So, those types of things are opportunities for us, and we’re very happy to take advantage of them. We have further consolidation, you’ll see in our Rotterdam locations. We’re closing a branch there and selling that. So, you’ll see more coming.
Alex Twerdahl: Okay. That’s helpful. And, actually, I — one more question, if I could, just on capital. You guys [Multiple Speakers] pretty healthy level of TCE stocks still trading below tangible book value. Is that — is buyback something that you would put back on the table in the near term?
Robert J. McCormick: Yeah. We like the idea of the buyback. We have an approved program, Alex, and we’ve been active in the past with regard to buybacks, and we like the — we like that idea, especially with regard to book value.
Alex Twerdahl: Okay. Great. I appreciate you taking my questions.
Robert J. McCormick: Thank you.
Operator: Our next question comes from the line of Ian Lapey with Gabelli Funds. Ian, please go ahead.
Ian Lapey: Hi. Good morning, Rob. Congrats on a solid year in a tough, tough environment.
Robert J. McCormick: Good morning, Ian.
Ian Lapey: Good morning. A few questions. First, you talked last quarter about a split the difference loan product, can you give an update on how that’s going?
Robert J. McCormick: It was not very well received, Ian, and we kind of walked away from that. I was actually shocked how poorly received it was. I do have to say, if you talk to our mortgage originators, they would say it did introduce us to questions and comments on a lot of real estate transactions, but we didn’t get a lot of people to bite on it.
Ian Lapey: Okay. Yeah. It seems like a sensible thing, but —
Robert J. McCormick: I thought so too.
Ian Lapey: Next on — yeah — on credit, obviously, terrific, $46,000 in net recovery. What do you expect, though, over the next couple of years for charge-offs? I mean, I assume that it can’t stay this good, but when you’re underwriting, what type — particularly with higher rates now, what would be a good expectation for charge-offs?
Robert J. McCormick: You’ve been with us for several years. We’re a pretty conservative company, and I certainly agree economic conditions and some of the changes could drive a little bit more with regard to charge-off, but we don’t see them skyrocketing. Our backlog and our shorter-term delinquencies are not climbing. We have a very good handle on our collections, and we just don’t see them skyrocketing over the near term, or really even increasing markedly over the near term. So, I think, we’re pretty comfortable with where we’re at. As far as the net recovery, we’ve been in a net recovery position for so long now. Excuse me. I don’t know how long that can continue, but we don’t see that turning dramatically to a significant loss.
Ian Lapey: Okay. Great. And then, lastly, on — so you’ve got about $238 million in residential mortgage-backed securities, and I know this is — most other banks have much more proportionally. But, like, why for you would you buy any of these, given that your — the core business is to hold fixed rate mortgages, maybe that’s generally refers to why [Multiple Speaker]
Robert J. McCormick: Generally what you’re saying —
Ian Lapey: [Multiple Speaker]
Robert J. McCormick: Generally, we agree with what you’re saying, but we see good opportunities in the mortgage backs, and that’s when we jump in and out of them. Sometimes, along the — your line of thinking, the agencies work pretty well for us, but there have been opportunities to grab some rate on mortgage backs and have jumped in. But the bank’s portfolio is really a big mortgage-backed security. So, generally speaking, we agree with you.
Ian Lapey: Right. So why not then? Because I’ve been struggling with all banks owning this security, given short term funding. So, for you, it looks like yours are yielding about 2.3%. Why wouldn’t you sell those and get a tax refund? And then you could reinvest in — either keep it in cash, or one or two-year treasuries earning double, and then position yourself — as you said in the release, there could be a number of different interest rate environments, we don’t really know, but it seems like that would protect you from a risk management standpoint as well.
Robert J. McCormick: That certainly gets tempting with the way the rate situation is right now. And we do evaluate that pretty regularly. We’ve looked at that portfolio a number of times and what the tolerance is for that loss. But, overall, we’re pretty comfortable with where we’re at. But any opportunity we have to do something like that, we would try and take advantage of. You want to add any color to that, Mike?
