Gerard Cassidy: Happy New Year to you, too. Carlos, on the OCI or AOCI, I should say, when you look at it, you had in the available-for-sale portfolio, about $1.8 billion of unrealized losses. Can you share with us what kind of interest rate environment would we need to see for that number to fall materially from here.
Carlos Vazquez: Lower. I agree with that. No, I mean the portfolio has about a 2.8-year duration. So that can give you some sensitivity on the entire piece, right? So you could probably run some calculations based on the duration and the size of the portfolio should give you an idea of, roughly speaking, were unrealized good move. Yes. The — obviously, the as said, the portfolio is on the short end. So we are the biggest bang for the buck. You’ll probably get short-end rates — an intermediate rates moved lower. I think AOCI only happy, if the 30 year comes down, but the 30 year does not have big effect on our AOCI as the shorter and into medium terms. The other thing is there’s a significant amount of bonds that mature every quarter. So the portfolio is laddered out all the way up to 6 years. In fact, we probably have about $1 billion or so that mature every given quarter. So that also shows the duration as time passes.
Gerard Cassidy: Got it. And even though — yes, I’m sorry go ahead. Right, right. The reason I asked is that I noticed that the agency portion of the portfolio, which has the largest unrealized loss because the majority of 7.5 years and even though I know the total AFFS is under three. I didn’t know that Men port of the portfolio, the longer into the curve, is something we are going to watch.
Ignacio Alvarez: Yes. That piece — that portion of the portfolio is mostly agency pass-throughs. So we put the weighted average life of the instruments. It’s a mix of 15-year and 30-year mortgage-backed securities. That has a slightly different basis than treasury. So that will be a function of where intermediate rates move as well as where the mortgage back to treasury basis moves as well. So we had some relief for that in the fourth quarter. If those trends continue, that would be a positive news for that. But again, it will all be subject to where the market sees the risks.
Gerard Cassidy: Very good. And then following up on the technology commentary that you guys gave us, Ignacio, I think you said in your prepared remarks or actually in response to a question that Popular has traditionally been a leader in technology in Puerto Rico. So it’s somewhat surprising that this overhaul is coming, but me as it is, were you guys seeing — or are you seeing evidence that other entrants are making headway against your core customers and you’re starting to lose some of these customers? Or what was the real — or is that part of the reason for the big spend that’s coming?
Ignacio Alvarez: No, I think that when I say we are a traditional leader in the technology, that’s true, but we feel the world is changing much faster. And we may have been a little bit behind where we normally would be on this kind of a curve. We haven’t lost customers yet, but we are not going to wait to lose customers. We are seeing — there are certain areas where you see more U.S. entrants, for example, credit cards, where you see more of the U.S. issuers coming in with features and different things that we may be a little bit behind, but really, we want to get ahead of this. We don’t want to leave ourselves open to future digital entrants taking away our clients. So basically, we think — we really think that if we offer a top-notch digital experience and you combine that with our branch network, and you combine that with the diverse services we offer a client that we have an unbeatable solution
