v3.26.1
LOANS HELD FOR INVESTMENT
 3 Months Ended
Mar. 31, 2026
LOANS HELD FOR INVESTMENT [Abstract]  
LOANS HELD FOR INVESTMENT
NOTE 3 – LOANS HELD FOR INVESTMENT
The
following table
provides information
about
the
loan
portfolio held
for
investment by
portfolio segment
and
disaggregated by
geographic locations
as of the indicated
dates:
As of March 31,
As of December 31,
2026
2025
(In thousands)
Puerto Rico and Virgin Islands region:
Residential mortgage loans, mainly secured by first mortgages
$
2,378,388
$
2,377,604
Construction loans
192,977
263,640
Commercial mortgage loans
1,826,549
1,763,927
Commercial and Industrial (“C&I”) loans
2,494,701
2,519,002
Consumer loans
3,653,100
3,703,019
Loans held for investment
$
10,545,715
$
10,627,192
Florida region:
Residential mortgage loans, mainly secured by first mortgages
$
536,510
$
530,698
Construction loans
2,290
1,928
Commercial mortgage loans
800,564
790,325
C&I loans
1,200,142
1,169,356
Consumer loans
5,856
5,857
Loans held for investment
$
2,545,362
$
2,498,164
Total:
Residential mortgage loans, mainly secured by first mortgages
$
2,914,898
$
2,908,302
Construction loans
195,267
265,568
Commercial mortgage loans
2,627,113
2,554,252
C&I loans
(1)
3,694,843
3,688,358
Consumer loans
3,658,956
3,708,876
Loans held for investment
(2)
13,091,077
13,125,356
ACL on loans and finance leases
(245,060)
(249,037)
Loans held for investment, net
$
12,846,017
$
12,876,319
(1)
As of March 31, 2026 and
December 31, 2025, includes $
871.1
million and $
887.5
million, respectively, of commercial loans
that were secured by real estate and
for which the primary source of repayment at origination was
not dependent upon such real estate.
(2)
Includes accretable fair value net purchase discounts of $
17.8
million and $
18.4
million as of March 31, 2026 and December 31, 2025, respectively.
Various
loans were
assigned as
collateral for
borrowings, government
deposits, certain
time deposits
accounts, and
related unused
commitments. The carrying
value of loans pledged
as collateral amounted
to $
5.7
billion as of each
of March 31,
2026 and December
31, 2025. As
of each of
March 31, 2026
and December 31,
2025, loans pledged
as collateral include
$
2.1
billion that were
pledged at
the FHLB as
collateral for borrowings
and letters of
credit; $
3.4
billion pledged
as collateral to
secure borrowing capacity
at the FED
Discount
Window
as
of
each
of
March
31,
2026
and
December
31,
2025;
$
125.3
million
pledged
to
secure
as
collateral
for
the
uninsured
portion
of government
deposits
as of
March 31,
2026,
compared to
$
126.1
million as
of December
31, 2025;
and $
107.6
million pledged to secure certain time deposits accounts as of March 31, 2026,
compared to $
111.2
million as of December 31, 2025
The Corporation’s
aging of
the loan
portfolio held
for investment,
as well
as information
about nonaccrual
loans with
no ACL,
by
portfolio classes as of March 31, 2026 and December 31, 2025 are as follows:
As of March 31, 2026
Days Past Due and Accruing
Current
(1)
30-59
60-89
90+
(2) (3) (4)
Nonaccrual
(5)
Total loans held
for investment
Nonaccrual Loans
with no ACL
(6)
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed
loans
(1)
(2) (4)
$
70,773
$
-
$
2,034
$
15,532
$
-
$
88,339
$
-
Conventional residential mortgage loans
(1) (3) (5)
2,767,996
-
24,963
5,529
28,071
2,826,559
-
Commercial loans:
Construction loans
189,786
-
-
67
5,414
195,267
956
Commercial mortgage loans
(1) (3)
2,617,658
1,265
208
540
7,442
2,627,113
4,558
C&I loans
(5)
3,665,543
636
316
1,248
27,100
3,694,843
12,447
Consumer loans:
Auto loans
1,962,478
42,189
6,778
-
12,483
2,023,928
942
Finance leases
861,882
13,141
2,544
-
4,235
881,802
143
Personal loans
323,143
4,125
2,119
-
1,517
330,904
-
Credit cards
267,401
4,205
2,725
6,033
-
280,364
-
Other consumer loans
137,204
1,875
1,397
-
1,482
141,958
-
Total loans held for investment
$
12,863,864
$
67,436
$
43,084
$
28,949
$
87,744
$
13,091,077
$
19,046
(1)
According to the Corporation’s
delinquency policy and consistent with
the instructions for the preparation
of the Consolidated Financial Statements
for Bank Holding Companies (FR
Y-9C) required
by the Federal Reserve
Board, residential mortgage, commercial mortgage, and construction loans are considered
past due when the borrower is in arrears on two or more
monthly payments. Federal Housing Authority (“FHA”)/U.S. Department of
Veterans Affairs (“VA”)
government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but
less than two payments in arrears, as of March 31, 2026 amounted to
$
7.4
million, $
54.4
million, and $
1.2
million, respectively.
(2)
It is the Corporation’s policy
to report delinquent FHA/VA
government-guaranteed residential mortgage loans as past-due loans 90 days
and still accruing as opposed to nonaccrual loans. The
Corporation continues accruing
interest on these loans until they have
passed the 15-month delinquency mark, taking
into consideration the FHA interest curtailment process.
These balances include $
3.9
million of residential mortgage loans guaranteed by
the FHA that were over 15 months delinquent as of March 31, 2026.
(3)
Includes purchased
credit deteriorated
(“PCD”) loans
previously accounted
for under
ASC Subtopic
310-30 for
which the
Corporation elected
to treat
pools of
these loans
as single
assets both
at the
time of
adoption of
current expected
credit loss
(“CECL”) methodology
on January
1, 2020
and on
an ongoing
basis for
credit loss
measurement. These
loans will
continue to
be excluded
from nonaccrual
loan statistics
as long
as the
Corporation can reasonably estimate the timing and
amount of cash flows expected to be
collected on the loan pools. The
portion of such loans contractually past due 90
days or more, amounting to $
4.2
million as of March
31, 2026 ($
3.7
million conventional residential mortgage loans and $
0.5
million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.
(4)
Included rebooked loans, which were previously
pooled into Government National Mortgage Association
(“GNMA”) securities, amounting to $
6.7
million as of March 31, 2026.
Under the GNMA program, the Corporation
has the option
but not the obligation
to repurchase loans that
meet GNMA’s
specified delinquency criteria. For
accounting purposes, these loans
subject to the repurchase
option are required to
be reflected on the
financial
statements with an offsetting liability.
(5)
Nonaccrual loans in the Florida region amounted to $
11.8
million as of March 31, 2026, of which $
11.3
million were residential mortgage loans and $
0.5
million were C&I loans.
(6)
There were
no
nonaccrual loans with no ACL in the Florida region as of March 31, 2026.
As of December 31, 2025
Days Past Due and Accruing
Current
(1)
30-59
60-89
90+
(2) (3) (4)
Nonaccrual
(5)
Total loans held
for investment
Nonaccrual
Loans with no
ACL
(6)
(In thousands)
Residential mortgage loans, mainly secured by first mortgages:
FHA/VA government-guaranteed
loans
(1)
(2) (4)
$
70,781
$
-
$
2,163
$
15,776
$
-
$
88,720
$
-
Conventional residential mortgage loans
(1) (3) (5)
2,758,359
-
25,985
6,069
29,169
2,819,582
-
Commercial loans:
Construction loans
260,032
-
-
-
5,536
265,568
956
Commercial mortgage loans
(1) (3)
2,544,283
141
513
933
8,382
2,554,252
952
C&I loans
(5)
3,653,509
1,514
2,563
2,730
28,042
3,688,358
13,752
Consumer loans:
Auto loans
1,952,600
63,085
12,661
-
14,665
2,043,011
631
Finance leases
871,810
14,049
2,670
-
3,510
892,039
100
Personal loans
325,474
5,185
2,705
-
1,792
335,156
-
Credit cards
278,938
4,479
3,266
6,405
-
293,088
-
Other consumer loans
140,117
2,157
1,841
-
1,467
145,582
-
Total loans held for investment
$
12,855,903
$
90,610
$
54,367
$
31,913
$
92,563
$
13,125,356
$
16,391
(1)
According to
the Corporation’s
delinquency policy
and consistent
with the
instructions for
the preparation
of the
Consolidated Financial
Statements for
Bank Holding
Companies (FR
Y-9C)
required by
the Federal
Reserve Board, residential
mortgage, commercial mortgage,
and construction loans
are considered past
due when the
borrower is in
arrears on two
or more monthly
payments. FHA/VA
government-guaranteed loans,
conventional residential mortgage loans,
and commercial mortgage loans
past due 30-59 days,
but less than two payments
in arrears, as of
December 31, 2025 amounted to
$
8.7
million, $
59.1
million, and $
0.8
million,
respectively.
(2)
It is
the Corporation’s
policy to
report delinquent
FHA/VA
government-guaranteed residential
mortgage loans
as past-due
loans 90
days and
still accruing
as opposed
to nonaccrual
loans. The
Corporation continues
accruing interest on these
loans until they have
passed the 15-month delinquency mark,
taking into consideration the
FHA interest curtailment process.
These balances include $
4.1
million of residential mortgage
loans
guaranteed by the FHA that were over 15 months delinquent as of December 31, 2025.
(3)
Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation elected to treat pools of these loans as single assets both at the time of adoption of CECL on January 1, 2020 and on an
ongoing basis for credit loss measurement. These loans will
continue to be excluded from nonaccrual loan statistics as long
as the Corporation can reasonably estimate the timing and
amount of cash flows expected to be
collected on the loan
pools. The portion of such
loans contractually past due 90
days or more, amounting to
$
4.8
million as of December
31, 2025 ($
3.9
million conventional residential mortgage loans
and $
0.9
million
commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.
(4)
Include rebooked loans,
which were previously
pooled into GNMA
securities, amounting to
$
6.7
million as of
December 31, 2025.
Under the GNMA
program, the Corporation
has the option
but not the
obligation to
repurchase loans that meet GNMA’s
specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.
(5)
Nonaccrual loans in the Florida region amounted to $
11.3
million as of December 31, 2025, of which $
11.1
million were residential mortgage loans and $
0.2
million was a C&I loan.
(6)
There were
no
nonaccrual loans with no ACL in the Florida region as of December 31, 2025.
When
a
loan
is placed
in
nonaccrual
status,
any
accrued
but uncollected
interest
income
is reversed
and
charged
against interest
income
and the
amortization of
any net
deferred fees
is suspended.
The amount
of accrued
interest reversed
against interest
income
totaled $
0.7
million and $
0.9
million for the
quarters ended March
31, 2026 and
2025, respectively.
For the quarters
ended March 31,
2026 and 2025, interest income recognized on nonaccrual loans amounted
to $
0.7
million, compared to $
0.4
million, respectively.
As of
March 31,
2026, the
recorded investment
on residential
mortgage loans
collateralized by
residential real
estate property
that
were in
the process
of foreclosure
amounted
to $
23.2
million,
including
$
6.2
million of
FHA/VA
government-guaranteed
mortgage
loans, and
$
3.0
million of
PCD loans
acquired prior
to the
adoption, on
January 1,
2020, of
CECL. The
Corporation commences
the
foreclosure
process on
residential real
estate loans
after
120
days of
delinquency
have passed.
Foreclosure
procedures and
timelines
vary depending on whether the property is located
in a judicial or non-judicial state. Occasionally,
foreclosures may be delayed due to,
among other reasons, mandatory mediations, bankruptcy,
court delays, and title issues.
Credit Quality Indicators:
The Corporation
categorizes loans
into risk
categories based
on relevant
information
about the
ability of
the borrowers
to service
their debt
such as
current financial
information, historical
payment experience,
credit documentation,
public information,
and current
economic
trends,
among
other
factors.
The
Corporation
analyzes
non-homogeneous
loans,
such
as commercial
mortgage,
C&I,
and
construction loans individually
to classify the loans’ credit
risk. The Corporation
periodically reviews its commercial
and construction
loans
to
evaluate
if
they
are
properly
classified.
The
frequency
of
these
reviews
will
depend
on
the
amount
of
the
aggregate
outstanding
debt,
and
the
risk
rating
classification
of
the
obligor.
In
addition,
during
the
renewal
and
annual
review
process
of
applicable credit facilities,
the Corporation evaluates
the corresponding loan
grades. The Corporation
uses the same definition
for risk
ratings
as
those
described
for
government
bonds
accounted
for
as
held-to-maturity
debt
securities,
as
discussed
in
Note
2
-
“Debt
Securities,”
to the audited consolidated financial statements included in the 2025
Annual Report on Form 10-K.
For residential mortgage and consumer loans, the Corporation evaluates
credit quality based on its interest accrual status.
Based on
the most
recent analysis
performed, the
amortized cost
of commercial
and construction
loans by portfolio
classes and
by
origination year based
on the internal credit-risk
category as of March
31, 2026, the gross charge
-offs for the quarter
ended March 31,
2026
by portfolio
classes and
by origination
year,
and the
amortized
cost of
commercial and
construction loans
by portfolio
classes
based on the internal credit-risk category as of December 31, 2025, were
as follows:
As of March 31, 2026
As of
December 31,
2025
Puerto Rico and Virgin Islands Region
Term Loans
Amortized Cost Basis by Origination Year
(1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
CONSTRUCTION
Risk Ratings:
Pass
$
-
$
18,221
$
101,993
$
60,062
$
3,409
$
3,878
$
-
$
187,563
$
258,104
Criticized:
Substandard
-
-
-
4,201
-
1,213
-
5,414
5,536
Total construction loans
$
-
$
18,221
$
101,993
$
64,263
$
3,409
$
5,091
$
-
$
192,977
$
263,640
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
COMMERCIAL MORTGAGE
Risk Ratings:
Pass
$
52,412
$
210,368
$
303,036
$
215,899
$
326,291
$
688,276
$
8,466
$
1,804,748
$
1,741,159
Criticized:
Special Mention
-
269
-
3,271
-
-
-
3,540
3,588
Substandard
-
63
-
448
3,001
14,749
-
18,261
19,180
Total commercial mortgage loans
$
52,412
$
210,700
$
303,036
$
219,618
$
329,292
$
703,025
$
8,466
$
1,826,549
$
1,763,927
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
562
$
-
$
562
C&I
Risk Ratings:
Pass
$
24,068
$
468,181
$
249,028
$
279,784
$
238,446
$
330,870
$
835,993
$
2,426,370
$
2,440,152
Criticized:
Special Mention
-
-
-
1,647
-
-
33,030
34,677
40,643
Substandard
-
1,740
7
762
105
28,975
2,065
33,654
38,207
Total C&I loans
$
24,068
$
469,921
$
249,035
$
282,193
$
238,551
$
359,845
$
871,088
$
2,494,701
$
2,519,002
Charge-offs on C&I loans
$
-
$
-
$
38
$
35
$
-
$
11
$
306
$
390
(1) Excludes accrued interest receivable.
As of March 31, 2026
As of
December 31,
2025
Term Loans
Florida Region
Amortized Cost Basis by Origination Year
(1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
CONSTRUCTION
Risk Ratings:
Pass
$
-
$
1,614
$
676
$
-
$
-
$
-
$
-
$
2,290
$
1,928
Total construction loans
$
-
$
1,614
$
676
$
-
$
-
$
-
$
-
$
2,290
$
1,928
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
COMMERCIAL MORTGAGE
Risk Ratings:
Pass
$
19,443
$
172,849
$
75,268
$
25,876
$
195,926
$
261,144
$
31,834
$
782,340
$
771,997
Criticized:
Substandard
-
-
-
-
17,407
817
-
18,224
18,328
Total commercial mortgage loans
$
19,443
$
172,849
$
75,268
$
25,876
$
213,333
$
261,961
$
31,834
$
800,564
$
790,325
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
C&I
Risk Ratings:
Pass
$
14,929
$
227,076
$
272,917
$
174,151
$
131,876
$
148,113
$
215,749
$
1,184,811
$
1,154,271
Criticized:
Special Mention
-
-
10,884
-
-
-
3,968
14,852
14,898
Substandard
-
-
-
-
-
181
298
479
187
Total C&I loans
$
14,929
$
227,076
$
283,801
$
174,151
$
131,876
$
148,294
$
220,015
$
1,200,142
$
1,169,356
Charge-offs on C&I loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
(1) Excludes accrued interest receivable.
As of March 31, 2026
As of
December 31,
2025
Term Loans
Total
Amortized Cost Basis by Origination Year (1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
CONSTRUCTION
Risk Ratings:
Pass
$
-
$
19,835
$
102,669
$
60,062
$
3,409
$
3,878
$
-
$
189,853
$
260,032
Criticized:
Substandard
-
-
-
4,201
-
1,213
-
5,414
5,536
Total construction loans
$
-
$
19,835
$
102,669
$
64,263
$
3,409
$
5,091
$
-
$
195,267
$
265,568
Charge-offs on construction loans
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
COMMERCIAL MORTGAGE
Risk Ratings:
Pass
$
71,855
$
383,217
$
378,304
$
241,775
$
522,217
$
949,420
$
40,300
$
2,587,088
$
2,513,156
Criticized:
Special Mention
-
269
-
3,271
-
-
-
3,540
3,588
Substandard
-
63
-
448
20,408
15,566
-
36,485
37,508
Total commercial mortgage loans
$
71,855
$
383,549
$
378,304
$
245,494
$
542,625
$
964,986
$
40,300
$
2,627,113
$
2,554,252
Charge-offs on commercial mortgage loans
$
-
$
-
$
-
$
-
$
-
$
562
$
-
$
562
C&I
Risk Ratings:
Pass
$
38,997
$
695,257
$
521,945
$
453,935
$
370,322
$
478,983
$
1,051,742
$
3,611,181
$
3,594,423
Criticized:
Special Mention
-
-
10,884
1,647
-
-
36,998
49,529
55,541
Substandard
-
1,740
7
762
105
29,156
2,363
34,133
38,394
Total C&I loans
$
38,997
$
696,997
$
532,836
$
456,344
$
370,427
$
508,139
$
1,091,103
$
3,694,843
$
3,688,358
Charge-offs on C&I loans
$
-
$
-
$
38
$
35
$
-
$
11
$
306
$
390
(1) Excludes accrued interest receivable.
The following
tables present the
amortized cost of
residential mortgage
loans by portfolio
classes and by
origination year
based on
accrual status as of March 31, 2026,
the gross charge-offs for
the quarter ended March 31, 2026 by
origination year, and the
amortized
cost of residential mortgage loans by portfolio classes based on accrual
status as of December 31, 2025:
As of March 31, 2026
As of
December 31,
2025
Term Loans
Amortized Cost Basis by Origination Year
(1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Puerto Rico and Virgin Islands Region:
FHA/VA government-guaranteed loans
Accrual Status:
Performing
$
-
$
87
$
242
$
1,115
$
1,107
$
84,456
$
-
$
87,007
$
87,635
Total FHA/VA
government-guaranteed loans
$
-
$
87
$
242
$
1,115
$
1,107
$
84,456
$
-
$
87,007
$
87,635
Conventional residential mortgage loans
Accrual Status:
Performing
$
52,607
$
238,810
$
177,607
$
153,731
$
141,017
$
1,510,811
$
-
$
2,274,583
$
2,271,925
Non-Performing
-
39
-
-
328
16,431
-
16,798
18,044
Total conventional residential mortgage loans
$
52,607
$
238,849
$
177,607
$
153,731
$
141,345
$
1,527,242
$
-
$
2,291,381
$
2,289,969
Total
Accrual Status:
Performing
$
52,607
$
238,897
$
177,849
$
154,846
$
142,124
$
1,595,267
$
-
$
2,361,590
$
2,359,560
Non-Performing
-
39
-
-
328
16,431
-
16,798
18,044
Total residential mortgage loans
$
52,607
$
238,936
$
177,849
$
154,846
$
142,452
$
1,611,698
$
-
$
2,378,388
$
2,377,604
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
1
$
-
$
125
$
-
$
126
(1)
Excludes accrued interest receivable.
As of March 31, 2026
As of
December 31,
2025
Term Loans
Amortized Cost Basis by Origination Year
(1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Florida Region:
FHA/VA government-guaranteed loans
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
1,332
$
-
$
1,332
$
1,085
Total FHA/VA
government-guaranteed loans
$
-
$
-
$
-
$
-
$
-
$
1,332
$
-
$
1,332
$
1,085
Conventional residential mortgage loans
Accrual Status:
Performing
$
19,073
$
72,055
$
82,184
$
72,788
$
61,636
$
216,169
$
-
$
523,905
$
518,488
Non-Performing
-
-
-
1,814
2,442
7,017
-
11,273
11,125
Total conventional residential mortgage loans
$
19,073
$
72,055
$
82,184
$
74,602
$
64,078
$
223,186
$
-
$
535,178
$
529,613
Total
Accrual Status:
Performing
$
19,073
$
72,055
$
82,184
$
72,788
$
61,636
$
217,501
$
-
$
525,237
$
519,573
Non-Performing
-
-
-
1,814
2,442
7,017
-
11,273
11,125
Total residential mortgage loans
$
19,073
$
72,055
$
82,184
$
74,602
$
64,078
$
224,518
$
-
$
536,510
$
530,698
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
-
$
-
$
4
$
-
$
4
(1)
Excludes accrued interest receivable.
As of March 31, 2026
As of
December 31,
2025
Term Loans
Amortized Cost Basis by Origination Year
(1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Total:
FHA/VA government-guaranteed loans
Accrual Status:
Performing
$
-
$
87
$
242
$
1,115
$
1,107
$
85,788
$
-
$
88,339
$
88,720
Total FHA/VA
government-guaranteed loans
$
-
$
87
$
242
$
1,115
$
1,107
$
85,788
$
-
$
88,339
$
88,720
Conventional residential mortgage loans
Accrual Status:
Performing
$
71,680
$
310,865
$
259,791
$
226,519
$
202,653
$
1,726,980
$
-
$
2,798,488
$
2,790,413
Non-Performing
-
39
-
1,814
2,770
23,448
-
28,071
29,169
Total conventional residential mortgage loans
$
71,680
$
310,904
$
259,791
$
228,333
$
205,423
$
1,750,428
$
-
$
2,826,559
$
2,819,582
Total
Accrual Status:
Performing
$
71,680
$
310,952
$
260,033
$
227,634
$
203,760
$
1,812,768
$
-
$
2,886,827
$
2,879,133
Non-Performing
-
39
-
1,814
2,770
23,448
-
28,071
29,169
Total residential mortgage loans
$
71,680
$
310,991
$
260,033
$
229,448
$
206,530
$
1,836,216
$
-
$
2,914,898
$
2,908,302
Charge-offs on residential mortgage loans
$
-
$
-
$
-
$
1
$
-
$
129
$
-
$
130
(1)
Excludes accrued interest receivable.
The
following
tables present
the
amortized
cost
of
consumer
loans
by
portfolio
classes
and
by origination
year
based on
accrual
status as of
March 31,
2026, the
gross charge-offs
for the quarter
ended March
31, 2026 by
portfolio classes
and by
origination year,
and the amortized cost of consumer loans by portfolio classes based on accrual status as of
December 31, 2025:
As of March 31, 2026
As of
December 31,
2025
Term Loans
Total
Amortized Cost Basis by Origination Year
(1)
2026
2025
2024
2023
2022
Prior
Revolving
Loans
Amortized
Cost Basis
Total
Total
(In thousands)
Auto loans
Accrual Status:
Performing
$
144,722
$
558,732
$
478,783
$
352,065
$
257,925
$
219,218
$
-
$
2,011,445
$
2,028,346
Non-Performing
-
1,144
2,116
2,385
2,606
4,232
-
12,483
14,665
Total auto loans
$
144,722
$
559,876
$
480,899
$
354,450
$
260,531
$
223,450
$
-
$
2,023,928
$
2,043,011
Charge-offs on auto loans
$
16
$
1,615
$
2,328
$
3,049
$
1,614
$
1,383
$
-
$
10,005
Finance leases
Accrual Status:
Performing
$
54,180
$
217,931
$
200,464
$
196,600
$
128,607
$
79,785
$
-
$
877,567
$
888,529
Non-Performing
-
71
772
950
799
1,643
-
4,235
3,510
Total finance leases
$
54,180
$
218,002
$
201,236
$
197,550
$
129,406
$
81,428
$
-
$
881,802
$
892,039
Charge-offs on finance leases
$
-
$
191
$
519
$
842
$
539
$
624
$
-
$
2,715
Personal loans
Accrual Status:
Performing
$
31,838
$
105,208
$
77,904
$
63,537
$
38,136
$
12,764
$
-
$
329,387
$
333,364
Non-Performing
-
290
360
467
300
100
-
1,517
1,792
Total personal loans
$
31,838
$
105,498
$
78,264
$
64,004
$
38,436
$
12,864
$
-
$
330,904
$
335,156
Charge-offs on personal loans
$
-
$
533
$
1,153
$
1,414
$
964
$
284
$
-
$
4,348
Credit cards
Accrual Status:
Performing
$
-
$
-
$
-
$
-
$
-
$
-
$
280,364
$
280,364
$
293,088
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
280,364
$
280,364
$
293,088
Charge-offs on credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
4,772
$
4,772
Other consumer loans
Accrual Status:
Performing
$
19,609
$
56,256
$
26,028
$
16,523
$
7,180
$
5,339
$
9,541
$
140,476
$
144,115
Non-Performing
-
440
450
298
103
47
144
1,482
1,467
Total other consumer loans
$
19,609
$
56,696
$
26,478
$
16,821
$
7,283
$
5,386
$
9,685
$
141,958
$
145,582
Charge-offs on other consumer loans
$
-
$
1,701
$
1,356
$
705
$
273
$
111
$
133
$
4,279
Total
Accrual Status:
Performing
$
250,349
$
938,127
$
783,179
$
628,725
$
431,848
$
317,106
$
289,905
$
3,639,239
$
3,687,442
Non-Performing
-
1,945
3,698
4,100
3,808
6,022
144
19,717
21,434
Total consumer loans
$
250,349
$
940,072
$
786,877
$
632,825
$
435,656
$
323,128
$
290,049
$
3,658,956
$
3,708,876
Charge-offs on total consumer loans
$
16
$
4,040
$
5,356
$
6,010
$
3,390
$
2,402
$
4,905
$
26,119
(1)
Excludes accrued interest receivable.
As of March 31, 2026 and December 31, 2025, the balance of revolving loans converted
to term loans was
no
t material.
Accrued
interest
receivable
on
loans
totaled
$
54.5
million
as
of
March
31,
2026
($
58.7
million
as
of
December
31,
2025),
was
reported as part
of accrued interest receivable
on loans and
investment securities in
the consolidated statements
of financial condition,
and is excluded from the estimate of credit losses.
The
following
tables
present
information
about
collateral
dependent
loans
that
were
individually
evaluated
for
purposes
of
determining the ACL as of March 31, 2026 and December 31, 2025:
As of March 31, 2026
Collateral Dependent Loans -
With Allowance
Collateral Dependent
Loans - With No
Related Allowance
Collateral Dependent Loans - Total
Amortized Cost
Related
Allowance
Amortized Cost
Amortized Cost
Related
Allowance
(In thousands)
Residential mortgage loans:
Conventional residential mortgage loans
$
22,044
$
1,200
$
-
$
22,044
$
1,200
Commercial loans:
Construction loans
4,201
597
956
5,157
597
Commercial mortgage loans
-
-
17,130
17,130
-
C&I loans
-
-
12,447
12,447
-
$
26,245
$
1,797
$
30,533
$
56,778
$
1,797
As of December 31, 2025
Collateral Dependent Loans -
With Allowance
Collateral Dependent
Loans - With No
Related Allowance
Collateral Dependent Loans - Total
Amortized Cost
Related
Allowance
Amortized Cost
Amortized Cost
Related
Allowance
(In thousands)
Residential mortgage loans:
Conventional residential mortgage loans
$
22,919
$
1,233
$
-
$
22,919
$
1,233
Commercial loans:
Construction loans
4,321
627
956
5,277
627
Commercial mortgage loans
4,454
130
19,009
23,463
130
C&I loans
-
-
13,753
13,753
-
$
31,694
$
1,990
$
33,718
$
65,412
$
1,990
The
underlying
collateral
for
residential
mortgage
and
consumer
collateral
dependent
loans consisted
of
single-family
residential
properties,
and for
commercial and
construction loans
consisted primarily
of office
buildings, multifamily
residential properties,
and
retail
establishments.
The
weighted-average
loan-to-value
coverage
for
collateral
dependent
loans
as
of
March
31,
2026
was
65
%,
compared to
67
% as
of December
31, 2025,
driven by
a $
1.2
million repayment
of a
C&I loan
in the
Puerto Rico
region in
the food
retail industry with a loan-to-value ratio of
77
% and a $
4.7
million outflow from the collateral-dependent loan
portfolio, attributable to
a commercial mortgage loan in the Puerto Rico region with a loan-to-value
ratio of
80
%.
Purchases and Sales of Loans
In
the
ordinary
course
of
business,
the
Corporation
enters
into
securitization
transactions
and
whole
loan
sales
with
GNMA
and
GSEs,
such
as
Federal
National
Mortgage
Association
(“FNMA”)
and
Federal
Home
Loan
Mortgage
Corporation
(“FHLMC”).
During the
quarters ended
March 31,
2026 and
2025, loans
pooled
into GNMA
MBS amounted
to approximately
$
41.6
million and
$
42.2
million,
respectively,
for
which
the
Corporation
recognized
a
net
gain
on
sale of
$
2.4
million
and
$
1.1
million,
respectively.
Also, during
the quarter
ended March
31, 2025,
the Corporation
sold approximately
$
4.1
million of
performing residential
mortgage
loans to GSEs,
for which the
Corporation recognized
a net gain on
sale of $
0.2
million. There were
no
sales of performing
residential
mortgage loans
to GSEs
for the
quarter ended
March 31,
2026. The
Corporation’s
continuing involvement
with the
loans that
it sells
consists
primarily
of
servicing
the
loans.
In
addition,
the
Corporation
agrees
to
repurchase
loans
if
it
breaches
any
of
the
representations
and
warranties
included
in
the
sale
agreement.
These
representations
and
warranties
are
consistent
with
the
GSEs’
selling and servicing guidelines (
i.e.
, ensuring that the mortgage was properly underwritten according to established
guidelines).
For loans
pooled into
GNMA MBS,
the Corporation,
as servicer,
holds an
option to
repurchase individual
delinquent loans
issued
on or after
January 1, 2003,
when certain delinquency
criteria are met. This
option gives the
Corporation the unilateral
ability,
but not
the obligation, to
repurchase the delinquent
loans at par without
prior authorization from
GNMA. Since the
Corporation is considered
to
have
regained
effective
control
over
the
loans,
it
is
required
to
recognize
the
loans
and
a
corresponding
repurchase
liability
regardless of
its intent
to repurchase
the loans.
As of
each of
March 31,
2026 and
December 31,
2025, rebooked
GNMA delinquent
loans that were included in the residential mortgage loan portfolio
amounted to $
6.7
million.
During
the
quarters
ended
March
31,
2026
and
2025,
the
Corporation
repurchased,
pursuant
to
the
aforementioned
repurchase
option, $
0.4
million and $
0.2
million, respectively,
of loans previously pooled
into GNMA MBS. The
principal balance of these
loans
is fully
guaranteed,
and the
risk of
loss related
to the
repurchased loans
is generally
limited to
the difference
between the
delinquent
interest payment
advanced
to GNMA,
which
is computed
at the
loan’s
interest rate,
and
the interest
payments
reimbursed
by FHA,
which are
computed at
a pre-determined
debenture rate.
Repurchases of
GNMA loans
allow the
Corporation, among
other things,
to
maintain acceptable delinquency
rates on outstanding GNMA
pools and remain as
a seller and servicer
in good standing with
GNMA.
Historically, losses
on these repurchases of
GNMA delinquent loans have
been immaterial and no provision has
been made at the time
of sale.
Loan sales to FNMA and
FHLMC are without recourse
in relation to the future
performance of the loans.
The Corporation’s
risk of
loss
with
respect
to
these
loans
is
also
minimal
as
these
repurchased
loans
are
generally
performing
loans
with
documentation
deficiencies.
During the
quarter ended
March 31,
2026, the
Corporation purchased
C&I loan
participations in
the Florida
region totaling
$
35.7
million, compared to $
15.0
million during the quarter ended March 31, 2025.
During
the
quarter
ended
March
31,
2025,
the
Corporation
recognized
recoveries
of
$
2.4
million
from
the
bulk
sale
of
fully
charged-off
consumer
loans
and
finance
leases.
There
were
no
significant
sales
of
loans
during
the
quarter
ended
March
31,
2026,
other than sales of conforming residential mortgage loans mentioned above.
Loan Portfolio Concentration
The Corporation’s
primary
lending area
is Puerto
Rico. The
Corporation’s
banking subsidiary,
FirstBank, also
lends in
the USVI
and the BVI markets and
in the United States (principally
in the state of Florida).
Of the total gross loans held
for investment portfolio
of $
13.1
billion as
of March
31, 2026,
credit risk
concentration was
approximately
77
% in
Puerto Rico,
19
% in
the U.S.,
and
4
% in
the USVI and the BVI.
As
of
March
31,
2026,
the
Corporation
had
$
215.0
million
outstanding
in
loans
extended
to
the
Puerto
Rico
government,
its
municipalities and
public corporations,
compared to
$
215.5
million as
of December
31, 2025.
As of
March 31,
2026, approximately
$
155.4
million
consisted
of
loans
extended
to
municipalities
in
Puerto
Rico
that
are
general
obligations
supported
by
assigned
property
tax
revenues,
and $
18.6
million
of
loans which
are supported
by one
or
more
specific sources
of municipal
revenues. The
vast
majority
of
revenues
of the
municipalities
included
in
the
Corporation’s
loan
portfolio
are
independent
of
budgetary
subsidies
provided
by
the
Puerto
Rico
central
government.
These
municipalities
are
required
by
law
to
levy
special
property
taxes
in
such
amounts
as
are
required
to
satisfy
the
payment
of
all
of
their
respective
general
obligation
bonds
and
notes.
In
addition
to
loans
extended to municipalities, the
Corporation’s exposure
to the Puerto Rico government
as of March 31, 2026 included
$
8.6
million in a
loan granted to
an affiliate of
the Puerto Rico
Electric Power Authority
(“PREPA”)
and $
32.4
million in loans
to a public corporation
of the Puerto Rico government.
Moreover,
as
of
March
31,
2026,
the
outstanding
balance
of
construction
loans
funded
through
conduit
financing
structures
to
support
the
federal
programs
of
Low-Income
Housing
Tax
Credit
(“LIHTC”)
combined
with
other
federal
programs
amounted
to
$
81.6
million, compared
to $
92.4
million as
of December
31, 2025.
The main
objective of
these programs
is to
spur development
in
new or rehabilitated
and affordable rental
housing. PRHFA,
as program subrecipient
and conduit issuer,
issues tax-exempt obligations
which
are
acquired
by
private
financial
institutions
and
are
required
to
co-underwrite
with
PRHFA
a
mirror
construction
loan
agreement for the specific project
loan to which the Corporation will
serve as ultimate lender,
but where the PRHFA
will be the lender
of record.
In addition,
as of March
31, 2026, the
Corporation had
$
66.0
million in exposure
to residential mortgage
loans that are
guaranteed
by
the
PRHFA,
a
government
instrumentality
that
has
been
designated
as
a
covered
entity
under
PROMESA,
compared
to
$
67.1
million as of
December 31, 2025.
Residential mortgage
loans guaranteed by
the PRHFA
are secured by
the underlying properties
and
the guarantees serve to cover shortfalls in collateral in the event of a borrower default.
The Corporation
also has credit
exposure to
USVI government
entities. As of
March 31, 2026,
the Corporation
had
$
168.3
million
in loans
to USVI
government public
corporations, compared
to $
138.7
million as
of December
31, 2025.
As of
March 31,
2026, all
loans were currently performing and up to date on principal and interest payments.
Loss Mitigation Program for Borrowers Experiencing
Financial Difficulty
The Corporation provides assistance to
its customers through a loss mitigation
program. Depending upon the
nature of a borrower’s
financial
condition,
restructurings
or
loan
modifications
through
this
program
are
provided,
as
well
as
other
restructurings
of
individual
C&I,
commercial
mortgage,
construction,
and
residential
mortgage
loans.
The
Corporation
may
also
modify
contractual
terms to comply with regulations regarding the treatment of certain bankruptcy
filings and discharge situations.
The
loan
modifications
granted
to
borrowers
experiencing
financial
difficulty
that
are
associated
with
payment
delays
typically
include the following:
-
Forbearance plans –
Payments of either interest
and/or principal are
deferred for a pre-established
period of time, generally
not
exceeding
six
months
in
any
given
year.
The
deferred
interest
and/or
principal
is
repaid
as
either
a
lump
sum
payment
at
maturity date or by extending the loan’s
maturity date by the number of forbearance months granted.
-
Payment
plans
–
Borrowers
are
allowed
to
pay
the
regular
monthly
payment
plus
the
pre-established
delinquent
amounts
during a period generally not exceeding
six months.
At the end of the payment plan, the
borrower is required to resume making
its regularly scheduled loan payments.
-
Trial
modifications
–
These
types
of
loan
modifications
are granted
for
residential
mortgage
loans
and
home
equity
lines of
credit. Borrowers
continue making reduced monthly
payments during the
trial period, which is
generally up to six
months. The
reduced
payments
that
are
made
by
the
borrower
during
the
trial
period
will
result
in
a
payment
delay
with
respect
to
the
original contractual terms of
the loan since the loan has
not yet been contractually
modified. After successful completion
of the
trial period, the mortgage loan is contractually modified.
Modifications
in the
form
of a
reduction
in interest
rate,
term extension,
change in
amortization
term,
an other
-than-insignificant
payment
delay,
or
any
combination
of
these
types
of
loan
modifications
that
have
occurred
in
the
current
reporting
period
for
a
borrower
experiencing
financial
difficulty
are
disclosed
in
the
tables
below.
Many
factors
are
considered
when
evaluating
whether
there is
an other-than-insignificant
payment delay,
such as
the significance
of the
restructured payment
amount relative
to the
unpaid
principal balance or collateral value of the loan or the relative significance of
the delay to the original loan terms.
The
below
disclosures
relate
to
loan
modifications
granted
to
borrowers
experiencing
financial
difficulty
in
which
there
was
a
change
in
the
timing
and/or
amount
of
contractual
cash
flows
in
the
form
of
any
of
the
aforementioned
types
of
modifications,
including
restructurings
that
resulted
in
a
more-than-insignificant
payment
delay.
These
disclosures
exclude
$
0.8
million
in
restructured
residential
mortgage
loans
that
are
government-guaranteed
(e.g.
FHA/VA
loans)
and
were
modified
during
the
quarter
ended March 31, 2026, compared to $
1.4
million for the comparable period in 2025.
The following
tables present
the amortized
cost basis
as of March
31, 2026
and 2025
of loans
modified to
borrowers experiencing
financial difficulty
during the quarters
ended March 31, 2026
and 2025, by portfolio
classes and type
of modification granted,
and the
percentage of these modified loans relative to the total period-end
amortized cost basis of receivables in the portfolio class:
Quarter Ended March 31, 2026
Payment Delay Only
Forbearance
Payment
Plan
Trial
Modification
Change in
Amortization
term
Interest Rate
Reduction
Term
Extension
Combination
of Interest
Rate
Reduction
and Term
Extension
Other
Total
Percentage
of Total by
Portfolio
Classes
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
144
$
-
$
-
$
-
$
-
$
-
$
144
0.01%
Construction loans
-
-
-
-
-
-
-
-
-
-
Commercial mortgage loans
-
365
-
-
-
-
-
-
365
0.01%
C&I loans
-
298
-
-
12
(1)
19
1,559
8
(2)
1,896
0.05%
Consumer loans:
Auto loans
-
-
-
-
-
81
141
640
(2)
862
0.04%
Personal loans
-
-
-
-
-
-
197
-
197
0.06%
Credit cards
-
-
-
-
570
(1)
-
-
-
570
0.20%
Other consumer loans
-
-
-
-
-
59
3
-
62
0.04%
Total modifications
$
-
$
663
$
144
$
-
$
582
$
159
$
1,900
$
648
$
4,096
Quarter Ended March 31, 2025
Payment Delay Only
Forbearance
Payment
Plan
Trial
Modification
Change in
Amortization
Term
Interest Rate
Reduction
Term
Extension
Combination
of Interest
Rate
Reduction
and Term
Extension
Other
Total
Percentage
of Total by
Portfolio
Classes
(In thousands)
Conventional residential mortgage loans
$
-
$
-
95
$
-
$
-
$
117
$
-
$
-
$
212
0.01%
Construction loans
-
-
-
-
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
-
-
-
-
-
-
C&I loans
201
(3)
-
-
-
21
(1)
331
-
-
553
0.02%
Consumer loans:
Auto loans
-
-
-
-
-
205
55
796
(2)
1,056
0.05%
Personal loans
-
-
-
-
-
7
91
-
98
0.03%
Credit cards
-
-
-
-
965
(1)
-
-
-
965
0.32%
Other consumer loans
-
-
-
-
-
76
57
-
133
0.09%
Total modifications
$
201
$
-
95
$
-
$
986
$
736
$
203
$
796
$
3,017
(1)
Modification consists of reduction in interest rate and revocation of revolving line privileges.
(2)
Modification consists of court mandated reduction to 0% interest rate for remaining loan term to borrowers in bankruptcy proceedings unless dismissal occurs.
(3)
Modification consists of a six-month deferral of principal and interest to be repaid on or before the end of the forbearance
plan.
The
following
tables
present
by
portfolio
classes
the
financial
effects
of
the
modifications
granted
to
borrowers
experiencing
financial difficulty,
other than those
associated to payment
delay,
during the quarters
ended March
31, 2026 and
2025. The financial
effects of the modifications associated to payment delay were discussed
above and, as such, were excluded from the tables below:
Quarter Ended March 31, 2026
Combination of Interest Rate Reduction
and Term Extension
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Change in
Amortization Term
(in months)
Conventional residential mortgage loans
-
%
-
-
%
-
-
Construction loans
-
%
-
-
%
-
-
Commercial mortgage loans
-
%
-
-
%
-
-
C&I loans
15.27
%
8
2.25
%
12
-
Consumer loans:
Auto loans
-
%
27
4.04
%
26
-
Personal loans
-
%
-
4.79
%
26
-
Credit cards
14.60
%
-
-
%
-
-
Other consumer loans
-
%
24
2.00
%
20
-
Quarter Ended March 31, 2025
Combination of Interest Rate Reduction
and Term Extension
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Weighted-Average
Interest Rate
Reduction (%)
Weighted-Average
Term Extension (in
months)
Change in
Amortization Term
(in months)
Conventional residential mortgage loans
-
%
66
-
%
-
-
Construction loans
-
%
-
-
%
-
-
Commercial mortgage loans
-
%
-
-
%
-
-
C&I loans
14.23
%
120
-
%
-
-
Consumer loans:
Auto loans
-
%
25
1.88
%
16
-
Personal loans
-
%
36
3.65
%
23
-
Credit cards
16.01
%
-
-
%
-
-
Other consumer loans
-
%
27
3.14
%
21
-
The following
tables present
by portfolio
classes the
performance of
loans modified
during the
last twelve
months ended
March
31, 2026 and 2025 that were granted to borrowers experiencing financial difficulty:
Last Twelve Months Ended March 31, 2026
30-59
60-89
90+
Total
Delinquency
Current
Total
(In thousands)
Conventional residential mortgage loans
$
165
$
-
$
-
$
165
$
1,374
$
1,539
Construction loans
-
-
-
-
-
-
Commercial mortgage loans
-
-
-
-
30,530
30,530
C&I loans
8
-
14
22
3,007
3,029
Consumer loans:
Auto loans
54
107
121
282
3,630
3,912
Personal loans
79
-
15
94
604
698
Credit cards
365
207
267
839
2,194
3,033
Other consumer loans
15
9
9
33
387
420
Total modifications
$
686
$
323
$
426
$
1,435
$
41,726
$
43,161
Last Twelve Months Ended March 31, 2025
30-59
60-89
90+
Total
Delinquency
Current
Total
(In thousands)
Conventional residential mortgage loans
$
-
$
-
$
-
$
-
$
981
$
981
Construction loans
-
-
-
-
119
119
Commercial mortgage loans
-
-
-
-
126,974
126,974
C&I loans
6
4
-
10
10,519
10,529
Consumer loans:
Auto loans
78
99
152
329
3,313
3,642
Personal loans
-
-
-
-
267
267
Credit cards
218
117
99
434
2,651
3,085
Other consumer loans
18
23
10
51
488
539
Total modifications
$
320
$
243
$
261
$
824
$
145,312
$
146,136