Thank good you, Ignacio, morning.
Popular's year turn expand me XXXX perform. to fourth on we Before full quarter results, let
interest X% by to income rollover year-over-year net to increased interest along Our growth net billion $X.X solid margin. loan with robust due
In XXXX, decreased our approximately by expense improved on XX% of trends. the to $XXX provision million back credit
improvement segments. driven benefit Excluding X% XXXX, most FDIC-related by in approximately across income the increased non-interest year-over-year by
X% to professional the the personnel costs $X.XX increased primary in driver. expenses year Operating Higher fees were billion. and
increasing Our value capital with and $XX.XX. nearly per robust book to was share share year the by $X tangible ended position per
ratio common Common an equity XX basis common and after $XXX improving million points even achieved our Tier-X of improvement year-over-year in stock XX.X%. increase to This repurchase dividend. of stock was the by
overall As an Ignacio outstanding year. mentioned,
results. quarter to Please for turn X, Slide fourth
in appendix information to slide details As earnings third is provided press Today's additional usual, quarter. the release the variances the from deck.
million was that basis primary and during interest was expense. in This our down contraction fourth The but for income occurred quarters asset the NIM. quarter. both $XX third XX the interest a in of at points decrease of and US, a rates Rico, and decline third was somewhat higher BPPR Net offset, to higher in and in Puerto quarter this the from led lower personal driver with loans $XXX XXXX, mix million, along impact commercial loans the auto which
in drop $X is consistent basis by rates interest quarter quarter $X for XX point every last result with lower our negatively results our impact to commentary that per million million This rates.
this asset like shape and also of estimate. the yield factors curve Other the mix impact
stable with improve benefit. to the gradual fourth improvement Puerto We our government margin eventual margin expectations, a will net be government normalization expect expectations result quarter of the The in the our as levels of Rico of level from rates, levels, and our sensitivity the exceed our deposit deposits. asset of reduction present income could less
the billion, At were is from webcast. Puerto communicated the our advance roughly end down quarter, of last but of the deposits $XX.X QX, as end of with which in consistent Rico fourth public the
growth Bank in for mortgage $XXX run our continued despite XXXX, personal in Rico, or despite million In $XXX by portfolio loan anticipate and portfolios. mortgage growth commercial, In slight most XXXX, loans, in In in and Popular. X% Puerto our see and portfolio. Western a we million of runoff commercial grew loan balances including off legacy our to expect we auto segments legacy
US, driver balance. we higher the anticipate the of to be loan In commercial lending primary
Lidio by $X.X by the credit contingent Our in commentary. happen due in increased his increase improvement provision income QX. $XX.X this quarter primarily higher Non-interest commissions, was the which The increased to fourth expand a will million $X usually by during in fees sequentially. driven on insurance period. million million in
adjustment valuation $X in a and variable million, quarter. adjustment mainly million variance operating banking previously reserves on MSR a improvement sold to indemnity loans. the mortgage than Total million the benefited results, $X.X expenses prior finally, higher We in from million $XX.X $XXX to were due
million increased and annual quarter. investments higher in and headcount, the incremental training. increases by cost were employee by commissions in incentives These Personnel $XX.X benefits driven and
$X.X legal quarter, million million were accounting offset of this regulatory, expenditures technology in $X.X seasonality in Business expense primarily by promotional traditional higher increased the to fees due line. lower reflecting and higher Professional fourth part in the costs by fees. fees,
and operating by to $X.X quarter. increases during undeveloped lower losses corporate partially which placed related a lower operating due an site, million $X.X was were third by mainly These the expenses to offset the loss non-recurrence of other for sale million
the for total in not million, expenses million of of sharing the quarterly XXXX exclude we $X.X $XXX year If original expense, with budgeted, $XXX $XX.X sharing year. definition was million Profit our million. our guidance QX average the were expense is profit by and for which consistent
For quarterly driven XXXX, we compensation we is as $XXX expect benefits million. by from with categories. training following expenses average be increasing. the around higher mostly The Personnel, expenses and also related to in in invest the continue XXXX increase to
tight areas and the operate to market Puerto where this Technology, cyber mean mainland pure labor as the and we our I contribute capabilities, to Rico, we digital increase. regulatory, A compliance modernize needs. in obsolescence, in address continue
the Some to of from technology starts investments completion increase that of amortized. be results multi-year now the
client. levels higher this Obviously, for in possible. business in of channel. expenses expectation activity this linked and to expenses revamped of our Part our card in growth goal. higher especially this our our programs level we if will many of - digital to come reward of promotion, below XXXX, And strive expenses to offerings credit objectives this clients, finally by and related Rico Management's for reflect related expenses technology rewards Puerto to are our
to rate the income of tax to which years a effective XXXX $XX million the previously benefit disclosed amount was Our for of for quarter related includes the of X%, revisions exempt XXXX.
effective adjustments, been rate XX%. tax have Excluding would our these
expect XX% XXXX, we be to the range tax For to within of XX%. effective rate a
X. turn Please to Slide
well regulatory levels capital remain as capitalized requirements. well with to respect to strong Our relative mainland peers
of of includes start actions. announced our XXXX Ignacio the today's at three couple As mentioned call, plan
by $X.XX dividend per common an $X.XX share. or in increase First, quarterly to XX% Popular's
our We this next to quarterly in dividend increase expect for implement QX.
Secondly, implementing be stock common we of up to $XXX repurchase will a program million.
implementation detailed consideration. recent our buyback the is still for under buyback been ASR, this While programs have via executed plan
high Series Popular's Finally, stock, on B balance announced outstanding the Friday the of the preferred remaining represent securities these X.XX% we of liabilities. as cost redemption
the Tier-X book equity quarter common XX.X%, up $X.XX share and to from was tangible per increase ratio in Our XX.X% $XX.XX. value by
driven by our on unrealized our increase The offset investments income, by dividends. preferred net quarterly was the and common and impact gains partially of lower
in XX.X% the equity in XX.X% was and tangible fourth on return quarter Our XXXX.
improving and maintaining of target our equity. double-digit pursue our to return continue will We tangible on
turn Slide Please to X.
reserves. our allowance evaluation our continued last increase or we have to XX% Puerto mortgage, CECL. estimated XX% the loan This would We for million million a that quarters $XXX credit slightly $XXX Rico by auto the driven is and lease existing card, on increase of estimate losses to efforts for range and of and by the lower analysis Based implementation loan than portfolios.
Based the this of in from present total of to from over impact regulatory day-one capital plan incremental decrease excluded $X CECL phase period. the This we CECL already In approximately on X%, CECL value adoption a the per on regulatory with estimate, would book the in tangible result allowance of loan, day-one a resulting will be guidance, accordance capital. effects three-year share exceeds X.XX% of of in Popular's allowance or
and result basis to be Popular of day-one As well impact adoption total CET capitalized. After such continue we points. capital of the of in CECL a XX reduction approximately will estimated to
the PCI non-performing of due loans. CECL, of accounted of at Up these part been made or loans the of to now adoption estimation will to the of previously loans being individual SOP. level. existing as pools for Corporation be has PCI credit excluded under purchased the loans the the break impaired loans from cash as As Under CECL reported have accounted election instead of flows for pool pools
an loan Upon would be of non-performing transition XX/XX/XX individual This treatment reported these excluded to accounting will million NPLs. the resulted $XXX in no change as in longer of status. in have from measurement, loans increase
quality composed $XXX in loans and is their reported not million are payment of but currently not would delinquent in days due, loans $XXX as million past XX increase Again, NPLs that be terms, over This would in credit reported in CECL. as our XXXX as change the by under results could reported December report of other adjustments NPLs X/XX/XX we non-performing to time consideration. and these due XX, be
not stress containing Populars risk change that reporting loan way or alter this Let me any portfolio. does credit the in increase
may loans the in higher of NPL and reported that with treatment accounting this CECL renegotiations level. post further. reduce will resolutions the However, Corporation The will NPLs dispositions result pursue reported loan
We are new XXXX. the for simulations of refining of models effects our CECL on provision the the still
insight to additional on So to we going not at position are provide provision this time.
will turn over I call to that With the Lidio.
