collateral dependent loans | 0 | 0 | ||||
Foreclosed real estate | 0 | 0 | ||||
Other repossessed assets | 0 | 0 | ||||
Mortgage loans held for sale | 0 | 0 | ||||
Other loans held for sale | 0 | 0 | ||||
Total | 0 | 0 | ||||
Non-recurring fair value measurements | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Collateral dependent loans | 0 | 0 | ||||
Foreclosed real estate | 0 | 0 | ||||
Other repossessed assets | 0 | 0 | ||||
Mortgage loans held for sale | 0 | 0 | ||||
Other loans held for sale | 0 | 0 | ||||
Total | 0 | 0 | ||||
Non-recurring fair value measurements | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Collateral dependent loans | 8,605 | 8,805 | ||||
Foreclosed real estate | 9,555 | 11,214 | ||||
Other repossessed assets | 4,432 | 4,617 | ||||
Mortgage loans held for sale | 564 | 19,499 | ||||
Other loans held for sale | 25,282 | 21,088 | ||||
Total | $ 48,438 | $ 65,223 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Reconciliation of Assets and Liabilities Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
FairValueRecurringBasisUnobservableInputReconciliationAssetGainLossStatementOfIncomeExtensibleListNotDisclosedFlag | Gains included in earnings | Gains included in earnings | ||
FairValueRecurringBasisUnobservableInputReconciliationAssetGainLossStatementOfOtherComprehensiveIncomeExtensibleListNotDisclosedFlag | Gains included in other comprehensive income | Gains included in other comprehensive income | ||
Recurring fair value measurements | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning period | $ 50,379 | $ 50,861 | $ 51,327 | $ 50,503 |
New instruments acquired | 453 | 1,042 | 1,818 | 3,311 |
Principal repayments and amortization | (1,060) | (1,191) | (3,210) | (4,168) |
Instrument converted to equity security | (413) | (1,581) | (406) | (1,581) |
Gains (losses) included in earnings | 1,242 | 1,306 | 1,072 | 2,321 |
Gains included in other comprehensive income | 0 | 23 | 0 | 74 |
Balance at end of period | 50,601 | 50,460 | 50,601 | 50,460 |
Recurring fair value measurements | Level 3 | Other debt securities available for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning period | 413 | 1,581 | 406 | 1,530 |
New instruments acquired | 0 | 376 | 0 | 376 |
Principal repayments and amortization | 0 | 0 | 0 | 0 |
Instrument converted to equity security | (413) | (1,581) | (406) | (1,581) |
Gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Gains included in other comprehensive income | 0 | 23 | 0 | 74 |
Balance at end of period | 0 | 399 | 0 | 399 |
Recurring fair value measurements | Level 3 | Servicing Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning period | 49,966 | 49,280 | 50,921 | 48,973 |
New instruments acquired | 453 | 666 | 1,818 | 2,935 |
Principal repayments and amortization | (1,060) | (1,191) | (3,210) | (4,168) |
Instrument converted to equity security | 0 | 0 | 0 | 0 |
Gains (losses) included in earnings | 1,242 | 1,306 | 1,072 | 2,321 |
Gains included in other comprehensive income | 0 | 0 | 0 | 0 |
Balance at end of period | $ 50,601 | $ 50,061 | $ 50,601 | $ 50,061 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Qualitative Information for Assets and Liabilities) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value | ||||||
Fair value of servicing asset | $ 50,601 | $ 50,061 | $ 50,921 | $ 49,966 | $ 49,280 | $ 48,973 |
Foreclosed real estate | 9,555 | $ 14,561 | 11,214 | $ 10,639 | $ 15,061 | $ 15,039 |
Other repossessed assets | $ 4,432 | 4,617 | ||||
Minimum | ||||||
Unobservable Input | ||||||
Constant prepayment rate | 3.33% | 3.38% | ||||
Discount rate | 10% | 10% | ||||
Maximum | ||||||
Unobservable Input | ||||||
Constant prepayment rate | 20.40% | 20.36% | ||||
Discount rate | 15.50% | 15.50% | ||||
Level 3 | Cash flow valuation | Other debt securities available for sale | ||||||
Fair Value | ||||||
Investment securities available-for-sale | $ 406 | |||||
Level 3 | Cash flow valuation | Other debt securities available for sale | Recovery Rate | ||||||
Unobservable Input | ||||||
Other debt securities, measurement input | 0.3473 | |||||
Level 3 | Cash flow valuation | Servicing Assets | ||||||
Fair Value | ||||||
Fair value of servicing asset | $ 50,601 | $ 50,921 | ||||
Level 3 | Cash flow valuation | Minimum | Other debt securities available for sale | ||||||
Unobservable Input | ||||||
Credit rating | Baa1 | |||||
Level 3 | Cash flow valuation | Minimum | Other debt securities available for sale | Probability of Default Rate | ||||||
Unobservable Input | ||||||
Other debt securities, measurement input | 0.0015 | |||||
Level 3 | Cash flow valuation | Minimum | Servicing Assets | ||||||
Unobservable Input | ||||||
Constant prepayment rate | 3.33% | 3.43% | ||||
Discount rate | 10% | 10% | ||||
Level 3 | Cash flow valuation | Maximum | Other debt securities available for sale | ||||||
Unobservable Input | ||||||
Credit rating | Baa3 | |||||
Level 3 | Cash flow valuation | Maximum | Other debt securities available for sale | Probability of Default Rate | ||||||
Unobservable Input | ||||||
Other debt securities, measurement input | 0.0212 | |||||
Level 3 | Cash flow valuation | Maximum | Servicing Assets | ||||||
Unobservable Input | ||||||
Constant prepayment rate | 20.40% | 21.20% | ||||
Discount rate | 15.50% | 15.50% | ||||
Level 3 | Cash flow valuation | Weighted Average | Other debt securities available for sale | ||||||
Unobservable Input | ||||||
Credit rating | Baa2 | |||||
Level 3 | Cash flow valuation | Weighted Average | Other debt securities available for sale | Probability of Default Rate | ||||||
Unobservable Input | ||||||
Other debt securities, measurement input | 0.0015 | |||||
Level 3 | Cash flow valuation | Weighted Average | Other debt securities available for sale | Recovery Rate | ||||||
Unobservable Input | ||||||
Other debt securities, measurement input | 0.3473 | |||||
Level 3 | Cash flow valuation | Weighted Average | Servicing Assets | ||||||
Unobservable Input | ||||||
Constant prepayment rate | 5.70% | 5.66% | ||||
Discount rate | 11.45% | 11.45% | ||||
Level 3 | Fair value of property or collateral | Collateral dependent loans | ||||||
Fair Value | ||||||
Collateral dependent loans | $ 8,605 | $ 8,805 | ||||
Level 3 | Fair value of property or collateral | Foreclosed real estate | ||||||
Fair Value | ||||||
Foreclosed real estate | 9,555 | 11,214 | ||||
Level 3 | Fair value of property or collateral | Other repossessed assets | ||||||
Fair Value | ||||||
Other repossessed assets | 4,432 | 4,617 | ||||
Level 3 | Fair value of property or collateral | Mortgage loans held for sale | ||||||
Fair Value | ||||||
Mortgage loans held for sale | $ 564 | $ 19,499 | ||||
Level 3 | Fair value of property or collateral | Minimum | Collateral dependent loans | ||||||
Unobservable Input | ||||||
Appraised value less disposition costs | 10.20% | 10.20% | ||||
Level 3 | Fair value of property or collateral | Minimum | Foreclosed real estate | ||||||
Unobservable Input | ||||||
Appraised value less disposition costs | 10.20% | 10.20% | ||||
Level 3 | Fair value of property or collateral | Minimum | Other repossessed assets | ||||||
Unobservable Input | ||||||
Estimated net realizable value | 29% | 22% | ||||
Level 3 | Fair value of property or collateral | Minimum | Mortgage loans held for sale | ||||||
Unobservable Input | ||||||
Estimated net realizable value | 94.66% | 83.25% | ||||
Level 3 | Fair value of property or collateral | Maximum | Collateral dependent loans | ||||||
Unobservable Input | ||||||
Appraised value less disposition costs | 33.20% | 51.20% | ||||
Level 3 | Fair value of property or collateral | Maximum | Foreclosed real estate | ||||||
Unobservable Input | ||||||
Appraised value less disposition costs | 33.20% | 33.20% | ||||
Level 3 | Fair value of property or collateral | Maximum | Other repossessed assets | ||||||
Unobservable Input | ||||||
Estimated net realizable value | 77% | 80% | ||||
Level 3 | Fair value of property or collateral | Maximum | Mortgage loans held for sale | ||||||
Unobservable Input | ||||||
Estimated net realizable value | 97.92% | 102.43% | ||||
Level 3 | Fair value of property or collateral | Weighted Average | Collateral dependent loans | ||||||
Unobservable Input | ||||||
Appraised value less disposition costs | 17.01% | 17.11% | ||||
Level 3 | Fair value of property or collateral | Weighted Average | Foreclosed real estate | ||||||
Unobservable Input | ||||||
Appraised value less disposition costs | 11.62% | 11.81% | ||||
Level 3 | Fair value of property or collateral | Weighted Average | Other repossessed assets | ||||||
Unobservable Input | ||||||
Estimated net realizable value | 59.97% | 58.49% | ||||
Level 3 | Fair value of property or collateral | Weighted Average | Mortgage loans held for sale | ||||||
Unobservable Input | ||||||
Estimated net realizable value | 96.70% | 71.86% | ||||
Level 3 | Bids or sales contract prices | Commercial | ||||||
Fair Value | ||||||
Other loans held for sale | $ 25,282 | $ 21,088 | ||||
Level 3 | Bids or sales contract prices | Minimum | Commercial | ||||||
Unobservable Input | ||||||
Estimated market value | 52% | 100% | ||||
Level 3 | Bids or sales contract prices | Maximum | Commercial | ||||||
Unobservable Input | ||||||
Estimated market value | 103.20% | 103.20% | ||||
Level 3 | Bids or sales contract prices | Weighted Average | Commercial | ||||||
Unobservable Input | ||||||
Estimated market value | 84.80% | 74.65% |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Estimated Fair Value and Carrying Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||||||
Restricted cash | $ 0 | $ 157 | $ 164 | |||
Trading securities | 14 | 9 | ||||
Investment securities held-to-maturity, fair value | 441,759 | 469,186 | ||||
Derivative assets | 406 | |||||
Servicing assets | 50,601 | $ 49,966 | 50,921 | $ 50,061 | $ 49,280 | $ 48,973 |
Level 1 | Fair Value | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 532,699 | 550,307 | ||||
Restricted cash | 0 | 157 | ||||
Investment securities available-for-sale | 739 | 309,133 | ||||
Level 1 | Carrying Value | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 532,699 | 550,307 | ||||
Restricted cash | 0 | 157 | ||||
Investment securities available-for-sale | 739 | 309,133 | ||||
Level 2 | Fair Value | ||||||
Financial Assets: | ||||||
Investment securities available-for-sale | 1,512,414 | 1,103,237 | ||||
Trading securities | 14 | 9 | ||||
Investment securities held-to-maturity, fair value | 441,759 | 469,186 | ||||
Federal Home Loan Bank (FHLB) stock | 18,988 | 6,005 | ||||
Equity securities | 23,174 | 17,662 | ||||
Derivative assets | 0 | 406 | ||||
Level 2 | Carrying Value | ||||||
Financial Assets: | ||||||
Investment securities available-for-sale | 1,512,414 | 1,103,237 | ||||
Trading securities | 14 | 9 | ||||
Investment securities held-to-maturity, fair value | 519,145 | 535,070 | ||||
Federal Home Loan Bank (FHLB) stock | 18,988 | 6,005 | ||||
Equity securities | 23,174 | 17,662 | ||||
Derivative assets | 0 | 406 | ||||
Level 3 | Fair Value | ||||||
Financial Assets: | ||||||
Investment securities available-for-sale | 0 | 406 | ||||
Total loans, net of allowance for credit losses | 6,916,132 | 6,467,878 | ||||
Accrued interest receivable | 67,868 | 62,402 | ||||
Servicing assets | 50,601 | 50,921 | ||||
Accounts receivable and other assets | 48,096 | 61,014 | ||||
Financial Liabilities: | ||||||
Deposits | 8,545,617 | 8,556,300 | ||||
Securities sold under agreements to repurchase | 150,658 | 0 | ||||
Advances from FHLB | 297,532 | 26,716 | ||||
Other borrowings | 0 | 318 | ||||
Accrued expenses and other liabilities | 115,394 | 124,999 | ||||
Level 3 | Carrying Value | ||||||
Financial Assets: | ||||||
Investment securities available-for-sale | 0 | 406 | ||||
Total loans, net of allowance for credit losses | 7,130,052 | 6,723,236 | ||||
Accrued interest receivable | 67,868 | 62,402 | ||||
Servicing assets | 50,601 | 50,921 | ||||
Accounts receivable and other assets | 48,096 | 61,014 | ||||
Financial Liabilities: | ||||||
Deposits | 8,541,553 | 8,568,364 | ||||
Securities sold under agreements to repurchase | 150,701 | 0 | ||||
Advances from FHLB | 300,774 | 26,716 | ||||
Other borrowings | 0 | 318 | ||||
Accrued expenses and other liabilities | $ 115,394 | $ 124,999 |
BANKING AND FINANCIAL SERVICE_3
BANKING AND FINANCIAL SERVICE REVENUES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Banking service revenues: | ||||
Electronic banking fees | $ 13,447 | $ 13,335 | $ 40,416 | $ 40,509 |
Checking accounts fees | 2,233 | 2,332 | 6,638 | 6,702 |
Savings accounts fees | 333 | 332 | 993 | 937 |
Credit life commissions | 90 | 70 | 314 | 665 |
Branch service commissions | 352 | 319 | 1,098 | 979 |
Servicing and other loan fees | 668 | 621 | 2,251 | 2,427 |
International fees | 174 | 217 | 536 | 702 |
Miscellaneous income | 6 | 8 | 10 | 16 |
Total banking service revenues | 17,303 | 17,234 | 52,256 | 52,937 |
Wealth management revenue: | ||||
Insurance income | 3,607 | 3,906 | 11,146 | 10,758 |
Broker fees | 1,945 | 1,601 | 5,525 | 5,204 |
Trust fees | 2,139 | 2,489 | 6,298 | 7,796 |
Retirement plan and administration fees | 0 | 177 | 36 | 542 |
Total wealth management revenue | 7,691 | 8,173 | 23,005 | 24,300 |
Mortgage banking activities: | ||||
Net servicing fees | 4,764 | 5,206 | 12,256 | 13,408 |
Net gains on sale of mortgage loans and valuation | 450 | (116) | 2,009 | 2,192 |
Net gain (loss) on repurchased loans and other | 196 | (199) | 268 | (124) |
Total mortgage banking activities | 5,410 | 4,891 | 14,533 | 15,476 |
Total banking and financial service revenues | $ 30,404 | $ 30,298 | $ 89,794 | $ 92,713 |
BUSINESS SEGMENTS (Results of O
BUSINESS SEGMENTS (Results of Operations and Selected Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 165,708 | $ 134,675 | $ 472,681 | $ 369,846 | |
Interest expense | (23,921) | (8,165) | (55,353) | (23,048) | |
Net interest income | 141,787 | 126,510 | 417,328 | 346,798 | |
Provision for credit losses | 16,430 | 7,120 | 40,919 | 15,362 | |
Non-interest income | 30,699 | 30,620 | 89,673 | 98,436 | |
Non-interest expenses | (90,158) | (87,492) | (269,266) | (253,905) | |
Intersegment revenue | 0 | 0 | 0 | 0 | |
Intersegment expenses | 0 | 0 | 0 | 0 | |
Income before income taxes | 65,898 | 62,518 | 196,816 | 175,967 | |
Income tax expense (benefit) | 21,025 | 20,599 | 61,541 | 56,095 | |
Net income | 44,873 | 41,919 | 135,275 | 119,872 | |
Total assets | 10,257,138 | 10,058,179 | 10,257,138 | 10,058,179 | $ 9,818,780 |
Total | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 169,580 | 136,774 | 485,982 | 372,820 | |
Interest expense | (27,793) | (10,264) | (68,654) | (26,022) | |
Net interest income | 141,787 | 126,510 | 417,328 | 346,798 | |
Provision for credit losses | 16,430 | 7,120 | 40,919 | 15,362 | |
Non-interest income | 30,699 | 30,620 | 89,673 | 98,436 | |
Non-interest expenses | (90,158) | (87,492) | (269,266) | (253,905) | |
Income before income taxes | 65,898 | 62,518 | 196,816 | 175,967 | |
Income tax expense (benefit) | 21,025 | 20,599 | 61,541 | 56,095 | |
Net income | 44,873 | 41,919 | 135,275 | 119,872 | |
Total assets | 11,300,199 | 11,031,049 | 11,300,199 | 11,031,049 | |
Total | Intersubsegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment revenue | 487 | 588 | 1,610 | 1,645 | |
Intersegment expenses | (487) | (588) | (1,610) | (1,645) | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | (3,872) | (2,099) | (13,301) | (2,974) | |
Interest expense | 3,872 | 2,099 | 13,301 | 2,974 | |
Net interest income | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Non-interest income | 0 | 0 | 0 | 0 | |
Non-interest expenses | 0 | 0 | 0 | 0 | |
Intersegment revenue | (487) | (588) | (1,610) | (1,645) | |
Intersegment expenses | 487 | 588 | 1,610 | 1,645 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Net income | 0 | 0 | 0 | 0 | |
Total assets | (1,043,061) | (972,870) | (1,043,061) | (972,870) | |
Banking | Total | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 145,667 | 117,939 | 418,091 | 337,017 | |
Interest expense | (20,662) | (7,891) | (48,867) | (21,796) | |
Net interest income | 125,005 | 110,048 | 369,224 | 315,221 | |
Provision for credit losses | 16,371 | 7,059 | 40,828 | 15,403 | |
Non-interest income | 23,211 | 22,310 | 68,190 | 73,662 | |
Non-interest expenses | (85,536) | (82,026) | (254,777) | (237,477) | |
Income before income taxes | 46,796 | 43,861 | 143,419 | 137,648 | |
Income tax expense (benefit) | 20,994 | 20,589 | 61,463 | 56,067 | |
Net income | 25,802 | 23,272 | 81,956 | 81,581 | |
Total assets | 8,742,283 | 8,179,384 | 8,742,283 | 8,179,384 | |
Banking | Total | Intersubsegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment revenue | 487 | 588 | 1,610 | 1,645 | |
Intersegment expenses | 0 | 0 | 0 | 0 | |
Wealth Management | Total | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 8 | 6 | 19 | 16 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 8 | 6 | 19 | 16 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Non-interest income | 7,487 | 8,310 | 22,631 | 24,724 | |
Non-interest expenses | (3,778) | (4,635) | (11,871) | (14,015) | |
Income before income taxes | 3,380 | 3,269 | 9,683 | 9,594 | |
Income tax expense (benefit) | (4) | 1 | 16 | 1 | |
Net income | 3,384 | 3,268 | 9,667 | 9,593 | |
Total assets | 34,380 | 27,839 | 34,380 | 27,839 | |
Wealth Management | Total | Intersubsegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment revenue | 0 | 0 | 0 | 0 | |
Intersegment expenses | (337) | (412) | (1,096) | (1,131) | |
Treasury | Total | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 23,905 | 18,829 | 67,872 | 35,787 | |
Interest expense | (7,131) | (2,373) | (19,787) | (4,226) | |
Net interest income | 16,774 | 16,456 | 48,085 | 31,561 | |
Provision for credit losses | 59 | 61 | 91 | (41) | |
Non-interest income | 1 | 0 | (1,148) | 50 | |
Non-interest expenses | (844) | (831) | (2,618) | (2,413) | |
Income before income taxes | 15,722 | 15,388 | 43,714 | 28,725 | |
Income tax expense (benefit) | 35 | 9 | 62 | 27 | |
Net income | 15,687 | 15,379 | 43,652 | 28,698 | |
Total assets | 2,523,536 | 2,823,826 | 2,523,536 | 2,823,826 | |
Treasury | Total | Intersubsegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment revenue | 0 | 0 | 0 | 0 | |
Intersegment expenses | $ (150) | $ (176) | $ (514) | $ (514) |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Net interest income | $ 141,787 | $ 126,510 | $ 417,328 | $ 346,798 | |
Time Deposits | 1,430,433 | 1,430,433 | $ 1,163,641 | ||
Eliminations | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Net interest income | 0 | 0 | 0 | 0 | |
Eliminations | Treasury | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Time Deposits | $ 308,900 | $ 467,000 | $ 308,900 | $ 467,000 |