Alex Twerdahl: Okay. I mean, I guess, as you sort of look over the next couple of years in balancing the outlook that you see in Puerto Rico which continues to be favorable. Do you see the chances of expanding a little bit more or deploying a little bit more towards the US is something that’s likely? Or I mean, I guess, when you talk about the growth opportunities in Puerto Rico, would those be sufficient to sort of absorb all that excess?
José Rafael Fernández: Yeah. Good point. As you know we have the US business that we have been growing for the last five, six years. We will continue to invest in that business. It’s been a very good profitable business for us. So we see opportunities. We also recognize that Puerto Rico is decoupling — our economies decoupling steadily from the US. Although, the US is being more resilient these days and it’s showing some growth. And that is also good for Puerto Rico by the way. So we expect Puerto Rico’s economy to continue trending upwards. And we see somewhat a little bit choppiness in the US economy. So we will be more cautious there. In general, we will be investing also and deploying some capital for the US business.
Alex Twerdahl: Okay. Thanks. And then, I was hoping you could give us a little bit more commentary on the consumer in Puerto Rico. And just I recognize that there’s still some normalization going on — and maybe just kind of frame sort of where you expect net charge-off levels on the consumer and then also on the auto to level out? And just kind of help us square, the continued deterioration if you can call it that with the strength in the consumer that we’re seeing in all the jobs numbers, and the unemployment numbers, and the wage salary numbers and all that kind of stuff that all seem to suggest that credit on the consumer side should be significantly better than it even has been in the last couple of years.
José Rafael Fernández: Yeah. So I’ll give you some thoughts. And I’ll let César then add some of the details. But when you look at consumer and auto, our own auto portfolio, you need to start by recognizing that both have different loss content in itself inherently there are different types of loans. One is secure and the other one is unsecured. That’s number one. Number two, when you look at auto loans, it’s also the – it’s a necessity in Puerto Rico to own a car. As you know, we don’t have a massive – mass transportation in the Island and all that stuff. So consumers prioritize the auto loan payment. And that is why you’re seeing a divergence. And you see a natural divergence historically, between consumer and auto.
But again, we come back to the same kind of land in the same place Puerto Rico’s economy is doing well, unemployment levels are low. So we are not seeing neither portfolio to go back to pre-pandemic or worse. We are seeing them trending inching upwards because certainly some of the stimulus has been taken away and it’s kind of flowing out. But in general, we’re not seeing those portfolios performing worse than pre-pandemic levels. But that’s kind of my 30,000-feet kind of view. I’ll let César give you a little bit more details on the consumer side because already gave on the auto side.
César Ortiz: Yes, the consumer portfolio [Technical Difficulty] so with that coupled with the macroeconomics strong outlook that we have as I also mentioned, we don’t expect it to deteriorate more than the pre-pandemic and we expect it to be actually better than the pre-pandemic level. So in outlook, as we mentioned we shifted that portfolio. As I mentioned before from the 64% prime to 82% prime, so the outlook for auto is going to be better than pre-pandemic level because of that shift. So…
José Rafael Fernández: And again, you’re going to see right now what we have, 4.4 in terms of net charges off for consumer that is lower than what we had in the past before the pandemic. In auto, we’re around 1% or so a significantly lower also….
Maritza Arizmendi: High-yielding portfolios
José Rafael Fernández: And these are both very high-yielding portfolios. So we’re very happy with the performance and the profitability of both portfolios.
Alex Twerdahl: Would you mind just going through – I don’t know if anyone else on the call is getting the same issues with it kind of breaking up every so often, but the percentage prime before pandemic to today, I think you said 64 to 82 and I wouldn’t sure if that was just for the auto or if that was for consumer as well
José Rafael Fernández: This is auto.
César Ortiz: Auto portfolio, the auto portfolio shifted from 64% and now it’s 82% prime. The consumer portfolio has always been [Technical Difficulty] 89% prime portfolio. So that’s why I’m mentioning that the consumer portfolio have and still is a prime superprime portfolio.
Alex Twerdahl: Okay. Thank you. And then just one final question just also on credit. I’m just curious if you can give us a little commentary on commercial real estate in Puerto Rico and just kind of how that market has fared up recently? And then also just remind us, I think one of the big concerns here is just the refinancing risk of loans going from 3.5% yields, up to 7.5% or 8% yields, as they kind of roll over in the next couple of years. If we look back to 2020 and 2021, were there loans – commercial real estate loans being put on with yields as low as three – with the three handle? Or were they a little bit structurally higher in terms of the yield back then?
