X morning. non-interest to press the offset you, from second earnings appendix provided Good Note slide Thank is the primarily results. quarter additional release Ignacio. for higher higher income Please Today's hits slide the various expenses in details by in turn that deck. lower quarter, third operating provision. part information to and
quarter. second added also to higher Net benefited higher BPPR. day in U.S., volume for flat interest from $X.X investment more million, at quarter the $XXX quarter, one in loans and This interest income. of securities net income and the the was commercial There consumer to higher loans number million the auto was which
benefits Rico These loan offset were Puerto balances by commercial and higher expense. lower interest in
the public volume from quarter, While Bank's Rico. digital higher the Puerto deposit in lower driven deposits sector costs in were Popular primarily of in interest increase by was through and channel the expense
result be points factors asset this for mix Other to yield asset-sensitive, so quarter per $X $X rates. the continue lower to interest drop and rates XX also every shape the million like negatively impact We by estimate. million in basis of impact curve, our
million a in primarily in results, improvement deferred non-interest of in mainly million $X.X to increase service driven favorable deposit adjustment by well higher in million value Puerto MSR, higher our $X.X as fees plus due banking credit variance mortgage a $XX.X Rico. card was charges income The as
adjustment sold the by release second indemnity a million two was benefit million by increasing during second items: to reserve an due contingent by in on received service other $X.X mainly to quarter; driven in previously of This $X.X lower $X.X $X.X commissions fees, offset million partially reserves the million insurance the quarter. loans
higher quarter. the quarter, was prior and cost increases Through $X.X $X.X merit quarters to million anticipated in to Total an $XX.X $X.X expenses. the $XXX were due annual which first incentives was headcount from the by profit-sharing a Personnel annual operating related corporation's of expenses $XX.X XXXX, of we the three of million million including plan. of while in million increased million, accrued million increase total have profit-sharing
reflecting result million, higher as were $X.X in Technology part $X primarily as reserves, operating a increased deposit held-for-sale well site to legal expenses were undeveloped partially contingency fees, Other fees Popular to expenses $X.X FDIC mainly offset $X.X a were gain regulatory, to increased during legal a lower third received Other quarter, $X.X due million, lower higher, million small down expenses loss mainly moved and related gain our and to professional sequentially, expenditures accounting in These to higher Bank. million by million on fees. in sale offset insurance technology the due by corporate by the at an due of of as increased quarter. credit properties. of a
million. approximately expenses estimate We quarter $XXX of fourth
is for with due original our a $XXX As now which million, overage profit-sharing mainly associated above expect plan. guidance be to million. to our The approximately we quarterly slightly the average expenses expenses year our $XXX is of result,
current Our benefit amount the a to the related effective of increases of $X.X XX%, to income million tax rate for includes for the exempt quarter year. which was
adjustment, was this Excluding tax effective our rate XX%.
of income now from For XX% tax-exempt between to effective XXXX, expected change tax to of levels the expect to we compared at the estimate higher and rate results XX% be prior This XX% BPPR. XX%.
XXXX Puerto In income the up XXXX of fourth those corporation the of quarter true-up exempt will tax of Rico for return, the in for also years. its connection returns amend the with years the XXXX, filing tax XXXX, revising amount our through and
in expect XQ $XX We result adjustment million to tax a million. these of to amendments $XX positive
turn slide Please six. to
from XX last margin Our was quarter. down net X%, interest points basis
in yields higher higher net the were basis points volumes yields. plus the to XX investment our added driven overall reduced two down by rates. basis Asset in decrease investment portfolio, asset The income, quarter, impact and point of our cash but XX
a points. less, slightly XX cost a to offset deposit basis to deposits points, XX mix. Total was basis quarter deposit at to interest-bearing QX. Rico down basis Puerto The points of the basis basis cost of and cost public our higher decreased were sector in in yields XX with Rico volume X.X%. The X Loan rate due by deposits, X Puerto points points higher retail to driven deposits down by mostly corporate lower U.S., but in cost flat was of the
Puerto the billion. Rico deposits public $XX.X roughly quarter, third to increased During
deposits $X by end decreased since have the However, the billion. of quarter, around
XXXX. earlier, Puerto strong, from Ignacio auto normalizes even As the market as higher third were mentioned in in sales Rico volumes quarter
in Our the portfolio grew $XX period. million by
higher were in flat loans the of quarter Puerto quarter, lower mortgage the than second business quarter, $X but million basically $XXX originated $X The third XXXX. of million million Loan balances than Rico same quarter-over-quarter. the
we levels At that $XX million BPPR to commercial of continued see U.S., strong loan exceeded the levels. origination million balances commercial and mortgage In by our loan respectively. and elevated $XX grew repayment
has first nine XXXX, by the Popular's For $XXX months of grown portfolio loan million.
end loan slight quarter, outlook of levels the XXXX. for end our overall at We fulfilling year similar third the expect with growth of the to in balances balances loan the to
Please seven. slide turn to
Our well mainland regulatory banks well-capitalized capital to requirements. levels as relative respect to with as remain strong, peer
$XX.XX. from quarter value was increased $X.XX XX.X%. equity book Our share up to common by the Tier XX.X%, per X ratio And in tangible
driven common impact The net our increase gains than our investments, of on preferred the by quarterly dividends. unrealized and was more higher and income offset which
our on We of improving, will our double-digit continue equity. tangible to pursue maintaining and return target
slide to turn Please X.
XX% CECL. We we and June are by reserves, for purchased the or preliminary credit-impaired excluding Based XX% to analysis, estimate loans. million million that to evaluation implementation of losses, our loan of for allowance were $XXX increased $XXX continuing existing efforts on lease and our the as XX,
increase estimates, book would day on Rico the Based per and portfolios. of is these adoption CECL Puerto of credit in driven a This value impact tangible preliminary of decrease auto share. estimated one mortgage, result card loan $X by approximately the
that no regulatory and total of existing excluded Following the regulation, already X.XX% incremental CECL, changes, loans, capital. allowance allowance will from be exceeds Popular's given from assuming resulting
estimate well we will reduction a such, will After under this and capital. capitalized of one CECL, Popular point in to III. total impact CETX result the continue Basel XX As be in basis day adoption
three-year of present capital, period. a with regulatory we regulatory plan phase effects accordance In the in over guidance, on day one CECL, to
and continue our assumptions first the date, We XXXX. quarter models, in work will of to through the implementation plans, adoption on
disclosures expect estimates. these we refine and We as further changes, update,
that, With to call Lidio. turn over this I
