More people are falling behind with their mortgages as the recession bites deeper.The latest data from financial regulator the Bermuda Monetary Authority show that the number of “non-performing loans” (NPLs) on the books of local banks went up by 23.6 percent during the second quarter of this year.The regulator’s definition of NPLs include loans on which repayments are delayed by 31 days or more.The numbers, compiled from banks’ regulatory filings, show a rising trend of borrowers in arrears during the past three years.At June 30, NPLs made up 6.7 percent of the combined loan books of all local banks. This was nearly double the rate of the same quarter a year earlier and represented a near one-quarter rise from the first-quarter rate of 5.4 percent.Net charge-offs for bad debt provisions climbed sharply to $16.7 million, a rise of $10 million from the first quarter.The charge-offs, as a percentage of the total loan book, are jumped to 0.8 percent from 0.3 percent in the first quarter.The combination of job losses and the departure of a significant number of expatriate workers, whose rental payments help many Bermudians meet their mortgage obligations, have added to pressure on borrowers.Economy, Trade and Industry Minister Kim Wilson said earlier this year that the number of the work permit holders on the Island fell by 15 percent in the space of four months through end of March this year. At November 25, there were 10,127 work permit holders, compared to 8,608 at the end of March.A spokesman for Butterfield Bank said: “Butterfield has seen an slight increase in non-performing loans and mortgages during the economic slowdown, but we are generally satisfied with the overall performance and stability of our credit portfolio.“Where we are seeing late or missed payments, we are reaching out to customers and working with them proactively to come up with repayment terms that are manageable for them and acceptable to the Bank.“We advise customers who foresee running into difficulty servicing their loans or mortgages as a result of decreased income, unforeseen expenses, or other factors, to contact us as early as possible.”As a Bermuda Stock Exchange-listed company, Butterfield publishes its quarterly financial data. In the second quarter 3.6 percent of its loan book was made up of “non-accrual loans”, which indicates loans 90 days past due, or where management considers there is a serious doubt that principal or interest will be paid in full.An HSBC Bermuda spokesperson said the bank “has been, and continues to be, available to help guide customers through financial challenges successfully.“We appreciate that when people are facing challenges, especially personal ones, it can be difficult to reach out.“However, we have specialists who are willing to work with you to manage the situation, and that’s a healthier approach for everyone concerned. HSBC Bermuda will work with its customers.“The first step is contacting us so we can understand the specifics. We will then assess the circumstances and review the alternatives to help the customer.”