I think Carlos and I are in agreement that you know, the 60s probably a good baseline to be using going forward, and will obviously update you guys if not mid, certainly close to quarter end or even at the quarter in 2Q if all the things we’re going to do on the expense side. Michael Rose Great, maybe just one final one for me. I know we’re talking about only a handful of credits, but it seemingly like every quarter there’s kind of a larger charge off or two but kind of spice ratios and things like that. I know, from very low levels, and new NPA ratios at very low levels, but it does seem to happen kind of every quarter. And I think that’s one of the pushbacks that I get from investors. How can you help us understand that credit isn’t going to be an issue, maybe these are legacy credits, and just give us some comfort that these truly are kind of just a handful of credits, and idiosyncratic in nature not anything systemic?
Thanks. Jerry Plush Yes, no. And by the way, I can completely understand that. Because certainly for these last several quarters, we’ve had something of size occur, obviously, this quarter, we got a surprise, close, literally close to the within five working days of the end of the quarter, on the transportation credit. And without, I can’t get into a ton of detail right now on this, but I mean, this was a relationship that was very long standing with the bank. It was something where I think it’s a particular situation where they grew too fast, and I think that caught in the squeeze of the costs of running that business. I think the biggest challenge for us was I think there were probably some opportunities on this one that we’ll certainly not see a repeat of that.
I think this was a very unique case in that regard.Though, Michael, I do want to say, as people think about provision expense, and we’ve talked about this a lot. You’re going to have a couple of things, I think with us to take into account. One, you’re going to have loan growth every quarter, right? If so, if we’re going to say that we’re growing 200 to 300, you’re going to pencil in that there’s got to be a couple of million in provision in there. I think, given the economic environment, the uncertainty, you could have factor changes, like we did this quarter that will also drive that. We’ve discontinued, as Carlos said, this indirect consumer program, it appears that there’s some charge-offs that have certainly surged, and come through. And that’s been, I think, consistently, sort of this last quarter, and now this quarter, sort of in that 5ish almost $6 million, I think this quarter remains.
And so, if you’re looking at a baseline, you can easily say, for us that, I think for 2Q, you can forecast at least a $10 million provision, which is not inconsistent with what we’ve been thinking about internally on a just so everyone is aware of that. I think, we always have the uncertainty because we still have some remaining exposure in New York and commercial real estate. While we are very, very closely monitoring spending a ton of time, when you think about know your customer, onsite visits consistent conversations with each of these customers, carefully looking screw, who is reprised up and how the credits can withstand, the relationships can withstand higher rates. We’re very proactively working with those customers. And I think that’s probably the one other area that while we have roughly I want to say about $300 million left in that portfolio that we need just to be very cautious about that.
But again, back to your original question, this was a customer where we knew well that the bigger charge took this quarter. And I just think that, it’s something that, it’s very unfortunate. And I do think that, it’s — I think you used the word idiosyncratic.Michael Rose Idiosyncratic?Jerry Plush I think that fits the definition.Michael Rose I appreciate all the color and Carlos congratulations. Thanks.Operator Thank you. [Operator Instructions]. And our next question comes from the line of Stephen Scouten with Piper Sandler. Your line is open. Please go ahead.Stephen Scouten Good morning everyone. I guess maybe if we could start on the foreign deposits, can — I don’t know if I missed this. But can you give a feel for what you are seeing in terms of the betas on those deposits and with this push and focus on those deposits, if you think you can grow absolute balances there?Carlos Iafigliola Yes.
In terms of the betas for this deposit, it continues to be very well contained. Just to give you a perspective, for the full cycle, it was 0.09, the beta of the international deposits. Just in Q1, we just have a couple of repricing’s of the time deposit portfolio, which obviously search in light of being locked for more than a year, with previous interest rates and that created the search to the 0.53 cost of funds in the international side. But it continues to be very, very benign. As Jerry mentioned, that team is very — is being retooled with additional business development team, and with our new set of goals and to growth going forward. As a matter of fact, there has been several wins during the current quarter that have helped us to keep going in that portfolio and to keep dropping the cost of funds.
Is that clear, Stephen?Stephen Scouten Yes. That’s extremely helpful. Thank you.Jerry Plush Hey, Stephen. Just let me add a little bit of color. Just to clarify, this group that — and I think, it’s really merit spending the time to make sure everyone understands. We had zero travel. Obviously, in COVID, we had — we are probably more in what we will call a maintenance mode or customer service mode with that existing portfolio, which has roughly been around $2.45 billion to $2.5 billion consistently over these probably the last six to eight quarters. Now with the merging of these three units, which as you got to think about it, we are sub units in both in retail and private bank and then also in the commercial bank, having a singular leader, single focus to drive this business, right, as opposed to really just in a maintenance mode.
I think there is just significant upside opportunity for us. We already have the infrastructure in place that we must maintain, obviously for where we do business and we have already and always have been a cross border institution.So, I just think this is something where there is great opportunity for our organization without really having to add a lot of incremental expense at all to do this.Stephen Scouten I think that’s kind of why after they get the major differentiator for you versus really every other bank in your peer groups. That’s great. Could you speak maybe just I’m curious, just around the overall competitive environment? And I definitely appreciate it, I’m glad to hear you’re saying deposits are going to kind of determine what your loan growth will be.
