Ron Ohsberg: Yes. So yes, so Laurie. We had a credit go through the expense line of $3.4 million in the fourth quarter. So strip that out and fourth quarter is more like $35 million.
Laurie Hunsicker: Got it. Okay.
Ron Ohsberg: We had the incentive reversal of $3.4 million.
Laurie Hunsicker: Okay. And then your….
Ron Ohsberg: Yes.
Laurie Hunsicker: Okay. Great. And then the other, other income line of $83,000 looked like, was there – any one-time charges that ran through that?
Ron Ohsberg: Yes, there was a – we did set up a $300,000 valuation reserve. Yes we set up a $300,000 valuation reserve on an asset in there.
Laurie Hunsicker: Okay. Great. Okay. And then back over to NIM, do you have a December spot margin?
Ron Ohsberg: Yes, it was 182.
Laurie Hunsicker: 182. Okay. And then just last sort of maybe a general question. We’ve seen some banks take some restructuring within the securities, but how do you guys think about that as we look forward?
Ron Ohsberg: Yes, I mean we’ve kicked that around a lot. We have not decided to do that. I don’t think we’re planning to do that. We had a nice recovery in our investment portfolio in the fourth quarter. I understand some of the merits of why banks are doing this, but it – I doubt that we’re going to do it.
Laurie Hunsicker: Got you. Okay. Great. Thanks for taking my questions.
Ned Handy: Yes, thanks Laurie.
Operator: The next question comes from Damon DelMonte from KBW. Please go ahead.
Matt Rank: Hi everybody. This is Matt Rank filling in for Damon DelMonte. I hope everybody is doing well. You guys mentioned you’re slowing asset growth…
Ned Handy: Hi Matt.
Matt Rank: That came out on loan growth this quarter. So I was just hoping. Hi, I was just hoping we could get your thoughts on full year loan growth for 2024?
Ron Ohsberg: Yes, I would say, on a net basis it’s going to be about 0%. So, we’re looking at commercial growth, we had – we’re not doing a lot of originations right now. We did have a fairly sizable construction – previously committed construction pipeline, that’s going to add about $240 million of advances during the year. That’ll be partially offset by amortization and paydowns, but that’ll give us commercial growth of about 3%, but then we’ll have about a 3% decline in resi and consumer. So on a net basis about zero.
Matt Rank: Okay. Got it. And then just a follow-up on credit with the slower loan growth. How should we think about provision expense, should we think of it as reserves holding steady, or maybe a slight build as credit starts to normalize?
Ron Ohsberg: I think we’re thinking a slight build. And if you wanted to put in $1 million a quarter. We’re not seeing any particular trouble, just feels like it needs to be a little higher than say, like the $0.5 million run rate that, we’ve had. Of course, this quarter was a little higher. But we’re thinking about $1 million a quarter.
Matt Rank: Okay. Got it. Thank you.
Ned Handy: Thanks Matt.
Ron Ohsberg: Yes, Matt, you said. Okay. I just wanted to give a little bit more – color on expenses. So yes. So that 0% expense growth also includes about a $1.5 million additional expense related to the de novo branches, so that’s covered.
Matt Rank: Okay.
Operator: We have a follow-up question from Laurie at Seaport Research. Please go ahead.
Laurie Hunsicker: Yes. Thanks, Ron. Yes, I was actually just hitting you guys back on the expense related to branches. So what is – the timing on de novo branches opening in 2024. How you’re thinking about that?
Ron Ohsberg: Yes, Ned…
Ned Handy: Yes, hi, Laurie, it’s Ned and one – in the first quarter – actually one end of January and one end of first quarter, essentially April. And as Ron just pointed out in his expense comments, we have covered the cost – of those new branches. So, they are built into that expense base.
Laurie Hunsicker: Perfect. Great, thank you.
Ned Handy: Thank you.
Operator: Also have a follow-up from Mark Fitzgibbon of Piper Sandler. Please go ahead.
Mark Fitzgibbon: Hi, guys, I was wondering if you could comment on your capital position and whether you were thinking about raising additional capital?
Ron Ohsberg: Yes, we’re not, we are curtailing our loan originations pretty significantly. So, we’re expecting capital ratios to stabilize pretty close to where they are, and begin to improve over the second half of the year.
Mark Fitzgibbon: Thank you.
Operator: [Operator Instructions] Okay. We have no further questions on the call.
Ned Handy: Thank you all. I know you’ve got a busy morning. We appreciate you taking the time to be with us, and look forward to talking to you again soon. Have a great day everybody.
Operator: This concludes the conference call. Thank you all very much for joining and you may now disconnect.
