EVERTEC (EVTC) 10-Q28 Apr 232023 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	Apr. 21, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-35872
Entity Registrant Name	EVERTEC, Inc.
Entity Incorporation, State or Country Code	PR
Entity Tax Identification Number	66-0783622
Entity Address, Address Line One	Cupey Center Building,
Entity Address, Address Line Two	Road 176, Kilometer 1.3,
Entity Address, City or Town	San Juan,
Entity Address, State or Province	PR
Entity Address, Postal Zip Code	00926
City Area Code	787
Local Phone Number	759-9999
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	EVTC
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 (in shares)		65,078,462
Entity Central Index Key	0001559865
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 173,662	$ 197,229
Restricted cash	19,015	18,428
Accounts receivable, net	127,876	131,080
Prepaid expenses and other assets	47,944	42,392
Total current assets	368,497	389,129
Debt securities available-for-sale, at fair value	2,179	2,203
Investment in equity investee	15,703	14,661
Property and equipment, net	56,858	56,387
Operating lease right-of-use asset	15,627	15,918
Goodwill	434,340	423,392
Other intangible assets, net	213,706	200,320
Deferred tax asset	7,926	5,701
Derivative asset	5,768	7,440
Net investment in leases	0	14
Other long-term assets	16,589	16,578
Total assets	1,137,193	1,131,743
Current Liabilities:
Accrued liabilities	80,064	90,341
Accounts payable	47,647	46,751
Contract liability	19,737	15,226
Income tax payable	9,239	9,406
Current portion of long-term debt	20,750	20,750
Short-term borrowings	0	20,000
Current portion of operating lease liability	5,796	5,936
Total current liabilities	183,233	208,410
Long-term debt	384,550	389,498
Deferred tax liability	10,162	10,111
Contract liability - long term	33,284	34,068
Operating lease liability - long-term	10,592	10,788
Other long-term liabilities	4,231	4,120
Total liabilities	626,052	656,995
Commitments and contingencies (Note 14)
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued	0	0
Common stock, par value $0.01; 206,000,000 shares authorized; 65,078,462 shares issued and outstanding as of March 31, 2023 (December 31, 2022 - 64,847,233)	651	648
Additional paid-in capital	0	0
Accumulated earnings	507,563	487,349
Accumulated other comprehensive loss, net of tax	(446)	(16,486)
Total EVERTEC, Inc. stockholders’ equity	507,768	471,511
Non-controlling interest	3,373	3,237
Total equity	511,141	474,748
Total liabilities and equity	$ 1,137,193	$ 1,131,743

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	2,000,000	2,000,000
Preferred stock issued (in shares)	0	0
Common stock par value (in usd per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	206,000,000	206,000,000
Common stock issued (in shares)	65,078,462	64,847,233
Common stock outstanding (in shares)	65,078,462	64,847,233

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues (affiliates Note 15)	$ 159,814	$ 150,248
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization	76,417	64,659
Selling, general and administrative expenses	23,875	20,384
Depreciation and amortization	19,432	19,160
Total operating costs and expenses	119,724	104,203
Income from operations	40,090	46,045
Non-operating income (expenses)
Interest income	1,133	667
Interest expense	(5,643)	(5,547)
(Loss) gain on foreign currency remeasurement	(4,864)	2,669
Earnings of equity method investment	1,155	570
Other income, net	1,010	637
Total non-operating expenses	(7,209)	(1,004)
Income before income taxes	32,881	45,041
Income tax expense	2,818	6,175
Net income	30,063	38,866
Less: Net income (loss) attributable to non-controlling interest	11	(32)
Net income attributable to EVERTEC, Inc.’s common stockholders	30,052	38,898
Other comprehensive (loss) income, net of tax of $(116) and $423
Foreign currency translation adjustments	17,605	2,214
(Loss) gain on cash flow hedges	(1,545)	9,725
Unrealized loss on change in fair value of debt securities available-for-sale	(20)	(27)
Total comprehensive income attributable to EVERTEC, Inc.’s common stockholders	$ 46,092	$ 50,810
Net income per common share - basic attributable to EVERTEC, Inc.’s common stockholders (in usd per share)	$ 0.46	$ 0.54
Net income per common share - diluted attributable to EVERTEC, Inc.’s common stockholders (in usd per share)	$ 0.46	$ 0.53

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Other comprehensive (loss) income, tax	$ (116)	$ 423

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings	Accumulated Other Comprehensive Loss	Non-Controlling Interest
Beginning balance (in shares) at Dec. 31, 2021		71,969,856
Beginning balance at Dec. 31, 2021	$ 470,268	$ 719	$ 7,565	$ 506,051	$ (48,123)	$ 4,056
Changes in Stockholders’ Equity
Share-based compensation recognized	4,279		4,279
Repurchase of common stock (in shares)		(521,643)
Repurchase of common stock	(21,179)	$ (5)	(6,193)	(14,981)
Restricted stock units delivered (in shares)		251,085
Restricted stock units delivered	(5,648)	$ 3	(5,651)
Net income (loss)	38,866			38,898		(32)
Cash dividends declared on common stock, $0.05 per share	(3,598)			(3,598)
Other comprehensive income	12,160				11,912	248
Ending balance (in shares) at Mar. 31, 2022		71,699,298
Ending balance at Mar. 31, 2022	$ 495,148	$ 717	0	526,370	(36,211)	4,272
Beginning balance (in shares) at Dec. 31, 2022	64,847,233	64,847,233
Beginning balance at Dec. 31, 2022	$ 474,748	$ 648	0	487,349	(16,486)	3,237
Changes in Stockholders’ Equity
Share-based compensation recognized	5,557		5,557
Repurchase of common stock (in shares)		(187,976)
Repurchase of common stock	(6,269)	$ (1)		(6,268)
Restricted stock units delivered (in shares)		419,205
Restricted stock units delivered	(5,874)	$ 4	(5,557)	(321)
Net income (loss)	30,063			30,052		11
Cash dividends declared on common stock, $0.05 per share	(3,249)			(3,249)
Other comprehensive income	$ 16,165				16,040	125
Ending balance (in shares) at Mar. 31, 2023	65,078,462	65,078,462
Ending balance at Mar. 31, 2023	$ 511,141	$ 651	$ 0	$ 507,563	$ (446)	$ 3,373

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares		3 Months Ended
	Feb. 16, 2023	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in usd per share)	$ 0.05	$ 0.05	$ 0.05

Unaudited Condensed Consolida_7

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income	$ 30,063	$ 38,866
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,432	19,160
Amortization of debt issue costs and accretion of discount	396	404
Operating lease amortization	1,626	1,450
Provision for expected credit losses and sundry losses	2,371	59
Deferred tax benefit	(2,208)	(702)
Share-based compensation	5,557	4,279
Loss on disposition of property and equipment	159	91
Earnings of equity method investment	(1,155)	(570)
Loss (gain) on foreign currency remeasurement	4,864	(2,669)
Decrease (increase) in assets:
Accounts receivable, net	10,044	7,060
Prepaid expenses and other assets	(5,388)	(5,573)
Other long-term assets	(261)	(3,319)
(Decrease) increase in liabilities:
Accrued liabilities and accounts payable	(13,417)	1,773
Income tax payable	(639)	2,248
Contract liability	3,089	4,387
Operating lease liabilities	310	23
Other long-term liabilities	(332)	714
Total adjustments	24,448	28,815
Net cash provided by operating activities	54,511	67,681
Cash flows from investing activities
Additions to software	(9,257)	(8,669)
Property and equipment acquired	(4,063)	(5,621)
Acquisitions, net of cash acquired	(23,317)	0
Net cash used in investing activities	(36,637)	(14,290)
Cash flows from financing activities
Withholding taxes paid on share-based compensation	(5,874)	(5,648)
Net decrease in short-term borrowings	(20,000)	0
Repayment of short-term borrowings for purchase of equipment and software	0	(806)
Dividends paid	(3,249)	(3,598)
Repurchase of common stock	(6,269)	(21,179)
Repayment of long-term debt	(5,187)	(4,938)
Net cash used in financing activities	(40,579)	(36,169)
Effect of foreign exchange rate on cash, cash equivalents and restricted cash	(275)	766
Net (decrease) increase in cash, cash equivalents and restricted cash	(22,980)	17,988
Cash, cash equivalents and restricted cash at beginning of the period	215,657	285,917
Cash, cash equivalents and restricted cash at end of the period	192,677	303,905
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	173,662	283,610
Restricted cash	19,015	20,295
Cash, cash equivalents and restricted cash	192,677	303,905
Supplemental disclosure of cash flow information:
Cash paid for interest	5,874	5,666
Cash paid for income taxes	6,119	4,287
Supplemental disclosure of non-cash activities:
Payable due to vendor related to equipment and software acquired	5,282	1,260
Accounts payable related to business acquisition	$ 881	$ 0

The Company and Basis of Presen

The Company and Basis of Presentation	3 Months Ended
The Company and Basis of Presentation	Mar. 31, 2023
Accounting Policies [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation The Company EVERTEC, Inc. and its subsidiaries (collectively the “Company” or “EVERTEC”) is a leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management services. The Company provides services across 26 countries in the region. EVERTEC owns and operates the ATH network, which we believe is one of the leading personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico and technology outsourcing and payment transactions fraud monitoring in all the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations, and government agencies with solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. Basis of Presentation The unaudited condensed consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements. Actual results could differ from these estimates. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the Securities and Exchange Commission and, accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2022, included in the Company’s 2022 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements, prepared in accordance with GAAP, contain all adjustments necessary for a fair presentation. Intercompany accounts and transactions are eliminated in consolidation. Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Business Acquisition

Business Acquisition	3 Months Ended
Business Acquisition	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Business Acquisition	Business Acquisition Acquisition of a Business On February 16, 2023, the Company closed on the acquisition of 100% of Paysmart Pagamentos Eletronicos Ltda (“paySmart”). Headquartered in Porto Alegre, Brazil, paySmart provides issuer processing services and BIN Sponsorship services for prepaid programs under domestic and international schemes in Brazil. The aggregate purchase price was $130 million Brazilian reals, approximately USD$25 million. The acquisition expands the Company's footprint in Brazil and compliments the current product offering in the country. The Company accounted for this transaction as a business combination, the purchase price allocation summary is preliminary and subject to change. As part of the transaction, the Company received net assets with a book value of approximately $6.5 million, including settlement assets and settlement liabilities which result from timing differences in paySmart's settlement process with merchants. The Company's analysis of the acquired settlement assets and settlement liabilities is not complete, and the Company will record the settlement assets and settlement liabilities, which are expected to be substantially equivalent amounts within current assets and current liabilities, once such analysis is completed during the purchase accounting period. The Company has also identified intangible assets other than goodwill for which a portion of the purchase price must be allocated and preliminarily allocated the purchase price to the following identified intangible assets: $9.4 million to customer relationships, $1.9 million to software, $1.5 million to tradenames and trademarks and $0.6 million to non-compete agreements. Goodwill in connection with this transaction is currently estimated at approximately $5.1 million . These values are preliminary and subject to change. The Company expects to complete the purchase price allocation during the second quarter of 2023. Refer to Note 5- Goodwill and Other Intangible Assets for detail of goodwill allocated by reportable segments. The goodwill is primarily attributed to anticipated synergies. None of the goodwill is deductible for income tax purposes.

Debt Securities

Debt Securities	3 Months Ended
Debt Securities	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Debt Securities	Debt Securities The amortized cost, gross unrealized gains and losses recorded in OCI and estimated fair value of debt securities available-for-sale by contractual maturity as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 (In thousands) Gross unrealized Amortized cost Gains Losses Fair Value Costa Rica Government Obligations After 1 to 5 years $ 2,199 — (20) $ 2,179 December 31, 2022 (In thousands) Gross unrealized Amortized cost Gains Losses Fair Value Costa Rica Government Obligations After 1 to 5 years $ 2,194 $ 9 $ — $ 2,203 Costa Rica Government Obligations are held by a trust in the Costa Rica National Bank as a collateral requirement for settlement activities. The Company may substitute securities as needed but must maintain certain levels of collateral based on transaction volumes. No debt securities were purchased, matured or sold during the quarters ended March 31, 2023 and March 31, 2022. A provision for credit losses was not required for the periods presented above. Refer to Note 7 for disclosure requirements related to the fair value hierarchy.

Property and Equipment, net

Property and Equipment, net	3 Months Ended
Property and Equipment, net	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consists of the following: (In thousands) Useful life March 31, 2023 December 31, 2022 Buildings 30 $ 1,600 $ 1,456 Data processing equipment 3 - 5 169,517 162,761 Furniture and equipment 3 - 20 9,603 9,154 Leasehold improvements 5 -10 3,906 3,660 184,626 177,031 Less - accumulated depreciation and amortization (129,170) (121,919) Depreciable assets, net 55,456 55,112 Land 1,402 1,275 Property and equipment, net $ 56,858 $ 56,387 Depreciation and amortization expense related to property and equipment for three months ended March 31, 2023 amounted to $5.0 million compared to $4.6 million for the corresponding period in 2022.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
Goodwill and Other Intangible Assets	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible AssetsThe changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 16): (In thousands) Payment Payment Merchant Business Total Balance at December 31, 2022 $ 160,972 $ 84,289 $ 138,121 $ 40,010 $ 423,392 Foreign currency translation adjustments — 5,824 — — 5,824 Preliminary goodwill attributable to acquisition — 5,124 — — 5,124 Balance at March 31, 2023 $ 160,972 $ 95,237 $ 138,121 $ 40,010 $ 434,340 Goodwill is tested for impairment on an annual basis as of August 31, or more often if events or changes in circumstances indicate there may be impairment. The Company may test for goodwill impairment using a qualitative or a quantitative analysis. In a qualitative analysis, the Company assesses whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount. In the quantitative analysis, the Company compares the estimated fair value of the reporting units to their carrying values, including goodwill. No impairment losses were recognized for the periods ended March 31, 2023 or 2022. Refer to Note 2 - Business Acquisition, for further details of goodwill acquired in the first quarter of 2023. The carrying amount of other intangible assets at March 31, 2023 and December 31, 2022 was as follows: March 31, 2023 (In thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 15 $ 404,311 $ (310,427) $ 93,884 Trademarks 1 - 15 44,858 (38,367) $ 6,491 Software packages 3 - 10 363,269 (250,574) $ 112,695 Non-compete agreement 5 636 — $ 636 Other intangible assets, net $ 813,074 $ (599,368) $ 213,706 December 31, 2022 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 15 $ 392,737 $ (303,733) $ 89,004 Trademarks 1 - 15 43,195 (37,998) 5,197 Software packages 3 - 10 349,474 (243,355) 106,119 Other intangible assets, net $ 785,406 $ (585,086) $ 200,320 Amortization expense related to other intangibles for the three months ended March 31, 2023 amounted to $16.3 million compared to $14.5 million for the corresponding period in 2022. The estimated amortization expense of the other intangible balances outstanding at March 31, 2023, excluding assets acquired as part of the paySmart acquisition as the Company is yet to finalize the purchase price allocation, for the next five years is as follows: (Dollar amounts in thousands) Remaining 2023 $ 44,561 2024 48,174 2025 22,194 2026 13,896 2027 10,091

Debt and Short-Term Borrowings

Debt and Short-Term Borrowings	3 Months Ended
Debt and Short-Term Borrowings	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt and Short-Term Borrowings	Debt and Short-Term BorrowingsTotal debt at March 31, 2023 and December 31, 2022 was as follows: (In thousands) March 31, 2023 December 31, 2022 2027 Term A Loan bearing interest at a variable interest rate (SOFR plus applicable margin (1)(2) ) $ 405,300 $ 410,248 (1) Net of unaccreted discount and unamortized debt issue costs, as applicable. (2) Subject to a minimum rate ("SOFR floor") of 0% plus applicable margin of 1.50% at March 31, 2023 and December 31, 2022. Secured Credit Facilities On December 1, 2022, EVERTEC and EVERTEC Group, entered into a credit agreement with a syndicate of lenders and Truist Bank, as administrative agent and collateral agent, providing for (i) a $415.0 million term loan A facility (the “Term Loan Facility”) and (ii) a $200.0 million revolving credit facility (the “Revolving Facility”, and together with the Term Loan Facility, the “2022 Credit Facilities”). The 2022 Credit Facilities mature on December 1, 2027. At March 31, 2023, the unpaid principal balance of the Term Loan Facility was $409.8 million. The additional borrowing capacity for the Revolving Facility at March 31, 2023 was $194.0 million. The Company issues letters of credit against the Revolving Facility which reduce the additional borrowing capacity of the Revolving Facility. Interest Rate Swaps As of March 31, 2023, the Company has an interest rate swap agreement, entered into in December 2018, which converts a portion of the interest rate payments on the Company's Term Loan Facility from variable to fixed: Swap Agreement Effective date Maturity Date Notional Amount Variable Rate Fixed Rate 2018 Swap April 2020 November 2024 $250 million 1-month SOFR 2.929% As of March 31, 2023 and December 31, 2022, the carrying amount of the derivative included on the Company's unaudited condensed consolidated balance sheets was $5.8 million and $7.4 million, respectively. The fair value of this derivative is estimated using Level 2 inputs in the fair value hierarchy on a recurring basis. Refer to Note 8 for disclosure of losses recorded on cash flow hedging activities. During the three months ended March 31, 2023 and 2022, the Company reclassified gains of $1.0 million and losses of $1.7 million, respectively, from accumulated other comprehensive loss into interest expense. Based on current SOFR rates, the Company expects to reclassify gains of $4.5 million from accumulated other comprehensive loss into interest expense over the next 12 months. The cash flow hedge is considered highly effective.

Financial Instruments and Fair

Financial Instruments and Fair Value Measurements	3 Months Ended
Financial Instruments and Fair Value Measurements	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value Measurements	Financial Instruments and Fair Value Measurements Recurring Fair Value Measurements Debt Securities Available for Sale The fair value of debt securities is estimated based on observable inputs, therefore classified as a Level 2 asset within the fair value hierarchy. The fair value of debt securities was $2.2 million as of each March 31, 2023 and December 31, 2022. Derivative Instruments The fair value of the Company's interest rate swap is estimated using Level 2 inputs under the fair value hierarchy. This derivative was in an asset position with a balance of $5.8 million and $7.4 million as of March 31, 2023 and December 31, 2022, respectively. The following table presents the carrying value, as applicable, and estimated fair value for financial instruments at March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (In thousands) Carrying Fair Carrying Fair Financial assets: Costa Rica government obligations $ 2,179 $ 2,179 $ 2,203 $ 2,203 Interest rate swap 5,768 5,768 7,440 7,440 Financial liabilities: Term Loan Facility 405,300 408,378 410,248 413,494

Equity

Equity	3 Months Ended
Equity	Mar. 31, 2023
Equity [Abstract]
Equity	Equity Accumulated Other Comprehensive Loss The following table provides a summary of the changes in the balances of accumulated other comprehensive loss for the three months ended March 31, 2023: (In thousands) Foreign Currency Cash Flow Hedges Unrealized Gains (losses) on Debt Securities AFS Total Balance - December 31, 2022, net of tax $ (23,481) $ 6,954 $ 41 (16,486) Other comprehensive income (loss) before reclassifications 17,605 (501) (20) 17,084 Effective portion reclassified to net income — (1,044) — (1,044) Balance - March 31, 2023, net of tax $ (5,876) $ 5,409 $ 21 $ (446)

Share-based Compensation

Share-based Compensation	3 Months Ended
Share-based Compensation	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Compensation	Share-based Compensation Long-term Incentive Plan ("LTIP") During the three months ended March 31, 2021, 2022 and 2023, the Compensation Committee (the "Compensation Committee") of the Company's Board of Directors ("Board") approved grants of restricted stock units (“RSUs”) to executives and certain employees pursuant to the 2021 LTIP, 2022 LTIP and 2023 LTIP, respectively, all under the terms of the Company's 2022 Equity Incentive Plan. Under the LTIPs, the Company granted RSUs to eligible participants as time-based awards and/or performance-based awards. The vesting of the RSUs is dependent upon service and/or performance conditions as defined in the award agreements. Employees that received time-based awards with service conditions are entitled to receive a specific number of shares of the Company’s common stock on the vesting date if the employee provides services to the Company through the vesting date. Time-based awards vest over a period of three years in substantially equal installments commencing on the grant date and ending on March 2 of each year for the 2021 LTIP, February 25 of each year for the 2022 LTIP and February 24 of each year for the 2023 LTIP. In 2022 and 2023, the Company also granted time-based awards with a three year service vesting period which will cliff vest on February 25, 2025 and February 24, 2026, respectively. For the performance-based awards under the 2021 LTIP, 2022 LTIP, and 2023 LTIP, the Compensation Committee established adjusted earnings before income taxes, depreciation and amortization ("Adjusted EBITDA") as the primary performance measure while maintaining focus on total shareholder return through the use of a market-based total shareholder return ("TSR") performance modifier. The Adjusted EBITDA measure is based on annual targets and can result in a payout between 0% and 200%, depending on the performance level. The TSR modifier adjusts the shares earned based on the Adjusted EBITDA performance upwards or downwards (+/- 25%) based on the Company’s relative TSR at the end of the three-year performance period as compared to the companies in the Russell 2000 Index. The Adjusted EBITDA performance measure will be calculated for the one-year period commencing on January 1 of the year of the grant and ending on December 31 of the same year, relative to the goals set by the Compensation Committee for this same period. The shares earned will be subject to an additional two-year service vesting period and will vest on March 2, 2024 for the 2021 LTIP, February 25, 2025 for the 2022 LTIP, and February 24, 2026 for the 2023 LTIP. Unless otherwise specified in the award agreement, or in an employment agreement, awards are forfeited if the employee voluntarily ceases to be employed by the Company prior to vesting. The following table summarizes nonvested RSUs activity for the three months ended March 31, 2023: Nonvested RSUs Shares Weighted-average Nonvested at December 31, 2022 1,363,780 $ 38.96 Granted 740,846 38.39 Vested (576,995) 34.03 Forfeited (2,592) 40.19 Nonvested at March 31, 2023 1,525,039 $ 40.22 For the three months ended March 31, 2023, the Company recognized $5.6 million of share-based compensation expense, compared with $4.3 million for the corresponding period in 2022.

Revenues

Revenues	3 Months Ended
Revenues	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into primary geographical markets, nature of the products and services, and timing of transfer of goods and services. The Company's operating segments are determined by the nature of the products and services the Company provides and the primary geographical markets in which the Company operates. Revenue disaggregated by segment is discussed in Note 16, Segment Information. In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue recognition for the periods indicated. Three months ended March 31, 2023 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 113 $ 614 $ — $ 1,727 $ 2,454 Products and services transferred over time 32,366 30,679 40,347 53,968 157,360 $ 32,479 $ 31,293 $ 40,347 $ 55,695 $ 159,814 Three months ended March 31, 2022 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 55 $ 13 $ — $ 1,885 $ 1,953 Products and services transferred over time 26,430 25,497 35,629 60,739 148,295 $ 26,485 $ 25,510 $ 35,629 $ 62,624 $ 150,248 Revenue concentration with a single customer, Popular, as a percentage of total revenues for the quarters ended March 31, 2023 and March 31, 2022 was approximately 37% and 43% , respectively. Contract Balances The following table provides information about contract assets from contracts with customers. (In thousands) March 31, 2023 December 31, 2022 Balance at beginning of period $ 4,749 $ 1,715 Services transferred to customers 3,124 9,313 Transfers to accounts receivable (2,621) (6,279) Balance at end of period $ 5,252 $ 4,749 The current portion of contract assets is recorded as part of prepaid expenses and other assets, and the long-term portion is included in other long-term assets in the unaudited condensed consolidated balance sheets. Accounts receivable, net at March 31, 2023 amounted to $127.9 million. Contract liability and contract liability - long term at March 31, 2023 amounted to $19.7 million and $33.3 million, respectively, and may arise when consideration is received or due in advance from customers prior to performance. The contract liability is mainly comprised of upfront fees for implementation or set up activities, including fees charged in pre-production periods in connection with hosting services. Contract liabilities may also arise when consideration is received or due in advance from customers prior to performance. During the three months ended March 31, 2023, the Company recognized revenue of $4.4 million that was included in the contract liability at December 31, 2022. During the three months ended March 31, 2022, the Company recognized revenue of $7.1 million that was included in the contract liability at December 31, 2021. Transaction price allocated to the remaining performance obligations

Current Expected Credit Losses

Current Expected Credit Losses	3 Months Ended
Current Expected Credit Losses	Mar. 31, 2023
Receivables [Abstract]
Current Expected Credit Losses	Current Expected Credit Losses Allowance for Current Expected Credit Losses Trade receivables from contracts with customers are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, trade receivables are grouped based on shared risk characteristics (i.e., the relevant industry sector and customer's geographical location) and days past due (i.e., delinquency status), while considering the following: • Customers in the same geographical location share similar risk characteristics associated with the macroeconomic environment of their country. • The Company has two main industry sectors: private and governmental. The private pool is comprised mainly of leading financial institutions, merchants and corporations, while the governmental pool is comprised of government agencies. The governmental customers possess different risk characteristics than private customers because although all invoices are due 30 days after issuance, governmental customers usually pay within 60 to 90 days after issuance (i.e., approximately 30 to 60 more days than private customers). • The expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due. The credit losses of the Company’s trade receivables have been low historically and most balances are collected within one year. Therefore, the Company determined that the expected loss rates should be calculated using the historical loss rates adjusted by macroeconomic factors. The historical rates are calculated for each of the aging categories used for pooling trade receivables. To determine the collected portion of each bucket, the collection time of each trade receivable is identified, to estimate the proportion of outstanding balances per aging bucket that ultimately will not be collected. This is used to determine the expectation of losses based on the history of uncollected trade receivables once the specific past due period is surpassed. The historical rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of customers to settle the receivables by applying a country risk premium as the forward-looking macroeconomic factor. Specific reserves are established for certain customers for which collection is doubtful. Rollforward of the Allowance for Expected Current Credit Losses The following table provides information about the allowance for expected current credit losses on trade receivables. (In thousands) March 31, 2023 December 31, 2022 Balance at beginning of period $ 2,159 $ 2,523 Current period (release) provision for expected credit losses 566 754 Write-offs (24) (1,268) Recoveries of amounts previously written-off 1 150 Balance at end of period $ 2,702 $ 2,159 The Company does not have a delinquency threshold for writing-off trade receivables. The Company has a formal process for the review and approval of write-offs. Impairment losses on trade receivables are presented as net impairment losses within cost of revenue, exclusive of depreciation and amortization in the unaudited condensed consolidated statements of income and comprehensive income. Subsequent recoveries of amounts previously written-off, when applicable, are credited against the allowance for expected current credit losses within accounts receivable, net on the unaudited condensed consolidated balance sheets.

Income Tax

Income Tax	3 Months Ended
Income Tax	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Tax	Income Tax The components of income tax expense for the three months ended March 31, 2023 and 2022, respectively, consisted of the following: Three months ended March 31, (In thousands) 2023 2022 Current tax provision $ 5,026 $ 6,877 Deferred tax benefit (2,208) (702) Income tax expense $ 2,818 $ 6,175 The Company conducts operations in Puerto Rico, the United States, and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the government of Puerto Rico as well as foreign jurisdictions. The following table presents the components of income tax expense for the three months ended March 31, 2023 and 2022, and its segregation based on location of operations: Three months ended March 31, (In thousands) 2023 2022 Current tax provision Puerto Rico $ 1,180 $ 2,315 United States 11 30 Foreign countries 3,835 4,532 Total current tax provision $ 5,026 $ 6,877 Deferred tax benefit Puerto Rico $ (235) $ (393) United States (26) (71) Foreign countries (1,947) (238) Total deferred tax benefit $ (2,208) $ (702) Taxes payable to foreign countries by EVERTEC’s subsidiaries will be paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements. As of March 31, 2023, the Company had $117.0 million of unremitted earnings from foreign subsidiaries, compared to $115.5 million as of December 31, 2022. The Company has not recognized a deferred tax liability on undistributed earnings for the Company’s foreign subsidiaries because these earnings are intended to be indefinitely reinvested. As of March 31, 2023, the gross deferred tax asset amounted to $18.6 million and the gross deferred tax liability amounted to $19.5 million, compared to $17.9 million and $20.7 million, respectively, as of December 31, 2022. As of March 31, 2023, and December 31, 2022, there is a valuation allowance against the gross deferred tax asset of approximately $1.3 million and $1.6 million, respectively. Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: Three months ended March 31, (In thousands) 2023 2022 Computed income tax at statutory rates $ 12,330 $ 16,890 Differences in tax rates due to multiple jurisdictions 1,029 447 Effect of income subject to tax-exemption grant (8,849) (10,809) Unrecognized tax expense 34 80 Excess tax benefits on share-based compensation (91) (260) Tax credits for research and development activities (884) — Other, net (751) (173) Income tax expense $ 2,818 $ 6,175

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
Net Income Per Common Share	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income Per Common Share	Net Income Per Common Share The reconciliation of the numerator and denominator of the income per common share is as follows: Three months ended March 31, (In thousands, except per share information) 2023 2022 Net income available to EVERTEC, Inc.’s common shareholders $ 30,052 $ 38,898 Weighted average common shares outstanding 64,968,298 71,965,664 Weighted average potential dilutive common shares (1) 640,320 887,552 Weighted average common shares outstanding - assuming dilution 65,608,618 72,853,216 Net income per common share - basic $ 0.46 $ 0.54 Net income per common share - diluted $ 0.46 $ 0.53 (1) Potential common shares consist of common stock issuable under RSUs awards using the treasury stock method.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesEVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel and other factors, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations, financial condition, or cash flows of the Company. The Company has identified certain claims as a result of which a loss may be incurred, but in the aggregate the loss would be insignificant. For other claims regarding proceedings that are in an initial phase, the Company is unable to estimate the range of possible loss, if any, but at this time believes that any loss related to such claims will not be material.

Related Party Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In connection with closing of the Popular Transaction on July 1, 2022, the Company terminated the existing stockholder agreement with Popular, which granted Popular certain benefits as a shareholder of the Company. In addition, on August 15, 2022, through a secondary offering, Popular sold its remaining shares of common stock of Evertec and as of that date no longer holds any shares of EVERTEC common stock. EVERTEC is no longer considered a subsidiary of Popular under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”). Given both the termination of the stockholder agreement and that Popular is no longer a shareholder of EVERTEC, management concluded that Popular is no longer a related party as of August 15, 2022. The following table presents the Company’s transactions with Popular for the three months ended March 31, 2022 while they were deemed a related party: Three months ended March 31, (In thousands) 2022 Total revenues $ 64,729 Cost of revenues $ 1,315 Operating lease cost and other fees $ 1,859 Interest earned from affiliate Interest income $ 340

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information The Company operates in four business segments: Payment Services - Puerto Rico & Caribbean, Payment Services - Latin America (collectively "Payment Services segments"), Merchant Acquiring, and Business Solutions. The Payment Services - Puerto Rico & Caribbean segment revenues are comprised of revenues related to providing access to the ATH debit network and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and point of sale ("POS") transactions, and ATM management and monitoring. The segment revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions), ATH Movil (person-to-person) and ATH Business (person-to-merchant) digital transactions and EBT (which principally consist of services to the government of Puerto Rico for the delivery of benefits to participants). For ATH debit network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenues are primarily derived from the number of beneficiaries on file. The Payment Services - Latin America segment revenues consist of revenues related to providing access to the ATH network of ATMs and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. The segment revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions), as well as licensed software solutions for risk and fraud management and card payment processing. For network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed, and other processing services. The Merchant Acquiring segment consists of revenues from services that allow merchants to accept electronic methods of payment. In the Merchant Acquiring segment, revenues include a discount fee and membership fees charged to merchants, debit network fees and rental fees from POS devices and other equipment, net of credit card interchange and assessment fees charged by credit cards associations (such as VISA or MasterCard) or payment networks. The discount fee is generally a percentage of the transaction value. EVERTEC also charges merchants for other services that are unrelated to the number of transactions or the transaction value. The Business Solutions segment consists of revenues from a full suite of business process management solutions in various product areas such as core bank processing, network hosting and management, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Core bank processing and network services revenues are derived in part from a recurrent fixed fee and from fees based on the number of accounts on file (i.e., savings or checking accounts, loans, etc.), server capacity usage or computer resources utilized. Revenues from other processing services within the Business Solutions segment are generally volume-based and depend on factors such as the number of accounts processed. In addition, EVERTEC is a reseller of hardware and software products and these resale transactions are generally non-recurring. In addition to the four operating segments described above, management identified certain functional cost areas that operate independently and do not constitute businesses in themselves. These areas could neither be concluded as operating segments nor could they be combined with any other operating segments. Therefore, these areas are aggregated and presented within the “Corporate and Other” category in the financial statements alongside the operating segments. The Corporate and Other category consists of corporate overhead expenses, intersegment eliminations, certain leveraged activities and other non-operating and miscellaneous expenses that are not included in the operating segments. The overhead and leveraged costs relate to activities such as: • marketing, • corporate finance and accounting, • human resources, • legal, • risk management functions, • internal audit, • corporate debt related costs, • non-operating depreciation and amortization expenses generated as a result of merger and acquisition activity, • intersegment revenues and expenses, and • other non-recurring fees and expenses that are not considered when management evaluates financial performance at a segment level The Chief Operating Decision Maker ("CODM") reviews the operating segments separate financial information to assess performance and to allocate resources. Management evaluates the operating results of each of its operating segments based upon revenues and Adjusted EBITDA. Effective for the quarter ended March 31, 2023, the Company modified the manner in which it calculates and reports Adjusted EBITDA presented to the CODM for assessing segment performance to exclude the impact of non-cash unrealized gains and losses from foreign currency remeasurement. Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash unrealized items and unusual expenses such as: share-based compensation, restructuring related expenses, fees and expenses from corporate transactions such as M&A activity and financing, equity investment income net of dividends received, and the impact from unrealized gains and losses on foreign currency remeasurement for assets and liabilities in non-functional currency. Adjusted EBITDA, as it relates to operating segments, is presented in conformity with ASC Topic 280, Segment Reporting, given that it is reported to the CODM for purposes of allocating resources. The Company has recast prior periods to conform with the modified definition of Adjusted EBITDA. Segment asset disclosure is not used by the CODM as a measure of segment performance since the segment evaluation is driven by revenues and Adjusted EBITDA. As such, segment assets are not disclosed in the notes to the accompanying unaudited condensed consolidated financial statements. The following tables set forth information about the Company’s operations by its four business segments for the periods indicated: Three months ended March 31, 2023 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 48,429 $ 35,317 $ 40,347 $ 55,695 $ (19,974) $ 159,814 Operating costs and expenses 27,722 29,312 26,689 38,913 (2,912) 119,724 Depreciation and amortization 5,888 2,711 1,129 4,488 5,216 19,432 Non-operating income (expenses) 365 (3,785) 307 532 (118) (2,699) EBITDA 26,960 4,931 15,094 21,802 (11,964) 56,823 Compensation and benefits (2) 528 652 532 565 3,568 5,845 Transaction, refinancing and other fees (3) 292 — — — (689) (397) Loss (gain) on foreign currency remeasurement (4) 95 4,772 — — (3) 4,864 Adjusted EBITDA $ 27,875 $ 10,355 $ 15,626 $ 22,367 $ (9,088) $ 67,135 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $13.0 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $4.0 million from Payment Services- Latin America to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $2.9 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation and severance payments. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement, and the elimination of unrealized equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. (4) Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies. Three months ended March 31, 2022 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 40,008 $ 28,783 $ 35,629 $ 62,624 $ (16,796) $ 150,248 Operating costs and expenses 21,280 23,587 20,204 38,928 204 104,203 Depreciation and amortization 4,480 2,812 1,019 4,763 6,086 19,160 Non-operating income (expenses) 236 3,606 300 700 (966) 3,876 EBITDA 23,444 11,614 16,744 29,159 (11,880) 69,081 Compensation and benefits (2) 337 813 340 445 2,344 4,279 Transaction, refinancing and other fees (3) — — — — 2,025 2,025 Loss (gain) on foreign currency remeasurement (4) 126 (2,795) — — — (2,669) Adjusted EBITDA $ 23,907 $ 9,632 $ 17,084 $ 29,604 $ (7,511) $ 72,716 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $10.9 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $3.3 million from Payment Services - Latin America to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $2.6 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, and the elimination of unrealized equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. (4) Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies. The reconciliation of consolidated net income to EBITDA is as follows: Three months ended March 31, (In thousands) 2023 2022 Net Income $ 30,063 $ 38,866 Add: Income tax expense 2,818 6,175 Interest expense, net 4,510 4,880 Depreciation and amortization 19,432 19,160 Total EBITDA $ 56,823 $ 69,081

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn April 20, 2023, the Board declared a regular quarterly cash dividend of $0.05 per share on the Company’s outstanding shares of common stock. The dividend will be paid on June 2, 2023 to stockholders of record as of the close of business on May 1, 2023. The Board anticipates declaring this dividend in future quarters on a regular basis; however future declarations of dividends are subject to the Board’s approval and may be adjusted as business needs or market conditions change.

The Company and Basis of Pres_2

The Company and Basis of Presentation (Policies)	3 Months Ended
The Company and Basis of Presentation (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
The Company	The Company EVERTEC, Inc. and its subsidiaries (collectively the “Company” or “EVERTEC”) is a leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management services. The Company provides services across 26 countries in the region. EVERTEC owns and operates the ATH network, which we believe is one of the leading personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico and technology outsourcing and payment transactions fraud monitoring in all the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations, and government agencies with solutions that are essential to their operations, enabling them to issue, process and accept transactions securely.
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements. Actual results could differ from these estimates. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the Securities and Exchange Commission and, accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2022, included in the Company’s 2022 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements, prepared in accordance with GAAP, contain all adjustments necessary for a fair presentation. Intercompany accounts and transactions are eliminated in consolidation. Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Debt Securities (Tables)

Debt Securities (Tables)	3 Months Ended
Debt Securities (Tables)	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Debt securities available-for-sale by contractual maturity	The amortized cost, gross unrealized gains and losses recorded in OCI and estimated fair value of debt securities available-for-sale by contractual maturity as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 (In thousands) Gross unrealized Amortized cost Gains Losses Fair Value Costa Rica Government Obligations After 1 to 5 years $ 2,199 — (20) $ 2,179 December 31, 2022 (In thousands) Gross unrealized Amortized cost Gains Losses Fair Value Costa Rica Government Obligations After 1 to 5 years $ 2,194 $ 9 $ — $ 2,203

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
Property and Equipment, net (Tables)	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Summary of property and equipment, net	Property and equipment, net consists of the following: (In thousands) Useful life March 31, 2023 December 31, 2022 Buildings 30 $ 1,600 $ 1,456 Data processing equipment 3 - 5 169,517 162,761 Furniture and equipment 3 - 20 9,603 9,154 Leasehold improvements 5 -10 3,906 3,660 184,626 177,031 Less - accumulated depreciation and amortization (129,170) (121,919) Depreciable assets, net 55,456 55,112 Land 1,402 1,275 Property and equipment, net $ 56,858 $ 56,387

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
Goodwill and Other Intangible Assets (Tables)	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of changes in carrying amount of goodwill allocated by reportable segments	The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 16): (In thousands) Payment Payment Merchant Business Total Balance at December 31, 2022 $ 160,972 $ 84,289 $ 138,121 $ 40,010 $ 423,392 Foreign currency translation adjustments — 5,824 — — 5,824 Preliminary goodwill attributable to acquisition — 5,124 — — 5,124 Balance at March 31, 2023 $ 160,972 $ 95,237 $ 138,121 $ 40,010 $ 434,340
Summary of carrying amount of other intangible assets	The carrying amount of other intangible assets at March 31, 2023 and December 31, 2022 was as follows: March 31, 2023 (In thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 15 $ 404,311 $ (310,427) $ 93,884 Trademarks 1 - 15 44,858 (38,367) $ 6,491 Software packages 3 - 10 363,269 (250,574) $ 112,695 Non-compete agreement 5 636 — $ 636 Other intangible assets, net $ 813,074 $ (599,368) $ 213,706 December 31, 2022 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 15 $ 392,737 $ (303,733) $ 89,004 Trademarks 1 - 15 43,195 (37,998) 5,197 Software packages 3 - 10 349,474 (243,355) 106,119 Other intangible assets, net $ 785,406 $ (585,086) $ 200,320
Summary of estimated amortization expenses	The estimated amortization expense of the other intangible balances outstanding at March 31, 2023, excluding assets acquired as part of the paySmart acquisition as the Company is yet to finalize the purchase price allocation, for the next five years is as follows: (Dollar amounts in thousands) Remaining 2023 $ 44,561 2024 48,174 2025 22,194 2026 13,896 2027 10,091

Debt and Short-Term Borrowings

Debt and Short-Term Borrowings (Tables)	3 Months Ended
Debt and Short-Term Borrowings (Tables)	Mar. 31, 2023
Debt Disclosure [Abstract]
Summary of total debt	Total debt at March 31, 2023 and December 31, 2022 was as follows: (In thousands) March 31, 2023 December 31, 2022 2027 Term A Loan bearing interest at a variable interest rate (SOFR plus applicable margin (1)(2) ) $ 405,300 $ 410,248 (1) Net of unaccreted discount and unamortized debt issue costs, as applicable.
Summary of interest rate swap transaction	As of March 31, 2023, the Company has an interest rate swap agreement, entered into in December 2018, which converts a portion of the interest rate payments on the Company's Term Loan Facility from variable to fixed: Swap Agreement Effective date Maturity Date Notional Amount Variable Rate Fixed Rate 2018 Swap April 2020 November 2024 $250 million 1-month SOFR 2.929%

Financial Instruments and Fai_2

Financial Instruments and Fair Value Measurements (Tables)	3 Months Ended
Financial Instruments and Fair Value Measurements (Tables)	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of carrying value and estimated fair values for financial instruments	The following table presents the carrying value, as applicable, and estimated fair value for financial instruments at March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (In thousands) Carrying Fair Carrying Fair Financial assets: Costa Rica government obligations $ 2,179 $ 2,179 $ 2,203 $ 2,203 Interest rate swap 5,768 5,768 7,440 7,440 Financial liabilities: Term Loan Facility 405,300 408,378 410,248 413,494

Equity (Tables)

Equity (Tables)	3 Months Ended
Equity (Tables)	Mar. 31, 2023
Equity [Abstract]
Summary of changes in balances of accumulated other comprehensive loss	The following table provides a summary of the changes in the balances of accumulated other comprehensive loss for the three months ended March 31, 2023: (In thousands) Foreign Currency Cash Flow Hedges Unrealized Gains (losses) on Debt Securities AFS Total Balance - December 31, 2022, net of tax $ (23,481) $ 6,954 $ 41 (16,486) Other comprehensive income (loss) before reclassifications 17,605 (501) (20) 17,084 Effective portion reclassified to net income — (1,044) — (1,044) Balance - March 31, 2023, net of tax $ (5,876) $ 5,409 $ 21 $ (446)

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
Share-based Compensation (Tables)	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of nonvested restricted shares and RSUs activity	The following table summarizes nonvested RSUs activity for the three months ended March 31, 2023: Nonvested RSUs Shares Weighted-average Nonvested at December 31, 2022 1,363,780 $ 38.96 Granted 740,846 38.39 Vested (576,995) 34.03 Forfeited (2,592) 40.19 Nonvested at March 31, 2023 1,525,039 $ 40.22

Revenues (Tables)

Revenues (Tables)	3 Months Ended
Revenues (Tables)	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Summary of disaggregation of revenue	In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue recognition for the periods indicated. Three months ended March 31, 2023 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 113 $ 614 $ — $ 1,727 $ 2,454 Products and services transferred over time 32,366 30,679 40,347 53,968 157,360 $ 32,479 $ 31,293 $ 40,347 $ 55,695 $ 159,814 Three months ended March 31, 2022 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 55 $ 13 $ — $ 1,885 $ 1,953 Products and services transferred over time 26,430 25,497 35,629 60,739 148,295 $ 26,485 $ 25,510 $ 35,629 $ 62,624 $ 150,248
Summary of contract balances	The following table provides information about contract assets from contracts with customers. (In thousands) March 31, 2023 December 31, 2022 Balance at beginning of period $ 4,749 $ 1,715 Services transferred to customers 3,124 9,313 Transfers to accounts receivable (2,621) (6,279) Balance at end of period $ 5,252 $ 4,749

Current Expected Credit Losses

Current Expected Credit Losses (Tables)	3 Months Ended
Current Expected Credit Losses (Tables)	Mar. 31, 2023
Receivables [Abstract]
Schedule of allowance for credit losses on trade receivables	The following table provides information about the allowance for expected current credit losses on trade receivables. (In thousands) March 31, 2023 December 31, 2022 Balance at beginning of period $ 2,159 $ 2,523 Current period (release) provision for expected credit losses 566 754 Write-offs (24) (1,268) Recoveries of amounts previously written-off 1 150 Balance at end of period $ 2,702 $ 2,159

Income Tax (Tables)

Income Tax (Tables)	3 Months Ended
Income Tax (Tables)	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Components of income tax expense	The components of income tax expense for the three months ended March 31, 2023 and 2022, respectively, consisted of the following: Three months ended March 31, (In thousands) 2023 2022 Current tax provision $ 5,026 $ 6,877 Deferred tax benefit (2,208) (702) Income tax expense $ 2,818 $ 6,175
Segregation of income tax expense based on location of operations	The following table presents the components of income tax expense for the three months ended March 31, 2023 and 2022, and its segregation based on location of operations: Three months ended March 31, (In thousands) 2023 2022 Current tax provision Puerto Rico $ 1,180 $ 2,315 United States 11 30 Foreign countries 3,835 4,532 Total current tax provision $ 5,026 $ 6,877 Deferred tax benefit Puerto Rico $ (235) $ (393) United States (26) (71) Foreign countries (1,947) (238) Total deferred tax benefit $ (2,208) $ (702)
Schedule of income tax expense differs from computed income tax at statutory rates	Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: Three months ended March 31, (In thousands) 2023 2022 Computed income tax at statutory rates $ 12,330 $ 16,890 Differences in tax rates due to multiple jurisdictions 1,029 447 Effect of income subject to tax-exemption grant (8,849) (10,809) Unrecognized tax expense 34 80 Excess tax benefits on share-based compensation (91) (260) Tax credits for research and development activities (884) — Other, net (751) (173) Income tax expense $ 2,818 $ 6,175

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
Net Income Per Common Share (Tables)	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of reconciliation of numerator and denominator of income per common share	The reconciliation of the numerator and denominator of the income per common share is as follows: Three months ended March 31, (In thousands, except per share information) 2023 2022 Net income available to EVERTEC, Inc.’s common shareholders $ 30,052 $ 38,898 Weighted average common shares outstanding 64,968,298 71,965,664 Weighted average potential dilutive common shares (1) 640,320 887,552 Weighted average common shares outstanding - assuming dilution 65,608,618 72,853,216 Net income per common share - basic $ 0.46 $ 0.54 Net income per common share - diluted $ 0.46 $ 0.53 (1) Potential common shares consist of common stock issuable under RSUs awards using the treasury stock method.

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
Related Party Transactions (Tables)	Mar. 31, 2023
Related Party Transactions [Abstract]
Summary transactions with related parties	The following table presents the Company’s transactions with Popular for the three months ended March 31, 2022 while they were deemed a related party: Three months ended March 31, (In thousands) 2022 Total revenues $ 64,729 Cost of revenues $ 1,315 Operating lease cost and other fees $ 1,859 Interest earned from affiliate Interest income $ 340

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 31, 2023
Segment Reporting [Abstract]
Summary of information about operations by business segments	The following tables set forth information about the Company’s operations by its four business segments for the periods indicated: Three months ended March 31, 2023 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 48,429 $ 35,317 $ 40,347 $ 55,695 $ (19,974) $ 159,814 Operating costs and expenses 27,722 29,312 26,689 38,913 (2,912) 119,724 Depreciation and amortization 5,888 2,711 1,129 4,488 5,216 19,432 Non-operating income (expenses) 365 (3,785) 307 532 (118) (2,699) EBITDA 26,960 4,931 15,094 21,802 (11,964) 56,823 Compensation and benefits (2) 528 652 532 565 3,568 5,845 Transaction, refinancing and other fees (3) 292 — — — (689) (397) Loss (gain) on foreign currency remeasurement (4) 95 4,772 — — (3) 4,864 Adjusted EBITDA $ 27,875 $ 10,355 $ 15,626 $ 22,367 $ (9,088) $ 67,135 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $13.0 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $4.0 million from Payment Services- Latin America to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $2.9 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation and severance payments. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement, and the elimination of unrealized equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. (4) Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies. Three months ended March 31, 2022 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 40,008 $ 28,783 $ 35,629 $ 62,624 $ (16,796) $ 150,248 Operating costs and expenses 21,280 23,587 20,204 38,928 204 104,203 Depreciation and amortization 4,480 2,812 1,019 4,763 6,086 19,160 Non-operating income (expenses) 236 3,606 300 700 (966) 3,876 EBITDA 23,444 11,614 16,744 29,159 (11,880) 69,081 Compensation and benefits (2) 337 813 340 445 2,344 4,279 Transaction, refinancing and other fees (3) — — — — 2,025 2,025 Loss (gain) on foreign currency remeasurement (4) 126 (2,795) — — — (2,669) Adjusted EBITDA $ 23,907 $ 9,632 $ 17,084 $ 29,604 $ (7,511) $ 72,716 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $10.9 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $3.3 million from Payment Services - Latin America to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $2.6 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, and the elimination of unrealized equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. (4) Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.
Reconciliation of EBITDA to consolidated net income	The reconciliation of consolidated net income to EBITDA is as follows: Three months ended March 31, (In thousands) 2023 2022 Net Income $ 30,063 $ 38,866 Add: Income tax expense 2,818 6,175 Interest expense, net 4,510 4,880 Depreciation and amortization 19,432 19,160 Total EBITDA $ 56,823 $ 69,081

The Company and Basis of Pres_3

The Company and Basis of Presentation (Details)	Mar. 31, 2023 country
Accounting Policies [Abstract]
Number of countries where services are provided	26

Business Acquisition - Addition

Business Acquisition - Additional Information (Details) $ in Thousands, R$ in Millions	Feb. 16, 2023 BRL (R$)	Feb. 16, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Goodwill acquired			$ 434,340	$ 423,392
Paysmart Pagamentos Eletronicos Ltda
Business Acquisition [Line Items]
Percentage of shares acquired		100%
Aggregate purchase price	R$ 130	$ 25,000
Net assets acquired		6,500
Goodwill acquired		5,100
Paysmart Pagamentos Eletronicos Ltda \| Customer relationships
Business Acquisition [Line Items]
Identified intangible assets acquired		9,400
Paysmart Pagamentos Eletronicos Ltda \| Software
Business Acquisition [Line Items]
Identified intangible assets acquired		1,900
Paysmart Pagamentos Eletronicos Ltda \| Tradenames and trademarks
Business Acquisition [Line Items]
Identified intangible assets acquired		1,500
Paysmart Pagamentos Eletronicos Ltda \| Non-compete agreements
Business Acquisition [Line Items]
Identified intangible assets acquired		$ 600

Debt Securities - Amortized Cos

Debt Securities - Amortized Cost, Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Costa Rica Government Obligations
Amortized cost, after 1 to 5 years	$ 2,199	$ 2,194
Gross unrealized gains, after 1 to 5 years	0	9
Gross unrealized losses, after 1 to 5 years	(20)	0
Debt securities available-for-sale, at fair value	$ 2,179	$ 2,203

Debt Securities - Additional In

Debt Securities - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Purchase of available-for sale debt securities	$ 0	$ 0
Proceeds from maturities of available-for-sale debt securities	0	0
Proceeds from sale of available-for-sale debt securities	$ 0	$ 0

Property and Equipment, net - P

Property and Equipment, net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Property and Equipment, net
Property and equipment, gross	$ 184,626	$ 177,031
Less - accumulated depreciation and amortization	(129,170)	(121,919)
Depreciable assets, net	55,456	55,112
Land	1,402	1,275
Property and equipment, net	$ 56,858	56,387
Buildings
Property and Equipment, net
Useful life in years	30 years
Property and equipment, gross	$ 1,600	1,456
Data processing equipment
Property and Equipment, net
Property and equipment, gross	$ 169,517	162,761
Data processing equipment \| Minimum
Property and Equipment, net
Useful life in years	3 years
Data processing equipment \| Maximum
Property and Equipment, net
Useful life in years	5 years
Furniture and equipment
Property and Equipment, net
Property and equipment, gross	$ 9,603	9,154
Furniture and equipment \| Minimum
Property and Equipment, net
Useful life in years	3 years
Furniture and equipment \| Maximum
Property and Equipment, net
Useful life in years	20 years
Leasehold improvements
Property and Equipment, net
Property and equipment, gross	$ 3,906	$ 3,660
Leasehold improvements \| Minimum
Property and Equipment, net
Useful life in years	5 years
Leasehold improvements \| Maximum
Property and Equipment, net
Useful life in years	10 years

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense related to property and equipment	$ 5	$ 4.6

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill by Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Changes in the Carrying Amount of Goodwill
Beginning balance	$ 423,392
Foreign currency translation adjustments	5,824
Preliminary goodwill attributable to acquisition	5,124
Ending balance	434,340
Payment Services - Puerto Rico & Caribbean
Changes in the Carrying Amount of Goodwill
Beginning balance	160,972
Foreign currency translation adjustments	0
Preliminary goodwill attributable to acquisition	0
Ending balance	160,972
Payment Services - Latin America
Changes in the Carrying Amount of Goodwill
Beginning balance	84,289
Foreign currency translation adjustments	5,824
Preliminary goodwill attributable to acquisition	5,124
Ending balance	95,237
Merchant Acquiring, net
Changes in the Carrying Amount of Goodwill
Beginning balance	138,121
Foreign currency translation adjustments	0
Preliminary goodwill attributable to acquisition	0
Ending balance	138,121
Business Solutions
Changes in the Carrying Amount of Goodwill
Beginning balance	40,010
Foreign currency translation adjustments	0
Preliminary goodwill attributable to acquisition	0
Ending balance	$ 40,010

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of goodwill	$ 0	$ 0
Amortization expense for intangible assets	$ 16,300,000	$ 14,500,000

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 813,074	$ 785,406
Accumulated amortization	(599,368)	(585,086)
Net carrying amount	213,706	200,320
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	404,311	392,737
Accumulated amortization	(310,427)	(303,733)
Net carrying amount	$ 93,884	$ 89,004
Customer relationships \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	8 years	8 years
Customer relationships \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	15 years	15 years
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 44,858	$ 43,195
Accumulated amortization	(38,367)	(37,998)
Net carrying amount	$ 6,491	$ 5,197
Trademarks \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	1 year	1 year
Trademarks \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	15 years	15 years
Software packages
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 363,269	$ 349,474
Accumulated amortization	(250,574)	(243,355)
Net carrying amount	$ 112,695	$ 106,119
Software packages \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	3 years	3 years
Software packages \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	10 years	10 years
Non-compete agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	5 years
Gross amount	$ 636
Accumulated amortization	0
Net carrying amount	$ 636

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Estimated Amortization Expenses (Details) - Finite-Lived Intangible Assets, Excluding Assets Acquired in paySmart Acquisition $ in Thousands	Mar. 31, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Remaining 2023	$ 44,561
2024	48,174
2025	22,194
2026	13,896
2027	$ 10,091

Debt and Short-Term Borrowing_2

Debt and Short-Term Borrowings - Total Debt (Details) - Term A due on December 1, 2027 - Credit Facility - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
2027 Term A Loan bearing interest at a variable interest rate (SOFR plus applicable margin)	$ 405,300	$ 410,248
SOFR
Debt Instrument [Line Items]
Minimum variable rate floor	0%	0%
Applicable margin interest rate	1.50%	1.50%

Debt and Short-Term Borrowing_3

Debt and Short-Term Borrowings - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 01, 2022
Debt Instrument [Line Items]
Gains (losses) reclassified from accumulated other comprehensive loss into income	$ 1,000,000	$ (1,700,000)
Gains expected to be reclassified from accumulated other comprehensive loss into income in the next 12 months	4,500,000
Fair Value, Level 2 \| Fair Value, Recurring
Debt Instrument [Line Items]
Interest rate swap	5,800,000		$ 7,400,000
Term A due on December 1, 2027 \| Credit Facility \| Credit Agreement 2022
Debt Instrument [Line Items]
Maximum amount under credit facilities				$ 415,000,000
Unpaid principal balance	409,800,000
Revolving Credit Facility \| Credit Facility \| Credit Agreement 2022
Debt Instrument [Line Items]
Maximum amount under credit facilities				$ 200,000,000
Additional borrowing capacity available under the revolving facility	$ 194,000,000

Debt and Short-Term Borrowing_4

Debt and Short-Term Borrowings - Summary of Interest Rate Swap Transaction (Details) - 2018 Interest Rate Swap Agreement	3 Months Ended
	Mar. 31, 2023 USD ($)
Derivative [Line Items]
Notional Amount	$ 250,000,000
1-month SOFR
Derivative [Line Items]
Fixed Rate	2.929%

Financial Instruments and Fai_3

Financial Instruments and Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Amount
Financial liabilities:
Interest rate swap	$ 5,768	$ 7,440
Fair Value, Level 2
Financial liabilities:
Debt securities, available-for-sale	2,200	2,200
Fair Value, Level 2 \| Carrying Amount
Financial liabilities:
Interest rate swap	$ 5,800	$ 7,400

Financial Instruments and Fai_4

Financial Instruments and Fair Value Measurements - Carrying Value and Estimated Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Amount
Financial assets:
Interest rate swap	$ 5,768	$ 7,440
Carrying Amount \| Credit Facility \| Term A due on December 1, 2027
Financial liabilities:
Term Loan Facility	405,300	410,248
Fair Value
Financial assets:
Interest rate swap	5,768	7,440
Fair Value \| Credit Facility \| Term A due on December 1, 2027
Financial liabilities:
Term Loan Facility	408,378	413,494
Costa Rica government obligations \| Carrying Amount
Financial assets:
Costa Rica government obligations	2,179	2,203
Costa Rica government obligations \| Fair Value
Financial assets:
Costa Rica government obligations	$ 2,179	$ 2,203

Equity (Details)

Equity (Details) $ in Thousands	3 Months Ended
Equity (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	$ 474,748
Other comprehensive income (loss) before reclassifications	17,084
Effective portion reclassified to net income	(1,044)
Ending balance	511,141
Foreign Currency Translation Adjustments
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	(23,481)
Other comprehensive income (loss) before reclassifications	17,605
Effective portion reclassified to net income	0
Ending balance	(5,876)
Cash Flow Hedges
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	6,954
Other comprehensive income (loss) before reclassifications	(501)
Effective portion reclassified to net income	(1,044)
Ending balance	5,409
Unrealized Gains (losses) on Debt Securities AFS
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	41
Other comprehensive income (loss) before reclassifications	(20)
Effective portion reclassified to net income	0
Ending balance	21
Total
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	(16,486)
Ending balance	$ (446)

Share-based Compensation - Addi

Share-based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expenses	$ 5.6	$ 4.3
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum unrecognized cost for stocks and RSU's	$ 49
Unrecognized compensation cost, weighted average period of recognition (in years)	2 years 2 months 12 days
Time Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Awards with Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Performance adjustment percent	25%
Performance measurement period (in years)	1 year
Requisite service period (in years)	2 years
Awards with Performance Conditions \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance payout percent	0%
Awards with Performance Conditions \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance payout percent	200%

Share-based Compensation - Nonv

Share-based Compensation - Nonvested Restricted Shares and RSUs Activity (Details) - Restricted Shares and RSUs	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Shares
Beginning balance (in shares) \| shares	1,363,780
Granted (in shares) \| shares	740,846
Vested (in shares) \| shares	(576,995)
Forfeited (in shares) \| shares	(2,592)
Ending balance (in shares) \| shares	1,525,039
Weighted-average grant date fair value
Beginning balance (in usd per share) \| $ / shares	$ 38.96
Granted (in usd per share) \| $ / shares	38.39
Vested (in usd per share) \| $ / shares	34.03
Forfeited (in usd per share) \| $ / shares	40.19
Ending balance (in usd per share) \| $ / shares	$ 40.22

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 159,814	$ 150,248
Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	2,454	1,953
Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	157,360	148,295
Payment Services - Puerto Rico & Caribbean
Disaggregation of Revenue [Line Items]
Revenues	32,479	26,485
Payment Services - Puerto Rico & Caribbean \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	113	55
Payment Services - Puerto Rico & Caribbean \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	32,366	26,430
Payment Services - Latin America
Disaggregation of Revenue [Line Items]
Revenues	31,293	25,510
Payment Services - Latin America \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	614	13
Payment Services - Latin America \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	30,679	25,497
Merchant Acquiring, net
Disaggregation of Revenue [Line Items]
Revenues	40,347	35,629
Merchant Acquiring, net \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	0	0
Merchant Acquiring, net \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	40,347	35,629
Business Solutions
Disaggregation of Revenue [Line Items]
Revenues	55,695	62,624
Business Solutions \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	1,727	1,885
Business Solutions \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 53,968	$ 60,739

Revenues - Contract Balances (D

Revenues - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Revenue, Contract Balances [Roll Forward]
Balance at beginning of period	$ 4,749	$ 1,715
Services transferred to customers	3,124	9,313
Transfers to accounts receivable	(2,621)	(6,279)
Balance at end of period	$ 5,252	$ 4,749

Revenues - Additional Informati

Revenues - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Accounts receivable, net	$ 127,876		$ 131,080
Contract liability	19,737		15,226
Contract liability - long term	33,284		$ 34,068
Revenue recognized that was included in unearned income	4,400	$ 7,100
Transaction price allocated to performance obligations that are unsatisfied or partially satisfied	$ 993,700
Total Revenue \| Customer Concentration Risk \| Popular
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total percentage of revenues from Popular	37%	43%
Total percentage of revenues from Popular	37%	43%
Professional Services, All Other Contracts \| Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period of expected timing of satisfaction (in years)	1 year
Professional Services, All Other Contracts \| Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period of expected timing of satisfaction (in years)	6 years

Current Expected Credit Losse_2

Current Expected Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 2,159	$ 2,523
Current period (release) provision for expected credit losses	566	754
Write-offs	(24)	(1,268)
Recoveries of amounts previously written-off	1	150
Balance at end of period	$ 2,702	$ 2,159

Income Tax - Components of Inco

Income Tax - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Current tax provision	$ 5,026	$ 6,877
Deferred tax benefit	(2,208)	(702)
Income tax expense	$ 2,818	$ 6,175

Income Tax - Tax Expense Based

Income Tax - Tax Expense Based on Location (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Current tax provision
Puerto Rico	$ 1,180	$ 2,315
United States	11	30
Foreign countries	3,835	4,532
Total current tax provision	5,026	6,877
Deferred tax benefit
Puerto Rico	(235)	(393)
United States	(26)	(71)
Foreign countries	(1,947)	(238)
Total deferred tax benefit	$ (2,208)	$ (702)

Income Tax - Additional Informa

Income Tax - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Unremitted earnings from foreign subsidiaries	$ 117	$ 115.5
Gross deferred tax asset	18.6	17.9
Gross deferred tax liability	19.5	20.7
Gross deferred tax asset, valuation allowance	$ 1.3	$ 1.6

Income Tax - Income Tax Expense

Income Tax - Income Tax Expense Differs from Computed Income Tax at Statutory Rates (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Computed income tax at statutory rates	$ 12,330	$ 16,890
Differences in tax rates due to multiple jurisdictions	1,029	447
Effect of income subject to tax-exemption grant	(8,849)	(10,809)
Unrecognized tax expense	34	80
Excess tax benefits on share-based compensation	(91)	(260)
Tax credits for research and development activities	(884)	0
Other, net	(751)	(173)
Income tax expense	$ 2,818	$ 6,175

Net Income Per Common Share - R

Net Income Per Common Share - Reconciliation of Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income available to EVERTEC, Inc.’s common shareholders	$ 30,052	$ 38,898
Weighted average common shares outstanding (in shares)	64,968,298	71,965,664
Weighted average potential dilutive common shares (in shares)	640,320	887,552
Weighted average common shares outstanding - assuming dilution (in shares)	65,608,618	72,853,216
Net income per common share - basic (in usd per share)	$ 0.46	$ 0.54
Net income per common share - diluted (in usd per share)	$ 0.46	$ 0.53

Net Income Per Common Share - A

Net Income Per Common Share - Additional Information (Details) - $ / shares		3 Months Ended
	Feb. 16, 2023	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Cash dividends declared (in usd per share)	$ 0.05	$ 0.05	$ 0.05

Related Party Transactions - Tr

Related Party Transactions - Transactions with Related Parties (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Related Party Transactions [Abstract]
Total revenues	$ 64,729
Cost of revenues	1,315
Operating lease cost and other fees	1,859
Interest earned from affiliate
Interest income	$ 340

Segment Information - Operation

Segment Information - Operations by Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating business segments (in segment) \| segment	4
Revenues	$ 159,814	$ 150,248
Operating costs and expenses	119,724	104,203
Depreciation and amortization	19,432	19,160
Non-operating income (expenses)	(2,699)	3,876
EBITDA	56,823	69,081
Compensation and benefits	5,845	4,279
Transaction, refinancing and other fees	(397)	2,025
Loss (gain) on foreign currency remeasurement	4,864	(2,669)
Adjusted EBITDA	$ 67,135	$ 72,716
Consorcio de Tarjetas Dominicanas S.A.
Segment Reporting Information [Line Items]
Equity investment	19.99%	19.99%
Payment Services - Puerto Rico & Caribbean
Segment Reporting Information [Line Items]
Revenues	$ 32,479	$ 26,485
Payment Services - Latin America
Segment Reporting Information [Line Items]
Revenues	31,293	25,510
Merchant Acquiring, net
Segment Reporting Information [Line Items]
Revenues	40,347	35,629
Business Solutions
Segment Reporting Information [Line Items]
Revenues	55,695	62,624
Operating Segments \| Payment Services - Puerto Rico & Caribbean
Segment Reporting Information [Line Items]
Revenues	48,429	40,008
Operating costs and expenses	27,722	21,280
Depreciation and amortization	5,888	4,480
Non-operating income (expenses)	365	236
EBITDA	26,960	23,444
Compensation and benefits	528	337
Transaction, refinancing and other fees	292	0
Loss (gain) on foreign currency remeasurement	95	126
Adjusted EBITDA	27,875	23,907
Operating Segments \| Payment Services - Latin America
Segment Reporting Information [Line Items]
Revenues	35,317	28,783
Operating costs and expenses	29,312	23,587
Depreciation and amortization	2,711	2,812
Non-operating income (expenses)	(3,785)	3,606
EBITDA	4,931	11,614
Compensation and benefits	652	813
Transaction, refinancing and other fees	0	0
Loss (gain) on foreign currency remeasurement	4,772	(2,795)
Adjusted EBITDA	10,355	9,632
Operating Segments \| Merchant Acquiring, net
Segment Reporting Information [Line Items]
Revenues	40,347	35,629
Operating costs and expenses	26,689	20,204
Depreciation and amortization	1,129	1,019
Non-operating income (expenses)	307	300
EBITDA	15,094	16,744
Compensation and benefits	532	340
Transaction, refinancing and other fees	0	0
Loss (gain) on foreign currency remeasurement	0	0
Adjusted EBITDA	15,626	17,084
Operating Segments \| Business Solutions
Segment Reporting Information [Line Items]
Revenues	55,695	62,624
Operating costs and expenses	38,913	38,928
Depreciation and amortization	4,488	4,763
Non-operating income (expenses)	532	700
EBITDA	21,802	29,159
Compensation and benefits	565	445
Transaction, refinancing and other fees	0	0
Loss (gain) on foreign currency remeasurement	0	0
Adjusted EBITDA	22,367	29,604
Corporate and Other
Segment Reporting Information [Line Items]
Revenues	(19,974)	(16,796)
Operating costs and expenses	(2,912)	204
Depreciation and amortization	5,216	6,086
Non-operating income (expenses)	(118)	(966)
EBITDA	(11,964)	(11,880)
Compensation and benefits	3,568	2,344
Transaction, refinancing and other fees	(689)	2,025
Loss (gain) on foreign currency remeasurement	(3)	0
Adjusted EBITDA	(9,088)	(7,511)
Payment Processing \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	13,000	10,900
Software Sale And Developments \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	4,000	3,300
Transaction Processing and Monitoring Fees \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	$ 2,900	$ 2,600

Segment Information - Income fr

Segment Information - Income from Segments to Consolidated Net Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting [Abstract]
Net income	$ 30,063	$ 38,866
Add:
Income tax expense	2,818	6,175
Interest expense, net	4,510	4,880
Depreciation and amortization	19,432	19,160
Total EBITDA	$ 56,823	$ 69,081

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares			3 Months Ended
Subsequent Events (Details) - $ / shares	Apr. 20, 2023	Feb. 16, 2023	Mar. 31, 2023	Mar. 31, 2022
Subsequent Event [Line Items]
Cash dividends declared (in usd per share)		$ 0.05	$ 0.05	$ 0.05
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared (in usd per share)	$ 0.05