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million Sorry, Net X. $XXX in compared apologies. QX. to Please million to $XXX turn income was Slide
of million from DTA reversal QX, million income lower date a quarter. to million decreased Net related the in variance $X $XX $XXX was was of $XX a this impact allowance QX, million, the the Excluding decrease $XX by income in QX. million net count interest during of
higher in Rico of a basis, from from deposit $XX of income compared a net expense QX. was mainly On Bank. result increased Popular extent, deposit The a lesser public Puerto taxable-equivalent $XXX primarily to interest and variance interest million rates, resulting and million million, deposits, $XXX was to
$XX QX. compared in the litigation-related $XXX was of $X losses million, decrease a $XX the prior increase $XXX expenses claim million $XX Total million provision fourth million $X operating were a million, quarter. reimbursement. insurance an result of in credit Included from income was million The for quarter. from million, this to Non-interest was
of multiyear by quarter this the first lower fees lower of to expenses initiatives. professional be these is as lower Historically, This costs to million, due $XX year. and primarily year, This quarter million. our in than was driven well $XX by reduction as by accentuated first software every technology more the tend transformation
last expenses million $XX transformation-related $X had quarter. to compared we QX, During million
As the and advisory progresses, will shift expenses of from plans execution plans. to and implementation the conceptual transformation development
as as QX, and pace in an result, expect progresses. expenditure a of As acceleration the we a year initially, slower
We expenses transformation-related in $XX of continue million to XXXX. anticipate
expense seasonal was million, at Other $X million, were large mostly related due sale the on which that took of lower disclosed by increase in properties. BPPR, by lower expenses and offset $X $X primarily costs previously somewhat hourly higher to of wage to gain business variances January, benefit personnel by minimum million, in effect lower OREO promotion
up We $X.XX billion. anticipate expenses expect and expense of progresses. Our historically has consistent continue that the year quarterly approximately with to the trajectory experience, as ramped be XXXX will year that for
was tax quarter Our for XX%. the rate effective
last For the be tax XX% higher full expect of year we provided rate XXXX, to range XX% the to during range our effective within the webcast. than a
we rate therefore and near-term, extent have our anticipated. a to the reserves tax income banks In previously a which level with higher of taxes higher at the and expect than run to less leads Fed, we
by Please decrease Net basis QX. taxable-equivalent turn interest the was in $XXX XXX a an basis, expense improved on though basis yields, than fourth million. was assets. $XX the NIM of decrease in points. points to loan deposits. Slide anticipated On taxable-equivalent balances lower decreased of plus basis cost quarter. X. This higher deposits million in due $XXX point to higher and Net by it a income The XX a mix public to million, by partially increase X was driven X.XX%, of interest earning is basis, X.XX% a margin offset significant, was On interest
deposits million and our or At in Rico billion, $XX.X about respectively excluded $XX.X first roughly at deposits. held quarter, the division. and our we to billion, Trust billion from of Puerto discussion $XX.X the billion public the end excluding year $XX.X This the In public Trust past, in $XXX end. by were managed deposits had balances compares
our Given Division, as by that we custodian or where Fiduciary agent. these act are managed escrow Services
with these we the decided Trust always entities total to provide to amounts deposit been visibility in These However, more relationship collateralize to have deposits. have and our government deposits reflect balance. aggregate reported overall
inclusive must deposits billion, no level to excluded in expectations Trust that range to It’s $XX be public of in billion have our of by we our billion decrease important significant XXX% expect in impact on unchanged these to Any Trust the Puerto from deposits previous to During deposits be deposits, $XX XXXX, $XX $XX essentially public a that of Rico billion liquidity. deposits. of will reiterate law collateralized. now
see by a Puerto quarter. consolidated QX, sector. increased the deposit on primarily In Excluding the saving deposit this $XXX non-public balances continue worth to $X.X commercial net in This through million and compares public Bank the we Popular better yields billion clients its direct and gathered deposits Rico decrease of time banking quarter, funds outside pursuing deposits, moving excess high of some liquidity, fourth channel. in to during
under increase QX, deposits Since good portion a which been we $XXX in of management able broker million. million. approximately an overall increased this However, capture $XXX assets dealer, of end saw our to approximately have of by movement in have the
Our sensitivity neutral. be to interest rate continues relatively
margin an As we progresses, the expect resume upward trajectory. to year the
The incrementally and timing deposits. balances the public pace loan and of deposit will the non-public of on of depend mix, our growth interaction and re-pricing
Our commercial million compared PB. ending on loan BPPR QX, loans to all balances increased at by driven $XXX segments and at loan by growth
the by PB. We for BPPR are demand at credit encouraged and
advantage the and We improving existing extend opportunities liquidity. of will to of to thereby take yield continue our credit, use
cycle. are now for tightening the to Deposit cycle turn X. above Slide beta Please the current prior or at
a seen deposit beta have cumulative of XX% to-date. We total
as saw we costs of deposit deposit acceleration led led In In of an sector deposit total by our XX increased PB, deposit QX, pricing. retail points online deposits, deposits. by total XX the However, by increased public in points use channel. basis BPPR, by increased we costs
retail have deposit cycle than In been Puerto beta XX%. combined Rico, less our and to-date commercial
a couple estimate deposits. higher we’ve of rates, short-term points. points roughly of the versus basis cost January to As our past first XXX significant In the quarter, cost interest shift the increase discussed public the given in increased we XXX quarters, rapid by expected basis over of the
average difference the the interest and calculation. of mechanics in balances The lower rests expense
of with in funding costs basis public attractive results market spread We in market by points the agreement increase pricing with public lag. source deposit sector deposits is our The expect Rico This rates. an under the Puerto approximately QX. a linked to XX of
to turn Please X. Slide
Borrowings million Liquidity $X.X Fed We for increased focus and in deposit QX. the by billion resides Federal flat the borrowings by because in quarter We Corporation deck, QX, this of at securities. the unpledged at liquidity billion. funds two following in the slides our increased Bank for of $X.X Home and have sources Loan reduced liquidity, were in our on XX% added composition. the excess $XXX borrowings
However, of or that compensated Term portion a of use Bank the XXXX. or There during Popular issued XXXX, million Funding notes notes senior of the the during our Fed incremental redeem $XXX to principal repay Loan for that XXXX. for X.XX% Home borrowings the mature quarter Program. the were offering We reduction. XX, On to Window Bank, roughly Federal the due or $XXX issuance in in no Discount net million senior notes of proceeds XXXX, September outstanding senior intend amount our March the
balances X, have slide, The deposits non-interest-bearing billion $XX.X $XX.X turn at QX Please Most described of the X. The recent transactional Slide sources or billion our our XX% The deposits Slide XXX% deposit covering over prior changes in time interest-bearing of summation totaled accounts over balances. to been have liquidity $XXX,XXX. $XXX,XXX accounts. ended been steady. and balance balances of in total deposits of with of
XX. Slide Please turn to
has approximately Our an of of including and agency carry investment comprised risk, portfolio minimal mortgage-backed our portfolio credit is securities, treasury which years. position, cash average X.X duration almost this entirely
impact increase As on to interest thereby of of tangible XXXX, value. rates, in US uncertain previously, treasuries, as reducing in rapid book year, for rates $X.X last the of outlook the October transferred well held-to-majority as future billion we discussed rates the given in
$XXX third. the these time, be to HTM, reduced transferred the will pre-tax remaining amortized life into by AOCI a had to million, about a exposure loss capital action unrealized of positions. the throughout positions When back this of transferred At which rates interest
the the million million $XXX a transferred and from unrealized quarter, the $XX million, of $XX first stood As of QX date. the end of loss from at reduction balance this of
back amortized per X% through approximately life be portfolio rate capital We of of the expect remaining at a this to through into loss the XXXX. quarter
the this end at As already no a the all to to HTM unrealized book. the end, tangible portfolio HTM the the are result are significant given capital. at transfer, in related of relate timing our losses our level reflected and quarter, of marks of of Therefore, there recognized rates quarter
Please turn to Slide XX.
was XX.X% equity levels return on capital tangible strong. Our Regulatory the quarter. in remained
QX. almost increase tier $XX.XX, Our ratio share This and XX% an improvement from is basis offset partially in net share variance X common from increased unrealized securities million, favorable available-for-sale, of dividends income of QX. of by by was declared $XXX end QX of in quarterly losses equity book Tangible at quarter a value by a per driven $XXX mostly on points quarter. XX.X% in million the or $X.XX per net XX
future Finally, of will we capital, second half capital touching on actions the revisit XXXX. in
Our strong long-term our outlook in regulatory capital and capital changed, return anchored ratios. not has
to However, recent need on sector. outlook economy, the in gravitate the the get the to events capital we for regulatory our in for rates our buffer. the clarity on Mainland plus regulatory a to banking we response also potential and more near-term, towards certainty in peers Over expect ratios of level time, the
I that, Lidio. the turn call With over to
