 During the following years, between 1989 and 1990, private and public savings banks on the island, with the exception of Westernbank, faced losses, restated their financial statements, and saw significant decreases in their stock prices.Westernbank lending policies and practices focused mainly on mortgage residential loans rather than commercial and construction loans because, although commercial and construction loans offer a much higher rate of return, mortgage loans offer a much smaller risk of default.However, in 1994, after a revision of state bank laws, the company decided to diversify its loan portfolio and services by changing its charter to become a full-service commercial bank.