to first quarter for Please morning. results. Good Ignacio. Slide you, turn X Thank
provided press information to usual, release is appendix variances fourth deck. additional from slide As the the in Today's quarter. detailed earnings the
XXXX, million, portfolios acquired card $XXX million in construction interest end of of The fourth from saw continued balances. a for primary an Net increase the the Popular loan in as commercial, quarter. income driver portfolios of this $XX the at higher quarter as a lease in We our $X million and increase was credit auto the and portfolio BPPR Bank. mortgage growth well in was
points at XX basis, from XX was NIM lower the Rico deposit deposits quarter basis higher interest-bearing Puerto for quarter. Popular improvement basis an than in QX. deposits X.XX%, Bank. rates basis of XX X.XX%, taxable market were the points was in Our public NIM QX on point due last equivalent effect and to On costs down a
decrease margins expect in QX. we to However,
reflect change the the lower because in QX have sensitivity in sensitivity in other net market happened to $X in changes we to of hovers Previously, quarter every evident income assuming change in $X interest effect the rate point that not full asset mentioned around This rates. mix. March of late per historical our basis for very was QX million changes market quarter. rates million will no rates material of XX the
material last continue As of effect deposits years, the the asset margin. the mix has couple have and been case on to our also for product will of level a
the of balances near-term. Puerto may long-term. QX. Rico public federal quarter, come public over billion, which down increase to deposit COVID-related end the balances deposits of roughly $XX slightly from assistance is were the But in still expect As down the We first
and of the debt of of these timing of agreements timing The rate will restructuring the amount expenditure and any funds reduction. dictate the government's on balance
in by $XXX million million that Our the accounting loan increase. U.S. for our of with approximately grew business quarter portfolio $XXX
originations expect the loan in we quarter. higher to PPP, with second the be balances associated Given
the While will the the XXXX the we had environment previously that the ultimate balances during is for the economy year. loan the current for outlook level of now duration loans anticipated PPP uncertain. The XXXX, remaining slight and in growth performance balances in loan depend of of of on
million or his million increase will the for CECL adoption for the increase COVID the expand XX%. U.S. forecast allowance of for expense incorporates reflects commentary. this quarter quarter-over-quarter macroeconomic the during was most of and credit losses credit $XXX Provision on in recent Puerto Rico and $XXX affected The Lidio an of
fees quarter-over-quarter. were lower million. and the decreased by $X are March. were two income Non-interest Insurance contingent the weeks card in the impacted second of to were decreased lower our markets in Nearly $X fees lockdown million by three $XX.X debit quarters. and million which and last significantly primarily Credit nature all commissions, of seasonal higher in due fourth categories the
of negatively devaluation were by quarter. compared MSR adjustment results the the prior impacted as Mortgage to
$X recognized the mortgage related Puerto Rico mortgage of part mandated in hedging in origination in million also We mid-March. government stoppage losses to since
business on million various in $X waving a with over to negative loans million client Finally, about of The two reserves to like expect income The levels, income recourse. the estimated million trend return we month. depend unfavorable effect more had of million effect client of and lower quarter have of of $XXX at a averaged QX. reopening our currently adjustments activity non-interest our in levels. negative on markets can will last million rate income we We per which will on had $XXX in $X markets of variance non-interest fees on that an closure the in the to increase sold activity which $X and years per non-interest the indemnity speed
prior lower incentives by costs partially $XX.X offset to lower decreases Total were million, million, million. quarter. frontline $X.X decreased employees of incentive of by compensation operating were the special million. These $XX $XX.X expenses Personnel million COVID-related by $XXX than driven
These were traditional expense and in other and costs of partially operating decrease by customer $X.X promotion. program lower the sponsorships reflect expenses seasonality advertising, million million Approximately million. offset $X of of Reduced expenses. resulted OREO promotion slightly activity higher were the decreases reward quarter. lower Business first this in $X.X
various effect the we pandemic response business and implementing promotion lower other expenses. expenses, that will be business, fees, and on will operating to rates our In of professional interest cost personnel-related savings initiatives the affect
savings We expect these efforts of to in million result approximately XXXX. $XX in
for average As XXXX the prior opposed to as million a $XXX guidance year now around million. expect result, quarterly be we our $XXX expenses to of
taxable income, provision lower for by Our of of rate due which losses the CECL, the a credit effective the tax to higher driven includes pandemic. X% which was reflects COVID-XX quarter impact impact the for
between we XXXX, expect rate XX%. to effective currently our XX% be For tax and
X. Slide to turn Please
in million corporation's well Our with the $XXX or into of our remain the mainland banking the for relative if as this Under to to well-capitalized terminate an repurchase ASR common XX accelerated capital stock pre-specified strong ability On level. peers share January price has levels regulatory agreement, to as drops we ASR, entered the stock. requirements. of year, counterpart the terms ASR, a to respect
decrease and This from was has resulting termination triggered terminated XX. March The our price ASR this effects. the our stock of two pandemic on clause,
we million shares. the X.X of on price discount the real First, delivery realized
the termination $XXX by purchases. counterpart continued Second, via shares million yet time market under the contract at be are of acquired settled our remaining delivered the via delivery to additional
had At we two shares. an million million shares. XXXX, XX, have received received March a X.X additional of XX, total we April Through
stock. to plan, closed the We quarterly settlement be redeemed ASR second X.XX% XXXX quarter. dividend our and our stock capital expect our the B also during Series preferred To of of increased complete out complete the common termination we
was Our book QX XX.X%, and by from CECL our in count, the income by offset our tangible share and day our payment share effect dividends. $XXX increased the unrealized net The higher increase to common somewhat million $XX.XX. quarterly gains equity Tier XX.X% a X down and ratio $X.XX value lower per quarter by in driven the investments, one buyback, of was of on
calculation adverse participants are pro down our CETX XXXX. of ratios last loss for robust market doing ratios, capital of In These billion, published this Popular's many DFAST These a analysis. ratio end versions simulation, burn our severely include allowance $X.X of applying we stress position. we strong In forma of XX.X%. slide, adverse with severely even results a up from after test credit very still capital losses this reflect the of
of XX% XXXX adverse DFAST loss losses represents The first quarter of for our credit allowance estimate. severely
first the provision. in X.X% was affected items, equity tangible quarter, described the by on mostly return Our the previously
tangible target We on will continue to pursue returns equity. our double-digit
our Lidio, CECL, as turn allowance I we the of losses of for million. the by adoption one to over loan increased a result $XXX call Before day
for $XX recorded We adjustments XXXX as approximately losses held-to-maturity million also except PCI These net related SOP. a $XX of were portfolio. to for of to or retained credit January an loans purchase X, for taxes, to securities under income of decrease allowance recognized million accounted debt impaired earnings related previously credit approximately as
NPLs measurement, of our the non-performing guidance, were excluded status, transitioned in Once adoption the previously these announced of in million corporation with which, as accounting election are purchased webcast, increase in excluded applicable accordance from individual resulting to X, loans, CECL, an As loan January last loans part longer from the of XXXX. no to PCI non-performing pools credit status. $XXX break the in as the existing made impaired the of or of
a me not not, way, of reporting in change This or in classification a this loans, any credit in these Let the in remind performance that loan change portfolio. is risk payment change contained Popular’s risk. increase you does
treatment a X- We to plan accounting phase did in loans period. regulatory these NPL over higher a the of effects year reported result CECL However, capital levels. in the of
turn call that, With Lidio. I the to over
