Alex Twerdahl: Got it. And then maybe you can talk a little bit more about that sort of mix shift that you alluded to as well, the multifamily is coming off, the pace in which we might expect to see some of that mix shift and how it could actually impact loan yields over the next 18 months.
Jason Darby: Yes, I think that’s sort of a hidden or unlock power of the bank’s balance sheet and the bank’s earnings potential. As Priscilla pointed out in her comments, it’s still a bit of an older balance sheet. Our lending strategy is still relatively in its early innings. We got a nice start to it throughout last year. And obviously, we’ve modified our growth approach throughout the rest of this year for reasons we’ve discussed in the past. But again, if you sort of think about the earlier multifamily deals that are still in the books in the low spread and the low margin that’s on those, some of the residential assets that will continue to come off and our ability to play in the space of climate/sustainability on the commercial side, and having deals that’ll price out in the 6.75%, 7% range.
There’s a really good opportunity for us to see asset yield expansion as we get out into probably the early part of next year. And again, we’re pretty excited about that, and we think that we spent a lot of time for preparing the balance sheet for this, and we hope that the margin is going to benefit from it pretty greatly here as we get out into next year.
Alex Twerdahl: Okay, great. Thanks for taking my questions.
Jason Darby: Thanks Alex.
Operator: Thank you. Our next question is from Janet Lee with JPMorgan. Please proceed with your question.
Janet Lee: Good morning.
Jason Darby: Hi Janet.
Janet Lee: Hi. On that part about favorable remix over time, can you give us a sense of that yields comparisons for different types of sustainable lending loans that you originate today versus conventional loans that are rolling-off? I just want to see, if there is any sort of data that you can provide us.
Jason Darby: I mean I think, again, the assets that — or the asset classes within sustainability and climate again, we’re seeing, I think, as I said before, 6.75%, 7% type of yield opportunities. If you look at some of our more dated commercial loans in the multifamily side, some of those are still in the 4% range, 3.5% range. So, there is a good opportunity to find some spread there, Janet. But I don’t have a specific quote for you, other than you can really just think again about the age, nature of the balance sheet. And we hadn’t had really any loan growth on the book all the way up through 2021. I mean, we’ve kind of sat neutral from 2019 through 2021 in terms of loan growth. And then we started to pick that back up again in earnest when Priscilla arrived and we developed our lending strategy.
So, it gives you a little bit of a sense for the type of assets that are still in the books that are ready to roll-off and the types of opportunities we have in our climate sustainability section.
Janet Lee: Okay, that’s helpful. And in terms of your NII sensitivity going back to your $1.5 million comment. So, if the Fed lowers rates, you would benefit on the net interest income side from your asset sensitivity point of view.
