Thank X. million compared reported We QX. to effect net of net of you, goodwill $XXX Please charge. income in Ignacio. million includes income turn a $XXX the to Quarterly Slide
Excluding the income was million, income than Net interest $X $X $XXX higher million prior net quarter. than charge, QX. was $XXX higher the million million,
income $XXX to extent was million an to interest due of by million, million, in million QX On part $X volume securities, net The with million in $XX in a provision the $XX was income QX. Puerto Rico of essentially taxes. higher basis, compared for increase from flat $XXX disallowed offset equivalent higher was expenses taxable second Noninterest quarter. tax investment current interest losses
increase from in subsidiary. million in quarter. our roughly impairment a and $X effects. Total This QX, results from equipment operating goodwill million pretax X prior The $XX of goodwill equal million noncash expenses impairment includes expense were U.S.-based number $XXX the an leasing
the higher discount rate second, future from flows premiums; equity for cash First, and a a higher of resulting and lower projection rates projected income.
$XX remaining about of has Presently, $XXX this and subsidiary of lease million million. goodwill balances
Excluding the regulatory advisory operating related professional $XX $XX by an was accrual reversal $X to driven in expenses of fees prior million expenses by regulatory termination expenses million efforts fees in this by variance related million and QX from initiatives, corporate transformation in The lower compliance primarily decreased and an quarter. from BPPR. noncash expense, to
million last quarter. to incurred compared $X QX, we $X expenses During million transformation-related
major of longer-term as consulting planned resulted will effort decision the expense. the resources a in-house timing all Also, expenses due or the somewhat our in has is lower-than-forecasted capitalize projects, But investment delayed. of to of fees some transformation Our progressing be into to of previously use initiatives planned. repurpose the stage to various execution
we $XX a guidance expect result, from our transformation prior to million. of down approximately for expenses million, be XXXX now $XX As
expect driven be undertaken expenses better expenses or QX original total million to ] be We and impairment, billion noncash approximately Normalizing [ million. $XX cost lower $XXX million would control the $X.XX our transformation year. during $XX for than guidance, by the goodwill XXXX initiatives for expenses around
$XX expense assessment drafted, If presently implemented the is incur of Popular estimate million. as roughly we FDIC would special an proposed additional
transformation provide including January webcast expense once XXXX efforts completed. in guidance, is our year's next will budget We
Our attributable was tax rate recorded expected QX certain for higher rate second tax was the rate the in quarter quarter benefits tax tax. by tax to The lower offset before -- effective income XX.X%.
by investments. be yields we to expense in XX%. X. yields rate year balances at across points effective basis, and partially loan deposits to by to and deposit driven is in X taxable XX% our QX. The increased margin to between the Popular For higher in a turn accounts decrease the XXXX, Please X.XX%, QX. NIM interest and offset to cost On Slide growth a major versus higher high-cost X.XX% X basis balances and basis expect points of all higher equivalent public on continue cash tax full due This and Net interest decreased lending decrease of deposits Bank. by was categories was
Decrease of QX. a roughly decrease QX in end $XXX to with trends. Puerto the were consistent of At roughly the third million public historical compared Rico deposits quarter, $XX.X billion, was
anticipated. than However, public deposit balances had remained have we higher
the such, $XX of billion billion. billion expect end our a deposits be $XX range to expectation to of prior public to $XX to of we As by in now XXXX, $XX billion compared
yields. somewhat Rico BPPR customer by up by BPPR $XXX driven commercial to of Approximately by in and at driven loans loan deposit were Popular deposit balances almost and BPPR deposits at Puerto were searching billion PV. construction our primarily Bank, deposits, on in all Excluding higher public retail time at outflows broker-dealer balances loan and million quarter, million, $X savings during transferred $XX Ending to increased . at compared segments by client for group growth increases by QX, at balances offset the
increased have period the billion for a ago. same by versus billion minuses loan Year-to-date, $X.X year $X
by credit for BPPR encouraged demand are at PV. the and We
take our existing to of prudent and opportunities continue liquidity. advantage will of extend We to yield use the credit improve and
interest rate Our neutral. is relatively sensitivity
and We the of deposit turn continue pace timing and loan margin strategy expect repricing The in mix, commercial to the to resume upward Please QX. an of forecasted results incrementally our Slide portfolio deposits. to investment X. and retail and public growth trajectory from and
betas are prior the the cycle. cycle current above Deposit tightening now in
In down. an the but beta to on points We to have increase public XX XX increase of slow by seen continues basis deposits. increased date, points Total total XX% basis a by deposit deposit of cumulative led of deposit costs costs rate to BPPR, in QX, compared
public deposit total a the XX the XX points basis cumulative costs of compared Excluding balances, basis X%. were beta for quarter points prior to deposit
XX basis In the XX to third estimate by of our public points deposits points. compared cost increased basis July quarter, the of
increase with deposits sector points the attractive to At Rico expect deposits in points to primarily gathered by of deposit XX lag. results This cost to Puerto X. our an Led channel. pricing of We turn compared spread the pork in retail rates. points an market Bank, cost approximately Please of by The is Popular increased source under linked to basis public agreement market deposit by funding the QX. a with basis that XX Slide in basis QX. online XX increase
increase reduction $XXX the offset securities, in AFS years. by is an this U.S. of in treasury cash portfolio approximately almost Our $XX million duration by part credit MBS QX, million, unrealized which of the In portfolio, portfolio loss risk. investment of portfolio. driven comprised increased of minimal of our portfolio a an the $XXX mortgage-backed X.X and Treasury the average carry million agency Agency by entirely in Including has position,
unrealized QX. of of At in portfolio the of stood loss reduction of third from a million, million the HTM $XXX the our AOCI balance $XX at end quarter,
amortized into at a through remaining per rate that this X% quarter will of loss expect be of Slide We Please throughout X. the back turn XXXX. capital portfolio approximately to life
X.X% on tangible was equity in return Our quarter. the
target driven net Regulatory income. remain capital the end higher ROTCE primarily XXXX, We of continue levels by strong. to sustainable a XX% by
QX. quarter increased Tangible basis from share share, value XX.X% Our AOCI. common QX mostly was book per per from by Tier of increase at $X.XX equity ratio end $XX.XX, resulting X X an of in points decreased
decrease share. of per a Sorry, $X.XX
the continued Given rates, on share We economy the the in increase in engage plan, however, we a banking repurchase uncertainty response XXXX. not and this will for the during proposed consider dividend regulatory do the outlook to advance sector, year. to
conditions capital market We as evolve. will review actions future
outlook capital on ratios. changed, long-term return not capital Our regulatory has strong our on anchored
levels the our plus a towards Over ratios mainland call I to time, of over regulatory expect the we gravitate that, our capital to turn buffer. With peers Lidio.
