10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

COMMISSION FILE NUMBER 001-35872

EVERTEC, Inc.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Puerto Rico	66-0783622
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification number)
Cupey Center Building, Road 176, Kilometer 1.3, San Juan, Puerto Rico	00926
(Address of principal executive offices)	(Zip Code)

(787) 759-9999

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in rule 12b-2 of the Exchange Act).

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x   (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

At October 31, 2014, there were 77,972,633 outstanding shares of common stock of EVERTEC, Inc.

TABLE OF CONTENTS

		Page
Part I. FINANCIAL INFORMATION			1
Item 1.	Financial Statements		1
	Unaudited Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013		1
	Unaudited Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and nine months ended September 30, 2014 and 2013		2
	Unaudited Consolidated Statement of Changes in Stockholders’ Equity for the nine months ended September 30, 2014		3
	Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013		4
	Notes to Unaudited Consolidated Financial Statements		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		30
Item 4.	Controls and Procedures		30
Part II. OTHER INFORMATION			31
Item 1.	Legal Proceedings		31
Item 1A.	Risk Factors		31
Item 2.	Unregistered Sales of Equity in Securities and Use of Proceeds		31
Item 3.	Defaults Upon Senior Securities		31
Item 4.	Mine Safety Disclosures		31
Item 5.	Other Information		31
Item 6.	Exhibits		31
SIGNATURES			S-1

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “estimates,” “will,” “should,” “plans” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact our business and could impact our business in the future are:

• our reliance on our relationship with Popular, Inc. (“Popular”) for a significant portion of our revenue and with Banco Popular de Puerto Rico (“Banco Popular”), Popular’s principal banking subsidiary, to grow our Merchant Acquiring business;

• our ability to renew our client contracts on terms favorable to us;

• the effectiveness of our risk management procedures;

• our dependence on our processing systems, technology infrastructure, security systems and fraudulent payment detection systems, as well as on our personnel and certain third parties with whom we do business;

• the risk that our technology infrastructure and systems may experience breakdowns or fail to prevent security breaches or fraudulent transfers;0020

• our ability to develop, install and adopt new software, technology and computing systems;

• a decreased client base due to consolidations and failures in the financial services industry;

• the credit risk of our merchant clients, for which we may also be liable;

• the continuing market position of the ATH network despite competition and potential shifts in consumer payment preferences;

• our dependence on credit card associations, including any adverse changes in credit card association or network rules or fees;

• regulatory limitations on our activities due to our relationship with Popular and our role as a service provider to financial institutions;

• changes in the regulatory environment and changes in international, legal, political, administrative or economic conditions;

• the geographical concentration of our business in Puerto Rico;

• operating an international business in multiple regions with potential political and economic instability, including Latin America;

• operating in countries and with counterparties that put us at risk of violating U.S. sanctions laws;

• our ability to execute our geographic expansion and acquisition strategies;

• our ability to protect our intellectual property rights against infringement and to defend ourselves against claims of infringement brought by third parties;

• our ability to recruit and retain the qualified personnel necessary to operate our business;

• our ability to comply with U.S. federal, state, local and foreign regulatory requirements;

• evolving industry standards and adverse changes in global economic, political and other conditions;

• our high level of indebtedness and restrictions contained in our debt agreements, including the senior secured credit facilities, as well as debt that could be incurred in the future;

• our ability to generate sufficient cash to service our indebtedness and to generate future profits; and

• other factors discussed in this Report, including in the section entitled “Risk Factors.”

These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update any of the “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by the federal securities laws.

Investors should refer to the Company’s Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”) for a discussion of factors that could cause events to differ from those suggested by the forward-looking statements, including factors set forth in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.

EVERTEC, Inc. (Unaudited) Consolidated Balance Sheets

(Dollar amounts in thousands, except for share information)

	September 30, 2014			December 31, 2013
Assets
Current Assets:
Cash	$	29,226		$	22,485
Restricted cash		6,126			5,433
Accounts receivable, net		68,969			68,434
Deferred tax asset		3,378			2,537
Prepaid expenses and other assets		21,880			17,524
Total current assets		129,579			116,413
Investment in equity investee		11,492			10,639
Property and equipment, net		29,482			33,240
Goodwill		369,304			373,119
Other intangible assets, net		338,248			367,780
Other long-term assets		12,335			18,162
Total assets	$	890,440		$	919,353
Liabilities and stockholders’ equity
Current Liabilities:
Accrued liabilities	$	26,023		$	26,571
Accounts payable		14,748			18,630
Unearned income		8,866			5,595
Income tax payable		1,945			259
Current portion of long-term debt		19,000			19,000
Short-term borrowings		8,000			51,200
Deferred tax liability, net		350			543
Total current liabilities		78,932			121,798
Long-term debt		652,102			665,680
Long-term deferred tax liability, net		20,308			20,212
Other long-term liabilities		238			333
Total liabilities		751,580			808,023
Commitments and contingencies (Note 10)
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued		—			—
Common stock, par value $0.01; 206,000,000 shares authorized; 78,672,101 shares issued and outstanding at September 30, 2014 (December 31, 2013- 78,286,465)		787			783
Additional paid-in capital		83,296			80,718
Accumulated earnings		60,924			29,403
Accumulated other comprehensive (loss) income, net of tax		(6,147	)		426
Total stockholders’ equity		138,860			111,330
Total liabilities and stockholders’ equity	$	890,440		$	919,353

The accompanying notes are an integral part of these unaudited consolidated financial statements.

1

EVERTEC, Inc. (Unaudited) Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(Dollar amounts in thousands, except per share information)

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Revenues
Merchant Acquiring, net	$	19,227		$	18,211		$	58,345		$	53,835
Payment Processing (from affiliates: $7,192, $7,338, $21,599 and $21,846)		25,611			24,731			77,019			73,128
Business Solutions (from affiliates: $33,688, $33,500, $101,289 and $102,996)		43,804			44,472			131,609			136,965
Total revenues		88,642			87,414			266,973			263,928
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization shown below		38,625			38,903			115,109			121,176
Selling, general and administrative expenses		7,104			8,990			25,629			30,477
Depreciation and amortization		16,453			17,657			49,457			53,074
Total operating costs and expenses		62,182			65,550			190,195			204,727
Income from operations		26,460			21,864			76,778			59,201
Non-operating (expenses) income
Interest income		91			54			245			147
Interest expense		(6,370	)		(6,403	)		(19,780	)		(31,414	)
Earnings of equity method investment		241			198			905			823
Other income (expenses):
Loss on extinguishment of debt		—			—			—			(58,464	)
Termination of consulting agreements		—			—			—			(16,718	)
Other income (expenses)		(249	)		448			2,127			(1,838	)
Total other income (expenses)		(249	)		448			2,127			(77,020	)
Total non-operating (expenses) income		(6,287	)		(5,703	)		(16,503	)		(107,464	)
Income (loss) before income taxes		20,173			16,161			60,275			(48,263	)
Income tax expense (benefit)		1,082			1,358			5,205			(3,603	)
Net income (loss)		19,091			14,803			55,070			(44,660	)
Other comprehensive income (loss), net of tax of $4, $11, $57 and $29 Foreign currency translation adjustments		378			(210	)		(6,573	)		1,750
Total comprehensive income (loss)	$	19,469		$	14,593		$	48,497		$	(42,910	)
Net income (loss) per common share - basic	$	0.24		$	0.18		$	0.70		$	(0.57	)
Net income (loss) per common share - diluted	$	0.24		$	0.18		$	0.70		$	(0.57	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

EVERTEC, Inc. (Unaudited) Consolidated Statement of Changes in Stockholders’ Equity

(Dollar amounts in thousands, except share information)

	Number of Shares of Common Stock		Common Stock		Additional Paid-in Capital			Accumulated Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
Balance at December 31, 2013		78,286,465	$	783	$	80,718		$	29,403		$	426		$	111,330
Share-based compensation recognized						1,314									1,314
Tax windfall benefit on exercises of stock options						1,937									1,937
Stock options exercised, net of cashless exercise		385,636		4		(694	)								(690	)
Dividend (1)						21									21
Net income									55,070						55,070
Cash dividends declared on common stock									(23,549	)					(23,549	)
Other comprehensive loss												(6,573	)		(6,573	)
Balance at September 30, 2014		78,672,101	$	787	$	83,296		$	60,924		$	(6,147	)	$	138,860

(1) Related to dividend declared in 2012 and accrued upon vesting of stock options. Such options were forfeited during the nine months ended September 30, 2014.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

EVERTEC, Inc. (Unaudited) Consolidated Statements of Cash Flows

(Dollar amounts in thousands)

	Nine months ended September 30,
	2014			2013
Cash flows from operating activities
Net income (loss)	$	55,070		$	(44,660	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		49,457			53,074
Amortization of debt issue costs and premium and accretion of discount		2,315			3,136
Write-off of debt issue costs, premium and discount accounted as loss on extinguishment		—			16,555
Provision for doubtful accounts and sundry losses		1,102			954
Deferred tax benefit		(1,486	)		(6,723	)
Share-based compensation		1,314			5,719
Unrealized loss (gain) of indemnification assets		459			(21	)
Loss on disposition of property and equipment and other intangibles		23			30
Earnings of equity method investment		(905	)		(823	)
Dividend received from equity method investment		326			500
Decrease (increase) in assets:
Accounts receivable, net		309			9,035
Prepaid expenses and other assets		(4,283	)		(2,591	)
Other long-term assets		2,497			(1,928	)
(Decrease) increase in liabilities:
Accounts payable and accrued liabilities		(7,357	)		(18,485	)
Income tax payable		1,686			(2,713	)
Unearned income		3,271			2,625
Total adjustments		48,728			58,344
Net cash provided by operating activities		103,798			13,684
Cash flows from investing activities
Net increase in restricted cash		(693	)		(157	)
Intangible assets acquired		(9,100	)		(9,591	)
Property and equipment acquired		(7,463	)		(7,380	)
Proceeds from sales of property and equipment		44			16
Net cash used in investing activities		(17,212	)		(17,112	)
Cash flows from financing activities
Proceeds from initial public offering, net of offering costs of $12,567		—			112,369
Proceeds from issuance of long-term debt		—			700,000
Statutory minimum withholding taxes paid on cashless exercises of stock options		(1,004	)		(16,704	)
Debt issuance costs		—			(12,077	)
Net decrease in short-term borrowing		(42,000	)		(22,663	)
Proceeds from short-term borrowing for purchase of equipment		—			1,800
Repayment of short-term borrowing for purchase of equipment		(1,200	)		—
Dividends paid		(23,547	)		(8,192	)
Tax windfall benefits on exercises of stock options		1,937			1,627
Issuance of common stock, net		314			91
Repayment of other financing agreement		(95	)		(224	)
Repayment of long-term debt		(14,250	)		(750,273	)
Net cash (used in) provided by financing activities		(79,845	)		5,754
Net increase in cash		6,741			2,326
Cash at beginning of the period		22,485			25,634
Cash at end of the period	$	29,226		$	27,960
Supplemental disclosure of non-cash activities:
Dividend declared not received from equity method investment	$	326		$	500
Foreign currency translation adjustments		(6,573	)		1,750
Trade payable due to vendor related to software acquired		—			2,903

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

Notes to Unaudited Consolidated Financial Statements

Note 1 – The Company and Basis of Presentation	6
Note 2 – Recent Accounting Pronouncements	7
Note 3 – Property and Equipment, net	7
Note 4 – Goodwill and Other Intangible Assets	7
Note 5 – Debt and Short-Term Borrowings	9
Note 6 – Financial Instruments and Fair Value Measurements	10
Note 7 – Share-based Compensation	12
Note 8 – Income Tax	12
Note 9 – Net Income (Loss) Per Common Share	13
Note 10 – Commitments and Contingencies	14
Note 11 – Related Party Transactions	14
Note 12 – Segment Information	15
Note 13 – Subsequent Events	17

5

EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Note 1 – The Company and Basis of Presentation

The Company

EVERTEC, Inc. (formerly known as Carib Latam Holdings, Inc.) and its subsidiaries (collectively the “Company,” or “EVERTEC”) is the leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management services across 19 countries in the region. EVERTEC owns and operates the ATH network, one of the leading automated teller machine (“ATM”) and personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core bank processing, cash processing and technology outsourcing in the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. Management believes that the Company’s business is well-positioned to continue to expand across the fast-growing Latin American region.

On April 13, 2012, EVERTEC was formed in order to act as the new parent company of EVERTEC Intermediate Holdings, LLC (formerly known as Carib Holdings, LLC and Carib Holdings, Inc., hereinafter “Holdings”) and its subsidiaries, including EVERTEC Group, LLC (formerly known as EVERTEC, LLC and EVERTEC, Inc., hereinafter “EVERTEC Group”). The Company’s subsidiaries include Holdings, EVERTEC Group, EVERTEC Dominicana SAS, EVERTEC Panamá, S.A., EVERTEC Costa Rica, S.A. (“EVERTEC CR”), EVERTEC Guatemala, S.A. and EVERTEC México Servicios de Procesamiento, S.A. de C.V.

Basis of Presentation

The unaudited consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited consolidated financial statements. Actual results could differ from these estimates.

Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2013, included in the Company’s 2013 Form 10-K. In the opinion of management, the accompanying consolidated financial statements, prepared in accordance with GAAP, contain all adjustments, all of which are normal and recurring in nature, necessary for a fair presentation. All significant intercompany accounts and transactions have been eliminated in consolidation.

Certain reclassifications have been made to the September 30, 2013 unaudited consolidated financial statements and related notes to conform with the presentation in 2014.

Stock Repurchase Plan

On September 24, 2014, the Company announced that the Board of Directors (the “Board”) had approved a stock repurchase program authorizing the purchase of up to $75 million of the Company’s common stock over the next 12 months. Under the stock repurchase program, the Company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions and other considerations. The Company’s repurchases may be executed using open market purchases, privately negotiated transactions, accelerated share repurchase programs or other transactions, any of which may be enacted immediately following the Board’s approval of the stock repurchase program. The Company intends to fund repurchases under the stock repurchase program from cash on hand and available borrowings under its existing credit facility, as necessary. The stock repurchase program does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time without prior notice. For the period ended September 30, 2014, the Company did not repurchase any shares under this program.

6

EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Note 2—Recent Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) has issued the following accounting pronouncements and guidance relevant to the Company’s operations:

In August 2014, the FASB issued updated guidance relating to disclosures for uncertainties about an entity’s ability to continue as a going concern. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company does not expect this guidance to have an impact on the financial statements when adopted.

Note 3 – Property and Equipment, net

Property and equipment, net consists of the following:

(Dollar amounts in thousands)	Useful life in years	September 30, 2014			December 31, 2013
Buildings	30	$	1,600		$	1,726
Data processing equipment	3 - 5		73,199			68,273
Furniture and equipment	3 - 20		8,200			6,385
Leasehold improvements	5 - 10		2,896			2,880
			85,895			79,264
Less - accumulated depreciation and amortization			(57,832	)		(47,555	)
Depreciable assets, net			28,063			31,709
Land			1,419			1,531
Property and equipment, net		$	29,482		$	33,240

Depreciation and amortization expense related to property and equipment for the three and nine months ended September 30, 2014 amounted to $3.8 million and $11.5 million, respectively, compared to $4.1 million and $12.2 million, respectively, for the same periods in 2013.

Note 4 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, allocated by reportable segments, were as follows (See Note 12):

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing			Business Solutions			Total
Balance at December 31, 2013	$	138,121	$	187,622		$	47,376		$	373,119
Foreign currency translation adjustments		—		(2,906	)		(909	)		(3,815	)
Balance at September 30, 2014	$	138,121	$	184,716		$	46,467		$	369,304

Goodwill is tested for impairment at least annually, or more often if events or circumstances indicate there may be impairment, using the qualitative assessment option or step zero process. Using this process, the Company first assesses whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount.

7

EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

During the third quarter of 2014, the Company completed the qualitative assessment described above and determined that there were no impairment losses to be recognized during the period. There were no triggering events or changes in circumstances that subsequent to the impairment test would have required an additional impairment evaluation. As part of the Company’s qualitative assessment, EVERTEC considered the results for the 2011 impairment test (which indicated that the fair value of each reporting unit was in excess of 30% of its carrying amount) as well as current market conditions and changes in the carrying amount of the Company’s reporting units that occurred subsequent to the 2011 impairment test.

The carrying amount of other intangible assets at September 30, 2014 and December 31, 2013 consisted of the following:

(Dollar amounts in thousands)		September 30, 2014
	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	14	$	312,811	$	(89,909	)	$	222,902
Trademark	10 - 15		39,950		(13,856	)		26,094
Software packages	3 - 10		129,249		(81,459	)		47,790
Non-compete agreement	15		56,539		(15,077	)		41,462
Other intangible assets, net		$	538,549	$	(200,301	)	$	338,248
(Dollar amounts in thousands)		December 31, 2013
	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	14	$	314,036	$	(73,180	)	$	240,856
Trademark	10 - 15		39,950		(11,258	)		28,692
Software packages	3 - 10		119,598		(65,655	)		53,943
Non-compete agreement	15		56,539		(12,250	)		44,289
Other intangible assets, net		$	530,123	$	(162,343	)	$	367,780

For the three and nine months ended September 30, 2014, the Company recorded amortization expense related to other intangibles of $12.7 million and $37.9 million, respectively, compared to $13.6 million and $40.9 million for the corresponding 2013 periods.

The estimated amortization expense of the balances outstanding at September 30, 2014 for the next five years is as follows:

(Dollar amounts in thousands)
Remaining 2014	$	12,358
2015		46,588
2016		36,228
2017		33,237
2018		31,377
2019		30,609

8

EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Note 5 – Debt and Short-Term Borrowings

Total debt as of September 30, 2014 and December 31, 2013 was as follows:

(Dollar amounts in thousands)	September 30, 2014		December 31, 2013
Senior Secured Credit Facility (Term A) due on April 17, 2018 paying interest at a variable interest rate (London InterBank Offered Rate (“LIBOR”) plus applicable margin(1)(3))	$	280,968	$	292,153
Senior Secured Credit Facility (Term B) due on April 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(2)(3))		390,134		392,527
Senior Secured Revolving Credit Facility expiring on April 17, 2018 paying interest at a variable interest rate		8,000		50,000
Other short-term borrowing		—		1,200
Total debt	$	679,102	$	735,880

(1) Applicable margin of 2.50% at September 30, 2014 and December 31, 2013.

(2) Subject to a minimum rate (“LIBOR floor”) of 0.75% plus applicable margin of 2.75% at September 30, 2014 and December 31, 2013.

(3) Includes unamortized discount.

On April 17, 2013, EVERTEC Group entered into a credit agreement (the “2013 Credit Agreement”) governing the senior secured credit facilities, consisting of a $300.0 million term loan A facility (the “Term A Loan”) which matures on April 17, 2018, a $400.0 million term loan B facility (the “Term B Loan”) which matures on April 17, 2020 and a $100.0 million revolving credit facility which matures on April 17, 2018.

Term A Loan

As of September 30, 2014, the unpaid principal balance of the Term A Loan was $281.3 million. The Term A Loan requires principal payments on the last business day of each quarter equal to (a) 1.250% of the original principal amount commencing on September 30, 2013 through June 30, 2016; (b) 1.875% of the original principal amount from September 30, 2016 through June 30, 2017; (c) 2.50% of the original principal amount from September 30, 2017 through March 31, 2018; and (d) the remaining outstanding principal amount on the maturity of the Term A Loan on April 17, 2018. Interest is based on EVERTEC Group’s first lien secured net leverage ratio and payable at a rate equal to, at the Company’s option, either (a) LIBOR plus an applicable margin ranging from 2.00% to 2.50%, or (b) Base Rate, as defined in the 2013 Credit Agreement, plus an applicable margin ranging from 1.00% to 1.50%. Term A Loan has no LIBOR or Base Rate minimum or floor.

Term B Loan

As of September 30, 2014, the unpaid principal balance of the Term B Loan was $395.0 million. The Term B Loan requires principal payments on the last business day of each quarter equal to 0.250% of the original principal amount commencing on September 30, 2013 and the remaining outstanding principal amount on the maturity of the Term B Loan on April 17, 2020. Interest is based on EVERTEC Group’s first lien secured net leverage ratio and payable at a rate equal to, at the Company’s option, either (a) LIBOR plus an applicable margin ranging from 2.50% to 2.75%, or (b) Base Rate plus an applicable margin ranging from 1.50% to 1.75%. The LIBOR and Base Rate are subject to floors of 0.75% and 1.75%, respectively.

Revolving Credit Facility

The revolving credit facility has an available balance up to $100.0 million, with an interest rate on loans calculated the same as the applicable Term A Loan rate. The facility matures on April 17, 2018 and has a “commitment fee” payable one business day after the last business day of each quarter calculated based on the daily unused commitment during the preceding quarter. The commitment fee for the unused portion of this facility ranges from 0.125% to 0.375% and is based on EVERTEC Group’s first lien secured net leverage ratio.

The senior secured credit facilities contain various restrictive covenants. The Term A Loan and the revolving credit facility (subject to certain exceptions) require us to maintain on a quarterly basis a specified maximum senior secured leverage ratio of up to 6.60 to 1.00 as defined in the 2013 Credit Agreement (total first lien secured debt to adjusted EBITDA). In addition, the 2013 Credit Agreement,

9

EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

among other things: (a) limits our ability and the ability of our subsidiaries to incur additional indebtedness, incur liens, pay dividends or make certain other restricted payments and enter into certain transactions with affiliates; (b) restricts our ability to enter into agreements that would limit the ability of our subsidiaries to pay dividends or make certain payments to us; and (c) places restrictions on our ability and the ability of our subsidiaries to merge or consolidate with any other person or sell, assign, transfer, convey or otherwise dispose of all or substantially all of our assets. As of September 30, 2014, the Company was in compliance with the applicable restrictive covenants under the 2013 Credit Agreement.

Note 6 – Financial Instruments and Fair Value Measurements

Recurring Fair Value Measurements

Fair value measurement provisions establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These provisions describe three levels of input that may be used to measure fair value:

Level 1: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2: Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date.

Level 3: Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

The Company uses observable inputs when available. Fair value is based upon quoted market prices when available. If market prices are not available, the Company may employ internally-developed models that mostly use market-based inputs including yield curves, interest rates, volatilities, and credit curves, among others. The Company limits valuation adjustments to those deemed necessary to ensure that the financial instrument’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. The fair value measurement levels are not indicative of risk of investment.

The following table summarizes fair value measurements by level at September 30, 2014 and December 31, 2013 for assets measured at fair value on a recurring basis:

(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2014
Financial assets:
Indemnification assets:
Software cost reimbursement	$	—	$	—	$	1,632	$	1,632
December 31, 2013
Financial assets:
Indemnification assets:
Software cost reimbursement	$	—	$	—	$	3,586	$	3,586

The fair value of financial instruments is the amount at which an asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale. Fair value estimates are made at a specific point in time based on the type of financial instrument and relevant market information. Many of these estimates involve various assumptions and may vary significantly from amounts that could be realized in actual transactions.

For those financial instruments with no quoted market prices available, fair values have been estimated using present value calculations or other valuation techniques, as well as management’s best judgment with respect to current economic conditions, including discount rates and estimates of future cash flows.

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EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Indemnification assets include the present value of the expected future cash flows of certain expense reimbursement agreements with Popular. These contracts have termination dates up to September 2015 and were entered into in connection with the merger transaction completed on September 30, 2010 (“the Merger”). Management prepared estimates of the expected reimbursements to be received from Popular until the termination of the contracts, discounted the estimated future cash flows and recorded the indemnification assets as of the Merger closing date. Payments received during the quarters reduced the indemnification asset balance. The remaining balance was adjusted to reflect its fair value as of September 30, 2014, therefore resulting in a net unrealized loss of approximately $0.3 million and $0.5 million for the three and nine months ended September 30, 2014, respectively, and a net unrealized gain of approximately $2,000 and $21,000 for the three and nine months ended September 30, 2013, respectively, which are reflected within the other expenses caption in the unaudited consolidated statements of income (loss) and comprehensive income (loss). The current portion of the indemnification assets is included within accounts receivable, net, and the other long-term portion is included within other long-term assets in the accompanying unaudited consolidated balance sheets.

The unobservable inputs related to the Company’s indemnification assets as of September 30, 2014 using the discounted cash flow model include the discount rate of 5.53% and the projected cash flows of $1.6 million.

For indemnification assets a significant increase or decrease in market rates or cash flows could result in a significant change to the fair value. Also, the credit rating and/or the non-performance credit risk of Popular, which is subjective in nature, also could increase or decrease the sensitivity of the fair value of these assets.

The following table presents the carrying value, as applicable, and estimated fair values for financial instruments at September 30, 2014 and December 31, 2013:

	September 30, 2014				December 31, 2013
(Dollar amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Indemnification assets:
Software cost reimbursement	$	1,632	$	1,632	$	3,586	$	3,586
Financial liabilities:
Senior secured term loan A	$	280,968	$	276,913	$	292,153	$	284,091
Senior secured term loan B		390,134		387,922		392,527		387,055

The fair value of the senior secured term loans at September 30, 2014 and December 31, 2013 were obtained using prices supplied by third party service providers. Their pricing is based on various inputs such as: market quotes, recent trading activity in a non-active market or imputed prices. The pricing inputs also may include the use of an algorithm that could take into account movement in the general high-yield market, among other variants.

The senior secured term loans, which are not measured at fair value in the balance sheets, if measured, could be categorized as Level 3 in the fair value hierarchy.

The following table provides a summary of the change in fair value of the Company’s Level 3 assets:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Indemnification assets:
Beginning balance	$	2,114		$	4,540		$	3,586		$	6,099
Payments received		(196	)		(369	)		(1,495	)		(1,947	)
Unrealized gain (loss) recognized in other expenses		(286	)		2			(459	)		21
Ending balance	$	1,632		$	4,173		$	1,632		$	4,173

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EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Note 7 – Share-based Compensation

The following table summarizes stock options activity for the nine months ended September 30, 2014:

	Shares		Weighted-average exercise prices
Outstanding at December 31, 2013		1,285,536	$	4.77
Granted		100,000		24.01
Forfeited		31,164		1.30
Exercised		452,999		2.09
Outstanding at September 30, 2014		901,373	$	8.36
Exercisable at September 30, 2014		23,374	$	1.30

Management uses the fair value method of recording stock-based compensation as described in the guidance for stock compensation in ASC topic 718.

The following table summarizes nonvested restricted shares activity for the nine months ended September 30, 2014:

Nonvested restricted shares	Shares		Weighted-average grant date fair value
Nonvested at December 31, 2013		9,133	$	24.64
Vested		9,133		24.64
Granted		11,942		23.03
Nonvested at September 30, 2014		11,942	$	23.03

For the three and nine months ended September 30, 2014 the Company recognized compensation expense of $0.6 million and $1.3 million, respectively and for the three months and nine months ended September 30, 2013, the Company recognized $0.2 million and $5.7 million of share-based compensation expense, respectively. As of September 30, 2014, there was $1.6 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over the next 2 years. In addition, for the same period, there was approximately $0.2 million of total unrecognized compensation cost related to nonvested shares of restricted stock. That cost is expected to be fully recognized in eight months.

Note 8 – Income Tax

The components of income tax expense (benefit) for the three and nine months ended September 30, 2014 and 2013 consisted of the following:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Current tax provision	$	2,138		$	1,830		$	6,691		$	3,120
Deferred tax benefit		(1,056	)		(472	)		(1,486	)		(6,723	)
Income tax expense (benefit)	$	1,082		$	1,358		$	5,205		$	(3,603	)

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EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

The Company conducts operations in Puerto Rico and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the Puerto Rico government as well as foreign jurisdictions. The following table presents the components of income tax expense (benefit) for the three and nine months ended September 30, 2014 and 2013 and its segregation based on location of operations:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Current tax provision (benefit)
Puerto Rico	$	1,687		$	1,456		$	3,047		$	1,712
United States		(923	)		24			(508	)		453
Foreign countries		1,374			350			4,152			955
Total currrent tax provision (benefit)	$	2,138		$	1,830		$	6,691		$	3,120
Deferred tax benefit
Puerto Rico	$	(518	)	$	(422	)	$	314		$	(6,378	)
United States		(138	)		(1	)		(141	)		(3	)
Foreign countries		(400	)		(49	)		(1,659	)		(342	)
Total deferred tax benefit	$	(1,056	)	$	(472	)	$	(1,486	)	$	(6,723	)

Taxes payable to foreign countries by EVERTEC’s subsidiaries will be paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements.

As of September 30, 2014, the gross deferred tax asset amounted to $10.6 million and the gross deferred tax liability amounted to $27.9 million, compared with $13.5 million and $31.7 million as of December 31, 2013. At September 30, 2014, the recorded value of the Company’s net operating loss (“NOL”) carryforwards was $7.9 million. The recorded value of the NOL carryforwards is approximately $6.3 million lower than the total NOL carryforwards available because of a windfall tax benefit. The windfall tax benefit is available to offset future taxable income and is considered an off-balance sheet item until the deduction reduces taxes payable. This windfall tax benefit results from tax deductions that were in excess of previously recorded compensation expense because the fair value of stock options at the time they were granted differed from their fair value when they were exercised. The total gross NOL carryforwards available, including the windfall benefit, amounted to $47.0 million as of September 30, 2014.

There are no open uncertain tax positions as of September 30, 2014.

Note 9 – Net Income (Loss) Per Common Share

The reconciliation of the numerator and denominator of the income (loss) per common share is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollar amounts in thousands, except per share data)	2014		2013		2014		2013
Net income (loss)	$	19,091	$	14,803	$	55,070	$	(44,660	)
Weighted average common shares outstanding		78,666,241		81,905,566		78,485,109		77,890,406
Weighted average potential dilutive common shares (1)(2)		550,683		956,972		708,343		—
Weighted average common shares outstanding - assuming dilution		79,216,924		82,862,538		79,193,452		77,890,406
Net income (loss) per common share - basic	$	0.24	$	0.18	$	0.70	$	(0.57	)
Net income (loss) per common share - diluted	$	0.24	$	0.18	$	0.70	$	(0.57	)

⁽¹⁾  Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method.

⁽²⁾  For the nine months ended September 30, 2013, 2,784,779 potential common shares consisting of common stock under the assumed exercise of stock options and restricted stock awards using the treasury stock method were not included in the computation of the diluted net income (loss) per share since their inclusion would have an antidilutive effect.

On February 12, 2014, our Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on March 14, 2014 to stockholders of record as of February 25, 2014. On May 7, 2014, the Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on June 6, 2014 to stockholders of record as of May 19, 2014. On August 6, 2014, the Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on September 5, 2014 to stockholders of record as of August 18, 2014.

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EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Note 10 – Commitments and Contingencies

Certain lease agreements contain provisions for future rent increases. The total amount of rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is recorded as a deferred rent obligation. Total deferred rent obligation as of September 30, 2014 and December 31, 2013 amounted to $0.1 million and $0.3 million, respectively, and is included within the accounts receivable, net caption in the accompanying unaudited consolidated balance sheets.

Rent expense of office facilities and real estate for the three and nine months ended September 30, 2014 amounted to $2.0 million and $6.2 million, respectively, compared to $1.7 million and $5.7 million for the corresponding 2013 periods. Rent expense for telecommunications and other equipment for the three and nine months ended September 30, 2014 amounted to $1.5 million and $4.6 million, respectively, compared to $1.8 million and $5.3 million for the corresponding 2013 periods.

In the ordinary course of business, the Company may enter into commercial commitments. As of September 30, 2014, EVERTEC has an outstanding letter of credit of $1.1 million with a maturity of less than three months.

EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel and other factors, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations, financial condition, or cash flows of the Company. The Company has identified certain claims as a result of which a loss may be incurred, but in the aggregate the loss would be minimal. For other claims regarding which proceedings are in an initial phase, the Company is unable to estimate the range of possible loss but at this time believes that any loss related to such claims will not be material.

Note 11 – Related Party Transactions

The following table presents the Company’s transactions with related parties for the three and nine months ended September 30, 2014 and 2013:

	Three months ended September 30,				Nine months ended September 30,
(Dollar amounts in thousands)	2014		2013		2014		2013
Total revenues (1)(2)	$	40,958	$	40,920	$	123,128	$	125,087
Cost of revenues	$	68	$	1,570	$	687	$	6,680
Rent and other fees(3)(4)	$	1,999	$	1,636	$	6,000	$	31,708
Interest earned from and charged by affiliate
Interest income	$	48	$	25	$	150	$	67
Interest expense(5)	$	—	$	—	$	—	$	2,471

⁽¹⁾  Total revenues from Popular as a percentage of revenues were 46%, 46%, 45% and 47% for each of the periods presented above.

⁽²⁾  Includes revenues generated from investee accounted for under the equity method of $0.6 million and $2.0 million for the three and nine months ended September 30, 2014, respectively, and $0.6 million and $2.3 million for the corresponding 2013 periods.

⁽³⁾  Includes management fees to equity sponsors amounting to $20.3 million for the nine months ended September 30, 2013. Management fees paid during 2013 include $16.7 million resulting from the termination of the Consulting Agreements as explained below. It also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes during the first half of 2013.

⁽⁴⁾  For the periods presented above, $2.0 million, $1.6 million, $6.0 million and $9.1 million were recorded as selling, general and administrative expenses, and $22.6 million was recorded as non-operating expenses for the nine months ended September 30, 2013.

⁽⁵⁾  Interest expense relates to interest accrued on the senior secured term loan and senior notes held by Popular. As a result of the debt refinancing and the redemption of the senior notes in April 2013, Popular’s participation in such debt was extinguished.

On April 17, 2013, EVERTEC entered into a termination agreement with Holdings, EVERTEC Group and Popular and a termination agreement with Holdings, EVERTEC Group and Apollo Management VII, L.P. in connection with our initial public offering in April 2013 (the “Termination Agreements”). The Termination Agreements terminated the consulting agreements (the “Consulting Agreements”), each dated September 30, 2010, entered into by Holdings and EVERTEC Group with each of Popular and Apollo Management, pursuant to which Holdings and EVERTEC Group received certain advisory services from each of Popular and Apollo Management. The Consulting Agreements were terminated in their entirety upon payment of termination fees of approximately $8.5

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EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

million to Apollo Management and $8.2 million to Popular, in each case, plus any unreimbursed expenses payable in accordance with the terms of the Termination Agreements.

At September 30, 2014 and December 31, 2013, EVERTEC had the following balances arising from transactions with related parties:

(Dollar amounts in thousands)	September 30, 2014		December 31, 2013
Cash and restricted cash deposits in affiliated bank	$	18,827	$	13,933
Indemnification assets from Popular reimbursement (1)
Accounts receivable	$	1,632	$	1,900
Other long-term assets	$	—	$	1,686
Other due/to from affiliate
Accounts receivable	$	17,717	$	18,799
Prepaid expenses and other assets	$	1,147	$	216
Accounts payable(2)	$	5,907	$	8,886
Unearned income	$	7,485	$	4,100
Other long-term liabilities(2)	$	109	$	333

⁽¹⁾  Recorded in connection with reimbursements from Popular regarding certain software license fees.

⁽²⁾  Includes an account payable of $0.2 million and a long-term liability of $0.3 million for both September 30, 2014 and December 31, 2013, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by our Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.

At September 30, 2014, EVERTEC Group has a credit facility with Popular for $3.6 million, on behalf of EVERTEC CR, under which a letter of credit of a similar amount was issued.

Note 12 – Segment Information

The Company operates in three business segments: Merchant Acquiring, Payment Processing and Business Solutions.

The Merchant Acquiring segment consists of revenue from services that allow merchants to accept electronic methods of payment. In the Merchant Acquiring segment, revenue includes a discount fee (generally a percentage of the transaction value) and membership fees charged to merchants, debit network fees and rental fees from point of sales (“POS”) devices and other equipment, net of credit card interchange and assessment fees charged by credit cards associations (such as VISA or MasterCard) or payment networks.

Payment Processing segment revenue comprises income related to providing financial institutions access to the ATH network and other card networks, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. Payment Processing revenue also includes income from card processing services for debit or credit issuers such as credit and debit card processing, authorization and settlement, and fraud monitoring and control services, payment processing services (such as payment and billing products for merchants, businesses and financial institutions) and electronic benefit transfer (“EBT”), which principally consists of services to the government of Puerto Rico for the delivery of benefits to participants.

For ATH network and processing services, revenue is driven mainly by the number of transactions processed. Revenue is derived mainly from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenue is mostly dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenue is derived mainly from the number of beneficiaries on file.

The Business Solutions segment consists of revenue from a full suite of business process management solutions in various product areas, such as core bank processing, network hosting and management, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Core bank processing and network services revenues are derived in part from a recurrent fee and from fees based on the number of accounts on file (i.e.; savings or checking accounts, loans, etc.) or computer resources utilized. Revenue from other processing services within the Business Solutions segment is generally volume-based and depend on factors such as the number of accounts processed. In addition, EVERTEC is a reseller of hardware and software products and these resale transactions are generally one-time transactions.

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EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

The Company’s business segments are organized based on the nature of products and services. The Chief Operating Decision Maker (“CODM”) reviews their individual financial information to assess performance and to allocate resources.

The following tables set forth information about the Company’s operations by its three business segments for the periods indicated:

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other			Total
Three months ended September 30, 2014
Revenues		19,227		32,255		43,805		(6,645	) (1)		88,642
Income from operations		8,518		14,707		12,696		(9,461	) (2)		26,460
Three months ended September 30, 2013
Revenues		18,211		32,342		44,472		(7,611	) (1)		87,414
Income from operations		8,568		14,056		11,282		(12,042	) (2)		21,864

⁽¹⁾  Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

⁽²⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other			Total
Nine months ended September 30, 2014
Revenues		58,345		96,915		131,609		(19,896	) (1)		266,973
Income from operations		25,700		44,738		36,232		(29,892	) (2)		76,778
Nine months ended September 30, 2013
Revenues		53,835		92,168		136,965		(19,040	) (1)		263,928
Income from operations		25,963		38,536		30,600		(35,898	) (2)		59,201

⁽¹⁾   Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

⁽²⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

The reconciliation of income from operations to consolidated net income for the three and nine months ended September 30, 2014 and 2013 is as follows:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Segment income from operations
Merchant Acquiring	$	8,518		$	8,568		$	25,700		$	25,963
Payment Processing		14,707			14,056			44,738			38,536
Business Solutions		12,696			11,282			36,232			30,600
Total segment income from operations		35,921			33,906			106,670			95,099
Merger related depreciation and amortization and other unallocated expenses (1)		(9,461	)		(12,042	)		(29,892	)		(35,898	)
Income from operations	$	26,460		$	21,864		$	76,778		$	59,201
Interest expense, net		(6,279	)		(6,349	)		(19,535	)		(31,267	)
Earnings of equity method investment		241			198			905			823
Other income (expenses)		(249	)		448			2,127			(77,020	)
Income tax (expense) benefit		(1,082	)		(1,358	)		(5,205	)		3,603
Net income (loss)	$	19,091		$	14,803		$	55,070		$	(44,660	)

⁽¹⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

16

EVERTEC, Inc. Notes to Unaudited Consolidated Financial Statements

Note 13 – Subsequent Events

On November 5, 2014, the Board declared a regular quarterly cash dividend of $0.10 per share on the Company’s outstanding shares of common stock. The Board anticipates declaring this dividend in future quarters on a regular basis, however future declarations of dividends are subject to Board approval and may be adjusted as business needs or market conditions change. The cash dividend of $0.10 per share will be paid on December 5, 2014 to stockholders of record as of the close of business on November 17, 2014.

The Company performed an evaluation of all other events occurring subsequent to September 30, 2014, Management has determined that there are no additional events occurring in this period that require disclosure in or adjustment to the accompanying unaudited financial statements.

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis (“MD&A”) covers: (i) the results of operations for the three and nine months ended September 30, 2014 and 2013, respectively; and (ii) the financial condition as of September 30, 2014. You should read the following discussion and analysis in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended December 31, 2013, included in the Company’s annual report on Form 10-K (the “2013 Form 10-K”) and with the unaudited consolidated financial statements and related notes appearing elsewhere herein. This MD&A contains forward-looking statements that involve risks and uncertainties. Our actual results may differ from those indicated in the forward-looking statements. See “Forward-Looking Statements” for a discussion of the risks, uncertainties and assumptions associated with these statements.

Except as otherwise indicated or unless the context otherwise requires, (a) the terms “EVERTEC,” “we,” “us,” “our,” “our Company” and “the Company” refer to EVERTEC, Inc. and its subsidiaries on a consolidated basis, (b) the term “Holdings” refers to EVERTEC Intermediate Holdings, LLC, but not any of its subsidiaries and (c) the term “EVERTEC Group” refers to EVERTEC Group, LLC and its predecessor entities and their subsidiaries on a consolidated basis, including the operations of its predecessor entities prior to the Merger (as defined below). EVERTEC Inc.’s subsidiaries include Holdings, EVERTEC Group, EVERTEC Dominicana, SAS, EVERTEC Panamá, S.A., EVERTEC Costa Rica, S.A. (“EVERTEC CR”), EVERTEC Guatemala, S.A. and EVERTEC México Servicios de Procesamiento, S.A. de C.V. Neither EVERTEC nor Holdings conducts any operations other than with respect to its indirect or direct ownership of EVERTEC Group.

Executive Summary

EVERTEC is the leading full-service transaction processing business in Latin America, providing a broad range of merchant acquiring, payment processing and business process management services. According to the July 2014 Nilson Report, we are the largest merchant acquirer in the Caribbean and Central America and one of the largest in Latin America, based on total number of transactions. We serve 19 countries in the region from our base in Puerto Rico. We manage a system of electronic payment networks that process more than 2.1 billion transactions annually, and offer a comprehensive suite of services for core bank processing, cash processing and technology outsourcing. In addition, we own and operate the ATH network, one of the leading personal identification number (“PIN”) debit networks in Latin America. We serve a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions that enable them to issue, process and accept transactions securely. We believe our business is well-positioned to continue to expand across the fast-growing Latin American region.

We are differentiated, in part, by our diversified business model, which enables us to provide our varied customer base with a broad range of transaction-processing services from a single source across numerous channels and geographic markets. We believe this single-source capability provides several competitive advantages that will enable us to continue to penetrate our existing customer base with complementary new services, win new customers, develop new sales channels and enter new markets. We believe these competitive advantages include:

• Our ability to provide in one package a range of services that traditionally had to be sourced from different vendors;

• Our ability to serve customers with disparate operations in several geographies with a single integrated technology solution that enables them to manage their business as one enterprise; and

• Our ability to capture and analyze data across the transaction processing value chain and use that data to provide value-added services that are differentiated from those offered by pure-play vendors that serve only one portion of the transaction processing value chain (such as only merchant acquiring or payment processing).

Our broad suite of services spans the entire transaction processing value chain and includes a range of front-end customer-facing solutions such as the electronic capture and authorization of transactions at the point-of-sale, as well as back-end support services such as the clearing and settlement of transactions and account reconciliation for card issuers. These include: (i) merchant acquiring services, which enable point of sales (“POS”) and e-commerce merchants to accept and process electronic methods of payment such as debit, credit, prepaid and electronic benefit transfer (“EBT”) cards; (ii) payment processing services, which enable financial institutions and other issuers to manage, support and facilitate the processing for credit, debit, prepaid, automated teller machines (“ATM”) and EBT card programs; and (iii) business process management solutions, which provide “mission-critical” technology solutions such as core bank processing, as well as IT outsourcing and cash management services to financial institutions, corporations and governments. We provide these services through a highly scalable, end-to-end technology platform that we manage and operate in-house and that generates significant operating efficiencies that enable us to maximize profitability.

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We sell and distribute our services mainly through a proprietary direct sales force with strong customer relationships. We are also building a variety of indirect sales channels that enable us to leverage the distribution capabilities of partners in adjacent markets, including value-added resellers. Also, we continue to pursue joint ventures and merchant acquiring alliances.

We benefit from an attractive business model, the hallmarks of which are recurring revenue, scalability, significant operating margins and low capital expenditure requirements. Our revenue is recurring in nature because of the “mission-critical” and embedded nature of the services we provide, the high switching costs associated with these services and the multi-year contracts we negotiate with our customers. Our business model enables us to continue to grow our business organically without significant additional capital expenditures.

Corporate Background

EVERTEC, Inc. (formerly known as Carib Latam Holdings, Inc.) is a Puerto Rico corporation organized in April 2012. Our main operating subsidiary, EVERTEC Group, LLC (formerly known as EVERTEC, LLC and EVERTEC, Inc., hereinafter “EVERTEC Group”), was organized in Puerto Rico in 1988. EVERTEC Group was formerly a wholly-owned subsidiary of Popular. On September 30, 2010, pursuant to an Agreement and Plan of Merger (as amended, the “Merger Agreement”), AP Carib Holdings, Ltd. (“Apollo”) acquired a 51% indirect ownership interest in EVERTEC Group as part of a merger (the “Merger”) and EVERTEC Group became a wholly-owned subsidiary of Holdings.

On April 17, 2012, EVERTEC Group was converted from a Puerto Rico corporation to a Puerto Rico limited liability company (the “Conversion”) for the purpose of improving its consolidated tax efficiency by taking advantage of changes to the Puerto Rico Internal Revenue Code, as amended (the “PR Code”), that permit limited liability companies to be treated as partnerships that are pass-through entities for Puerto Rico tax purposes. Concurrent with the Conversion, Holdings, which is our direct subsidiary, was also converted from a Puerto Rico corporation to a Puerto Rico limited liability company. Prior to these conversions, EVERTEC, Inc. was formed in order to act as the new parent company of Holdings and its subsidiaries, including EVERTEC Group. The transactions described above in this paragraph are collectively referred to as the “Reorganization.”

Separation From and Key Relationship with Popular

Prior to the Merger on September 30, 2010, EVERTEC Group was 100% owned by Popular, the largest financial institution in the Caribbean, and operated substantially as an independent entity within Popular. After the consummation of the Merger, Popular retained an indirect ownership interest in EVERTEC Group and remains our largest customer. In connection with, and upon consummation of the Merger, EVERTEC Group entered into a 15-year Master Services Agreement (the “MSA”), and several related agreements with Popular. Under the terms of the MSA, Popular agreed to continue to use EVERTEC services on an ongoing and exclusive basis, for the duration of the agreement, on commercial terms consistent with those of our historical relationship. Additionally, Popular granted us a right of first refusal on the development of certain new financial technology products and services for the duration of the MSA.

Factors and Trends Affecting the Results of Our Operations

The ongoing migration from cash and paper methods of payment to electronic payments continues to benefit the transaction processing industry globally. We believe that the penetration of electronic payments in the markets in which we operate is significantly lower relative to the U.S. market, and that this ongoing shift will continue to generate substantial growth opportunities for our business. For example, currently the adoption of banking products, including electronic payments, in the Latin American region is lower relative to the more mature U.S. and European markets. We believe that the unbanked and underbanked population in our markets will continue to shrink, therefore driving incremental penetration and growth of electronic payments in Puerto Rico and other Latin American regions. We also benefit from the trend for financial institutions and government agencies to outsource technology systems and processes. Many medium- and small-size institutions in the Latin American markets in which we operate have outdated computer systems and updating these IT legacy systems is financially and logistically challenging. We believe that our technology and business outsourcing solutions cater to the evolving needs of the financial institution customer base we target, providing integrated, open, flexible, customer-centric and efficient IT products and services.

Our results of operations may be affected by regulatory changes that will occur as the payments industry has come under increased scrutiny from lawmakers and regulators.

Finally, our financial condition and results of operations are, in part, dependent on the economic and general conditions of the geographies in which we operate.

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Overview of Results of Operations

The following briefly describes the components of revenue and expenses as presented in the unaudited consolidated statements of income (loss) and comprehensive income (loss). Descriptions of the revenue recognition policies are detailed in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our 2013 Form 10-K.

Merchant Acquiring, net. Merchant Acquiring revenue consists of income from services that allow merchants to accept electronic methods of payment. Our standard merchant contract has an initial term of one or three years, with automatic one-year renewal periods. In the Merchant Acquiring segment, sources of revenue include a discount fee (generally a percentage of the sales amount of a credit or debit card transaction value) and membership fees charged to merchants, debit network fees and rental income from POS devices and other equipment, net of credit card interchange and assessment fees charged by credit card associations (such as VISA or MasterCard) or payment networks.

Merchant Acquiring accounted for $19.2 million, or 21.7% of total revenues, and $8.5 million or 23.7% of total segment income from operations for the three months ended September 30, 2014, compared with $18.2 million, or 20.8%, of total revenues and $8.6 million, or 25.3% of total segment income from operations for the comparable period in 2013. For the nine months ended September 30, 2014, our Merchant Acquiring business accounted for $58.3 million, or 21.9% of total revenues and $25.7 million or 24.1% of total segment income from operations compared with $53.8 million, or 20.4%, of total revenues and $26.0 million, or 27.3%, of total segment income from operations for the nine months ended September 30, 2013.

Payment Processing. Payment Processing revenue comprises income related to providing financial institutions access to the ATH network and other card networks, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. Payment Processing revenue also includes income from card processing services for debit or credit issuers, such as credit and debit card processing, authorization and settlement and fraud monitoring and control services; payment processing services such as payment and billing products for merchants, businesses and financial institutions; and EBT, which principally consists of services to the Puerto Rico government for the delivery of government benefits to participants. Payment products include electronic check processing, automated clearing house (“ACH”), lockbox, interactive voice response and web-based payments through personalized websites, among others.

We generally enter into one to five year contracts with our private payment processing clients and one year contracts with our government payment processing clients. For ATH network and processing services, revenue is driven mainly by the number of transactions processed. Revenue is derived mainly from network fees, transaction switching and processing fees, and leasing of POS devices. For card issuer processing, revenue is dependent mostly upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenue is derived mainly from the number of beneficiaries on file.

Payment Processing accounted for $25.6 million, or 28.9%, of total revenues and $14.7 million, or 40.9%, of total segment income from operations for the three months ended September 30, 2014, compared with $24.7 million, or 28.3%, of total revenues and $14.1 million, or 41.5%, of total segment income from operations for the three months ended September 30, 2013. For the nine months ended September 30, 2014, our Payment Processing business accounted for $77.0 million, or 28.8%, of total revenues and $44.7 million, or 41.9%, of total segment income from operations, compared with $73.1 million, or 27.7%, of total revenues and $38.5 million, or 40.5%, of total segment income from operations for the nine months ended September 30, 2013.

Business Solutions. Business Solutions revenue consists of income from a full suite of business process management solutions including core bank processing, network hosting and management, IT consulting services, business process outsourcing, item and cash processing, and fulfillment. We generally enter into one to five year contracts with our private Business Solutions clients and one year contracts with our government Business Solutions clients.

In addition, we are a reseller of hardware and software products; these resale transactions are generally one-time transactions. Revenue from sales of hardware or software products is recognized once the following four criteria are met: (i) evidence of an agreement exists, (ii) delivery and acceptance has occurred or services have been rendered, (iii) the selling price is fixed or determinable, and (iv) collection of the selling price is reasonably assured or probable, as applicable.

Business Solutions accounted for $43.8 million, or 49.4%, of total revenues and $12.7 million, or 35.3%, of total segment income from operations for the three months ended September 30, 2014, compared with $44.5 million, or 50.9%, of total revenues and $11.3 million, or 33.3%, of total segment income from operations for the three months ended September 30, 2013. For the nine months ended September 30, 2014, Business Solutions accounted for $131.6 million, or 49.3%, of total revenues and $36.2 million, or 34.0%, of total segment income from operations, compared with $137.0 million, or 51.9%, of total revenues and $30.6 million, or 32.2%, of total segment income from operations for the nine months ended September 30, 2013.

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Cost of revenues. This caption includes the costs directly associated with providing services to customers, as well as, product and software sales, including software licensing and maintenance costs; telecommunications costs; personnel and infrastructure costs to develop and maintain applications, operate computer networks and provide associated customer support; and other operating expenses.

Selling, general and administrative. This caption consists mainly of salaries, wages and related expenses paid to sales personnel, administrative employees and management, advertising and promotional costs, audit and legal fees, and other selling expenses.

Depreciation and amortization. This caption consists of our depreciation and amortization expense. Following the completion of the Merger, our depreciation and amortization expense increased as a result of the purchase price allocation adjustments to reflect the fair market value and revised useful life assigned to property and equipment and intangible assets in connection with the Merger.

Results of Operations

The following tables set forth certain consolidated financial information for the three and nine months ended September 30, 2014 and 2013. The following tables and discussion should be read in conjunction with the information contained in our unaudited consolidated financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.

Comparison of the three months ended September 30, 2014 and 2013

The following tables present the components of our unaudited consolidated statements of income (loss) and comprehensive income (loss) by business segment and the change in those amounts for the three months ended September 30, 2014 and 2013.

Revenues

	Three months ended September 30,
(Dollar amounts in thousands)	2014		2013		Variance
Merchant Acquiring, net	$	19,227	$	18,211	$	1,016		6	%
Payment Processing		25,611		24,731		880		4	%
Business Solutions		43,804		44,472		(668	)	-2	%
Total revenues	$	88,642	$	87,414	$	1,229		1	%

Total revenues for the three months ended September 30, 2014 increased by $1.2 million or 1% compared with the corresponding 2013 period.

Merchant Acquiring revenue for the three months ended September 30, 2014 increased by $1.0 million or 6% compared with the corresponding 2013 period. The revenue growth was due mainly to an increase in transaction volumes.

Payment Processing revenue for the three months ended September 30, 2014 increased $0.9 million or 4% compared with the corresponding 2013 period. Revenue growth was driven mainly by an increase in our card products business resulting from new customer additions and more accounts on file in our Latin America operations and an increase in our POS network and processing transactions.

Business Solutions revenues for the three months ended September 30, 2014 decreased $0.7 million or 2% compared with the corresponding 2013 period. The decline was driven by a $1.1 million decrease in hardware sales.

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Operating costs and expenses

	Three months ended September 30,
(Dollar amounts in thousands)	2014		2013		Variance
Cost of revenues, exclusive of depreciation and amortization shown below	$	38,625	$	38,903	$	(278	)	-1	%
Selling, general and administrative expenses		7,104		8,990		(1,886	)	-21	%
Depreciation and amortization		16,453		17,657		(1,204	)	-7	%
Total operating costs and expenses	$	62,182	$	65,550	$	(3,368	)	-5	%

Total operating costs and expenses for the three months ended September 30, 2014 decreased $3.4 million or 5% compared with the corresponding 2013 period.

Selling, general and administrative expenses for the three months ended September 30, 2014 decreased $1.9 million or 21% as compared with the corresponding 2013 period. This decrease was due primarily to one-time costs incurred during the third quarter of 2013 related to the secondary offering of common stock.

Depreciation and amortization expense for the three months ended September 30, 2014 decreased $1.2 million or 7% compared with the corresponding 2013 period. The decrease is related primarily to lower amortization of software packages that became fully depreciated.

Income from operations

The following table presents income from operations by reportable segments.

	Three months ended September 30,
(Dollar amounts in thousands)	2014			2013			Variance
Segment income from operations
Merchant Acquiring, net	$	8,518		$	8,568		$	(50	)	-1	%
Payment Processing		14,707			14,056			651		5	%
Business Solutions		12,696			11,282			1,414		13	%
Total segment income from operations		35,921			33,906			2,015		6	%
Merger related depreciation and amortization and other unallocated expenses (1)		(9,461	)		(12,042	)		2,581		21	%
Income from operations	$	26,460		$	21,864		$	4,597		21	%

⁽¹⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

Income from operations for the three months ended September 30, 2014 increased $4.6 million or 21% compared with the corresponding 2013 period. The increase in income from operations was the result of the aforementioned factors affecting our revenues and operating costs and expenses.

See Note 12 of the Notes to Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information on the Company’s reportable segments and for a reconciliation of income from operations to net income (loss).

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Non-operating (expenses) income

	Three months ended September 30,
(Dollar amounts in thousands)	2014			2013			Variance
Non-operating (expenses) income
Interest income	$	91		$	54		$	37		68	%
Interest expense		(6,370	)		(6,403	)		33		1	%
Earnings of equity method investment		241			198			43		22	%
Other income (expense)		(249	)		448			(697	)	101	%
Total non-operating (expenses) income	$	(6,287	)	$	(5,703	)	$	(585	)	-10	%

Total non-operating expenses for the three months ended September 30, 2014 increased $0.6 million compared with the corresponding 2013 period. The increase is mostly driven by adjustments made to our software indemnification assets as a result of certain maintenance contract cancellations during the period.

Income tax expense (benefit)

Income tax expense for the three months ended September 30, 2014 amounted to $1.1 million compared with an income tax expense of $1.4 million in the prior year period.

See Note 8 of the Notes to Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding income taxes.

Comparison of the nine months ended September 30, 2014 and 2013

The following tables present the components of our unaudited consolidated statements of income (loss) and comprehensive income (loss) by business segment and the change in those amounts for the nine months ended September 30, 2014 and 2013.

Revenues

	Nine months ended September 30,
(Dollar amounts in thousands)	2014		2013		Variance
Merchant Acquiring, net	$	58,345	$	53,835	$	4,510		8	%
Payment Processing		77,019		73,128		3,891		5	%
Business Solutions		131,609		136,965		(5,356	)	-4	%
Total revenues	$	266,974	$	263,928	$	3,046		1	%

Total revenues for the nine months ended September 30, 2014 increased $3.0 million or 1% compared with the corresponding 2013 period.

Merchant Acquiring revenue for the nine months ended September 30, 2014 increased $4.5 million or 8% compared with the corresponding 2013 period. The revenue growth was primarily the result of an increase in transaction volumes.

Payment Processing revenue for the nine months ended September 30, 2014 increased $3.9 million or 5% compared with the corresponding 2013 period. Revenue growth was driven mainly by an increase in our card products business resulting from higher accounts on file due to new customer additions in our Latin America operations and by an increase in ATH and POS network and processing transactions.

Business Solutions revenues for the nine months ended September 30, 2014 decreased $5.4 million or 4% compared with the corresponding 2013 period. The decrease is almost entirely attributable to a decline in hardware and software sales of $7.4 million, partially offset by an increase in demand for core banking and other services.

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Operating costs and expenses

	Nine months ended September 30,
(Dollar amounts in thousands)	2014		2013		Variance
Cost of revenues, exclusive of depreciation and amortization shown below	$	115,109	$	121,176	$	(6,067	)	-5	%
Selling, general and administrative expenses		25,629		30,477		(4,848	)	-16	%
Depreciation and amortization		49,457		53,074		(3,617	)	-7	%
Total operating costs and expenses	$	190,195	$	204,727	$	(14,532	)	-7	%

Total operating costs and expenses for the nine months ended September 30, 2014 decreased $14.5 million or 7% compared with the corresponding 2013 period.

Cost of revenue for the nine months ended September 30, 2014 decreased $6.1 million or 5% compared with the corresponding 2013 period. The decrease was due mainly to lower cost of sales incurred as a result of the aforementioned decrease in hardware and software sales.

Selling, general and administrative expenses for the nine months ended September 30, 2014 decreased $4.8 million or 16% compared with the corresponding 2013 period. The decrease was due mainly to the impact in the prior year of a $3.1 million non-cash charge taken in connection with the vesting of all Tranche B and C stock options and to $1.6 million of one-time expenses related to the secondary offering completed in the third quarter of 2013.

Depreciation and amortization expense for the nine months ended September 30, 2014 decreased $3.6 million or 7% compared with the corresponding 2013 period. The decrease resulted from lower amortization of software packages that became fully depreciated.

Income from operations

The following table presents income from operations by reportable segments.

	Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			Variance
Segment income from operations
Merchant Acquiring, net	$	25,700		$	25,963		$	(263	)	-1	%
Payment Processing		44,738			38,536			6,202		16	%
Business Solutions		36,232			30,600			5,632		18	%
Total segment income from operations		106,670			95,099			11,571		12	%
Merger related depreciation and amortization and other unallocated expenses (1)		(29,892	)		(35,898	)		6,006		17	%
Income from operations	$	76,778		$	59,201		$	17,577		30	%

⁽¹⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

Income from operations for the nine months ended September 30, 2014 increased $17.6 million or 30% compared with the corresponding 2013 period. The increase in income from operations was the result of the aforementioned factors affecting revenues and operating costs and expenses.

See Note 12 of the Notes to Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information on the Company’s reportable segments and for a reconciliation of income from operations to net income (loss).

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Non-operating (expenses) income

	Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			Variance
Non-operating (expenses) income
Interest income	$	245		$	147		$	98	67	%
Interest expense		(19,780	)		(31,414	)		11,634	37	%
Earnings of equity method investment		905			823			82	10	%
Other income (expense)		2,127			(77,020	)		79,147	103	%
Total non-operating (expenses) income	$	(16,503	)	$	(107,464	)	$	90,961	85	%

Total non-operating expenses for the nine months ended September 30, 2014 decreased $91.0 million compared with the corresponding 2013 period. Non-operating expenses in 2013 were driven mainly by a $58.5 million charge related to the extinguishment of debt and a $16.7 million expense related to the termination of our Consulting Agreements with Apollo and Popular, coupled with a decrease in interest expense of $11.6 million as a result of the debt refinancing transaction completed during the second quarter of 2013.

Income tax expense (benefit)

Income tax expense for the nine months ended September 30, 2014 amounted to $5.2 million compared with an income tax benefit of $3.6 million for the corresponding 2013 period. The income tax expense for 2014 is a result of taxable income, while the prior year tax benefit was attributable to a taxable loss as a result of higher non-operating expenses related to the aforementioned extinguishment of debt, the termination of the Consulting Agreements and the vesting of all Tranche B and C stock options.

See Note 8 of the Notes to Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding income taxes.

Liquidity and Capital Resources

Our principal source of liquidity is cash generated from operations, and our primary liquidity requirements are the funding of capital expenditures and working capital needs. We also have a $100.0 million revolving credit facility, of which $92.0 million was available as of September 30, 2014.

At September 30, 2014, we had cash of $29.2 million, of which $16.4 million resides in our subsidiaries located outside of Puerto Rico for purposes of (i) funding the respective subsidiary’s current business operations and (ii) funding potential future investment outside of Puerto Rico. We intend to indefinitely reinvest these funds outside of Puerto Rico, and based on our liquidity forecast, we will not need to repatriate this cash to fund the Puerto Rico operations or to meet debt-service obligations. However, if in the future we determine that we no longer need to maintain such cash balances within our foreign subsidiaries, we may elect to distribute such cash to the Company in Puerto Rico. Distributions from the foreign subsidiaries to Puerto Rico may be subject to tax withholding and other tax consequences.

Our primary use of cash is for operating expenses, working capital requirements, capital expenditures, dividend payments and debt service. In addition, we may use cash for share repurchases pursuant to the $75 million stock repurchase program announced on September 24, 2014. We intend to fund repurchases from cash on hand and available borrowings under the revolving credit facility. No repurchases were made for the period ended September 30, 2014.

Based on our current level of operations, we believe our cash flows from operations and the available senior secured revolving credit facility will be adequate to meet our liquidity needs for the next twelve months. However, our ability to fund future operating expenses, dividend payments and capital expenditures and our ability to make scheduled payments of interest, to pay principal on or refinance our indebtedness and to satisfy any other of our present or future debt obligations will depend on our future operating performance, which will be affected by general economic, financial and other factors beyond our control.

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	Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013
Cash provided by operating activities	$	103,798		$	13,684
Cash used in investing activities		(17,212	)		(17,112	)
Cash (used in) provided by financing activities		(79,845	)		5,754
Increase in cash	$	6,741		$	2,326

Net cash provided by operating activities for the nine months ended September 30, 2014 was $103.8 million compared with $13.7 million for the corresponding 2013 period. The increase of $90.1 million was driven by higher income from operations in 2014, while prior year includes cash used to pay certain amounts related to the redemption of the senior notes and the extinguishment of debt of $41.9 million, and a $16.7 million payment related to the termination of the Consulting Agreements with Popular and Apollo.

Net cash used in investing activities is mostly related to purchases of property and equipment and intangible assets.

Net cash used in financing activities for the nine months ended September 30, 2014 was $79.8 million as compared to cash provided by financing activities of $5.8 million in the corresponding 2013 period. Cash used in financing activities in 2014 consisted of $57.5 million in debt repayments and $23.5 million in quarterly dividends paid. Cash provided by financing activities in 2013 consisted of proceeds from the Initial Public Offering and from the issuance of additional debt amounting to $812.4 million, partially offset by $771.1 million of debt repayment, $12.1 million of debt issuance costs, $16.7 million in taxes paid as a result of cashless exercise of stock options and $8.2 million in dividend payments.

Capital Resources

Our principal capital expenditures are for hardware and computer software (purchased and internally developed) and additions to property and equipment. We invested approximately $16.6 million and $17.0 million for the nine months ended September 30, 2014 and 2013, respectively. Capital expenditures are expected to be funded by cash flow from operations and, if necessary, borrowings under our revolving credit facility.

Dividend Payments

We currently have a policy under which we pay a regular quarterly dividend on our common stock, subject to the declaration thereof by our Board each quarter. On February 12, 2014, our Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on March 14, 2014 to stockholders of record as of February 25, 2014.

On May 7, 2014, our Board declared a quarterly cash dividend of $0.10 per share of common stock. The cash dividend of $0.10 per share was paid on June 6, 2014 to stockholders of record as of close of business on May 19, 2014.

On August 6, 2014, our Board declared a quarterly cash dividend of $0.10 per share of common stock. The cash dividend of $0.10 per share was paid on September 5, 2014 to stockholders of record as of close of business on August 18, 2014.

On November 5, 2014, our Board declared a quarterly cash dividend of $0.10 per share of common stock. The cash dividend of $0.10 per share will be paid on December 5, 2014 to stockholders of record as of close of business on November 17, 2014.

Financial Obligations

Senior Secured Credit Facilities

Term A Loan

As of September 30, 2014, the unpaid principal balance of the Term A Loan was $281.3 million. The Term A Loan requires principal payments on the last business day of each quarter equal to (a) 1.250% of the original principal amount commencing on September 30, 2013 through June 30, 2016; (b) 1.875% of the original principal amount from September 30, 2016 through June 30, 2017; (c) 2.50% of the original principal amount from September 30, 2017 through March 31, 2018; and (d) the remaining outstanding principal amount on the maturity of the Term A Loan on April 17, 2018. For the nine months ended September 30, 2014, the Company made principal payments amounting to $11.3 million on the Term A Loan. Interest is based on EVERTEC Group’s first lien secured net leverage ratio and payable at a rate equal to, at the Company’s option, either (a) LIBOR plus an applicable margin ranging from 2.00% to 2.50% or (b) Base Rate, as defined in our 2013 Credit Agreement, plus an applicable margin ranging from 1.00% to 1.50%. The Term A Loan has no LIBOR or Base Rate minimum or floor.

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Term B Loan

As of September 30, 2014, the unpaid principal balance of the Term B Loan was $395.0 million. The Term B Loan requires principal payments on the last business day of each quarter equal to 0.250% of the original principal amount commencing on September 30, 2013 and the remaining outstanding principal amount on the maturity of the Term B Loan on April 17, 2020. For the nine months ended September 30, 2014, the Company made principal payments amounting to $3.0 million on the Term B Loan. Interest is based on EVERTEC Group’s first lien secured net leverage ratio and payable at a rate equal to, at the Company’s option, either (a) LIBOR plus an applicable margin ranging from 2.50% to 2.75%, or (b) Base Rate plus an applicable margin ranging from 1.50% to 1.75%. The LIBOR and Base Rate are subject to floors of 0.75% and 1.75%, respectively.

Revolving Credit Facility

The revolving credit facility has a balance up to $100.0 million, with an interest rate on loans calculated the same as the applicable Term A Loan rate. The facility matures on April 17, 2018 and has a “commitment fee” payable one business day after the last business day of each quarter calculated based on the daily unused commitment during the preceding quarter. The commitment fee for the unused portion of this facility ranges from 0.125% to 0.375% based on EVERTEC Group’s first lien secured net leverage ratio. As of September 30, 2014, the outstanding balance of the revolving credit facility was $8.0 million. For the nine months ended September 30, 2014, the Company made payments amounting to $42.0 million on the revolving credit facility.

All loans may be prepaid without premium or penalty. The new senior secured credit facilities allow EVERTEC Group to obtain, on an uncommitted basis at the sole discretion of participating lenders, an incremental amount of term loan and/or revolving credit facility commitments not to exceed the greater of (i) $200.0 million and (ii) maximum amount of debt that would not cause EVERTEC Group’s pro forma first lien secured net leverage ratio to exceed 4.25 to 1.00.

The senior secured revolving credit facility is available for general corporate purposes and includes borrowing capacity available for letters of credit and for short-term borrowings referred to as swing line borrowings. All obligations under the new senior secured credit facilities are unconditionally guaranteed by Holdings and, subject to certain exceptions, each of EVERTEC Group’s existing and future wholly-owned subsidiaries. All obligations under the new senior secured credit facilities, and the guarantees of those obligations, are secured by substantially all of EVERTEC Group’s assets and the assets of the guarantors, subject to certain exceptions.

See Note 5 of the Notes to Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information.

Other Short-Term Borrowing

In August 2013, we entered into a financing agreement in the ordinary course of business to purchase certain hardware, software and maintenance and related services in the amount of $1.8 million to be repaid in three installments over a term of eight months. As of September 30, 2014, this other short-term borrowing had been fully repaid.

Covenant Compliance

The credit facilities contain various restrictive covenants. The Term A Loan and the revolving facility (subject to certain exceptions) require EVERTEC Group to maintain on a quarterly basis a specified maximum senior secured leverage ratio of up to 6.60 to 1.00 as defined in the 2013 Credit Agreement (total first lien senior secured debt to Adjusted EBITDA). In addition, the 2013 Credit Agreement, among other things: (a) limits EVERTEC Group’s ability and the ability of its subsidiaries to incur additional indebtedness, incur liens, pay dividends or make certain other restricted payments and enter into certain transactions with affiliates; (b) restricts EVERTEC Group’s ability to enter into agreements that would limit the ability of its subsidiaries to pay dividends or make certain payments to its parent company; and (c) places restrictions on EVERTEC Group’s ability and the ability of its subsidiaries to merge or consolidate with any other person or sell, assign, transfer, convey or otherwise dispose of all or substantially all of their assets. However, all of the covenants in these agreements are subject to significant exceptions. As of September 30, 2014, the senior secured leverage ratio was 3.53 to 1.00 and we were in compliance with the applicable restrictive covenants under the 2013 Credit Agreement.

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In this Quarterly Report on Form 10-Q, we refer to the term “Adjusted EBITDA” to mean EBITDA as so defined and calculated for purposes of determining compliance with the senior secured leverage ratio based on the financial information for the last twelve months at the end of each quarter.

Net Income Reconciliation to EBITDA, Adjusted EBITDA and Adjusted Net Income

We define “EBITDA” as earnings before interest, taxes, depreciation and amortization. We define “Adjusted EBITDA” as EBITDA further adjusted to exclude unusual items and other adjustments described below. We define “Adjusted Net Income” as net income adjusted to exclude unusual items and other adjustments described below.

We present EBITDA and Adjusted EBITDA because we consider them important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. In addition, our presentation of Adjusted EBITDA is consistent with the equivalent measurements that are contained in the senior secured credit facilities in testing EVERTEC Group’s compliance with covenants therein, such as the senior secured leverage ratio. We use Adjusted Net Income to measure our overall profitability because it better reflects our cash flows generation by capturing the actual cash taxes paid rather than our tax expense as calculated under GAAP and excludes the impact of the non-cash amortization and depreciation that was created as a result of the Merger. In evaluating EBITDA, Adjusted EBITDA and Adjusted Net Income, you should be aware that in the future we may incur expenses such as those excluded in calculating them. Further, our presentation of these measures should not be construed as an inference that our future operating results will not be affected by unusual or nonrecurring items.

Some of the limitations of EBITDA, Adjusted EBITDA and Adjusted Net Income are as follows:

• they do not reflect cash outlays for capital expenditures or future contractual commitments;

• they do not reflect changes in, or cash requirements for, working capital;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements;

• in the case of EBITDA and Adjusted EBITDA, they do not reflect interest expense, or the cash requirements necessary to service interest, or principal payments, on indebtedness;

• in the case of EBITDA and Adjusted EBITDA, they do not reflect income tax expense or the cash necessary to pay income taxes; and

• other companies, including other companies in our industry, may not use EBITDA, Adjusted EBITDA and Adjusted Net Income or may calculate EBITDA, Adjusted EBITDA and Adjusted Net Income differently than as presented in this Report, limiting their usefulness as a comparative measure.

EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per common share are not measurements of liquidity or financial performance under GAAP. You should not consider EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per common share as alternatives to cash flows from operating activities or any other performance measures determined in accordance with GAAP, as an indicator of cash flows, as a measure of liquidity or as an alternative to operating or net income determined in accordance with GAAP.

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A reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted Net Income is provided below:

(Dollar amounts in thousands)	Three months ended September 30, 2014			Nine months ended September 30, 2014			Twelve months ended September 30, 2014
Net income	$	19,091		$	55,070		$	75,109
Income tax expense		1,082			5,205			6,818
Interest expense, net		6,279			19,535			25,893
Depreciation and amortization		16,453			49,457			66,749
EBITDA		42,905			129,267			174,569
Software maintenance reimbursement and other costs(1)		661			1,770			2,389
Equity income (2)		(239	)		(580	)		(209	)
Compensation and benefits (3)		648			1,573			2,169
Transaction, refinancing and other non-recurring fees (4)		269			2,785			4,640
Purchase accounting (5)		284			459			830
Adjusted EBITDA		44,528			135,274			184,388
Operating depreciation and amortization(6)		(7,338	)		(22,102	)		(29,957	)
Cash interest expense, net (7)		(5,500	)		(16,911	)		(22,501	)
Cash income taxes (8)		(300	)		(703	)		(1,002	)
Adjusted net income	$	31,390		$	95,558		$	130,928
Adjusted net income per common share:
Basic	$	0.40		$	1.21
Diluted	$	0.40		$	1.20
Shares used in computing adjusted net income per common share:
Basic		78,666,241			78,485,109
Diluted		79,216,924			79,193,452

⁽¹⁾  Primarily represents reimbursements received for certain software maintenance expenses as part of the Merger.

⁽²⁾  Represents the elimination of non-cash equity earnings from our 19.99% equity investment in CONTADO, net of cash dividends received.

⁽³⁾  Primarily represents non-cash equity based compensation expense.

⁽⁴⁾  Represents fees and expenses associated with non-recurring fees and corporate transactions, including the withdrawn senior secured notes offering in the second quarter of 2014.

⁽⁵⁾  Represents the elimination of the effects of purchase accounting in connection with certain software related arrangements where EVERTEC receives reimbursements from Popular.

⁽⁶⁾  Represents operating depreciation and amortization expense which excludes amortization generated as a result of the Merger.

⁽⁷⁾  Represents interest expense, less interest income, as they appear on our consolidated statement of income (loss) and comprehensive income (loss), adjusted to exclude non-cash amortization of the debt issuance costs, premium and accretion of discount and other adjustment related to interest expense.

⁽⁸⁾  Represents cash taxes paid for each period presented.

Off Balance Sheet Arrangements

In the ordinary course of business the Company may enter into commercial commitments. As of September 30, 2014, we had an outstanding letter of credit of $1.1 million with a maturity of less than three months. Also, as of September 30, 2014 we had an off balance sheet item of $26.7 million related to the unused amount of the windfall that is available to offset future taxable income.

See Note 8 of the Unaudited Consolidated Financial Statements within Item I of this Quarterly Report on Form 10-Q for additional information related to this off balance sheet item.

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Seasonality

Our payment businesses generally experiences increased activity during the traditional holiday shopping periods and around other nationally recognized holidays.

Effect of Inflation

While inflationary increases in certain input costs, such as occupancy, labor and benefits, and general administrative costs, have an impact on our operating results, inflation has had minimal net effect on our operating results during the last three years as overall inflation has been offset by increased selling process and cost reduction actions. We cannot assure you, however, that we will not be affected by general inflation in the future.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to market risks arising from our normal business activities. These market risks principally involve the possibility of changes in interest rates that will adversely affect the value of our financial assets and liabilities or future cash flows and earnings. Market risk is the potential loss arising from adverse changes in market rates and prices.

Interest rate risks

We issued floating-rate debt which is subject to fluctuations in interest rates. Our senior secured credit facilities accrue interest at variable rates and only the Term B Loan is subject to floors or minimum rates. A 100 basis point increase in interest rates over our floor(s) on our debt balances outstanding as of September 30, 2014 under the senior secured credit facilities would increase our annual interest expense by approximately $6.8 million, excluding the revolving credit facility. The impact on future interest expense as a result of future changes in interest rates will depend largely on the gross amount of our borrowings at that time.

Foreign exchange risk

We conduct business in certain countries in Latin America. Some of this business is conducted in the countries’ local currencies. The resulting foreign currency translation adjustments, from operations for which the functional currency is other than the U.S. dollar, are reported in accumulated other comprehensive (loss) income in the unaudited consolidated balance sheet, except for highly inflationary environments in which the effects would be included in Other operating income in the consolidated statements of income (loss) and comprehensive income (loss). At September 30, 2014, the Company had $6.1 million in an unfavorable foreign currency translation adjustment as part of accumulated other comprehensive (loss) income compared with a favorable foreign currency translation adjustment of $0.4 million at December 31, 2013.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company, under the direction of the Chief Executive Officer and the Chief Financial Officer, has established disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act. Based upon their evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that as of September 30, 2014, the Company’s disclosure controls and procedures are effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rule
13a -15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended September 30, 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are defendants in various lawsuits or arbitration proceedings arising in the ordinary course of business. Management believes, based on the opinion of legal counsel and other factors, that the aggregated liabilities, if any, arising from such actions will not have a material adverse effect on the financial condition, results of operations and the cash flows of the Company.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed under Item 1A. of the Company’s 2013 Form 10-K.

The risks described in our 2013 Form 10-K and in this report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

10.67*	Form of Restricted Stock Unit Award Agreement for grants of restricted stock units to directors under the EVERTEC, Inc. 2013 Equity Incentive Plan.
10.68*	Employment Agreement, dated as of October 13, 2014, by and between EVERTEC Group, LLC and Alan I. Cohen.
10.69*	2013 Equity Incentive Plan Restricted Stock Unit Award Agreement, dated October 15, 2014, by and between Alan I. Cohen and EVERTEC, Inc.
31.1*	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS XBRL***	Instance document
101.SCH XBRL***	Taxonomy Extension Schema
101.CAL XBRL***	Taxonomy Extension Calculation Linkbase
101.DEF XBRL***	Taxonomy Extension Definition Linkbase
101.LAB XBRL***	Taxonomy Extension Label Linkbase
101.PRE XBRL***	Taxonomy Extension Presentation Linkbase

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* Filed herewith.

** Furnished herewith.

*** Pursuant to applicable securities laws and regulations, the Company is deemed to have complied with the reporting obligation relating to the submission of interactive data files in such exhibits and is not subject to liability under any anti-fraud provisions of the federal securities laws as long as the Company has made a good faith attempt to comply with the submission requirements and promptly amends the interactive data files after becoming aware that the interactive data files fail to comply with the submission requirements. Users of this data are advised that, pursuant to Rule 406T, these interactive data files are deemed not filed and otherwise are not subject to liability.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EVERTEC, Inc. (Registrant)
Date: November 6, 2014	By:	/s/ Peter Harrington
	Peter Harrington Chief Executive Officer
Date: November 6, 2014	By:	/s/ Juan J. Román
	Juan J. Román Chief Financial Officer

S-1

EX-10.67

Exhibit 10.67

EVERTEC, INC.

2013 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”) is made as of this 1^st day of September, 2014 (the “Date of Grant”), by and between EVERTEC, Inc. (the “Company”) and the person whose signature, name and title appear in the signature block hereof (the “Participant”).

W I T N E S S E T H

WHEREAS, the Company maintains the EVERTEC, Inc. 2013 Equity Incentive Plan (the “Plan”);

WHEREAS, Section 9 of the Plan authorizes the grant (the “Award”) of restricted stock units (“RSUs”) with respect to the common stock, par value $0.01 per share, of the Company (“Common Stock”); and

WHEREAS, in connection with the Participant’s service as a member of the Board of Directors of the Company (the “Directorship”), and in accordance with the Company’s Director Compensation Policy, the Company desires to grant RSUs to the Participant, subject to the terms and conditions of the Plan and this Agreement.

NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the parties agree as follows:

1. Grant of RSUs.

(a) In consideration of the Directorship, the Company will grant to the Participant [            ] RSUs, calculated using the Fair Market Value, which for purposes of this Section 1, is determined by the market price of the Company’s Common Stock at the close of business on the trading day immediately prior to the Date of Grant.

(b) Each RSU represents the unfunded and unsecured promise of the Company to deliver to the Participant one share of Common Stock on the Settlement Date (as defined in Section 4 hereof). The Award granted hereunder shall be null and void unless the Participant accepts this Agreement by executing it in the appropriate signature block provided and promptly returning it to the Company.

(c) The RSUs shall be credited to a separate account maintained for the Participant on the books of the Company (the “Account”). All amounts credited to the Account under this Agreement shall continue for all purposes to be part of the general assets of the Company. The Participant’s interest in the Account shall make the Participant only a general, unsecured creditor of the Company.

2. Purchase Price. The purchase price of the RSUs shall be deemed to be zero U.S. Dollars per share.

3. Vesting. The RSUs shall vest and become non-forfeitable upon the earlier of:

(a) the day immediately preceding the Company’s next Annual Meeting of Stockholders following the Date of Grant; and

(b) termination of the Directorship as the result of the Participant’s death or Disability (as defined in Section 11 hereof) (the earlier of (a) and (b), the “Vesting Date”);

provided, in each case that the Participant is actively carrying out his or her duties in connection with the Directorship at all times from the Date of Grant through the Vesting Date. Furthermore, in the event that the Directorship is terminated for any reason prior to vesting in accordance with this Section 3, the RSUs shall be forfeited for no consideration.

4. Settlement. The Company shall issue and deliver to the Participant one share of Common Stock for each vested RSU (the “RSU Shares”) as soon as reasonably practicable following the Vesting Date, but in no event shall the RSU Shares be issued later than thirty (30) days following the Vesting Date (the “Settlement Date”). Effective as of the Settlement Date, the RSUs shall cease to be credited to the Account and the Company shall enter the Participant’s name as a shareholder of record with respect to the RSU Shares on the books of the Company.

5. Dividend Equivalents. If the Company pays a cash dividend on its outstanding Common Stock for which the Record Date (as defined in Section 11 hereof) occurs after the Date of Grant but prior to the Vesting Date, the Participant shall receive a lump sum cash payment on the Settlement Date equal to the aggregate amount of the cash dividends paid by the Company on a single share of Common Stock multiplied by the number of RSUs granted under this Agreement.

6. Taxes.

(a) Unless otherwise required by applicable law, upon the settlement of the Award in accordance with Section 4 hereof, the Participant shall recognize taxable income with respect to the RSU Shares to be issued to the Participant and the Company shall report such income to the appropriate taxing authorities in respect of the Award as it determines to be necessary and appropriate. The Participant shall be responsible for payment of any taxes due in respect of the Award. For purposes hereof, unless otherwise required by applicable law, the RSU Shares shall be valued at Fair Market Value, which for purposes of this Section 6, is determined by the market price of the Company’s Common Stock at the close of business on the trading day immediately prior to the Vesting Date.

(b) Unless otherwise required by applicable law, the Company shall not withhold taxes in respect of the Award. If the Company determines that withholding is required by applicable law, the following provisions shall apply:

(i) As a condition precedent to the delivery of any RSU Shares to the Participant, the Participant shall, upon the Company’s request, pay to the Company such amount of cash as the Company may require under all applicable federal, state, local or other laws or regulations, to withhold and pay over as income or other withholding taxes (a “Tax Payment”) with respect to the Award.

(ii) The Participant may elect, subject to Company approval, to satisfy his or her obligation to advance the Tax Payment by any of the following means: (i) a cash payment to the Company; (ii) authorizing the Company to withhold from the RSU Shares otherwise to be delivered to the Participant, a number of whole shares of Common Stock having a Fair Market Value equal to the Tax Payment; or (iii) any combination of (i) and (ii).

(iii) In the event that the Company determines that a Tax Payment is required and the Participant fails to advance the Tax Payment after so requested by the Company, the Company may, in its discretion, deduct any Tax Payments from any amount then or thereafter payable by the Company to the Participant and take such other action as deemed necessary to satisfy all obligations for the Tax Payment (including reducing the number of RSU Shares delivered on the Settlement Date).

7. Restrictions. Except as otherwise provided in Section 6 with respect to a sale of RSU Shares in connection with the Participant making a required Tax Payment, the RSU Shares may only be sold, pledged, transferred or otherwise disposed of, whether with or without consideration and whether voluntarily or involuntarily or by operation of law, in accordance with the Company’s Stock Ownership Guidelines as in effect from time to time (or by will or the laws of descent and distribution or as otherwise permitted by the Committee). The RSUs granted hereunder may not be subject to lien, garnishment, attachment or other legal process and may not be transferred except to the extent permitted by the Plan.

8. Compliance with Laws and Regulations. The issuance, delivery and transfer of RSU Shares shall be subject to compliance by the Company and the Participant with all applicable requirements of securities laws and with all

2

applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance, delivery or transfer. If in order to issue and deliver the RSU Shares it is required or desirable to (a) list, register or qualify the RSU Shares upon any securities exchange or under any law; (b) receive the consent or approval of any governmental body; and/or (c) take any other action as a condition of, or in connection with, the vesting of the RSUs or delivery of the RSU Shares hereunder, the RSUs shall not vest nor will the RSU Shares be delivered unless such listing, registration, qualification, consent, approval or action shall have been effected, obtained or taken, free of any conditions not approved by the Company (which approval will not be unreasonably withheld). The Company agrees to use commercially reasonable efforts to effect, obtain or take any such listing, registration, qualification, consent, approval or action.

9. Rights as Stockholder. Upon and following the Settlement Date, the Participant shall be the record owner of the RSU Shares unless and until such shares are sold or otherwise disposed of, and as record owner, shall be entitled to all rights of a stockholder of the Company (including voting rights). The Participant acknowledges and agrees that prior to the Settlement Date, the Participant shall not be deemed for any purpose to be the owner of the shares of Common Stock underlying the RSUs and shall not have any rights of a stockholder as a result of receiving the Award under this Agreement other than with respect to the Participant’s right to receive payment pursuant to Section 5. The Participant acknowledges and agrees that, with respect to each RSU credited to the Account, the Participant shall have no voting rights with respect to the Company unless and until such RSU is settled in RSU Shares pursuant to Section 4 hereof.

10. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the Commonwealth of Puerto Rico applicable to contracts to be performed therein.

11. Defined Terms. Except as modified by this Section 11, all capitalized terms used but not otherwise defined herein shall have the definitions attributed to them in the Plan. For purposes of this Agreement:

(a) “Disability” means the Participant’s inability to perform the Directorship by reason of any medically determinable physical or mental impairment for a period of six (6) months or more in any twelve (12) month period.

(b) “Record Date” means the date on which stockholders of record are determined for purposes of paying a cash dividend on issued and outstanding shares of Common Stock.

12. Notice. Every notice or other communication relating to this Agreement shall be made in writing either (a) by personal delivery to the party entitled thereto, (b) by facsimile with confirmation of receipt, (c) by mailing in the United States mails to the last known address of the party entitled thereto or (d) by express courier service. The notice, request or other communication shall be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile transmission, or upon receipt by the party entitled thereto if by United States mail or express courier service; provided, however, that if a notice, request or other communication is not received during regular business hours, it shall be deemed to be received on the next succeeding business day of the Company.

13. Section 409A. Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payments and benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Code, or shall comply with the requirements of Section 409A of the Code, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be exempt from or in compliance with Section 409A of the Code. If the Participant notifies the Company (with specificity as to the reason therefor) that the Participant believes that any provision of this Agreement would cause the Participant to incur any additional tax or interest under Section 409A of the Code or the Company independently makes such determination, the Company shall, after consulting with the Participant, reform such provision (or award of compensation or benefit) to attempt to comply with or be exempt from Section 409A of the Code through good faith modifications to the minimum extent reasonably appropriate. To the extent that any provision hereof is modified in order to comply with Section 409A of the Code, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Participant and the Company without violating the provisions of Section 409A of the Code. Notwithstanding the foregoing, none of the Company, its Affiliates, officers, directors,

3

employees, or agents guarantees that this Agreement complies with, or is exempt from, the requirements of Section 409A of the Code and none of the foregoing shall have any liability for the failure of this Agreement to comply with, or be exempt from, such requirements.

14. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision shall be severable and enforceable to the extent permitted by law.

15. Entire Agreement. This Agreement and the Plan contain the entire agreement between the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless in writing and signed by the parties hereto.

16. Successors. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of the Participant, acquire any rights hereunder in accordance with this Agreement or the Plan.

17. Interpretation. The terms and provisions of the Plan are incorporated herein by reference, and the Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be binding on the Company and the Participant.

18. Counterparts. This Agreement may be signed in counterparts, each of which shall be deemed an original and both of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the Date of Grant set forth above.

EVERTEC, INC.	THE PARTICIPANT
Name: Title:	Name: Title:

4

EX-10.68

Exhibit 10.68

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT is made by and between EVERTEC GROUP, LLC, a Puerto Rico limited liability company (the “Company”), and Alan I. Cohen (“Executive,” and collectively, the “Parties”) as of this 13^th day of October, 2014 (the “Effective Date”).

WHEREAS, the Parties desire to enter into this the employment agreement (the “Agreement”) pursuant to the terms, provisions and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants, understandings, representations, warranties, undertakings and promises hereinafter set forth, intending to be legally bound thereby, the Parties agree as follows:

1. Employment Period.

Subject to earlier termination in accordance with Section 3 of this Agreement, Executive shall continue to be employed by the Company until December 31, 2017 (the “Employment Period”) unless the parties mutually agree to extend the term at least 90 calendar days prior to the end of the Employment Period. Upon Executive’s termination of employment with the Company for any reason, Executive shall immediately resign all positions with the Company or any of its subsidiaries or affiliates.

2. Terms of Employment.

(a) Position. During the Employment Period, Executive shall serve as Executive Vice President of Communications & Marketing of the Company and will perform such duties and exercise such supervision with regard to the business of the Company as are associated with such positions, including such duties as may be prescribed from time to time by the President and Chief Executive Officer of the Company (the “CEO”). Executive shall report directly to the CEO and if requested by the CEO, Executive hereby agrees to serve (without additional compensation) as an officer and director of the Company or any affiliate or subsidiary thereof.

(b) Duties. During the Employment Period, Executive shall have such responsibilities, duties, and authority that are customary for his position, subject at all times to the control of the CEO, and shall perform such services as customarily are provided by an executive of a corporation with his position and such other services consistent with his position, as shall be assigned to him from time to time by the CEO. During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled in accordance with Company policies, the Executive agrees to devote all of his business time to the business and affairs of the Company and to use Executive’s commercially reasonable efforts to perform faithfully, effectively and efficiently his responsibilities and obligations hereunder.

(c) Principal Work Location. Executive’s principal work location, subject to travel on Company business, shall be the Company’s headquarters in Puerto Rico.

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(d) Compensation.

(i) Base Salary. During the Employment Period, Executive shall receive an annual base salary in an amount equal to Two Hundred Fifty Thousand dollars ($250,000), less all applicable withholdings, which shall be paid in accordance with the customary payroll practices of the Company (as in effect from time to time, the “Annual Base Salary”). The Annual Base Salary shall be prorated for partial calendar years of employment and shall be subject to annual review and possible increase as determined by the Board of Directors of the Company (the “Board”), in its sole discretion.

(ii) Annual Bonus. During the Employment Period, with respect to each completed fiscal year of the Company, Executive shall be eligible to receive a bonus (the “Bonus”) pursuant to the terms and conditions set forth in the EVERTEC Annual Performance Incentive Guidelines in effect on the date eligibility for a bonus is determined. A signing bonus of One Hundred Thousand dollars ($100,000) will be awarded to the Executive to be payable in two equal installments of Fifty Thousand dollars ($50,000), the first being during the fourth quarter of 2014 and the second during the first quarter of 2015.

(iii) Long-Term Incentive Compensation. To the extent that Executive is to be granted any long-term incentive compensation, such long-term compensation shall be subject to the terms of the applicable award agreement and the Company’s 2013 Equity Incentive Plan.

(iv) Benefits. During the Employment Period, Executive shall be eligible to participate in all retirement, compensation and employee benefit plans, practices, policies and programs provided by the Company to other executives of the Company (except severance plans, policies, practices, or programs) subject to the eligibility criteria set forth therein, as such may be amended or terminated from time to time.

(v) Expenses. During the Employment Period, Executive shall be entitled to receive reimbursement for all reasonable business expenses incurred by Executive in performance of his duties hereunder provided that Executive provides all necessary documentation in accordance with the Company’s policies.

3. Termination of Employment.

(a) Death or Disability. Executive’s employment shall terminate automatically upon Executive’s death. If Executive becomes subject to a “Disability” (as defined below) during the Employment Period, the Company may give Executive written notice in accordance with Sections 3(g) and 9(g) of its intention to terminate Executive’s employment. For purposes of this Agreement, “Disability” means Executive’s inability to perform his essential duties hereunder by reason of any medically determinable physical or mental impairment for a period of six (6) months or more in any twelve (12) month period.

(b) Cause. Executive’s employment may be terminated at any time by the Company for “Cause” (as defined below). For purposes of this Agreement; “Cause” shall mean Executive’s (i) commission of a felony or a crime of moral turpitude; (ii) engaging in conduct that constitutes fraud, bribery or embezzlement; (iii) engaging in conduct that constitutes gross negligence or willful misconduct that results or could reasonably be expected to result in harm to the

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Company’s business or reputation; (iv) breach of any material terms of Executive’s employment, including this Agreement, which results or could reasonably be expected to result in harm to the Company’s business or reputation; or (v) continued willful failure to substantially perform duties as Executive Vice President.

(c) Termination Without Cause. The Company may terminate Executive’s employment hereunder without Cause at any time.

(d) Good Reason. Executive’s employment may be terminated at any time by Executive for Good Reason upon thirty (30) calendar days’ prior written notice following the occurrence of the event giving rise to the termination for Good Reason. For purposes of this Agreement, “Good Reason” means voluntary resignation after any of the following actions taken by the Company without Executive’s written consent: (i) any material failure of the Company to fulfill its obligations under this Agreement; (ii) a material and adverse change to, or a material reduction of, Executive’s duties and responsibilities to the Company; (iii) a material reduction in Executive’s then current Annual Base Salary (not including any diminution related to a broader compensation reduction that is not limited to Executive specifically and that is not more than 10% in the aggregate); or (iv) the failure of any successor (whether by sale, reorganization, consolidation, merger or other corporate transaction) to assume this Agreement, whether in writing or by operation of law; provided, that any such event shall not constitute Good Reason unless and until Executive shall have provided the Company with notice thereof no later than 30 calendar days following Executive’s knowledge of the occurrence of such event and the Company shall have failed to remedy such event within 30 calendar days of receipt of such notice.

(e) Voluntary Termination. Executive’s employment may be terminated at any time by Executive without Good Reason upon 30 calendar days’ prior written notice.

(f) Termination as a Result of Expiration of the Employment Period. Unless otherwise agreed between the parties, Executive’s employment shall automatically terminate upon expiration of the Employment Period.

(g) Notice of Termination. Any termination by the Company for Cause or without Cause, or by Executive for Good Reason or without Good Reason, shall be communicated by notice of termination to the other party hereto given in accordance with Section 9(g) herein specifying the Date of Termination (as defined below) (a “Notice of Termination”). The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder.

(h) Date of Termination. “Date of Termination” means (i) if Executive’s employment is terminated by the Company for Cause, without Cause or by reason of Disability, or by Executive for Good Reason or without Good Reason, the date of receipt of the Notice of Termination (in the case of a termination with or without Good Reason, provided such Date of Termination is in accordance with Section 3(d) or Section 3(e)) or any later date specified therein pursuant to Section 3(g), as the case may be; (ii) if Executive’s employment is terminated by reason of death, the date of death; and (iii) the expiration of the Employment Period, and the termination of Executive’s employment upon the date of such expiration.

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4. Obligations of the Company upon Termination.

(a) With Good Reason; Without Cause. If during the Employment Period the Company shall terminate Executive’s employment without Cause or Executive shall terminate his employment for Good Reason, then the Company will provide Executive with the following payments and/or benefits:

(i) The Company shall pay to Executive as soon as reasonably practicable but no later than the 15^th day of the third month following the end of the calendar year that contains the Date of Termination in a lump sum to the extent not previously paid, (A) the Annual Base Salary through the Date of Termination, (B) the Bonus earned for any fiscal year ended prior to the year in which the Date of Termination occurs, provided that Executive was employed on the last day of such fiscal year, (C) the amount of any unpaid expense reimbursements to which Executive may be entitled pursuant to Section 2(d)(v) hereof and (D) any other vested payments or benefits to which Executive or Executive’s estate may be entitled to receive under any of the Company’s benefit plans or applicable law, in accordance with the terms of such plans or law (clauses (A)-(D), the “Accrued Obligations”); and

(ii) Subject to Section 4(e) below, after the Date of Termination, the Company will pay Executive severance in an amount equal to the greater of (a) Executive’s Annual Base Salary and (b) amounts due under applicable laws (the “Severance Payment”). The Severance Payment shall be made in a lump sum on the date that is 60 calendar days following the Date of Termination, subject to the terms and conditions in Section 4(e) below.

(b) Death or Disability. If Executive’s employment shall be terminated by reason of the Executive’s death or Disability, then the Company will provide Executive with the Accrued Obligations. Thereafter, the Company shall have no further obligation to Executive, his estate, his beneficiaries or his legal representatives.

(c) Cause; Other than for Good Reason. If Executive’s employment shall be terminated by the Company for Cause or by Executive without Good Reason, then the Company shall have no further obligations to Executive other than for payment of the Accrued Obligations.

(d) Expiration of the Employment Period. Subject to Section 4(e) below, if Executive’s employment shall be terminated by reason of the expiration of the Employment Period (and not for Cause), then the Company will provide Executive with the Accrued Obligations and will pay Executive an amount equal to the greater of (a) Executive’s Annual Base Salary and (b) amounts due under applicable laws (the “Expiration Payment”). The Expiration Payment shall be made in a lump sum on the date that is 60 calendar days following the expiration of the Employment Period.

(e) Thereafter, the Company shall have no further obligation to Executive or his legal representatives.

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(f) Separation Agreement and General Release. The Company’s obligation to make the Severance Payment is conditioned on Executive’s or his legal representative’s executing a separation agreement and general release of claims related to or arising from Executive’s employment with the Company or the termination of employment, against the Company and its affiliates (and their respective officers and directors) in a form reasonably determined by the Company, which shall be provided by the Company to Executive within five (5) calendar days following the Date of Termination; provided, however, that if Executive should fail to execute (or revokes) such release within 45 calendar days following the Date of Termination, the Company shall not have any obligation to provide the Severance Payment. If Executive executes the release within such 45-calendar day period and does not revoke the release within seven (7) calendar days following the execution of the release, the Severance Payment will be made in accordance with Section 4(a)(ii).

5. Restrictive Covenants.

(a) In consideration of Executive’s employment and receipt of payments hereunder, including, without limitation, the grant of any form of long-term compensation described in Section 2(d) herein, during the period commencing on the Effective Date and ending twelve (12) months after the Date of Termination, Executive shall not directly, or indirectly through another person, (i) directly or indirectly induce or attempt to induce any employee, representative, agent or consultant of the Company or any of its affiliates or subsidiaries to leave the employ or services of the Company or any of its affiliates or subsidiaries, or in any way interfere with the relationship between the Company or any of its affiliates or subsidiaries and any employee, representative, agent or consultant thereof; or (ii) hire any person who was an employee, representative, agent or consultant of the Company or any of its affiliates or subsidiaries at any time during the twelve-month period immediately prior to the date on which such hiring would take place.

(b) Non-Competition. Executive hereby acknowledges that he is familiar with the Confidential Information (as defined below) of the Company and its affiliates and subsidiaries. Executive acknowledges and agrees that the Company would be irreparably damaged if Executive were to provide services to any person competing with the Company or any of its affiliates or subsidiaries or engaged in a “Similar Business” (as defined below) and that such competition by Executive would result in a significant loss of goodwill by the Company. Therefore, Executive agrees that the following are reasonable restrictions:

(i) Similar Business: During the Employment Period, and for a term of twelve (12) months immediately after the termination of such relationship (voluntarily or involuntarily), Executive shall not, directly or indirectly, engage in Similar Business services or activities within the Commonwealth of Puerto Rico or any other market the Company is engaged in business; provided, that nothing herein shall prohibit Executive from being a passive owner of not more than 5% of the outstanding stock of any class of a corporation which is publicly traded so long as none of such persons has any active participation in the business of such corporation.

(ii) Clients: For a period of twelve (12) months after the termination the Executive’s employment relationship with the Company (voluntarily or involuntarily), Executive shall not, directly or indirectly, solicit or provide, without the written consent of the Company, any service for any Client, such as those Similar Business services or activities provided by Executive during his employment relationship.

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For purposes of this Section 5(b) of the Agreement, the following terms shall have these meanings:

“Similar Business” shall mean the same or substantially the same business activity or activities performed or engaged by Executive for, or on behalf, of the Company or any of its subsidiaries or affiliates.

“Clients” shall mean any person or entity that was a client or customer of the Company at the time of termination of Executive’s employment relationship with the Company and for whom Executive provided any services on behalf of the Company or any of its affiliates or subsidiaries at any time during the twelve (12) months prior to such termination and which still maintains a business relationship with the Company as of the Date of Termination.

Executive warrants and represents that the nature and extent of this non-competition clause has been fully explained to Executive by the Company, and that Executive’s decision to accept the same is made voluntarily, knowingly, intelligently and free from any undue pressure or coercion. Executive further warrants and represents that he has agreed to this non-competition clause in exchange for compensation, benefits and protections Executive is receiving under this Agreement.

(c) Non-Disclosure; Non-Use of Confidential Information. Executive shall not disclose or use at any time, either during his employment with the Company or at any time thereafter, any Confidential Information of which Executive is or becomes aware, whether or not such information is developed by him, except to the extent that such disclosure or use is directly related to and required by Executive’s performance in good faith of duties assigned to Executive by the Company. Executive will take all appropriate steps to safeguard all Confidential Information in his possession and to protect it against disclosure, misuse, espionage, loss and theft. Executive shall deliver to the Company at the termination of his employment with the Company, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof, whether in written or electronic form) relating to the Confidential Information or the “Work Product” (as defined in Section 5(e)(ii)) of the business of the Company that Executive may then possess or have under his control.

(d) Proprietary Rights. Executive recognizes that the Company possesses a proprietary interest in all Confidential Information and Work Product and has the exclusive right and privilege to use, protect by copyright, patent or trademark, or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company and Executive in writing. Executive expressly agrees that any Work Product made or developed by Executive or his agents during the course of Executive’s employment, including any Work Product which is based on or arises out of Work Product, shall be the property of and inure to the exclusive benefit of the Company. Executive further agrees that all Work Product developed by Executive (whether or not able to be protected

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by copyright, patent or trademark) during the course of his employment with the Company, or involving the use of the time, materials or other resources of the Company, shall be promptly disclosed to the Company and shall become the exclusive property of the Company, and Executive shall execute and deliver any and all documents necessary or appropriate to implement the foregoing.

(e) Certain Definitions.

(i) As used herein, the term “Confidential Information” means information that is not generally known to the public (but for purposes of clarity, Confidential Information shall never exclude any such information that becomes known to the public because of Executive’s unauthorized disclosure) and that is used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by Executive while employed by the Company concerning (A) the business or affairs of the Company; (B) products or services; (C) fees, costs and pricing structures; (D) designs; (E) analyses; (F) drawings, photographs and reports; (G) computer software, including operating systems, applications and program listings; (H) flow charts, manuals and documentation; (I) databases; (J) accounting and business methods; (K) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice; (L) customers and clients and customer or client lists; (M) other copyrightable works; (N) all production methods, processes, technology and trade secrets; and (O) all similar and related information in whatever form. Confidential Information will not include any information that has been published in a form generally available to the public (except as a result of Executive’s unauthorized disclosure or any third party’s unauthorized disclosure resulting from any direct or indirect influence by Executive) prior to the date Executive proposes to disclose or use such information. Confidential Information will not be deemed to have been published or otherwise disclosed merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination.

(ii) As used herein, the term “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) that relates to the Company’s actual or anticipated business, research and development or existing or future products or services and that are conceived, developed or made by Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person) while employed by the Company together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.

6. Non-Disparagement.

During the Employment Period and at all times thereafter, neither Executive nor his agents or representatives, on the one hand, nor the Company itself, or its executives or boards of directors, on the other hand, shall directly or indirectly issue or communicate any public statement, or statement likely to become public, that maligns, denigrates or disparages the other

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(including, in the case of communications by Executive or his agents or representatives, the Company or any of the Company’s officers, directors or employees. The foregoing shall not be violated by truthful responses to (a) legal processes or governmental inquiries or (b) by private statements to the Company or any of Company’s officers, directors or employees; provided, however, that in the case of Executive, with respect to clause (ii), such statements are made in the course of carrying out his duties pursuant to this Agreement.

7. Confidentiality of Agreement.

The Parties agree that the consideration furnished under or otherwise referenced in this Agreement, the discussions and correspondence that led to this Agreement, and the terms and conditions of this Agreement and any other collateral agreement referred to herein are private and confidential. Except as may be required by applicable law, regulation, or stock exchange requirement, neither Party may disclose the above information to any other person or entity without the prior written approval of the other.

8. Executive’s Representations, Warranties and Covenants.

(a) Executive hereby represents and warrants to the Company that:

(i) Executive has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, and this Agreement has been duly executed by Executive voluntarily, knowingly, intelligently and free from any undue pressure or coercion;

(ii) the execution, delivery and performance of this Agreement by Executive does not and will not, with or without notice or the passage of time, conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject;

(iii) Executive is not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, fee- for-services agreement, confidentiality agreement or similar agreement with any other person;

(iv) upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a legal, valid and binding obligation of Executive, enforceable in accordance with its terms;

(v) Executive understands that the Company will rely upon the accuracy and truth of the representations and warranties of Executive set forth herein and Executive consents to such reliance; and

(vi) as of the date of execution of this Agreement, Executive is not in breach of any of its terms, including having committed any acts that would form the basis for a Cause termination if such act had occurred after the Effective Date.

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(b) The Company hereby represents and warrants to Executive that:

(i) the Company has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, and this Agreement has been duly executed by the Company;

(ii) the execution, delivery and performance of this Agreement by the Company does not and will not, with or without notice or the passage of time, conflict with, breach, violate or cause a default under any agreement, contract or instrument to which the Company is a party or any judgment, order or decree to which the Company is subject;

(iii) upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a legal, valid and binding obligation of the Company, enforceable in accordance with its terms; and

(iv) the Company understands that Executive will rely upon the accuracy and truth of the representations and warranties of the Company set forth herein and the Company consents to such reliance.

9. General Provisions.

(a) Severability. It is the desire and intent of the Parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Upon a determination that any term or provision (or any portion thereof with the exception of the Non-Competition covenant contained in Section 5(b) of this Agreement) is invalid, illegal, or incapable of being enforced, the Parties agree that a reviewing court shall have the authority to “blue pencil” or modify this Agreement so as to render it enforceable and effect the original intent of the parties to the fullest extent permitted by applicable law.

(b) Entire Agreement and Effectiveness. Effective as of the Effective Date, this Agreement embodies the complete agreement and understanding among the Parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the Parties, written or oral, which may have related to the subject matter hereof in any way (excluding any type of long-term compensation described in Section 2(d) herein the terms and conditions of which are or will be embodied in other agreements).

(c) Successors and Assigns.

(i) This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.

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(ii) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. The Company will require any successor (whether direct or indirect, by sale, reorganization, consolidation merger, or other corporate transaction) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law, contract or otherwise.

(d) Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF PUERTO RICO, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE COMMONWEALTH OF PUERTO RICO OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE COMMONWEALTH OF PUERTO RICO TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE COMMONWEALTH OF PUERTO RICO WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

(e) Enforcement.

(i) Arbitration. Except for disputes arising under Section 5 of this Agreement (including, without limitation, any claim for injunctive relief), any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the Parties are unable to resolve by mutual agreement, shall be settled by submission by either Executive or the Company of the controversy, claim or dispute to binding arbitration in San Juan, Puerto Rico (unless the Parties agree in writing to a different location), before a single arbitrator in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association then in effect. In any such arbitration proceeding the Parties agree to provide all discovery deemed necessary by the arbitrator. The decision and award made by the arbitrator shall be accompanied by a reasoned opinion, and shall be final, binding and conclusive on all Parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof. The Company will bear the totality of the arbitrator’s and administrative fees and costs. Each party shall bear its or his litigation costs and expenses (including, without limitation, legal counsel fees and expenses); provided, however, that the arbitrator shall have the discretion to award the prevailing party reimbursement of its or his reasonable attorneys’ fees and costs. Upon the request of either of the Parties, at any time prior to the beginning of the arbitration hearing the Parties may attempt in good faith to settle the dispute by mediation administered by the American Arbitration Association. The Company will bear the totality of the mediator’s and administrative fees and costs. In any arbitration, neither of the Parties will be entitled to present, maintain or participate in a class, collective or representative complaint, and the arbitrator will have no authority over any of said claims or actions. This covenant to arbitrate shall not govern claims regarding workers’ compensation under the State Insurance Fund, state insurance for temporary disability or unemployment insurance benefits.

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(ii) Remedies. The arbitrator shall have authority to grant remedies under this Agreement and/or remedies provided for by law, and may, to the extent permitted by law, be exercised concurrently or separately.

(iii) Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

(f) Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company and Executive and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Agreement or any provision hereof.

(g) Notices. Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) in an envelope marked “confidential” to the recipient at the address below indicated or at such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder and received when delivered personally, five calendar days after deposit in the U.S. mail and one calendar day after deposit for overnight delivery with a reputable overnight courier service.

If to the Company, to:

EVERTEC GROUP, LLC

GENERAL COUNSEL AND HUMAN RESOURCES SENIOR VICE PRESIDENT

Carr #176, Km 1.3

Cupey Bajo, Rio Piedras Puerto Rico 00926

P.O. Box 364527

San Juan, Puerto Rico 00936-4527

Telephone: (787) 759-9999

with a copy (which shall not constitute notice) to:

Lic. Reynaldo Quintana

Baerga & Quintana Ass

416 Ponce de Leon Ave.

Union Plaza Suite 810

San Juan, Puerto Rico 00918

Tel. 787.753.7455

Fax. 787.756.5796

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If to Executive, to:

Executive’s home address most recently on file with the Company.

(h) Withholdings Taxes. The Company may withhold from any amounts payable under this Agreement such federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

(i) Survival of Representations, Warranties and Agreements. All representations, warranties and agreements contained herein shall survive the consummation of the transactions contemplated hereby indefinitely.

(j) Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. All references to a “Section” in this Agreement are to a section of this Agreement unless otherwise noted.

(k) Construction. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any Party.

(l) Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

(m) Section 409A. Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or shall comply with the requirements of such provision. Notwithstanding anything in this Agreement or elsewhere to the contrary, distributions upon termination of Executive’s employment may only be made upon a “separation from service” as determined under Section 409A of the Code. Each payment under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A of the Code. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement or otherwise which constitutes a “deferral of compensation” within the meaning of Section 409A of the Code. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code. To the extent that any reimbursements pursuant to this Agreement or otherwise are taxable to Executive, any reimbursement payment due to Executive shall be paid to Executive on or before the last calendar day of Executive’s taxable year following the taxable year in which the related expense was incurred; provided, that, Executive has provided the Company written documentation of such expenses in a timely fashion and such expenses otherwise satisfy the Company’s expense reimbursement policies. Reimbursements pursuant to this Agreement or otherwise are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in one taxable year shall not affect the amount of such

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reimbursements that Executive receives in any other taxable year. Notwithstanding any provision in this Agreement to the contrary, if on the date of his termination from employment with the Company Executive is deemed to be a “specified employee” within the meaning of Code Section 409A and the Final Treasury Regulations using the identification methodology selected by the Company from time to time, or if none, the default methodology under Code Section 409A, any payments or benefits due upon a termination of Executive’s employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Code Section 409A shall be delayed and paid or provided (or commence, in the case of installments) on the first payroll date on or following the earlier of (i) the date which is six (6) months and one calendar day after Executive’s termination of employment for any reason other than death; and (ii) the date of Executive’s death, and any remaining payments and benefits shall be paid or provided in accordance with the normal payment dates specified for such payment or benefit. Notwithstanding any of the foregoing to the contrary, the Company and its respective officers, directors, employees, or agents make no guarantee that the terms of this Agreement as written comply with, or are exempt from, the provisions of Code Section 409A, and none of the foregoing shall have any liability for the failure of the terms of this Agreement as written to comply with, or be exempt from, the provisions of Code Section 409A.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

EVERTEC GROUP, LLC

Name: Peter Harrington

Title:   President & Chief Executive Officer

EXECUTIVE NAME

Name: Alan I. Cohen

Title:   Executive Vice President

EX-10.69

Exhibit 10.69

EVERTEC, INC.

2013 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) is made as of this 15^th day of October, 2014 (the “Date of Grant”), by and between EVERTEC, Inc. (the “Company”) and the person whose signature, name and title appear in the signature block hereof (the “Participant”). Defined terms used but not otherwise defined herein will have the meanings attributed to them in the Plan (defined below) and the Participant’s employment agreement dated as of October 13, 2014 (the “Employment Agreement”).

W I T N E S S E T H

WHEREAS, the Company maintains the EVERTEC, Inc. 2013 Equity Incentive Plan (the “Plan”);

WHEREAS, Section 9 of the Plan authorizes the grant (the “Award”) of restricted stock units (“RSUs”) with respect to the common stock, par value $0.01 per share, of the Company (“Common Stock”); and

WHEREAS, in connection with the Participant’s service as an employee of the Company or any of its affiliates and subsidiaries (the “Employment”), the Company desires to grant RSUs to the Participant, subject to the terms and conditions of the Plan and this Agreement.

NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the parties agree as follows:

1. Grant of RSUs.

(a) In consideration of the Employment, the Company will grant to the Participant 9,561 RSUs.

(b) Each RSU represents the unfunded and unsecured promise of the Company to deliver to the Participant one share of Common Stock on the Settlement Date (as defined in Section 6 hereof), subject to the discretion of the Company to settle the Award on a cash basis. The Award granted hereunder shall be null and void unless the Participant accepts this Agreement by executing it in the appropriate signature block provided and promptly returning it to the Company.

(c) The RSUs shall be credited to a separate account maintained for the Participant on the books of the Company (the “Account”). All amounts credited to the Account under this Agreement shall continue for all purposes to be part of the general assets of the Company. The Participant’s interest in the Account shall make the Participant only a general, unsecured creditor of the Company.

2. Purchase Price. The purchase price of the RSUs shall be deemed to be zero U.S. dollars ($0) per share.

3. Vesting. The RSUs shall vest and become non-forfeitable in three (3) substantially equal installments on each of the first three (3) anniversaries of the Date of Grant (each such date, a “Vesting Date”), provided that the Participant is actively carrying out his duties in connection with the Employment at all times from the Date of Grant through each respective Vesting Date.

4. Termination. For purposes of this Section 4, “Termination Date” is the date the Participant’s Employment is terminated under the circumstances set forth in (a) or (b) below.

(a) In the event the Employment is terminated (i) by the Company without Cause; (ii) by the Participant for Good Reason; or (iii) due to the Participant’s death or Disability, any of the RSUs that have not become vested as of the Termination Date shall automatically vest.

(b) In the event the Employment is terminated (i) by the Company for Cause; or (ii) by the Participant without Good Reason, any of the RSUs that have not become vested as of the Termination Date shall automatically be forfeited.

5. Dividend Equivalents. If the Company pays an ordinary cash dividend on its outstanding Common Stock at any time between the Date of Grant and the Vesting Date — provided that the Record Date (which means the date on which stockholders of record are determined for purposes of paying a cash dividend on issued and outstanding shares of Common Stock) for any such dividend falls after the Date of Grant — the Participant shall receive a lump sum cash payment on the Settlement Date (as defined in Section 6 below) equal to the aggregate amount of the cash dividends paid by the Company on a single share of Common Stock multiplied by the number of RSUs that are settled on the Settlement Date (the “Dividend Payment”).

6. Settlement. Within sixty (60) days following the Vesting Date or the day any RSUs are automatically vested in accordance with the terms and conditions of this Agreement (the “Settlement Date”):

(a) The RSUs shall cease to be credited to the Account;

(b) The Company shall, in its discretion, either (i) issue and deliver to the Participant one share of Common Stock for each vested RSU (the “RSU Shares”) and enter the Participant’s name as a shareholder of record or beneficial owner with respect to the RSU Shares on the books of the Company, or (ii) settle the Award on a cash basis; and

(c) The Company shall calculate the Dividend Payment.

7. Taxes.

(a) Unless otherwise required by applicable law, on the Settlement Date the Participant shall recognize taxable income with respect to the RSU Shares and the Dividend Payment, and the Company shall report such income to the appropriate taxing authorities as it determines to be necessary and appropriate. The Participant shall be responsible for payment of any taxes due in respect of the RSU Shares and the Dividend Payment. For purposes hereof, unless otherwise required by applicable law, the RSU Shares shall be valued at Fair Market Value.

(b) Unless otherwise required by applicable law, the Company shall not withhold taxes in respect of the RSU Shares and the Dividend Payment. If the Company determines that withholding is required by applicable law, the following provisions shall apply:

(i) As a condition precedent to the delivery of any RSU Shares and the payment of any Dividend Payment to the Participant, the Participant shall, upon the Company’s request, pay to the Company through any of the methods set forth in (ii) below, such amount as the Company may require under all applicable federal, state, local or other laws or regulations, to withhold and pay over as income or other withholding taxes (a “Tax Payment”) with respect to the RSU Shares and the Dividend Payment.

(ii) The Participant may elect, subject to the Company’s approval, to satisfy his or her obligation to advance the Tax Payment by any of the following means: (A) a cash payment to the Company; (B) authorizing the Company to withhold from the RSU Shares otherwise to be delivered to the Participant, a number of whole shares of Common Stock having a Fair Market Value equal to the Tax Payment; or (C) any combination of (A) and (B).

(iii) In the event that the Company determines that a Tax Payment is required and the Participant fails to advance the Tax Payment after so requested by the Company, the Company may, in its discretion, deduct any Tax Payments from any amount then or thereafter payable by the Company to the Participant and take such other action as deemed necessary to satisfy all obligations for the Tax Payment (including reducing the number of RSU Shares delivered on the Settlement Date).

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8. Restrictions. RSU Shares that are issued in connection with a particular Vesting Date may only be sold, pledged, transferred or otherwise disposed of, whether with or without consideration and whether voluntarily or involuntarily or by operation of law, in accordance with the Company’s Stock Ownership Guidelines and the Company’s Insider Trading Policy and Procedures as in effect from time to time (or by will or the laws of descent and distribution or as otherwise permitted by the Committee). The RSUs granted hereunder may not be subject to lien, garnishment, attachment or other legal process and may not be transferred except to the extent permitted by the Plan. The Participant agrees to execute any documents the Company may require to effect these restrictions.

9. Compliance with Laws and Regulations. The issuance, delivery and transfer of RSU Shares shall be subject to compliance by the Company and the Participant with all applicable requirements of securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance, delivery or transfer. If in order to issue and deliver the RSU Shares it is required or desirable to (a) list, register or qualify the RSU Shares upon any securities exchange or under any law; (b) receive the consent or approval of any governmental body; and/or (c) take any other action as a condition of, or in connection with, the vesting of the RSUs or delivery of the RSU Shares hereunder, the RSUs shall not vest nor will the RSU Shares be delivered unless such listing, registration, qualification, consent, approval or action shall have been effected, obtained or taken, free of any conditions not approved by the Company (which approval will not be unreasonably withheld). The Company agrees to use commercially reasonable efforts to effect, obtain or take any such listing, registration, qualification, consent, approval or action.

10. Rights as Stockholder. Upon and following the Settlement Date, the Participant shall be the record or beneficial owner of the RSU Shares unless and until such shares are sold or otherwise disposed of, and, if a record owner, shall be entitled to all rights of a stockholder of the Company (including voting rights). The Participant acknowledges and agrees that prior to the Settlement Date, the Participant shall not be deemed for any purpose to be the owner of the shares of Common Stock underlying the RSUs and shall not have any rights of a stockholder as a result of receiving the Award under this Agreement other than with respect to the Participant’s right to receive payment pursuant to Section 5. The Participant acknowledges and agrees that, with respect to each RSU credited to the Account, the Participant shall have no voting rights with respect to the Company unless and until such RSU is settled in RSU Shares pursuant to Section 6 hereof.

11. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the Commonwealth of Puerto Rico applicable to contracts to be performed therein.

12. Notice. Every notice or other communication relating to this Agreement shall be made in writing either (a) by personal delivery to the party entitled thereto, (b) by facsimile with confirmation of receipt, (c) by certified mail to the last known address of the party entitled thereto, (d) by email, or (e) by express courier service. The notice, request or other communication shall be deemed to be received upon personal delivery, upon confirmation of receipt or upon receipt by the party entitled thereto if by certified mail or express courier service; provided, however, that if a notice, request or other communication is not received during regular business hours, it shall be deemed to be received on the next succeeding business day of the Company.

13. Section 409A. Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payments and benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Code, or shall comply with the requirements of Section 409A of the Code, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be exempt from or in compliance with Section 409A of the Code. If the Participant notifies the Company (with specificity as to the reason therefor) that the Participant believes that any provision of this Agreement would cause the Participant to incur any additional tax or interest under Section 409A of the Code or the Company independently makes such determination, the Company shall, after consulting with the Participant, reform such provision (or award of compensation or benefit) to attempt to comply with or be exempt from Section 409A of the Code through good faith modifications to the minimum extent reasonably appropriate. To the extent that any provision hereof is modified in order to comply with Section 409A of

3

the Code, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Participant and the Company without violating the provisions of Section 409A of the Code. Notwithstanding the foregoing, none of the Company, its Affiliates, officers, directors, employees, or agents guarantees that this Agreement complies with, or is exempt from, the requirements of Section 409A of the Code and none of the foregoing shall have any liability for the failure of this Agreement to comply with, or be exempt from, such requirements.

14. Severability. If any one or more of the provisions contained in this Agreement should be found invalid, illegal, inoperative or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. Any illegal or unenforceable term shall be deemed to be void and of no force and effect only to the minimum extent necessary to bring such term within the provisions of applicable law and such term, as so modified, and the balance of this Agreement shall then be fully enforceable.

15. Entire Agreement. This Agreement, the Plan and the Employment Agreement (solely with respect to the defined terms contained therein and used herein) contain the entire agreement between the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless in writing and signed by the parties hereto.

16. Successors. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of the Participant, acquire any rights hereunder in accordance with this Agreement or the Plan.

17. Interpretation. The terms and provisions of the Plan are incorporated herein by reference, and the Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Compensation Committee of the Board of Directors of the Company, the resolution of which shall be final and binding on the Company and the Participant. Should a party be required to perform or refrain from performing any action on a particular day during the term of this Agreement and such day falls on day that is not a trading day for the New York Stock Exchange, the day to perform or refrain from performing will be the next full trading day following the day on which the party was originally required to perform or refrain from performing the required action.

18. Counterparts. This Agreement may be signed in counterparts, each of which shall be deemed an original and both of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the Date of Grant set forth above.

EVERTEC, INC.		THE PARTICIPANT
Name: Title:	Peter Harrington President and Chief Executive Officer	Name: Title:	Alan I. Cohen Executive Vice President

4

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

I, Peter Harrington, certify that:

1. I have reviewed this report on Form 10-Q of EVERTEC, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2014	/s/ Peter Harrington
	Peter Harrington
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

I, Juan J. Román, certify that:

1. I have reviewed this report on Form 10-Q of EVERTEC, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2014	/s/ Juan J. Román
	Juan J. Román
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002 , the undersigned officer of EVERTEC, Inc (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2014	/s/ Peter Harrington
	Peter Harrington
	Chief Executive Officer

EX-32.2

EXHIBIT 32.2

Certification Pursuant to 18 U.S.C. 1350

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of EVERTEC, Inc (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2014	/s/ Juan J. Román
	Juan J. Román
	Chief Financial Officer

XML

Total Debt (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Debt Instrument [Line Items]
Other short-term borrowing			$ 1,200
Total debt	679,102		735,880
Term A due on April 17, 2018 [Member] | Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility	280,968	[1],[2]	292,153	[1],[2]
Term B due on April 17, 2020 [Member] | Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility	390,134	[2],[3]	392,527	[2],[3]
Expiring on April 17, 2018 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility	$ 8,000		$ 50,000

[1] Applicable margin of 2.50% at September 30, 2014 and December 31, 2013.

[2] Includes unamortized discount.

[3] Subject to a minimum rate ("LIBOR floor") of 0.75% plus applicable margin of 2.75% at September 30, 2014 and December 31, 2013.

XML

Net Income (Loss) Per Common Share - Additional Information (Detail) (USD $)	0 Months Ended			9 Months Ended
	Aug. 06, 2014	May 07, 2014	Feb. 12, 2014	Sep. 30, 2014
Earnings Per Share [Abstract]
Cash dividend paid per common share				$ 0.10
Cash dividend declared per common share	$ 0.10	$ 0.10	$ 0.10	$ 0.10

XML

Share-based Compensation - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expenses	$ 0.6	$ 0.2	$ 1.3	$ 5.7
Total unrecognized cost for stock options	1.6		1.6
Unrecognized compensation cost, weighted average period of recognition			2 years
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized cost for stock options	$ 0.2		$ 0.2
Unrecognized compensation cost, weighted average period of recognition			8 months

XML

Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Commitments and Contingencies [Line Items]
Total deferred rent obligation	$ 0.1		$ 0.1		$ 0.3
Rent expense of office facilities and real estate	2.0	1.7	6.2	5.7
Rent expense for telecommunications and other equipment	1.5	1.8	4.6	5.3
Outstanding letter of credit	$ 1.1		$ 1.1
Maximum [Member]
Commitments and Contingencies [Line Items]
Outstanding letter of credit, maturity term			3 months

XML

Summary of Stock Option Activity (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding shares, Beginning Balance	1,285,536
Outstanding shares, Granted	100,000
Outstanding shares, Forfeitures	31,164
Outstanding shares, Exercised	452,999
Outstanding shares, Ending Balance	901,373
Outstanding shares, Exercisable, Ending Balance	23,374
Outstanding weighted average exercise prices, Beginning Balance	$ 4.77
Outstanding weighted average exercise prices, Granted	$ 24.01
Outstanding weighted average exercise prices, Forfeitures	$ 1.30
Outstanding weighted average exercise prices, Exercised	$ 2.09
Outstanding weighted average exercise prices, Ending Balance	$ 8.36
Outstanding weighted average exercise prices, Exercisable, Ending Balance	$ 1.30

XML

Property and Equipment, Net (Detail) (USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Buildings [Member]	Sep. 30, 2014 Data Processing Equipment [Member] Minimum [Member]	Sep. 30, 2014 Data Processing Equipment [Member] Maximum [Member]	Sep. 30, 2014 Furniture and Equipment [Member] Minimum [Member]	Sep. 30, 2014 Furniture and Equipment [Member] Maximum [Member]	Sep. 30, 2014 Leasehold Improvements [Member] Minimum [Member]	Sep. 30, 2014 Leasehold Improvements [Member] Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life			30 years	3 years	5 years	3 years	20 years	5 years	10 years
Buildings	$ 1,600	$ 1,726
Data processing equipment	73,199	68,273
Furniture and equipment	8,200	6,385
Leasehold improvements	2,896	2,880
Property and equipment	85,895	79,264
Less - accumulated depreciation and amortization	(57,832)	(47,555)
Depreciable assets, net	28,063	31,709
Land	1,419	1,531
Property and equipment, net	$ 29,482	$ 33,240

XML

Transactions with Related Parties (Parenthetical) (Detail) (USD $)	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Jun. 30, 2013	Sep. 30, 2014		Sep. 30, 2013
Transactions with Third Party [Line Items]
Revenues generated from investee accounted for under equity method	$ 600,000		$ 600,000			$ 2,000,000		$ 2,300,000
Management fee paid for termination of consulting agreement								16,718,000
Rent and other fees	1,999,000	[1],[2]	1,636,000	[1],[2]		6,000,000	[1],[2]	31,708,000	[1],[2]
Selling, general and administrative expense	7,104,000		8,990,000			25,629,000		30,477,000
Non operating expense	(6,287,000)		(5,703,000)			(16,503,000)		(107,464,000)
Popular [Member]
Transactions with Third Party [Line Items]
Total revenues from Popular	46.00%		46.00%			45.00%		47.00%
Rent and other fees					5,900,000
Related Party Transactions [Member]
Transactions with Third Party [Line Items]
Management fees to equity sponsors								20,300,000
Selling, general and administrative expense	2,000,000		1,600,000			6,000,000		9,100,000
Non operating expense								$ 22,600,000

[1] Includes management fees to equity sponsors amounting to $20.3 million for the nine months ended September 30, 2013. Management fees paid during 2013 include $16.7 million resulting from the termination of the Consulting Agreements as explained below. It also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes during the first half of 2013.

[2] For the periods presented above, $2.0 million, $1.6 million, $6.0 million and $9.1 million were recorded as selling, general and administrative expenses, and $22.6 million was recorded as non-operating expenses for the nine months ended September 30, 2013.

XML

Debt and Short-Term Borrowings (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Total Debt

Total debt as of September 30, 2014 and December 31, 2013 was as follows:

(Dollar amounts in thousands)	September 30, 2014		December 31, 2013
Senior Secured Credit Facility (Term A) due on April 17, 2018 paying interest at a variable interest rate (London InterBank Offered Rate (“LIBOR”) plus applicable margin(1)(3))	$	280,968	$	292,153
Senior Secured Credit Facility (Term B) due on April 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(2)(3))		390,134		392,527
Senior Secured Revolving Credit Facility expiring on April 17, 2018 paying interest at a variable interest rate		8,000		50,000
Other short-term borrowing		—		1,200
Total debt	$	679,102	$	735,880

(1) Applicable margin of 2.50% at September 30, 2014 and December 31, 2013.

(2) Subject to a minimum rate (“LIBOR floor”) of 0.75% plus applicable margin of 2.75% at September 30, 2014 and December 31, 2013.

(3) Includes unamortized discount.

XML

Segregation of Income Tax Expense (Benefit) Based on Location of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Current tax provision (benefit)
Current tax provision (benefit), Puerto Rico	$ 1,687	$ 1,456	$ 3,047	$ 1,712
Current tax provision (benefit), United States	(923)	24	(508)	453
Current tax provision (benefit), Foreign countries	1,374	350	4,152	955
Total current tax provision (benefit)	2,138	1,830	6,691	3,120
Deferred tax benefit
Deferred tax provision (benefit), Puerto Rico	(518)	(422)	314	(6,378)
Deferred tax provision (benefit) , United States	(138)	(1)	(141)	(3)
Deferred tax provision (benefit), Foreign countries	(400)	(49)	(1,659)	(342)
Total deferred tax benefit	$ (1,056)	$ (472)	$ (1,486)	$ (6,723)

XML

Fair Value Measurements for Assets at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Indemnification assets:
Software cost reimbursement	$ 1,632	$ 3,586
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Indemnification assets:
Software cost reimbursement	$ 1,632	$ 3,586

XML

Carrying Amount of Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 538,549	$ 530,123
Accumulated amortization	(200,301)	(162,343)
Net carrying amount	338,248	367,780
Customer relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	14 years	14 years
Gross amount	312,811	314,036
Accumulated amortization	(89,909)	(73,180)
Net carrying amount	222,902	240,856
Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	39,950	39,950
Accumulated amortization	(13,856)	(11,258)
Net carrying amount	26,094	28,692
Trademarks [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	10 years	10 years
Trademarks [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	15 years	15 years
Software packages [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	129,249	119,598
Accumulated amortization	(81,459)	(65,655)
Net carrying amount	47,790	53,943
Software packages [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	3 years	3 years
Software packages [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	10 years	10 years
Non-compete agreement [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	15 years	15 years
Gross amount	56,539	56,539
Accumulated amortization	(15,077)	(12,250)
Net carrying amount	$ 41,462	$ 44,289

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Schedule of Reconciliation of Numerator and Denominator of Earnings Per Common Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Earnings Per Share [Abstract]
Net income (loss)	$ 19,091		$ 14,803		$ 55,070		$ (44,660)
Weighted average common shares outstanding	78,666,241		81,905,566		78,485,109		77,890,406
Weighted average potential dilutive common shares	550,683	[1],[2]	956,972	[1],[2]	708,343	[1],[2]
Weighted average common shares outstanding - assuming dilution	79,216,924		82,862,538		79,193,452		77,890,406
Net income (loss) per common share - basic	$ 0.24		$ 0.18		$ 0.70		$ (0.57)
Net income (loss) per common share - diluted	$ 0.24		$ 0.18		$ 0.70		$ (0.57)

[1] Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method.

[2] For the nine months ended September 30, 2013, 2,784,779 potential common shares consisting of common stock under the assumed exercise of stock options and restricted stock awards using the treasury stock method were not included in the computation of the diluted net income (loss) per share since their inclusion would have an antidilutive effect.

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Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014 Segment
Segment Reporting [Abstract]
Number of operating business segments	3

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Nonvested Restricted Shares Activity (Detail) (Restricted Shares [Member], USD $)	9 Months Ended
	Sep. 30, 2014
Restricted Shares [Member]
Nonvested restricted shares
Nonvested shares, Beginning balance	9,133
Outstanding shares, Vested	9,133
Outstanding shares, Granted	11,942
Nonvested shares, Ending Balance	11,942
Weighted-average grant date fair value
Weighted-average grant date fair value, beginning balance	$ 24.64
Outstanding weighted average exercise prices, Vested	$ 24.64
Outstanding weighted average exercise prices, Granted	$ 23.03
Weighted-average grant date fair value, Ending balance	$ 23.03

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The Company and Basis of Presentation

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

The Company and Basis of Presentation

Note 1 – The Company and Basis of Presentation

The Company

EVERTEC, Inc. (formerly known as Carib Latam Holdings, Inc.) and its subsidiaries (collectively the “Company,” or “EVERTEC”) is the leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management services across 19 countries in the region. EVERTEC owns and operates the ATH network, one of the leading automated teller machine (“ATM”) and personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core bank processing, cash processing and technology outsourcing in the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. Management believes that the Company’s business is well-positioned to continue to expand across the fast-growing Latin American region.

On April 13, 2012, EVERTEC was formed in order to act as the new parent company of EVERTEC Intermediate Holdings, LLC (formerly known as Carib Holdings, LLC and Carib Holdings, Inc., hereinafter “Holdings”) and its subsidiaries, including EVERTEC Group, LLC (formerly known as EVERTEC, LLC and EVERTEC, Inc., hereinafter “EVERTEC Group”). The Company’s subsidiaries include Holdings, EVERTEC Group, EVERTEC Dominicana SAS, EVERTEC Panamá, S.A., EVERTEC Costa Rica, S.A. (“EVERTEC CR”), EVERTEC Guatemala, S.A. and EVERTEC México Servicios de Procesamiento, S.A. de C.V.

Basis of Presentation

The unaudited consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited consolidated financial statements. Actual results could differ from these estimates.

Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2013, included in the Company’s 2013 Form 10-K. In the opinion of management, the accompanying consolidated financial statements, prepared in accordance with GAAP, contain all adjustments, all of which are normal and recurring in nature, necessary for a fair presentation. All significant intercompany accounts and transactions have been eliminated in consolidation.

Certain reclassifications have been made to the September 30, 2013 unaudited consolidated financial statements and related notes to conform with the presentation in 2014.

Stock Repurchase Plan

On September 24, 2014, the Company announced that the Board of Directors (the “Board”) had approved a stock repurchase program authorizing the purchase of up to $75 million of the Company’s common stock over the next 12 months. Under the stock repurchase program, the Company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions and other considerations. The Company’s repurchases may be executed using open market purchases, privately negotiated transactions, accelerated share repurchase programs or other transactions, any of which may be enacted immediately following the Board’s approval of the stock repurchase program. The Company intends to fund repurchases under the stock repurchase program from cash on hand and available borrowings under its existing credit facility, as necessary. The stock repurchase program does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time without prior notice. For the period ended September 30, 2014, the Company did not repurchase any shares under this program.

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Information about Operations by Business Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Segment Reporting Information [Line Items]
Revenues	$ 88,642		$ 87,414		$ 266,973		$ 263,928
Income from operations	26,460		21,864		76,778		59,201
Operating Segments [Member]
Segment Reporting Information [Line Items]
Income from operations	35,921		33,906		106,670		95,099
Operating Segments [Member] | Merchant Acquiring, net [Member]
Segment Reporting Information [Line Items]
Revenues	19,227		18,211		58,345		53,835
Income from operations	8,518		8,568		25,700		25,963
Operating Segments [Member] | Payment Processing [Member]
Segment Reporting Information [Line Items]
Revenues	32,255		32,342		96,915		92,168
Income from operations	14,707		14,056		44,738		38,536
Operating Segments [Member] | Business Solutions [Member]
Segment Reporting Information [Line Items]
Revenues	43,805		44,472		131,609		136,965
Income from operations	12,696		11,282		36,232		30,600
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Income from operations	(9,461)	[1]	(12,042)	[1]	(29,892)	[1]	(35,898)	[1]
Other [Member]
Segment Reporting Information [Line Items]
Revenues	$ (6,645)	[2]	$ (7,611)	[2]	$ (19,896)	[2]	$ (19,040)	[2]

[1] Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

[2] Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

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Financial Instruments and Fair Value Measurements - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Fair Value Disclosures [Abstract]
Termination dates of contracts end			Sep. 30, 2015
Unrealized gain (loss) recognized in other expenses	$ (300,000)	$ 2,000	$ (459,000)	$ 21,000
Merger Transaction completed Date			Sep. 30, 2010
Unobservable inputs related to the Company's indemnification assets, discount rate			5.53%
Projected cash flows			$ 1,600,000

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Net Income (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Schedule of Reconciliation of Numerator and Denominator of Earnings Per Common Share

The reconciliation of the numerator and denominator of the income (loss) per common share is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollar amounts in thousands, except per share data)	2014		2013		2014		2013
Net income (loss)	$	19,091	$	14,803	$	55,070	$	(44,660	)
Weighted average common shares outstanding		78,666,241		81,905,566		78,485,109		77,890,406
Weighted average potential dilutive common shares (1)(2)		550,683		956,972		708,343		—
Weighted average common shares outstanding - assuming dilution		79,216,924		82,862,538		79,193,452		77,890,406
Net income (loss) per common share - basic	$	0.24	$	0.18	$	0.70	$	(0.57	)
Net income (loss) per common share - diluted	$	0.24	$	0.18	$	0.70	$	(0.57	)

⁽¹⁾  Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method.

⁽²⁾  For the nine months ended September 30, 2013, 2,784,779 potential common shares consisting of common stock under the assumed exercise of stock options and restricted stock awards using the treasury stock method were not included in the computation of the diluted net income (loss) per share since their inclusion would have an antidilutive effect.

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Income Tax (Tables)

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the three and nine months ended September 30, 2014 and 2013 consisted of the following:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Current tax provision	$	2,138		$	1,830		$	6,691		$	3,120
Deferred tax benefit		(1,056	)		(472	)		(1,486	)		(6,723	)
Income tax expense (benefit)	$	1,082		$	1,358		$	5,205		$	(3,603	)

Segregation of Income Tax Expense (Benefit) Based on Location of Operations

The following table presents the components of income tax expense (benefit) for the three and nine months ended September 30, 2014 and 2013 and its segregation based on location of operations:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Current tax provision (benefit)
Puerto Rico	$	1,687		$	1,456		$	3,047		$	1,712
United States		(923	)		24			(508	)		453
Foreign countries		1,374			350			4,152			955
Total currrent tax provision (benefit)	$	2,138		$	1,830		$	6,691		$	3,120
Deferred tax benefit
Puerto Rico	$	(518	)	$	(422	)	$	314		$	(6,378	)
United States		(138	)		(1	)		(141	)		(3	)
Foreign countries		(400	)		(49	)		(1,659	)		(342	)
Total deferred tax benefit	$	(1,056	)	$	(472	)	$	(1,486	)	$	(6,723	)

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Transactions with Related Parties (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Transaction [Abstract]
Total revenues	$ 40,958	[1],[2]	$ 40,920	[1],[2]	$ 123,128	[1],[2]	$ 125,087	[1],[2]
Cost of revenues	68		1,570		687		6,680
Rent and other fees	1,999	[3],[4]	1,636	[3],[4]	6,000	[3],[4]	31,708	[3],[4]
Interest earned from and charged by affiliate
Interest income	48		25		150		67
Interest expense	$ 0	[5]	$ 0	[5]	$ 0	[5]	$ 2,471	[5]

[1] Total revenues from Popular as a percentage of revenues were 46%, 46%, 45% and 47% for each of the periods presented above.

[2] Includes revenues generated from investee accounted for under the equity method of $0.6 million and $2.0 million for the three and nine months ended September 30, 2014, respectively, and $0.6 million and $2.3 million for the corresponding 2013 periods.

[3] Includes management fees to equity sponsors amounting to $20.3 million for the nine months ended September 30, 2013. Management fees paid during 2013 include $16.7 million resulting from the termination of the Consulting Agreements as explained below. It also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes during the first half of 2013.

[4] For the periods presented above, $2.0 million, $1.6 million, $6.0 million and $9.1 million were recorded as selling, general and administrative expenses, and $22.6 million was recorded as non-operating expenses for the nine months ended September 30, 2013.

[5] Interest expense relates to interest accrued on the senior secured term loan and senior notes held by Popular. As a result of the debt refinancing and the redemption of the senior notes in April 2013, Popular's participation in such debt was extinguished.

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Carrying Value and Estimated Fair Values for Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Indemnification assets:
Software cost reimbursement, Carrying Amount	$ 1,632	$ 3,586
Indemnification assets:
Software cost reimbursement, Fair Value	1,632	3,586
Senior secured term loan A [Member]
Financial liabilities:
Senior secured term loan , Carrying Amount	280,968	292,153
Financial liabilities:
Senior secured term loan, Fair Value	276,913	284,091
Senior secured term loan B [Member]
Financial liabilities:
Senior secured term loan , Carrying Amount	390,134	392,527
Financial liabilities:
Senior secured term loan, Fair Value	$ 387,922	$ 387,055

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Transactions with Related Parties

The following table presents the Company’s transactions with related parties for the three and nine months ended September 30, 2014 and 2013:

	Three months ended September 30,				Nine months ended September 30,
(Dollar amounts in thousands)	2014		2013		2014		2013
Total revenues (1)(2)	$	40,958	$	40,920	$	123,128	$	125,087
Cost of revenues	$	68	$	1,570	$	687	$	6,680
Rent and other fees(3)(4)	$	1,999	$	1,636	$	6,000	$	31,708
Interest earned from and charged by affiliate
Interest income	$	48	$	25	$	150	$	67
Interest expense(5)	$	—	$	—	$	—	$	2,471

⁽¹⁾  Total revenues from Popular as a percentage of revenues were 46%, 46%, 45% and 47% for each of the periods presented above.

⁽²⁾  Includes revenues generated from investee accounted for under the equity method of $0.6 million and $2.0 million for the three and nine months ended September 30, 2014, respectively, and $0.6 million and $2.3 million for the corresponding 2013 periods.

⁽³⁾  Includes management fees to equity sponsors amounting to $20.3 million for the nine months ended September 30, 2013. Management fees paid during 2013 include $16.7 million resulting from the termination of the Consulting Agreements as explained below. It also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes during the first half of 2013.

⁽⁴⁾  For the periods presented above, $2.0 million, $1.6 million, $6.0 million and $9.1 million were recorded as selling, general and administrative expenses, and $22.6 million was recorded as non-operating expenses for the nine months ended September 30, 2013.

⁽⁵⁾  Interest expense relates to interest accrued on the senior secured term loan and senior notes held by Popular. As a result of the debt refinancing and the redemption of the senior notes in April 2013, Popular’s participation in such debt was extinguished.

Summary of Balances of Transactions with Related Parties

At September 30, 2014 and December 31, 2013, EVERTEC had the following balances arising from transactions with related parties:

(Dollar amounts in thousands)	September 30, 2014		December 31, 2013
Cash and restricted cash deposits in affiliated bank	$	18,827	$	13,933
Indemnification assets from Popular reimbursement (1)
Accounts receivable	$	1,632	$	1,900
Other long-term assets	$	—	$	1,686
Other due/to from affiliate
Accounts receivable	$	17,717	$	18,799
Prepaid expenses and other assets	$	1,147	$	216
Accounts payable(2)	$	5,907	$	8,886
Unearned income	$	7,485	$	4,100
Other long-term liabilities(2)	$	109	$	333

⁽¹⁾  Recorded in connection with reimbursements from Popular regarding certain software license fees.

⁽²⁾  Includes an account payable of $0.2 million and a long-term liability of $0.3 million for both September 30, 2014 and December 31, 2013, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by our Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Information about Operations by Business Segments

The following tables set forth information about the Company’s operations by its three business segments for the periods indicated:

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other			Total
Three months ended September 30, 2014
Revenues		19,227		32,255		43,805		(6,645	) (1)		88,642
Income from operations		8,518		14,707		12,696		(9,461	) (2)		26,460
Three months ended September 30, 2013
Revenues		18,211		32,342		44,472		(7,611	) (1)		87,414
Income from operations		8,568		14,056		11,282		(12,042	) (2)		21,864

⁽¹⁾  Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

⁽²⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other			Total
Nine months ended September 30, 2014
Revenues		58,345		96,915		131,609		(19,896	) (1)		266,973
Income from operations		25,700		44,738		36,232		(29,892	) (2)		76,778
Nine months ended September 30, 2013
Revenues		53,835		92,168		136,965		(19,040	) (1)		263,928
Income from operations		25,963		38,536		30,600		(35,898	) (2)		59,201

⁽¹⁾  Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

⁽²⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

Reconciliation of Income from Operations to Consolidated Net Income

The reconciliation of income from operations to consolidated net income for the three and nine months ended September 30, 2014 and 2013 is as follows:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Segment income from operations
Merchant Acquiring	$	8,518		$	8,568		$	25,700		$	25,963
Payment Processing		14,707			14,056			44,738			38,536
Business Solutions		12,696			11,282			36,232			30,600
Total segment income from operations		35,921			33,906			106,670			95,099
Merger related depreciation and amortization and other unallocated expenses (1)		(9,461	)		(12,042	)		(29,892	)		(35,898	)
Income from operations	$	26,460		$	21,864		$	76,778		$	59,201
Interest expense, net		(6,279	)		(6,349	)		(19,535	)		(31,267	)
Earnings of equity method investment		241			198			905			823
Other income (expenses)		(249	)		448			2,127			(77,020	)
Income tax (expense) benefit		(1,082	)		(1,358	)		(5,205	)		3,603
Net income (loss)	$	19,091		$	14,803		$	55,070		$	(44,660	)

⁽¹⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

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Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Statement of Cash Flows [Abstract]
Proceeds from initial public offering, net of cost of offering	$ 12,567

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The Company and Basis of Presentation - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014 Country	Sep. 24, 2014
Accounting Policies [Abstract]
Number of countries where the Company provides a broad range of merchant acquiring, payment processing and business process management services	19
Stock repurchase plan authorized amount		$ 75

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Total Debt (Parenthetical) (Detail)	0 Months Ended	9 Months Ended	12 Months Ended
	Apr. 17, 2013	Sep. 30, 2014	Dec. 31, 2013
Senior Secured Credit Facility [Member] | Term A due on April 17, 2018 [Member]
Debt Instrument [Line Items]
Debt, maturity date	Apr. 17, 2018	Apr. 17, 2018	Apr. 17, 2018
Margin interest rate		2.50%
Senior Secured Credit Facility [Member] | Term B due on April 17, 2020 [Member]
Debt Instrument [Line Items]
Debt, maturity date	Apr. 17, 2020	Apr. 17, 2020	Apr. 17, 2020
Senior Secured Credit Facility [Member] | Term B due on April 17, 2020 [Member] | LIBOR Floor [Member]
Debt Instrument [Line Items]
Margin interest rate		0.75%	0.75%
Senior Secured Credit Facility [Member] | Term B due on April 17, 2020 [Member] | Applicable Margin [Member]
Debt Instrument [Line Items]
Margin interest rate		2.75%	2.75%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt, maturity date		Apr. 17, 2018
Revolving Credit Facility [Member] | Expiring on April 17, 2018 [Member]
Debt Instrument [Line Items]
Debt, maturity date	Apr. 17, 2018	Apr. 17, 2018	Apr. 17, 2018

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Schedule of Reconciliation of Numerator and Denominator of Earnings Per Common Share (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]
Common shares excluded from the calculation of diluted net income (loss) per share	2,784,779

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current Assets:
Cash	$ 29,226	$ 22,485
Restricted cash	6,126	5,433
Accounts receivable, net	68,969	68,434
Deferred tax asset	3,378	2,537
Prepaid expenses and other assets	21,880	17,524
Total current assets	129,579	116,413
Investment in equity investee	11,492	10,639
Property and equipment, net	29,482	33,240
Goodwill	369,304	373,119
Other intangible assets, net	338,248	367,780
Other long-term assets	12,335	18,162
Total assets	890,440	919,353
Current Liabilities:
Accrued liabilities	26,023	26,571
Accounts payable	14,748	18,630
Unearned income	8,866	5,595
Income tax payable	1,945	259
Current portion of long-term debt	19,000	19,000
Short-term borrowings	8,000	51,200
Deferred tax liability, net	350	543
Total current liabilities	78,932	121,798
Long-term debt	652,102	665,680
Long-term deferred tax liability, net	20,308	20,212
Other long-term liabilities	238	333
Total liabilities	751,580	808,023
Commitments and contingencies (Note 10)
Stockholders' equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued	0	0
Common stock, par value $0.01; 206,000,000 shares authorized; 78,672,101 shares issued and outstanding at September 30, 2014	787	783
Additional paid-in capital	83,296	80,718
Accumulated earnings	60,924	29,403
Accumulated other comprehensive (loss) income, net of tax	(6,147)	426
Total stockholders' equity	138,860	111,330
Total liabilities and stockholders' equity	$ 890,440	$ 919,353

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Summary of Change in Fair Value of Level Three Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unrealized gain (loss) recognized in other expenses	$ 300	$ (2)	$ 459	$ (21)
Indemnification Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	2,114	4,540	3,586	6,099
Payments received	(196)	(369)	(1,495)	(1,947)
Unrealized gain (loss) recognized in other expenses	(286)	2	(459)	21
Ending balance	$ 1,632	$ 4,173	$ 1,632	$ 4,173

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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $) In Thousands, except Share data		Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance, Value at Dec. 31, 2013		$ 111,330	$ 783	$ 80,718	$ 29,403	$ 426
Beginning Balance, Shares at Dec. 31, 2013		78,286,465	78,286,465
Share-based compensation recognized		1,314		1,314
Tax windfall benefit on exercises of stock options		1,937		1,937
Stock options exercised, net of cashless exercise		(690)	4	(694)
Stock options exercised, net of cashless exercise, Shares			385,636
Dividend	[1]	21		21
Net income		55,070			55,070
Cash dividends declared on common stock		(23,549)			(23,549)
Cash dividends paid on common stock, Shares
Other comprehensive loss		(6,573)				(6,573)
Ending Balance, Value at Sep. 30, 2014		$ 138,860	$ 787	$ 83,296	$ 60,924	$ (6,147)
Ending Balance, Shares at Sep. 30, 2014		78,672,101	78,672,101

[1] Related to dividend declared in 2012 and accrued upon vesting of stock options. Such options were forfeited during the nine months ended September 30, 2014.

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Summary of Balances of Transactions with Related Parties (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Related Party Transactions [Abstract]
Cash and restricted cash deposits in affiliated bank	$ 18,827		$ 13,933
Indemnification assets from Popular reimbursement
Accounts receivable	1,632	[1]	1,900	[1]
Other long-term assets			1,686	[1]
Other due/to from affiliate
Accounts receivable	17,717		18,799
Prepaid expenses and other assets	1,147		216
Accounts payable	5,907	[2]	8,886	[2]
Unearned income	7,485		4,100
Other long-term liabilities	$ 109	[2]	$ 333	[2]

[1] Recorded in connection with reimbursements from Popular regarding certain software license fees.

[2] Includes an account payable of $0.2 million and a long-term liability of $0.3 million for both September 30, 2014 and December 31, 2013, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by our Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.

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Changes in Carrying Amount of Goodwill Allocated by Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 373,119
Foreign currency translation adjustments	(3,815)
Goodwill, Ending Balance	369,304
Merchant Acquiring, net [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	138,121
Foreign currency translation adjustments	0
Goodwill, Ending Balance	138,121
Payment Processing [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	187,622
Foreign currency translation adjustments	(2,906)
Goodwill, Ending Balance	184,716
Business Solutions [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	47,376
Foreign currency translation adjustments	(909)
Goodwill, Ending Balance	$ 46,467

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The Company and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

The Company

The Company

EVERTEC, Inc. (formerly known as Carib Latam Holdings, Inc.) and its subsidiaries (collectively the “Company,” or “EVERTEC”) is the leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management services across 19 countries in the region. EVERTEC owns and operates the ATH network, one of the leading automated teller machine (“ATM”) and personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core bank processing, cash processing and technology outsourcing in the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. Management believes that the Company’s business is well-positioned to continue to expand across the fast-growing Latin American region.

On April 13, 2012, EVERTEC was formed in order to act as the new parent company of EVERTEC Intermediate Holdings, LLC (formerly known as Carib Holdings, LLC and Carib Holdings, Inc., hereinafter “Holdings”) and its subsidiaries, including EVERTEC Group, LLC (formerly known as EVERTEC, LLC and EVERTEC, Inc., hereinafter “EVERTEC Group”). The Company’s subsidiaries include Holdings, EVERTEC Group, EVERTEC Dominicana SAS, EVERTEC Panamá, S.A., EVERTEC Costa Rica, S.A. (“EVERTEC CR”), EVERTEC Guatemala, S.A. and EVERTEC México Servicios de Procesamiento, S.A. de C.V.

Basis of Presentation

Basis of Presentation

The unaudited consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited consolidated financial statements. Actual results could differ from these estimates.

Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2013, included in the Company’s 2013 Form 10-K. In the opinion of management, the accompanying consolidated financial statements, prepared in accordance with GAAP, contain all adjustments, all of which are normal and recurring in nature, necessary for a fair presentation. All significant intercompany accounts and transactions have been eliminated in consolidation.

Certain reclassifications have been made to the September 30, 2013 unaudited consolidated financial statements and related notes to conform with the presentation in 2014.

Stock Repurchase Plan

Stock Repurchase Plan

On September 24, 2014, the Company announced that the Board of Directors (the “Board”) had approved a stock repurchase program authorizing the purchase of up to $75 million of the Company’s common stock over the next 12 months. Under the stock repurchase program, the Company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions and other considerations. The Company’s repurchases may be executed using open market purchases, privately negotiated transactions, accelerated share repurchase programs or other transactions, any of which may be enacted immediately following the Board’s approval of the stock repurchase program. The Company intends to fund repurchases under the stock repurchase program from cash on hand and available borrowings under its existing credit facility, as necessary. The stock repurchase program does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time without prior notice. For the period ended September 30, 2014, the Company did not repurchase any shares under this program.

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Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment test fair value in excess of carrying amount percentage	30.00%		30.00%
Impairment losses	$ 0
Amortization expense for intangible assets	$ 12,700,000	$ 13,600,000	$ 37,900,000	$ 40,900,000

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill Allocated by Reportable Segments

The changes in the carrying amount of goodwill, allocated by reportable segments, were as follows (See Note 12):

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing			Business Solutions			Total
Balance at December 31, 2013	$	138,121	$	187,622		$	47,376		$	373,119
Foreign currency translation adjustments		—		(2,906	)		(909	)		(3,815	)
Balance at September 30, 2014	$	138,121	$	184,716		$	46,467		$	369,304

Carrying Amount of Other Intangible Assets

The carrying amount of other intangible assets at September 30, 2014 and December 31, 2013 consisted of the following:

(Dollar amounts in thousands)		September 30, 2014
	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	14	$	312,811	$	(89,909	)	$	222,902
Trademark	10 - 15		39,950		(13,856	)		26,094
Software packages	3 - 10		129,249		(81,459	)		47,790
Non-compete agreement	15		56,539		(15,077	)		41,462
Other intangible assets, net		$	538,549	$	(200,301	)	$	338,248
(Dollar amounts in thousands)		December 31, 2013
	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	14	$	314,036	$	(73,180	)	$	240,856
Trademark	10 - 15		39,950		(11,258	)		28,692
Software packages	3 - 10		119,598		(65,655	)		53,943
Non-compete agreement	15		56,539		(12,250	)		44,289
Other intangible assets, net		$	530,123	$	(162,343	)	$	367,780

Estimated Amortization Expenses

The estimated amortization expense of the balances outstanding at September 30, 2014 for the next five years is as follows:

(Dollar amounts in thousands)
Remaining 2014	$	12,358
2015		46,588
2016		36,228
2017		33,237
2018		31,377
2019		30,609

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities
Net income (loss)	$ 55,070	$ (44,660)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	49,457	53,074
Amortization of debt issue costs and premium and accretion of discount	2,315	3,136
Write-off of debt issue costs, premium and discount accounted as loss on extinguishment		16,555
Provision for doubtful accounts and sundry losses	1,102	954
Deferred tax benefit	(1,486)	(6,723)
Share-based compensation	1,314	5,719
Unrealized loss (gain) of indemnification assets	459	(21)
Loss on disposition of property and equipment and other intangibles	23	30
Earnings of equity method investment	(905)	(823)
Dividend received from equity method investment	326	500
Decrease (increase) in assets:
Accounts receivable, net	309	9,035
Prepaid expenses and other assets	(4,283)	(2,591)
Other long-term assets	2,497	(1,928)
(Decrease) increase in liabilities:
Accounts payable and accrued liabilities	(7,357)	(18,485)
Income tax payable	1,686	(2,713)
Unearned income	3,271	2,625
Total adjustments	48,728	58,344
Net cash provided by operating activities	103,798	13,684
Cash flows from investing activities
Net increase in restricted cash	(693)	(157)
Intangible assets acquired	(9,100)	(9,591)
Property and equipment acquired	(7,463)	(7,380)
Proceeds from sales of property and equipment	44	16
Net cash used in investing activities	(17,212)	(17,112)
Cash flows from financing activities
Proceeds from initial public offering, net of offering costs of $12,567		112,369
Proceeds from issuance of long-term debt		700,000
Statutory minimum withholding taxes paid on cashless exercises of stock options	(1,004)	(16,704)
Debt issuance costs		(12,077)
Net decrease in short-term borrowing	(42,000)	(22,663)
Proceeds from short-term borrowing for purchase of equipment		1,800
Repayment of short-term borrowing for purchase of equipment	(1,200)
Dividends paid	(23,547)	(8,192)
Tax windfall benefits on exercises of stock options	1,937	1,627
Issuance of common stock, net	314	91
Repayment of other financing agreement	(95)	(224)
Repayment of long-term debt	(14,250)	(750,273)
Net cash (used in) provided by financing activities	(79,845)	5,754
Net increase in cash	6,741	2,326
Cash at beginning of the period	22,485	25,634
Cash at end of the period	29,226	27,960
Supplemental disclosure of non-cash activities:
Dividend declared not received from equity method investment	326	500
Foreign currency translation adjustments	(6,573)	1,750
Trade payable due to vendor related to software acquired		$ 2,903

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock authorized	2,000,000	2,000,000
Preferred stock issued	0	0
Common stock par value	$ 0.01	$ 0.01
Common stock authorized	206,000,000	206,000,000
Common stock issued	78,672,101	78,286,465
Common stock outstanding	78,672,101	78,286,465

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Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Note 9 – Net Income (Loss) Per Common Share

The reconciliation of the numerator and denominator of the income (loss) per common share is as follows:

	Three months ended September 30,				Nine months ended September 30,
(Dollar amounts in thousands, except per share data)	2014		2013		2014		2013
Net income (loss)	$	19,091	$	14,803	$	55,070	$	(44,660	)
Weighted average common shares outstanding		78,666,241		81,905,566		78,485,109		77,890,406
Weighted average potential dilutive common shares (1)(2)		550,683		956,972		708,343		—
Weighted average common shares outstanding - assuming dilution		79,216,924		82,862,538		79,193,452		77,890,406
Net income (loss) per common share - basic	$	0.24	$	0.18	$	0.70	$	(0.57	)
Net income (loss) per common share - diluted	$	0.24	$	0.18	$	0.70	$	(0.57	)

⁽¹⁾  Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method.

⁽²⁾  For the nine months ended September 30, 2013, 2,784,779 potential common shares consisting of common stock under the assumed exercise of stock options and restricted stock awards using the treasury stock method were not included in the computation of the diluted net income (loss) per share since their inclusion would have an antidilutive effect.

On February 12, 2014, our Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on March 14, 2014 to stockholders of record as of February 25, 2014. On May 7, 2014, the Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on June 6, 2014 to stockholders of record as of May 19, 2014. On August 6, 2014, the Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on September 5, 2014 to stockholders of record as of August 18, 2014.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	EVTC
Entity Registrant Name	EVERTEC, Inc.
Entity Central Index Key	0001559865
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		77,972,633

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10 – Commitments and Contingencies

Certain lease agreements contain provisions for future rent increases. The total amount of rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is recorded as a deferred rent obligation. Total deferred rent obligation as of September 30, 2014 and December 31, 2013 amounted to $0.1 million and $0.3 million, respectively, and is included within the accounts receivable, net caption in the accompanying unaudited consolidated balance sheets.

Rent expense of office facilities and real estate for the three and nine months ended September 30, 2014 amounted to $2.0 million and $6.2 million, respectively, compared to $1.7 million and $5.7 million for the corresponding 2013 periods. Rent expense for telecommunications and other equipment for the three and nine months ended September 30, 2014 amounted to $1.5 million and $4.6 million, respectively, compared to $1.8 million and $5.3 million for the corresponding 2013 periods.

In the ordinary course of business, the Company may enter into commercial commitments. As of September 30, 2014, EVERTEC has an outstanding letter of credit of $1.1 million with a maturity of less than three months.

EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel and other factors, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations, financial condition, or cash flows of the Company. The Company has identified certain claims as a result of which a loss may be incurred, but in the aggregate the loss would be minimal. For other claims regarding which proceedings are in an initial phase, the Company is unable to estimate the range of possible loss but at this time believes that any loss related to such claims will not be material.

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Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues
Merchant Acquiring, net	$ 19,227	$ 18,211	$ 58,345	$ 53,835
Payment Processing (from affiliates: $7,192, $7,338, $21,599 and $21,846)	25,611	24,731	77,019	73,128
Business Solutions (from affiliates: $33,688, $33,500, $101,289 and $102,996)	43,804	44,472	131,609	136,965
Total revenues	88,642	87,414	266,973	263,928
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization shown below	38,625	38,903	115,109	121,176
Selling, general and administrative expenses	7,104	8,990	25,629	30,477
Depreciation and amortization	16,453	17,657	49,457	53,074
Total operating costs and expenses	62,182	65,550	190,195	204,727
Income from operations	26,460	21,864	76,778	59,201
Non-operating (expenses) income
Interest income	91	54	245	147
Interest expense	(6,370)	(6,403)	(19,780)	(31,414)
Earnings of equity method investment	241	198	905	823
Other income (expenses):
Loss on extinguishment of debt				(58,464)
Termination of consulting agreements				(16,718)
Other income (expenses)	(249)	448	2,127	(1,838)
Total other income (expenses)	(249)	448	2,127	(77,020)
Total non-operating (expenses) income	(6,287)	(5,703)	(16,503)	(107,464)
Income (loss) before income taxes	20,173	16,161	60,275	(48,263)
Income tax expense (benefit)	1,082	1,358	5,205	(3,603)
Net income (loss)	19,091	14,803	55,070	(44,660)
Other comprehensive income (loss), net of tax of $4, $11, $57 and $29 Foreign currency translation adjustments	378	(210)	(6,573)	1,750
Total comprehensive income (loss)	$ 19,469	$ 14,593	$ 48,497	$ (42,910)
Net income (loss) per common share - basic	$ 0.24	$ 0.18	$ 0.70	$ (0.57)
Net income (loss) per common share - diluted	$ 0.24	$ 0.18	$ 0.70	$ (0.57)

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 4 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, allocated by reportable segments, were as follows (See Note 12):

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing			Business Solutions			Total
Balance at December 31, 2013	$	138,121	$	187,622		$	47,376		$	373,119
Foreign currency translation adjustments		—		(2,906	)		(909	)		(3,815	)
Balance at September 30, 2014	$	138,121	$	184,716		$	46,467		$	369,304

Goodwill is tested for impairment at least annually, or more often if events or circumstances indicate there may be impairment, using the qualitative assessment option or step zero process. Using this process, the Company first assesses whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount.

During the third quarter of 2014, the Company completed the qualitative assessment described above and determined that there were no impairment losses to be recognized during the period. There were no triggering events or changes in circumstances that subsequent to the impairment test would have required an additional impairment evaluation. As part of the Company’s qualitative assessment, EVERTEC considered the results for the 2011 impairment test (which indicated that the fair value of each reporting unit was in excess of 30% of its carrying amount) as well as current market conditions and changes in the carrying amount of the Company’s reporting units that occurred subsequent to the 2011 impairment test.

The carrying amount of other intangible assets at September 30, 2014 and December 31, 2013 consisted of the following:

(Dollar amounts in thousands)		September 30, 2014
	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	14	$	312,811	$	(89,909	)	$	222,902
Trademark	10 - 15		39,950		(13,856	)		26,094
Software packages	3 - 10		129,249		(81,459	)		47,790
Non-compete agreement	15		56,539		(15,077	)		41,462
Other intangible assets, net		$	538,549	$	(200,301	)	$	338,248
(Dollar amounts in thousands)		December 31, 2013
	Useful life in years	Gross amount		Accumulated amortization			Net carrying amount
Customer relationships	14	$	314,036	$	(73,180	)	$	240,856
Trademark	10 - 15		39,950		(11,258	)		28,692
Software packages	3 - 10		119,598		(65,655	)		53,943
Non-compete agreement	15		56,539		(12,250	)		44,289
Other intangible assets, net		$	530,123	$	(162,343	)	$	367,780

For the three and nine months ended September 30, 2014, the Company recorded amortization expense related to other intangibles of $12.7 million and $37.9 million, respectively, compared to $13.6 million and $40.9 million for the corresponding 2013 periods.

The estimated amortization expense of the balances outstanding at September 30, 2014 for the next five years is as follows:

(Dollar amounts in thousands)
Remaining 2014	$	12,358
2015		46,588
2016		36,228
2017		33,237
2018		31,377
2019		30,609

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Property and Equipment, net

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Note 3 – Property and Equipment, net

Property and equipment, net consists of the following:

(Dollar amounts in thousands)	Useful life in years	September 30, 2014			December 31, 2013
Buildings	30	$	1,600		$	1,726
Data processing equipment	3 - 5		73,199			68,273
Furniture and equipment	3 - 20		8,200			6,385
Leasehold improvements	5 - 10		2,896			2,880
			85,895			79,264
Less - accumulated depreciation and amortization			(57,832	)		(47,555	)
Depreciable assets, net			28,063			31,709
Land			1,419			1,531
Property and equipment, net		$	29,482		$	33,240

Depreciation and amortization expense related to property and equipment for the three and nine months ended September 30, 2014 amounted to $3.8 million and $11.5 million, respectively, compared to $4.1 million and $12.2 million, respectively, for the same periods in 2013.

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Property and Equipment, net (Tables)

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, net

Property and equipment, net consists of the following:

(Dollar amounts in thousands)	Useful life in years	September 30, 2014			December 31, 2013
Buildings	30	$	1,600		$	1,726
Data processing equipment	3 - 5		73,199			68,273
Furniture and equipment	3 - 20		8,200			6,385
Leasehold improvements	5 - 10		2,896			2,880
			85,895			79,264
Less - accumulated depreciation and amortization			(57,832	)		(47,555	)
Depreciable assets, net			28,063			31,709
Land			1,419			1,531
Property and equipment, net		$	29,482		$	33,240

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Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Note 11 – Related Party Transactions

The following table presents the Company’s transactions with related parties for the three and nine months ended September 30, 2014 and 2013:

	Three months ended September 30,				Nine months ended September 30,
(Dollar amounts in thousands)	2014		2013		2014		2013
Total revenues (1)(2)	$	40,958	$	40,920	$	123,128	$	125,087
Cost of revenues	$	68	$	1,570	$	687	$	6,680
Rent and other fees(3)(4)	$	1,999	$	1,636	$	6,000	$	31,708
Interest earned from and charged by affiliate
Interest income	$	48	$	25	$	150	$	67
Interest expense(5)	$	—	$	—	$	—	$	2,471

⁽¹⁾  Total revenues from Popular as a percentage of revenues were 46%, 46%, 45% and 47% for each of the periods presented above.

⁽²⁾  Includes revenues generated from investee accounted for under the equity method of $0.6 million and $2.0 million for the three and nine months ended September 30, 2014, respectively, and $0.6 million and $2.3 million for the corresponding 2013 periods.

⁽³⁾  Includes management fees to equity sponsors amounting to $20.3 million for the nine months ended September 30, 2013. Management fees paid during 2013 include $16.7 million resulting from the termination of the Consulting Agreements as explained below. It also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes during the first half of 2013.

⁽⁴⁾  For the periods presented above, $2.0 million, $1.6 million, $6.0 million and $9.1 million were recorded as selling, general and administrative expenses, and $22.6 million was recorded as non-operating expenses for the nine months ended September 30, 2013.

⁽⁵⁾  Interest expense relates to interest accrued on the senior secured term loan and senior notes held by Popular. As a result of the debt refinancing and the redemption of the senior notes in April 2013, Popular’s participation in such debt was extinguished.

On April 17, 2013, EVERTEC entered into a termination agreement with Holdings, EVERTEC Group and Popular and a termination agreement with Holdings, EVERTEC Group and Apollo Management VII, L.P. in connection with our initial public offering in April 2013 (the “Termination Agreements”). The Termination Agreements terminated the consulting agreements (the “Consulting Agreements”), each dated September 30, 2010, entered into by Holdings and EVERTEC Group with each of Popular and Apollo Management, pursuant to which Holdings and EVERTEC Group received certain advisory services from each of Popular and Apollo Management. The Consulting Agreements were terminated in their entirety upon payment of termination fees of approximately $8.5 million to Apollo Management and $8.2 million to Popular, in each case, plus any unreimbursed expenses payable in accordance with the terms of the Termination Agreements.

At September 30, 2014 and December 31, 2013, EVERTEC had the following balances arising from transactions with related parties:

(Dollar amounts in thousands)	September 30, 2014		December 31, 2013
Cash and restricted cash deposits in affiliated bank	$	18,827	$	13,933
Indemnification assets from Popular reimbursement (1)
Accounts receivable	$	1,632	$	1,900
Other long-term assets	$	—	$	1,686
Other due/to from affiliate
Accounts receivable	$	17,717	$	18,799
Prepaid expenses and other assets	$	1,147	$	216
Accounts payable(2)	$	5,907	$	8,886
Unearned income	$	7,485	$	4,100
Other long-term liabilities(2)	$	109	$	333

⁽¹⁾  Recorded in connection with reimbursements from Popular regarding certain software license fees.

⁽²⁾  Includes an account payable of $0.2 million and a long-term liability of $0.3 million for both September 30, 2014 and December 31, 2013, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by our Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.

At September 30, 2014, EVERTEC Group has a credit facility with Popular for $3.6 million, on behalf of EVERTEC CR, under which a letter of credit of a similar amount was issued.

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Share-based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

Note 7 – Share-based Compensation

The following table summarizes stock options activity for the nine months ended September 30, 2014:

	Shares		Weighted-average exercise prices
Outstanding at December 31, 2013		1,285,536	$	4.77
Granted		100,000		24.01
Forfeited		31,164		1.30
Exercised		452,999		2.09
Outstanding at September 30, 2014		901,373	$	8.36
Exercisable at September 30, 2014		23,374	$	1.30

Management uses the fair value method of recording stock-based compensation as described in the guidance for stock compensation in ASC topic 718.

The following table summarizes nonvested restricted shares activity for the nine months ended September 30, 2014:

Nonvested restricted shares	Shares		Weighted-average grant date fair value
Nonvested at December 31, 2013		9,133	$	24.64
Vested		9,133		24.64
Granted		11,942		23.03
Nonvested at September 30, 2014		11,942	$	23.03

For the three and nine months ended September 30, 2014 the Company recognized compensation expense of $0.6 million and $1.3 million, respectively and for the three months and nine months ended September 30, 2013, the Company recognized $0.2 million and $5.7 million of share-based compensation expense, respectively. As of September 30, 2014, there was $1.6 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over the next 2 years. In addition, for the same period, there was approximately $0.2 million of total unrecognized compensation cost related to nonvested shares of restricted stock. That cost is expected to be fully recognized in eight months.

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Summary of Balances of Transactions with Related Parties (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Transactions with Third Party [Line Items]
Accounts payable	$ 5,907	[1]	$ 8,886	[1]
Other long-term liabilities	109	[1]	333	[1]
Unvested Stock Options [Member]
Transactions with Third Party [Line Items]
Accounts payable	200		200
Other long-term liabilities	$ 300		$ 300

[1] Includes an account payable of $0.2 million and a long-term liability of $0.3 million for both September 30, 2014 and December 31, 2013, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by our Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.

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Debt and Short-Term Borrowings

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt and Short-Term Borrowings

Note 5 – Debt and Short-Term Borrowings

Total debt as of September 30, 2014 and December 31, 2013 was as follows:

(Dollar amounts in thousands)	September 30, 2014		December 31, 2013
Senior Secured Credit Facility (Term A) due on April 17, 2018 paying interest at a variable interest rate (London InterBank Offered Rate (“LIBOR”) plus applicable margin(1)(3))	$	280,968	$	292,153
Senior Secured Credit Facility (Term B) due on April 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(2)(3))		390,134		392,527
Senior Secured Revolving Credit Facility expiring on April 17, 2018 paying interest at a variable interest rate		8,000		50,000
Other short-term borrowing		—		1,200
Total debt	$	679,102	$	735,880

(1) Applicable margin of 2.50% at September 30, 2014 and December 31, 2013.

(2) Subject to a minimum rate (“LIBOR floor”) of 0.75% plus applicable margin of 2.75% at September 30, 2014 and December 31, 2013.

(3) Includes unamortized discount.

On April 17, 2013, EVERTEC Group entered into a credit agreement (the “2013 Credit Agreement”) governing the senior secured credit facilities, consisting of a $300.0 million term loan A facility (the “Term A Loan”) which matures on April 17, 2018, a $400.0 million term loan B facility (the “Term B Loan”) which matures on April 17, 2020 and a $100.0 million revolving credit facility which matures on April 17, 2018.

Term A Loan

As of September 30, 2014, the unpaid principal balance of the Term A Loan was $281.3 million. The Term A Loan requires principal payments on the last business day of each quarter equal to (a) 1.250% of the original principal amount commencing on September 30, 2013 through June 30, 2016; (b) 1.875% of the original principal amount from September 30, 2016 through June 30, 2017; (c) 2.50% of the original principal amount from September 30, 2017 through March 31, 2018; and (d) the remaining outstanding principal amount on the maturity of the Term A Loan on April 17, 2018. Interest is based on EVERTEC Group’s first lien secured net leverage ratio and payable at a rate equal to, at the Company’s option, either (a) LIBOR plus an applicable margin ranging from 2.00% to 2.50%, or (b) Base Rate, as defined in the 2013 Credit Agreement, plus an applicable margin ranging from 1.00% to 1.50%. Term A Loan has no LIBOR or Base Rate minimum or floor.

Term B Loan

As of September 30, 2014, the unpaid principal balance of the Term B Loan was $395.0 million. The Term B Loan requires principal payments on the last business day of each quarter equal to 0.250% of the original principal amount commencing on September 30, 2013 and the remaining outstanding principal amount on the maturity of the Term B Loan on April 17, 2020. Interest is based on EVERTEC Group’s first lien secured net leverage ratio and payable at a rate equal to, at the Company’s option, either (a) LIBOR plus an applicable margin ranging from 2.50% to 2.75%, or (b) Base Rate plus an applicable margin ranging from 1.50% to 1.75%. The LIBOR and Base Rate are subject to floors of 0.75% and 1.75%, respectively.

Revolving Credit Facility

The revolving credit facility has an available balance up to $100.0 million, with an interest rate on loans calculated the same as the applicable Term A Loan rate. The facility matures on April 17, 2018 and has a “commitment fee” payable one business day after the last business day of each quarter calculated based on the daily unused commitment during the preceding quarter. The commitment fee for the unused portion of this facility ranges from 0.125% to 0.375% and is based on EVERTEC Group’s first lien secured net leverage ratio.

The senior secured credit facilities contain various restrictive covenants. The Term A Loan and the revolving credit facility (subject to certain exceptions) require us to maintain on a quarterly basis a specified maximum senior secured leverage ratio of up to 6.60 to 1.00 as defined in the 2013 Credit Agreement (total first lien secured debt to adjusted EBITDA). In addition, the 2013 Credit Agreement, among other things: (a) limits our ability and the ability of our subsidiaries to incur additional indebtedness, incur liens, pay dividends or make certain other restricted payments and enter into certain transactions with affiliates; (b) restricts our ability to enter into agreements that would limit the ability of our subsidiaries to pay dividends or make certain payments to us; and (c) places restrictions on our ability and the ability of our subsidiaries to merge or consolidate with any other person or sell, assign, transfer, convey or otherwise dispose of all or substantially all of our assets. As of September 30, 2014, the Company was in compliance with the applicable restrictive covenants under the 2013 Credit Agreement.

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Financial Instruments and Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

Note 6 – Financial Instruments and Fair Value Measurements

Recurring Fair Value Measurements

Fair value measurement provisions establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These provisions describe three levels of input that may be used to measure fair value:

Level 1: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2: Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date.

Level 3: Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

The Company uses observable inputs when available. Fair value is based upon quoted market prices when available. If market prices are not available, the Company may employ internally-developed models that mostly use market-based inputs including yield curves, interest rates, volatilities, and credit curves, among others. The Company limits valuation adjustments to those deemed necessary to ensure that the financial instrument’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. The fair value measurement levels are not indicative of risk of investment.

The following table summarizes fair value measurements by level at September 30, 2014 and December 31, 2013 for assets measured at fair value on a recurring basis:

(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2014
Financial assets:
Indemnification assets:
Software cost reimbursement	$	—	$	—	$	1,632	$	1,632
December 31, 2013
Financial assets:
Indemnification assets:
Software cost reimbursement	$	—	$	—	$	3,586	$	3,586

The fair value of financial instruments is the amount at which an asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale. Fair value estimates are made at a specific point in time based on the type of financial instrument and relevant market information. Many of these estimates involve various assumptions and may vary significantly from amounts that could be realized in actual transactions.

For those financial instruments with no quoted market prices available, fair values have been estimated using present value calculations or other valuation techniques, as well as management’s best judgment with respect to current economic conditions, including discount rates and estimates of future cash flows.

Indemnification assets include the present value of the expected future cash flows of certain expense reimbursement agreements with Popular. These contracts have termination dates up to September 2015 and were entered into in connection with the merger transaction completed on September 30, 2010 (“the Merger”). Management prepared estimates of the expected reimbursements to be received from Popular until the termination of the contracts, discounted the estimated future cash flows and recorded the indemnification assets as of the Merger closing date. Payments received during the quarters reduced the indemnification asset balance. The remaining balance was adjusted to reflect its fair value as of September 30, 2014, therefore resulting in a net unrealized loss of approximately $0.3 million and $0.5 million for the three and nine months ended September 30, 2014, respectively, and a net unrealized gain of approximately $2,000 and $21,000 for the three and nine months ended September 30, 2013, respectively, which are reflected within the other expenses caption in the unaudited consolidated statements of income (loss) and comprehensive income (loss). The current portion of the indemnification assets is included within accounts receivable, net, and the other long-term portion is included within other long-term assets in the accompanying unaudited consolidated balance sheets.

The unobservable inputs related to the Company’s indemnification assets as of September 30, 2014 using the discounted cash flow model include the discount rate of 5.53% and the projected cash flows of $1.6 million.

For indemnification assets a significant increase or decrease in market rates or cash flows could result in a significant change to the fair value. Also, the credit rating and/or the non-performance credit risk of Popular, which is subjective in nature, also could increase or decrease the sensitivity of the fair value of these assets.

The following table presents the carrying value, as applicable, and estimated fair values for financial instruments at September 30, 2014 and December 31, 2013:

	September 30, 2014				December 31, 2013
(Dollar amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Indemnification assets:
Software cost reimbursement	$	1,632	$	1,632	$	3,586	$	3,586
Financial liabilities:
Senior secured term loan A	$	280,968	$	276,913	$	292,153	$	284,091
Senior secured term loan B		390,134		387,922		392,527		387,055

The fair value of the senior secured term loans at September 30, 2014 and December 31, 2013 were obtained using prices supplied by third party service providers. Their pricing is based on various inputs such as: market quotes, recent trading activity in a non-active market or imputed prices. The pricing inputs also may include the use of an algorithm that could take into account movement in the general high-yield market, among other variants.

The senior secured term loans, which are not measured at fair value in the balance sheets, if measured, could be categorized as Level 3 in the fair value hierarchy.

The following table provides a summary of the change in fair value of the Company’s Level 3 assets:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Indemnification assets:
Beginning balance	$	2,114		$	4,540		$	3,586		$	6,099
Payments received		(196	)		(369	)		(1,495	)		(1,947	)
Unrealized gain (loss) recognized in other expenses		(286	)		2			(459	)		21
Ending balance	$	1,632		$	4,173		$	1,632		$	4,173

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Income Tax

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax

Note 8 – Income Tax

The components of income tax expense (benefit) for the three and nine months ended September 30, 2014 and 2013 consisted of the following:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Current tax provision	$	2,138		$	1,830		$	6,691		$	3,120
Deferred tax benefit		(1,056	)		(472	)		(1,486	)		(6,723	)
Income tax expense (benefit)	$	1,082		$	1,358		$	5,205		$	(3,603	)

The Company conducts operations in Puerto Rico and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the Puerto Rico government as well as foreign jurisdictions. The following table presents the components of income tax expense (benefit) for the three and nine months ended September 30, 2014 and 2013 and its segregation based on location of operations:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Current tax provision (benefit)
Puerto Rico	$	1,687		$	1,456		$	3,047		$	1,712
United States		(923	)		24			(508	)		453
Foreign countries		1,374			350			4,152			955
Total currrent tax provision (benefit)	$	2,138		$	1,830		$	6,691		$	3,120
Deferred tax benefit
Puerto Rico	$	(518	)	$	(422	)	$	314		$	(6,378	)
United States		(138	)		(1	)		(141	)		(3	)
Foreign countries		(400	)		(49	)		(1,659	)		(342	)
Total deferred tax benefit	$	(1,056	)	$	(472	)	$	(1,486	)	$	(6,723	)

Taxes payable to foreign countries by EVERTEC’s subsidiaries will be paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements.

As of September 30, 2014, the gross deferred tax asset amounted to $10.6 million and the gross deferred tax liability amounted to $27.9 million, compared with $13.5 million and $31.7 million as of December 31, 2013. At September 30, 2014, the recorded value of the Company’s net operating loss (“NOL”) carryforwards was $7.9 million. The recorded value of the NOL carryforwards is approximately $6.3 million lower than the total NOL carryforwards available because of a windfall tax benefit. The windfall tax benefit is available to offset future taxable income and is considered an off-balance sheet item until the deduction reduces taxes payable. This windfall tax benefit results from tax deductions that were in excess of previously recorded compensation expense because the fair value of stock options at the time they were granted differed from their fair value when they were exercised. The total gross NOL carryforwards available, including the windfall benefit, amounted to $47.0 million as of September 30, 2014.

There are no open uncertain tax positions as of September 30, 2014.

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Subsequent Events - Additional Information (Detail) (USD $)	0 Months Ended			9 Months Ended
	Aug. 06, 2014	May 07, 2014	Feb. 12, 2014	Sep. 30, 2014
Subsequent Events [Abstract]
Cash dividend declared, Common stock	$ 0.10	$ 0.10	$ 0.10	$ 0.10
Common stock dividends payable, date declared				Nov. 05, 2014
Common stock dividends payable, date to be paid				Dec. 05, 2014
Common stock dividends payable, date of record				Nov. 17, 2014

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Reconciliation of Income from Operations to Consolidated Net Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Segment income from operations
Income from operations	$ 26,460		$ 21,864		$ 76,778		$ 59,201
Interest expense, net	(6,279)		(6,349)		(19,535)		(31,267)
Earnings of equity method investment	241		198		905		823
Other income (expenses)	(249)		448		2,127		(77,020)
Income tax (expense) benefit	(1,082)		(1,358)		(5,205)		3,603
Net income (loss)	19,091		14,803		55,070		(44,660)
Operating Segments [Member]
Segment income from operations
Income from operations	35,921		33,906		106,670		95,099
Operating Segments [Member] | Merchant Acquiring, net [Member]
Segment income from operations
Income from operations	8,518		8,568		25,700		25,963
Operating Segments [Member] | Payment Processing [Member]
Segment income from operations
Income from operations	14,707		14,056		44,738		38,536
Operating Segments [Member] | Business Solutions [Member]
Segment income from operations
Income from operations	12,696		11,282		36,232		30,600
Segment Reconciling Items [Member]
Segment income from operations
Income from operations	$ (9,461)	[1]	$ (12,042)	[1]	$ (29,892)	[1]	$ (35,898)	[1]

[1] Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

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Property and Equipment, Net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense related to property and equipment	$ 3.8	$ 4.1	$ 11.5	$ 12.2

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Income Tax - Additional Information (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Income Tax Examination [Line Items]
Deferred tax asset, gross	$ 10,600,000	$ 13,500,000
Deferred tax liability, gross	27,900,000	31,700,000
Total available gross net operating loss	7,900,000
Future realized windfall tax benefit	6,300,000
Open tax uncertainty positions	0
Windfall [Member]
Income Tax Examination [Line Items]
Total available gross net operating loss	$ 47,000,000

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Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 13 – Subsequent Events

On November 5, 2014, the Board declared a regular quarterly cash dividend of $0.10 per share on the Company’s outstanding shares of common stock. The Board anticipates declaring this dividend in future quarters on a regular basis, however future declarations of dividends are subject to Board approval and may be adjusted as business needs or market conditions change. The cash dividend of $0.10 per share will be paid on December 5, 2014 to stockholders of record as of the close of business on November 17, 2014.

The Company performed an evaluation of all other events occurring subsequent to September 30, 2014, Management has determined that there are no additional events occurring in this period that require disclosure in or adjustment to the accompanying unaudited financial statements.

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Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements for Assets at Fair Value on Recurring Basis

The following table summarizes fair value measurements by level at September 30, 2014 and December 31, 2013 for assets measured at fair value on a recurring basis:

(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2014
Financial assets:
Indemnification assets:
Software cost reimbursement	$	—	$	—	$	1,632	$	1,632
December 31, 2013
Financial assets:
Indemnification assets:
Software cost reimbursement	$	—	$	—	$	3,586	$	3,586

Carrying Value and Estimated Fair Values for Financial Instruments

The following table presents the carrying value, as applicable, and estimated fair values for financial instruments at September 30, 2014 and December 31, 2013:

	September 30, 2014				December 31, 2013
(Dollar amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Indemnification assets:
Software cost reimbursement	$	1,632	$	1,632	$	3,586	$	3,586
Financial liabilities:
Senior secured term loan A	$	280,968	$	276,913	$	292,153	$	284,091
Senior secured term loan B		390,134		387,922		392,527		387,055

Summary of Change in Fair Value of Level Three Assets

The following table provides a summary of the change in fair value of the Company’s Level 3 assets:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Indemnification assets:
Beginning balance	$	2,114		$	4,540		$	3,586		$	6,099
Payments received		(196	)		(369	)		(1,495	)		(1,947	)
Unrealized gain (loss) recognized in other expenses		(286	)		2			(459	)		21
Ending balance	$	1,632		$	4,173		$	1,632		$	4,173

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Components of Income Tax Expense (Benefit) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Current tax provision	$ 2,138	$ 1,830	$ 6,691	$ 3,120
Deferred tax benefit	(1,056)	(472)	(1,486)	(6,723)
Income tax expense (benefit)	$ 1,082	$ 1,358	$ 5,205	$ (3,603)

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Debt and Short-Term Borrowings - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended	9 Months Ended	12 Months Ended
	Apr. 17, 2013	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Maximum secured leverage ratio		6.60
Senior secured term loan A [Member]
Debt Instrument [Line Items]
Secured credit facilities		$ 281.3
Debt, maturity date		Apr. 17, 2018
Senior secured term loan A [Member] | Commencing On September 30, 2013 To June 2016 [Member]
Debt Instrument [Line Items]
Original principal amount		1.25%
Senior secured term loan A [Member] | Commencing On September 30, 2016 To June 30, 2017 [Member]
Debt Instrument [Line Items]
Original principal amount		1.875%
Senior secured term loan A [Member] | Commencing On September 30, 2017 To March 31, 2018 [Member]
Debt Instrument [Line Items]
Original principal amount		2.50%
Senior secured term loan A [Member] | LIBOR Floor [Member] | Minimum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		2.00%
Senior secured term loan A [Member] | LIBOR Floor [Member] | Maximum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		2.50%
Senior secured term loan A [Member] | Base Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		1.00%
Senior secured term loan A [Member] | Base Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		1.50%
Senior secured term loan B [Member]
Debt Instrument [Line Items]
Secured credit facilities		395.0
Debt, maturity date		Apr. 17, 2020
Original principal amount		0.25%
Debt instrument description		The LIBOR and Base Rate are subject to floors of 0.75% and 1.75%, respectively.
Senior secured term loan B [Member] | Minimum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		0.75%
Senior secured term loan B [Member] | Maximum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		1.75%
Senior secured term loan B [Member] | LIBOR Floor [Member] | Minimum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		2.50%
Senior secured term loan B [Member] | LIBOR Floor [Member] | Maximum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		2.75%
Senior secured term loan B [Member] | Base Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		1.50%
Senior secured term loan B [Member] | Base Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		1.75%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Secured credit facilities		100.0
Debt, maturity date		Apr. 17, 2018
Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Commitment fee for the unused portion		0.125%
Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Commitment fee for the unused portion		0.375%
Term A due on April 17, 2018 [Member] | Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Secured credit facilities	300.0
Debt, maturity date	Apr. 17, 2018	Apr. 17, 2018	Apr. 17, 2018
LIBOR rate and base rate percentage		2.50%
Term B due on April 17, 2020 [Member] | Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Secured credit facilities	400.0
Debt, maturity date	Apr. 17, 2020	Apr. 17, 2020	Apr. 17, 2020
Term B due on April 17, 2020 [Member] | Senior Secured Credit Facility [Member] | LIBOR Floor [Member]
Debt Instrument [Line Items]
LIBOR rate and base rate percentage		0.75%	0.75%
Expiring on April 17, 2018 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Secured credit facilities	$ 100.0
Debt, maturity date	Apr. 17, 2018	Apr. 17, 2018	Apr. 17, 2018

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Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Payment processing revenue from affiliates	$ 7,192	$ 7,338	$ 21,599	$ 21,846
Business solutions revenue from affiliates	33,688	33,500	101,289	102,996
Other comprehensive income, income tax expense	$ 4	$ 11	$ 57	$ 29

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 2—Recent Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) has issued the following accounting pronouncements and guidance relevant to the Company’s operations:

In August 2014, the FASB issued updated guidance relating to disclosures for uncertainties about an entity’s ability to continue as a going concern. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company does not expect this guidance to have an impact on the financial statements when adopted.

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Related Party Transactions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Transactions with Third Party [Line Items]
Letter of credit issued by Popular	$ 3.6
Apollo Management [Member]
Transactions with Third Party [Line Items]
Termination fee	8.5
Popular [Member]
Transactions with Third Party [Line Items]
Termination fee	$ 8.2

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Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Activity

The following table summarizes stock options activity for the nine months ended September 30, 2014:

	Shares		Weighted-average exercise prices
Outstanding at December 31, 2013		1,285,536	$	4.77
Granted		100,000		24.01
Forfeited		31,164		1.30
Exercised		452,999		2.09
Outstanding at September 30, 2014		901,373	$	8.36
Exercisable at September 30, 2014		23,374	$	1.30

Nonvested Restricted Shares Activity

The following table summarizes nonvested restricted shares activity for the nine months ended September 30, 2014:

Nonvested restricted shares	Shares		Weighted-average grant date fair value
Nonvested at December 31, 2013		9,133	$	24.64
Vested		9,133		24.64
Granted		11,942		23.03
Nonvested at September 30, 2014		11,942	$	23.03

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Estimated Amortization Expenses (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2014	$ 12,358
2015	46,588
2016	36,228
2017	33,237
2018	31,377
2019	$ 30,609

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Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Note 12 – Segment Information

The Company operates in three business segments: Merchant Acquiring, Payment Processing and Business Solutions.

The Merchant Acquiring segment consists of revenue from services that allow merchants to accept electronic methods of payment. In the Merchant Acquiring segment, revenue includes a discount fee (generally a percentage of the transaction value) and membership fees charged to merchants, debit network fees and rental fees from point of sales (“POS”) devices and other equipment, net of credit card interchange and assessment fees charged by credit cards associations (such as VISA or MasterCard) or payment networks.

Payment Processing segment revenue comprises income related to providing financial institutions access to the ATH network and other card networks, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. Payment Processing revenue also includes income from card processing services for debit or credit issuers such as credit and debit card processing, authorization and settlement, and fraud monitoring and control services, payment processing services (such as payment and billing products for merchants, businesses and financial institutions) and electronic benefit transfer (“EBT”), which principally consists of services to the government of Puerto Rico for the delivery of benefits to participants.

For ATH network and processing services, revenue is driven mainly by the number of transactions processed. Revenue is derived mainly from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenue is mostly dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenue is derived mainly from the number of beneficiaries on file.

The Business Solutions segment consists of revenue from a full suite of business process management solutions in various product areas, such as core bank processing, network hosting and management, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Core bank processing and network services revenues are derived in part from a recurrent fee and from fees based on the number of accounts on file (i.e.; savings or checking accounts, loans, etc.) or computer resources utilized. Revenue from other processing services within the Business Solutions segment is generally volume-based and depend on factors such as the number of accounts processed. In addition, EVERTEC is a reseller of hardware and software products and these resale transactions are generally one-time transactions.

The Company’s business segments are organized based on the nature of products and services. The Chief Operating Decision Maker (“CODM”) reviews their individual financial information to assess performance and to allocate resources.

The following tables set forth information about the Company’s operations by its three business segments for the periods indicated:

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other			Total
Three months ended September 30, 2014
Revenues		19,227		32,255		43,805		(6,645	) (1)		88,642
Income from operations		8,518		14,707		12,696		(9,461	) (2)		26,460
Three months ended September 30, 2013
Revenues		18,211		32,342		44,472		(7,611	) (1)		87,414
Income from operations		8,568		14,056		11,282		(12,042	) (2)		21,864

⁽¹⁾  Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

⁽²⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other			Total
Nine months ended September 30, 2014
Revenues		58,345		96,915		131,609		(19,896	) (1)		266,973
Income from operations		25,700		44,738		36,232		(29,892	) (2)		76,778
Nine months ended September 30, 2013
Revenues		53,835		92,168		136,965		(19,040	) (1)		263,928
Income from operations		25,963		38,536		30,600		(35,898	) (2)		59,201

⁽¹⁾  Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.

⁽²⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

The reconciliation of income from operations to consolidated net income for the three and nine months ended September 30, 2014 and 2013 is as follows:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Segment income from operations
Merchant Acquiring	$	8,518		$	8,568		$	25,700		$	25,963
Payment Processing		14,707			14,056			44,738			38,536
Business Solutions		12,696			11,282			36,232			30,600
Total segment income from operations		35,921			33,906			106,670			95,099
Merger related depreciation and amortization and other unallocated expenses (1)		(9,461	)		(12,042	)		(29,892	)		(35,898	)
Income from operations	$	26,460		$	21,864		$	76,778		$	59,201
Interest expense, net		(6,279	)		(6,349	)		(19,535	)		(31,267	)
Earnings of equity method investment		241			198			905			823
Other income (expenses)		(249	)		448			2,127			(77,020	)
Income tax (expense) benefit		(1,082	)		(1,358	)		(5,205	)		3,603
Net income (loss)	$	19,091		$	14,803		$	55,070		$	(44,660	)

⁽¹⁾  Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.