slide Thank morning. Please Good six. you, Ignacio. to turn
was by higher deposits. million. and variance from held from and interest related expense somewhat income Net by interest securities, credit second offset activity lower higher QX. in resulting provided is income slightly QX. was $XX appendix the Other was earnings release purchasing for This the million increased to yield by The in fees the income the on as from details Today's by partially quarter. information fees growth driven deck. million. at from quarter an was lower additional usual, by of increase service as investment increased $X Non-interest to This higher first both banks. slide equity method under growth million income PPP $XXX higher offset the on well income $X debit $XXX loan million, investments As variances from during press interchange to due
by the driven $XXX the million a compared the expect non-interest expenses provision quarterly The million factors: in that first level rest Total $XXXmillion operating and partially $X $XX expense credit around by by expense lower credit We average primarily due $X to These decrease of personnel $X higher card $XXX for and plan accruals. debit quarter, in at million of million quarter. a OREO up to of and reserves the processing to XXXX. driven million from professional were were increase OREO costs to losses due and expenses charges; remain by The million QX. due legal an the in benefit fees increase $X million activity; will expenses, service three for of increased were million was profit higher, million the expenses other for $X second operating million lower $X by gains mostly an sale customer primarily by higher was due offset increases income on to of sharing were $X of quarter processing properties. to
results $XXX driven million. expenses a per total required now by guidance exceed we quarter. XXXX anticipate following: the this net average XXXX This brings up year-to-date, year, our income profit from expenses to For of employee $XXX trigger the average $XXX quarters First, the the million sharing. remaining will to two given is year threshold quarterly of full previous million, The for we to increase expect the
anticipated the the into such, for expense our year As outlook. now are we including
competitive. Second, will run salaries across our starting broad-based increase quarter, second which to rate of review higher compensation led we the that of process ensure market during outcome expense this we in employee Corporation, year. this the employee half The the undertook personnel remain a to of
as customer Third, fraud, compliance, the digital expenses our as will change require the evolution expenditures increased to will of additional of launch activity our offerings stage us other in services as to finally, enhance well at pace continue to increase market security. early and we incur the expectations, regulatory And given such customer as invest sector, areas financial and experience. initiatives certain we cyber in and
increase was taxable due the to mix for Our XX% the compared higher in first This was quarter income. effective XX% quarter. rate of to tax primarily
specifically was PPP prior Higher and money QX in investment on portfolio from the Please mix, tax Net XXXX, The basis on For million we to most for to balances. at reduction quarter to of rate due margin points XX% the taxed interest the of recognize X.XX%. higher driven XX%. market of upon fees $XX points. in rate loans. to the improved seven. lower be money of preferential balance unamortized range resulting loans XX% quarter. interest effective The of interest the basis, in $XXX higher between market X is income full forgiveness points resulting million, portfolio On to basis of by asset includes Holdings are interest remaining is X.XX% The yield The was turn taxable increase $X.X to in yield and boarding environment lower a quarter. by in mark-to-market than and an increased Net increase in yield our was Evertec. which by recognition increase impact expected margin equivalent investments basis income of to Evertec portion XX an QX. market NIM from the year gains fees compared The and our in $XX third on improved $X outstanding the XX in million down in from accounting was end million. by and mark this X.XX%, we the loan the of expect XX This lower slide QX. interest during a higher yielding was a taxable quarter, PPP to first a XX% points loan million, million, portfolio by expect basis $XX equivalent basis rate. net proportion the and
grew Excluding by balances public in deposit Puerto quarter. the Rico $XXX deposits, million
public increase to end of $XX this to quarter, the expect time, return billion continue an $X public from of range we will of billion roughly were that $XX As billion billion, $XX by of to deposits the deposits QX. second At a year-end.
to initially more While we this growth. bond been reduced fund sensitive, has portfolio to position by balances, and our asset loan deployment cash the significantly remain of recently
shift rates, tandem Given the with short-term deposits sector to moving to of with public moving we rates, albeit higher a market lag. rapid cost forward, expect in the start
factors, these to of result in Funds each XX NII a an $X change basis corresponds quarter. As approximately increase of now in point per million rate Fed
relatively in sensitivity higher interest rate quarters. our coming rate expect to We the become neutral scenarios to
balances commercial and $XXX Puerto with Our are mortgage increased year quarterly strong. All $X.X up X% higher by in despite ending occurred to QX by to for or loans. compared were except decrease growth million particularly X% in increase Rico loan of million $XX being PPP date. or a loan The segments billion
for by at We demand credit and BPPR are at the PB. encouraged
use to of to and extend Please We to to credit, will the yield opportunities eight. of liquidity. improve turn our continue slide advantage existing take
equity Our Capital quarter. return was strong. XX.X% in levels remained tangible the on
temporary. was Tier by $XX.XX we income million decrease the securities July share. $XX.XX mostly The higher offset unrealized $XXX sale in XXth, average of completed ASR. QX. Tangible of fair roughly equity shares investment debt from the should on purchase value Corporation of portfolio for rates. announced quarter. of in by This total, rising per interest ratio share, an losses price at repurchased per quarter XX% accumulated in the net value unchanged end decrease, at XX.X%, a was common X be approximately million X.X Our On available result $XXX book million, the In QX driven partially previously was an
securities, which Our entirely bank four duration years. of credit is The bond investment minimal treasury mortgage portfolio comprised nearly of approximately portfolio carry risk. agency and has
there mark the zero. the the and fair value As converge roll curve, down to yield positions par down to will are
with held completed commercial agreements. Evertec as On and extend new lower During to we in on an agreement of capital announced the quarter, to categorized our facing investment valuation securities ratios. market debt Xst, investment does customer the previously the important purchases portfolio of were not mark channels The maturity. have acquire July our portfolio to to regulatory impact key
to delivered of transaction, approximately This As gain the stock, tax consideration for in at valued $XXX resulted Evertec Evertec closing of common million at million. the X.X shares after $XXX approximately million. BPPR
capital, of million approximately in Evertec effect impact book the of in $XX shares the recognized a due gain finally, to terms to In as accounting-related million, minus transaction, and negative tangible in the goodwill after-tax the intangible adjustments. used resulted assets of value $XXX consideration transaction for connection the other approximately effect of net the the with and transaction, of purchase
by of a to as closing. end As XX.X% than transfer stock approximately shares weather Popular Evertec agreed has X.X% was consideration, the shares a used more the XX.X% of Popular's non-voting Evertec of no ownership at the quarter. third conversion voting or reduced reduce result Evertec selling to through the in its into interest from approximately of of stock shares to further common such in
sell on shareholders resulting We X.X% from to regulatory receipt conditions. in common to Subject after-tax sale. stock expect approvals, via any to stake than Evertec of repurchases, such plan the to the more down no return we to gains market then depending
We million XXXX our remaining also under worth buybacks the capital plan year-end. to of complete by $XXX intend
in Our should capital an our than of normal no result planning later XXXX XXXX January Popular's capital webcast. actions schedule announcement
to to I to continue future of explore manage over the opportunities capital turn call periods. the With will structure during Lidio. XXXX We in and our remainder that,
