Timur Braziler: Got it. And then the first part of my question tying this all together, should we expect the bond book to continue funding the loan growth meaning assets stay flat even though loans grow the 3% to 4%? Or are you envisioning an environment where you actually grow the asset base over and above that $10 billion in ’23.
Jose Fernandez: So we’re not seeing the bond investment portfolio to grow from these levels. We see our deposit balances optimized with investment in our loan origination efforts. So at this point I think we were very patient throughout the last part of the 0% interest rate environment and kind of kept everything except the liquidity in cash. And we’ve been very opportunistic in the last 12 to 15 months slowly but surely investing in higher yields. We’re very comfortable with the current position and we have some repayments that will probably be invest as they come in, but we are not expecting to grow the investment book.
Timur Braziler: Okay. And then last for me on credit quality. Net charge offs are in the mid 60 basis point range for the second consecutive quarter. And you guys are one of the few banks that actually release reserves in the fourth quarter. Maybe just some color on where you see net charge offs normalizing, how close are we to that point and then how should we be thinking about the allowance ratio going forward?
Jose Fernandez: Net charges offs for us are driven by the consumer book and the auto book and we saw the fourth quarter starting to show more normal rate post-pandemic significantly below pre-pandemic but still more of a more realistic way going forward. So depending on loan growth and depending on the macro scenarios, our provision should be driven mostly by replenishing the charge offs from the consumer and the auto book and it’s a good guiding post to utilize the charges of the fourth quarter going forward and we’ll be updating given the different kind of variables of CECL throughout the year.
Timur Braziler: Great, thanks for the caller and nice quarter.
Jose Fernandez: You welcome.
Operator: We’ll take our next question from Kelly Motta with KBW.
Kelly Motta: Hi, Jose, Maritza, good morning.
Jose Fernandez: Good morning, Kelly.
Kelly Motta: I noticed you guys ended up exiting the year at under 10 billion in assets again. Can you remind us what that implies in terms of the implementation of Durbin the timing of that, and also what sort of impact of fees that will have once it does go into effect.
Jose Fernandez: Yes. So, again, we did not cross the 10 billion by the end of the year. So Durbin, the effect of Durbin does not apply for 2023, as you pointed out, and the annual cost for us estimated for Durbin is $10 million. So we are and it usually start six months after crossing the 10 billion on December 31. So for this year, it would have been around $5 million, but yearly will be 10 million.
Kelly Motta: Great, that’s super helpful. And I know we’ve talked at length about the kinds of deposits and also is going down as customers use their funds and search for higher rate. But wondering if there was any kind of decline around year end to if Durbin was a factor at all, in some of that decline, we should perhaps anticipate coming back as you look into 1Q and build into sort of the size of the balance sheet with that?
Jose Fernandez: Yes, so that’s a good point. That was more the case at the end of 2021. 2022 we started the fourth quarter at a lower asset level than 2021. So it was more natural end of the year, clients utilizing, mostly commercial clients utilizing their funds at the end of the year, and we did not have to press at all to be below $10 billion. So it’s part of the natural attrition that we’re seeing from higher interest rates and clients reallocating their cash to higher yielding investments.
