Thank morning. you, Ignacio. Good
our Popular's which a is performance, net XXXX, year to expand the XXXX income included let turn appendix full In XXXX Before billion, annual in $XXX partial was press annual offset today's and this by the provision we the the record of allowance, and $X.X expense. driven presentation million fourth benefit of by The of the income. somewhat quarter largely me increase reversal to DTA we Evertec on net Transactions above results, valuation release. report
interest income the net $X.XX Our due higher to billion in the assets. change loan XX% growth of increased by and earning year-over-year rates, mix to
we by reported in Transactions. the $XXX $XX billion increased to of Evertec income of professional a personnel, expenses year-over-year, year, for Operating provision increased million XXXX which compares XXXX. impact the credit technology, benefit million the XX% Non-interest and regulatory For cost. million by higher primarily in provision losses, to an $X.XX $XXX driven fees with
X. for compares $XXX the Slide to to Please in QX. million income fourth was turn million. quarter $XXX Net This
DTA net Excluding $XXX Net and in income to million decreased in quarter million from income the million, of impact interest QX. QX, $XX a in Transactions $X $XXX for of the reversal QX was decrease QX. the Evertec million fourth the
to mainly was grew yields by extent $XX million Popular from lesser offset from growth on resulting This and from Bank. deposit public rates, interest income by as increased as higher deposits, investment Interest loan securities. expense a Puerto Rico on deposits higher and banks than of loans more both well
and fair pre-tax results income the of purchase to QX. favorable gain a $XX Non-interest decrease of we business Evertec of million price Transactions in the equipment a third acquired $XXX the $XXX $XXX quarter on a adjustment was million million, U.S million The related value included XXXX. from finance
service fees. items, income mainly from resulted remaining various non-interest deposit lower these Excluding
the embed written-off sale fully shares. results reduction income non-interest our include policies the $X.X the quarter results million our fourth previously of gain on [indiscernible] Evertec the and The pickup changes a investments. equity The of for also in sale an in
income Excluding been would quarter approximately the for the million. non-interest have gain, this $XXX
expect $XXX The quarter rate to $XXX non-interest the continue the around we for provision XXXX, to third million in million losses million year. this fourth compared million quarter For credit $XX approximately for in quarter. income or was run $XX per the
decrease in million Transactions million were the quarter. $X finance the and expenses impairment operating $XX related million business. $XX to Evertec the $XXX quarter, U.S from goodwill equipment our a prior a expenses QX of on included Total million
million, business from higher transactional Excluding quarter these and other mainly expenses, by and $X to higher fees. prior higher higher million, mostly million, technology professional during million processing in services $XX expenses by $X increase increased items, expenses due seasonally the network by received $XX promotional resulting a incentives
continued $XX the by $XX, which took For increase the expenses in previously wage $X.XX add our drivers XXXX, first, on primarily annual will expenses, This in expenses announced to XXXX. increase in of we expect approximately million billion, driven our X. minimum from $X.XX to expenses personnel The billion XXXX. be: will million $XXX hourly effect compared to January $XX approximately during of increase
full increase made be million will were that compensation in last add adjustments These our granted to will XXXX. year be X also These There expenses is are actions that for traditionally keep salary effect to summer. necessary on market the approximately merit XXXX in of $XX will Additionally, two the items the in effective XXXX. year July a competitive.
X retirement that in $XX also increase million. depository to points expenses by Pension we health expenses. million increase expect will Second, sees care the basis all rate institutions and FDA add assessment to will $XX
multiyear in Finally, significant we’ve opening initiative. as his remarks, transformation described a Ignacio undertaken corporate
across implement to our of capabilities, company. our to part and need we business efficient this entire digital the processes modernize expand platform As transformation, technology and agile
our well efficient as result our ways through of X, end of we towards in technological working Since year, $XX expenses. in completing will operational and this employees. million. XXXX, These on data and In Evertec transformation-related as from July and invested better clients technology investments last million the primarily enhanced $XX processes fees an for technology experience professional expenses the Transactions of we effort more anticipate
to contribute some sustainable target We XX% have income and professional standalone these transaction as To higher efforts ROTCE in a progress expect activities now of the XXXX. separated a our and these of in we fees statement. efficiency, end our in facilitate the earnings transparency technology, resulting by efforts items to of better
benefit quarter Our mainly valuation effective QX expense of million of benefit for to XX% allowance a DTA U.S. compared partial the the reversal of an due in $XX The the of was XX% the income quarter. tax to rate tax in was operation. third the
profitability Excluding while of compared the in of partial the as well the quarter quarter. for the stable as the was over of U.S. evidence evaluation rate metrics this net years life considering the to our sustained on remaining of XX% fourth tax last losses. XX% based was the operation reversal X credit impact, third operating the This effective
the December of our the operations allowance XXXX, of XX, As DTA of net was valuation U.S. $XXX million, to $XXX related million.
year in the of to XX% rate XXXX, full tax the range effective we to a be expect For XX%.
quarter. Net equivalent a decrease was X. was taxable income yields, million. cost in X.XX%, million, basis in a mix interest turn loan On points is an higher QX. increase $XXX decrease deposits balances NIM margin of to interest than basis, offset a in $XXX a third by interest Please $XX was X Slide Net of deposits. public and lower on This partially On expense earning due assets. X.XX% to it higher though taxable to decreased anticipated, the The million significant, was XXX basis by X basis, the basis points. point by driven improved of plus equivalent
the public a roughly fourth billion deposits billion, At of $X.X end of the decrease quarter, from $XX.X QX. were
of in $XX deposits during $XX XXXX. We public expect to billion billion range a be to
quarters, our of tax should of increase couple next the cyclical during nature balance of collections. the deposits Over the
should second XXXX. the of However, balances during decrease the half
quarter, by declined with These mainly liquidity. balances these yields a strong corporate deposit relationship $X.X reflective billion pursuing have deposits, to public from clients. of better the clients excess are of in clients. Popular cash excess on Rico continues declines Puerto balances Excluding
higher they Our Puerto commercial remain of $X XXXX. in December billion Rico than were deposit balances
overall We deposit liquidity continue manage our actively balances of consideration deposits, commercial and the into position. stable. cost remain client the relationship will to taking Retail
X% segments by quarter, and was the increased for Our almost by to were just QX particularly balances ending construction. are in strong, up year-to-date. loan all or or compared Commercial other higher $X.X loan $XXX billion under loan growth except XX% and million
by encouraged and BPPR are demand We PB. at credit
opportunities of the to yield existing will credit, liquidity. use thereby continue improving of our We extend advantage take to and
see to in growth expect strong continued we exceptional anticipate rate. it will While replicate XXXX, we do loan XXXX's not growth
but cycle. total deposit Please below franchise, has and to commercial, turn lower public to betas now remained represent to slightly continued cycle low, rate deposit due the compared historical are Commercial of have Year-to-date, prior beta. track the the retail above to retail tracking our Rico, Puerto a proportion deposits Combined, Slide particularly these last increase in deposits. X. deposits
of expect interest As we cost during the XXX rates, discussed shift public quarter, short-term increase the increased rapid cost points. we in interest quarter, basis to In by deposits. last a fourth the higher significant -- the
basis of the to in We approximately increase QX the moderate to in cost of XXX magnitude public deposits expect points.
sector have agreement market linked As under in funding is in of This spread like described the Puerto the attractive resulted pricing deposit public we with the clients Rico source market past, [ph]. with rates. an
we Please turn a the of investment we be XXXX, In temporary. reported X. Slide expect decrease to fair portfolio in to that value
Our and duration mortgage-backed risk. securities minimal bond almost agency investment carry of an comprised portfolio is credit of average approximately years. portfolio The X.X treasury entirely has which
As the and curve, the to yield roll zero. down their the will go convert positions par mark value down will fair to
tangible interest rates unrealized term, U.S. positions exposure had which positions. uncertain we this about our treasuries third. $XXX reducing loss value. As life in HTM, increase capital given throughout of book transferred as webcast, of in last X thereby back impact transferred time, rates, At held maturity reduced to a to be XXXX well in X-year the to on for interest of in rapid rates to amortized to into transferred a the discussed the future as of in million, $X.X by October, the the When rates the billion AOCI the outlook interest action these pre-tax will
of end balance As at $XXX of million, of reduction of the unrealized the stood quarter, $XXmillion. the fourth a the loss
have amortization to no through move. The at losses we treasuries large the transfer effect continue same liquidity transfer available-for-sale Fed. result maintain in this cash as quarterly similar securities a of a material recognized and on short-term as a remains This expect yield were our We portfolio on XXXX. and the a doesn't
The owned capital of banking realized the those do regulatory have ratios on in but losses capital not well our ratios. changes subsidiaries, AOCI and in gains tangible an impact impact as they corporation's wholly as
turn XX. to Slide Please
in levels the equity XX.X% strong. Regulatory capital remain return Our on was tangible quarter.
repurchasing to by shares basis in million average million increased purchase common announced an at $XX.XX. points ratio Our equity approximately In previously Tier $XXX XX we ASR, our X December, QX XX.X%. completed of price X.X
favorable million value X.XX $X.XX capital $XX.XX To separate to share. at actions $XXX repurchased $X.XX million common summarize increased our stock dividend quarterly Annual and our increase we declared sale. This offset net unrealized was in ASRs share, variance quarter from by of available per two driven quarterly of $XXX of QX, million in mostly and $X.XX dividends of on per share losses per book per the income last year, shares share partially by by million million securities quarter. an for via $XXX a or $XX is end
has strong a time, not gravitate on capital regulatory to ratios return outlook capital of the Over our our peers Our changed, levels spread. anchored ratios. our regulatory towards plus Mainland expect capital in we
interest have of plan the around our the revisit Given continued economy. we actions outlook uncertainty, to future economic half second still capital in XXXX, once more we clarity and for the the rate
call the I'll over to turn that, With Lidio.
