LOANS

6 Months Ended

Jun. 30, 2025

OFG’s loan portfolio is composed of four segments: commercial, mortgage, consumer, and auto loans. 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 June 30, 2025 and December 31, 2024, segregated between non-purchased credit deteriorated loans (“non-PCD”) and purchased credit deteriorated (“PCD”) loans, was as follows:


	June 30, 2025						December 31, 2024
	Non-PCD		PCD		Total		Non-PCD		PCD		Total
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,262,620	$	74,956	$	1,337,576	$	1,222,395	$	77,196	$	1,299,591
Other commercial and industrial	1,248,875		11,729		1,260,604		1,087,886		11,533		1,099,419
	2,511,495		86,685		2,598,180		2,310,281		88,729		2,399,010
Commercial US	825,254		—		825,254		704,081		—		704,081
Total commercial loans	3,336,749		86,685		3,423,434		3,014,362		88,729		3,103,091
Mortgage loans	618,704		795,863		1,414,567		628,853		841,964		1,470,817
Consumer loans:
Personal loans	635,084		243		635,327		620,430		245		620,675
Credit lines	9,540		332		9,872		10,126		353		10,479
Credit cards	34,928		—		34,928		36,956		—		36,956
Overdraft	508		—		508		451		—		451
	680,060		575		680,635		667,963		598		668,561
Auto loans	2,661,795		160		2,661,955		2,549,033		460		2,549,493
	7,297,308		883,283		8,180,591		6,860,211		931,751		7,791,962
Allowance for credit losses	(182,765)		(7,179)		(189,944)		(170,709)		(5,154)		(175,863)
Total loans held for investment, net	7,114,543		876,104		7,990,647		6,689,502		926,597		7,616,099
Mortgage loans held-for-sale	14,590		—		14,590		13,286		—		13,286
Other loans held-for-sale	4,362		—		4,362		4,446		—		4,446
Total loans held-for-sale	18,952		—		18,952		17,732		—		17,732
Total loans, net	$	7,133,495	$	876,104	$	8,009,599	$	6,707,234	$	926,597	$	7,633,831

During the six-month period ended June 30, 2024, OFG sold $40.9 million of commercial loans held-for-sale and recognized a $53 thousand gain included in other non-interest income in the consolidated statements of operations. During the six-month period ended June 30, 2025, there were no sales of commercial loans held-for-sale. At both June 30, 2025 and December 31, 2024, OFG had $4.4 million in commercial loans held-for-sale.

At June 30, 2025 and December 31, 2024, OFG had carrying balances of $87.4 million and $66.4 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 and are 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 June 30, 2025 and December 31, 2024, by class of loans. Mortgage loans past due include $43.3 million and $48.6 million of delinquent loans in the GNMA buy-back option program at June 30, 2025 and December 31, 2024, 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.


	June 30, 2025
	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	485	$	839	$	7,235	$	8,559	$	1,254,061	$	1,262,620	$	—
Other commercial and industrial	1,555		242		3,926		5,723		1,243,152		1,248,875		—
	2,040		1,081		11,161		14,282		2,497,213		2,511,495		—
Commercial US	—		—		—		—		825,254		825,254		—
Total commercial loans	2,040		1,081		11,161		14,282		3,322,467		3,336,749		—
Mortgage loans	4,367		5,946		52,914		63,227		555,477		618,704		1,921
Consumer loans:
Personal loans	7,641		4,482		3,136		15,259		619,825		635,084		—
Credit lines	68		60		89		217		9,323		9,540		—
Credit cards	510		255		521		1,286		33,642		34,928		—
Overdraft	77		—		—		77		431		508		—
	8,296		4,797		3,746		16,839		663,221		680,060		—
Auto loans	114,062		38,670		14,921		167,653		2,494,142		2,661,795		—
Total loans	$	128,765	$	50,494	$	82,742	$	262,001	$	7,035,307	$	7,297,308	$	1,921


	December 31, 2024
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	879	$	215	$	9,780	$	10,874	$	1,211,521	$	1,222,395	$	—
Other commercial and industrial	597		629		3,588		4,814		1,083,072		1,087,886		—
	1,476		844		13,368		15,688		2,294,593		2,310,281		—
Commercial US	—		4,505		—		4,505		699,576		704,081		—
Total commercial loans	1,476		5,349		13,368		20,193		2,994,169		3,014,362		—
Mortgage loans	5,362		6,069		59,995		71,426		557,427		628,853		2,047
Consumer loans:
Personal loans	8,522		4,655		3,494		16,671		603,759		620,430		—
Credit lines	53		38		125		216		9,910		10,126		—
Credit cards	670		255		571		1,496		35,460		36,956		—
Overdraft	88		—		—		88		363		451		—
	9,333		4,948		4,190		18,471		649,492		667,963		—
Auto loans	119,805		50,208		20,055		190,068		2,358,965		2,549,033		—
Total loans	$	135,976	$	66,574	$	97,608	$	300,158	$	6,560,053	$	6,860,211	$	2,047

There were no past due commercial loans held-for-sale as of June 30, 2025 and December 31, 2024.

Upon adoption of the current expected credit losses (“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, 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 non-accrual status as of June 30, 2025 and December 31, 2024:


	June 30, 2025						December 31, 2024
	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)
Non-PCD:
Commercial PR:
Commercial secured by real estate	$	3,645	$	5,836	$	9,481	$	4,610	$	6,248	$	10,858
Other commercial and industrial	2,638		2,569		5,207		1,855		1,996		3,851
	6,283		8,405		14,688		6,465		8,244		14,709
Commercial US	39,315		—		39,315		21,317		2,887		24,204
Total commercial loans	45,598		8,405		54,003		27,782		11,131		38,913
Mortgage loans	9,214		2,086		11,300		8,770		3,153		11,923
Consumer loans:
Personal loans	3,179		—		3,179		3,468		44		3,512
Credit lines	89		—		89		125		—		125
Credit cards	522		—		522		570		—		570
	3,790		—		3,790		4,163		44		4,207
Auto loans	14,968		—		14,968		20,049		6		20,055
Total	$	73,570	$	10,491	$	84,061	$	60,764	$	14,334	$	75,098

PCD:
Commercial PR:
Commercial secured by real estate	$	6,061	$	1,903	$	7,964	$	—	$	1,946	$	1,946
Other commercial and industrial	639		—		639		695		—		695
Total commercial loans	6,700		1,903		8,603		695		1,946		2,641
Mortgage loans	233		—		233		239		—		239



Total	$	6,933	$	1,903	$	8,836	$	934	$	1,946	$	2,880
Total non-accrual loans	$	80,503	$	12,394	$	92,897	$	61,698	$	16,280	$	77,978

The determination of non-accrual or accrual status of PCD loans is made at the pool level, not the individual loan level.

There were no commercial non-accrual loans held-for-sale at June 30, 2025 and December 31, 2024.

Delinquent residential mortgage loans insured or guaranteed under applicable Federal Housing Administration (“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.

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 its 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.

At June 30, 2025 and 2024, the amortized cost of modified loans excludes $14 thousand and $1 thousand, respectively in 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 amortized cost of modified loans during the six-month periods ended June 30, 2025 and 2024, includes $1.5 million and $229 thousand, respectively, of government-guaranteed loans (e.g., FHA/VA).

The following tables present the amortized cost basis as of June 30, 2025 and 2024 of loans held for investment that were modified during the quarters and six-month periods ended June 30, 2025 and 2024, disaggregated by class of financing receivable and type of concession granted.


	Quarter Ended June 30, 2025
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance				Combination of Interest Rate Reduction, Term Extension and Principal Forgiveness / Forbearance
	$1		%2		$1		%2		$1		%2		$1		%2		$1		%2		$1		%2
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	206	0.02%		$	—	—	%	$	—	—	%	$	467	0.03%		$	—	—	%	$	—	—	%
Other commercial and industrial	83		0.01%		716		0.06%		—		—	%	—		—	%	—		—	%	—		—	%
	289		0.01%		716		0.03%		—		—	%	467		0.02%		—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	10,170		1.23%		—		—	%	—		—	%	4,009		0.49%
Total commercial loans	289		0.01%		716		0.02%		10,170		0.30%		467		0.01%		—		—	%	4,009		0.12%
Mortgage loans	—		—	%	648		0.05%		—		—	%	55		—	%	122		0.01%		137		0.01%






Auto loans	—		—	%	101		—	%	—		—	%	54		—	%	—		—	%	—		—	%
Total	$	289			$	1,465			$	10,170			$	576			$	122			$	4,146

1 -Amortized cost basis.
2 - Percentage of total class of financing receivable.


	Six-Month Period Ended June 30, 2025
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance				Combination of Interest Rate Reduction, Term Extension and Principal Forgiveness / Forbearance
	$1		%2		$1		%2		$1		%2		$1		%2		$1		%2		$1		%2
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	206	0.02%		$	—	—	%	$	—	—	%	$	467	0.03%		$	—	—	%	$	—	—	%
Other commercial and industrial	83		0.01%		716		0.06%		—		—	%	—		—	%	$	—	—	%	$	—	—	%
	289		0.01%		716		0.03%		—		—	%	467		0.02%		$	—	—	%	$	—	—	%
Commercial US	—		—	%	—		—	%	10,170		1.23%		—		—	%	3,310		0.40%		7,323		0.89%
Total commercial loans	289		0.01%		716		0.02%		10,170		0.30%		467		0.01%		3,310		0.10%		7,323		0.21%
Mortgage loans	—		—	%	1,231		0.09%		—		—	%	55		—	%	122		0.01%		137		0.01%






Auto loans	—		—	%	101		—	%	—		—	%	54		—	%	—		—	%	—		—	%
Total	$	289			$	2,048			$	10,170			$	576			$	3,432			$	7,460

1 -Amortized cost basis.
2 - Percentage of total class of financing receivable.


	Quarter Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Combination of Term Extension and Interest Rate Reduction
	$1		%2		$1		%2			$1		%2
	(Dollars in thousands)






Mortgage loans	—		—	%	595		0.04	%		92		0.01	%






Auto loans	32		—	%	—		—	%		—		—	%
Total	$	32			$	595				$	92

1 -Amortized cost basis.
2 - Percentage of total class of financing receivable.


	Six-Month Period Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Combination of Term Extension and Interest Rate Reduction
	$1		%2		$1		%2			$1		%2
	(Dollars in thousands)






Mortgage loans	$	—	—	%	$	687	0.05	%		$	92	0.01	%
Consumer:
Personal loans	26		—	%	7		—	%		—		—	%




Auto loans	32		—	%	—		—	%		—		—	%
Total	$	58			$	694				$	92

1 -Amortized cost basis.
2 - Percentage of total class of financing receivable.

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 ACL is recorded on each asset upon origination or acquisition and is based on historical loss information, including modifications made to borrowers facing financial difficulty, and expected behavior. Changes to the ACL 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 tables present the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarters and six-month periods ended June 30, 2025 and 2024. The financial effect of the combined modifications is presented separately by type of modification.


	Quarter Ended June 30, 2025
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	2.99	%	24	$	—
Other commercial and industrial	5.00	%	36	—
Commercial US	4.11	%	14	2,391

Mortgage loans	0.35	%	120	35





Auto loans	3.00	%	34	—


	Six-Month Period Ended June 30, 2025
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	2.99	%	24	$	—
Other commercial and industrial	5.00	%	36	—

Commercial US	2.15	%	16	5,309


Mortgage loans	0.35	%	123	35





Auto loans	3.00	%	34	—


	Quarter Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)





Mortgage loans	0.38	%	178	$	—





Auto loans	3.00	%	0	—


	Six-Month Period Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)





Mortgage loans	0.38	%	176	$	—
Consumer loans:
Personal loans	5.00	%	18	—



Auto loans	3.00	%	0	—

The following table presents the amortized cost basis as of June 30, 2024, of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior twelve months.


	Twelve-Months Ended June 30, 2024
	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 loans	$	—	$	108	$	—	$	—	$	108

As of June 30, 2025, no loans held for investment had entered payment default following a modification granted to borrowers experiencing financial difficulty within the preceding twelve months.

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 ACL 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 the payment status of loans that have been modified in the twelve-month periods ended June 30, 2025 and 2024 that were granted to borrowers experiencing financial difficulty.


	June 30, 2025
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	673	$	673
Other commercial and industrial	—		—		—		—		799		799
	—		—		—		—		1,472		1,472
Commercial US	—		—		—		—		35,326		35,326
Total commercial loans	—		—		—		—		36,798		36,798
Mortgage loans	146		76		—		222		1,986		2,208






Auto loans	—		—		—		—		296		296
Total	$	146	$	76	$	—	$	222	$	39,080	$	39,302


	June 30, 2024
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	136	$	136
Other commercial and industrial	—		—		—		—		626		626
	—		—		—		—		762		762
Commercial US	—		—		—		—		2,711		2,711
Total commercial loans	—		—		—		—		3,473		3,473
Mortgage loans	315		29		108		452		1,983		2,435
Consumer loans:
Personal loans	—		—		—		—		70		70




Auto loans	—		—		—		—		138		138
Total	$	315	$	29	$	108	$	452	$	5,664	$	6,116

There were no outstanding commitments to lend additional funds to debtors experiencing financial difficulties at June 30, 2025 and December 31, 2024.

As of June 30, 2025 and December 31, 2024, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $28.8 million and $25.0 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 their respective 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 June 30, 2025 and December 31, 2024, by class of loans.


	June 30,		December 31,
	2025		2024
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	6,435	$	6,877

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.

As of June 30, 2025, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans, and current year-to-date period gross charge-offs by year of origination is as follows:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2025		2024		2023		2022		2021		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	212,414	$	169,080	$	202,010	$	203,521	$	160,122	$	209,547	$	39,636	$	1,196,330
Special Mention	—		—		13,876		7,110		26,966		5,302		1,693		54,947
Substandard	—		—		—		1,173		2,207		7,002		961		11,343
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	212,414		169,080		215,886		211,804		189,295		221,851		42,290		1,262,620
Commercial secured by real estate:
YTD gross charge-offs	—		—		—		—		26		2		—		28
Other commercial and industrial:
Loan grade:
Pass	75,846		144,729		247,670		43,634		46,123		31,821		585,547		1,175,370
Special Mention	—		155		2,147		7,057		—		57		11,753		21,169
Substandard	24		10		737		154		45,556		1,489		4,366		52,336
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	75,870		144,894		250,554		50,845		91,679		33,367		601,666		1,248,875
Other commercial and industrial:
YTD gross charge-offs	11		8		—		11		—		327		—		357
Commercial US:
Loan grade:
Pass	99,023		50,631		97,756		20,957		56,406		34,515		334,486		693,774
Special Mention	—		2,479		9,669		—		—		—		49,572		61,720
Substandard	6,625		9,003		15,825		15,979		—		—		20,763		68,195
Doubtful	—		1,565		—		—		—		—		—		1,565
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	105,648		63,678		123,250		36,936		56,406		34,515		404,821		825,254
Commercial US:
YTD gross charge-offs	—		—		—		2,918		—		—		—		2,918
Total commercial loans	$	393,932	$	377,652	$	589,690	$	299,585	$	337,380	$	289,733	$	1,048,777	$	3,336,749
Total YTD gross charge-offs	$	11	$	8	$	—	$	2,929	$	26	$	329	$	—	$	3,303

As of December 31, 2024, 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 Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	219,185	$	204,144	$	229,955	$	190,891	$	106,562	$	180,600	$	46,448	$	1,177,785
Special Mention	—		13,702		7,205		6,192		909		3,721		73		31,802
Substandard	—		—		554		1,479		1,198		8,572		1,005		12,808
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	219,185		217,846		237,714		198,562		108,669		192,893		47,526		1,222,395
Commercial secured by real estate:
YTD gross charge-offs	—		184		—		—		—		26		—		210
Other commercial and industrial:
Loan grade:
Pass	146,372		269,680		48,516		49,751		23,858		13,508		477,838		1,029,523
Special Mention	—		373		3,281		45,012		—		136		4,920		53,722
Substandard	21		15		317		640		111		825		2,712		4,641
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	146,393		270,068		52,114		95,403		23,969		14,469		485,470		1,087,886
Other commercial and industrial:
YTD gross charge-offs	117		143		298		3,573		—		238		—		4,369
Commercial US:
Loan grade:
Pass	56,534		120,064		21,648		57,736		20,138		21,884		273,971		571,975
Special Mention	—		—		—		—		—		—		39,896		39,896
Substandard	16,094		16,422		26,536		4,689		—		5,647		21,204		90,592
Doubtful	1,618		—		—		—		—		—		—		1,618
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	74,246		136,486		48,184		62,425		20,138		27,531		335,071		704,081
Commercial US:
YTD gross charge-offs	—		—		392		1,749		—		1,497		—		3,638
Total commercial loans	$	439,824	$	624,400	$	338,012	$	356,390	$	152,776	$	234,893	$	868,067	$	3,014,362
Total YTD gross charge-offs	$	117	$	327	$	690	$	5,322	$	—	$	1,761	$	—	$	8,217

At June 30, 2025 and December 31, 2024, the balance of revolving commercial loans converted to term loans was $155.8 million and $191.9 million, respectively.

OFG considers the performance of the loan portfolio and its impact on the ACL. For mortgage and consumer loan classes, OFG also evaluates credit quality based on the aging status of the loan and payment activity. The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment performance as of June 30, 2025:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2025		2024		2023		2022		2021		Prior
	(In thousands)
Mortgage loans:

Performing	$	23,784	$	39,682	$	18,144	$	20,474	$	27,486	$	473,330	$	—	$	602,900
Nonperforming	—		1,008		650		207		279		13,660		—		15,804
Total mortgage loans:	23,784		40,690		18,794		20,681		27,765		486,990		—		618,704
Mortgage loans:
YTD gross charge-offs	—		—		23		—		—		11		—		34
Consumer loans:
Personal loans:

Performing	135,340		219,826		140,447		90,162		31,730		14,400		—		631,905
Nonperforming	44		788		1,141		829		295		82		—		3,179
Total personal loans	135,384		220,614		141,588		90,991		32,025		14,482		—		635,084
Personal loans:
YTD gross charge-offs	21		3,589		4,849		3,855		965		362		—		13,641
Credit lines:

Performing	—		—		—		—		—		—		9,451		9,451
Nonperforming	—		—		—		—		—		—		89		89
Total credit lines	—		—		—		—		—		—		9,540		9,540
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		165		165
Credit cards:

Performing	—		—		—		—		—		—		34,406		34,406
Nonperforming	—		—		—		—		—		—		522		522
Total credit cards	—		—		—		—		—		—		34,928		34,928
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		1,070		1,070
Overdrafts:

Performing	—		—		—		—		—		—		508		508
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		508		508
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		346		346
Total consumer loans	135,384		220,614		141,588		90,991		32,025		14,482		44,976		680,060
Total consumer loans YTD gross charge-offs	21		3,589		4,849		3,855		965		362		1,581		15,222
Total mortgage and consumer loans	$	159,168	$	261,304	$	160,382	$	111,672	$	59,790	$	501,472	$	44,976	$	1,298,764
Total mortgage and consumer loans YTD gross charge-offs	$	21	$	3,589	$	4,872	$	3,855	$	965	$	373	$	1,581	$	15,256

The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment performance as of December 31, 2024:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Mortgage loans:

Performing	$	41,100	$	18,986	$	23,207	$	28,034	$	20,203	$	480,388	$	—	$	611,918
Nonperforming	148		636		107		466		102		15,476		—		16,935
Total mortgage loans:	41,248		19,622		23,314		28,500		20,305		495,864		—		628,853
Mortgage loans:
YTD gross charge-offs	—		—		—		—		—		126		—		126
Consumer loans:
Personal loans:

Performing	265,955		175,932		114,654		40,794		11,563		8,020		—		616,918
Nonperforming	438		1,292		1,266		353		51		112		—		3,512
Total personal loans	266,393		177,224		115,920		41,147		11,614		8,132		—		620,430
Personal loans:
YTD gross charge-offs	1,425		10,788		11,973		3,443		700		1,088		—		29,417
Credit lines:

Performing	—		—		—		—		—		—		10,001		10,001
Nonperforming	—		—		—		—		—		—		125		125
Total credit lines	—		—		—		—		—		—		10,126		10,126
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		156		156
Credit cards:

Performing	—		—		—		—		—		—		36,386		36,386
Nonperforming	—		—		—		—		—		—		570		570
Total credit cards	—		—		—		—		—		—		36,956		36,956
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		2,781		2,781
Overdrafts:

Performing	—		—		—		—		—		—		451		451
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		451		451
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		912		912
Total consumer loans	266,393		177,224		115,920		41,147		11,614		8,132		47,533		667,963
Total consumer loans YTD gross charge-offs	1,425		10,788		11,973		3,443		700		1,088		3,849		33,266
Total mortgage and consumer loans	$	307,641	$	196,846	$	139,234	$	69,647	$	31,919	$	503,996	$	47,533	$	1,296,816
Total mortgage and consumer loans YTD gross charge-offs	$	1,425	$	10,788	$	11,973	$	3,443	$	700	$	1,214	$	3,849	$	33,392

At June 30, 2025 and December 31, 2024, the balance of mortgage and consumer revolving loans that were converted to term loans was $2.7 million and $2.2 million, respectively.

OFG evaluates credit quality for auto loans based on Fair Isaac Corporation (“FICO”) score. The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of June 30, 2025:


	Term Loans Amortized Cost Basis by Origination Year												Total
	2025		2024		2023		2022		2021		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	$	56,940	$	188,013	$	185,240	$	148,800	$	81,622	$	55,588	$	716,203
661-699	85,167		141,673		90,804		57,344		28,416		18,151		421,555
700+	290,563		483,197		343,668		201,307		105,237		75,136		1,499,108
No FICO	735		8,534		6,155		5,117		2,698		1,690		24,929
Total auto loans	$	433,405	$	821,417	$	625,867	$	412,568	$	217,973	$	150,565	$	2,661,795
Auto loans:
YTD gross charge-offs	$	107	$	8,113	$	10,849	$	8,079	$	3,182	$	2,732	$	33,062

The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of December 31, 2024:


	Term Loans Amortized Cost Basis by Origination Year												Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	$	157,865	$	191,510	$	163,990	$	93,675	$	41,016	$	38,369	$	686,425
661-699	172,579		116,145		69,573		36,607		15,583		13,720		424,207
700+	521,507		397,649		243,449		130,613		66,571		54,947		1,414,736
No FICO	5,266		6,630		5,616		3,255		1,265		1,633		23,665
Total auto loans	$	857,217	$	711,934	$	482,628	$	264,150	$	124,435	$	108,669	$	2,549,033
Auto loans:
YTD gross charge-offs	$	4,068	$	21,603	$	18,912	$	8,552	$	3,799	$	4,717	$	61,651

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 tables.

As of June 30, 2025 and December 31, 2024, accrued interest receivable on loans totaled $62.6 million and $60.9 million, respectively, and is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to Note 9 – Accrued Interest Receivable and Other Assets for more information on accrued interest receivable on loans.