Sharymar Calderon: Sure. So, at the point in time when the transaction closes from a margin perspective, we do expect to see some improvement. As you were mentioning, it comes with yield on loans, but it’s partially offset by a higher cost of funds. So, we do expect some improvement on the NIM there. And then from an overall P&L perspective, what we can expect to see is that although we’re going to be losing temporarily some of that interest income, it’s going to be awash with the reduction of operating expenses. So, it’s kind of a plus or minus will take us to a net effect of nothing. But the next step with that is that we will be able to redeploy into loan production here. So we with all of that factoring, we do expect an improved margin.
Jerry Plush: Yes. I think just to add to Shery’s remarks, we’re getting better spreads on production we’re booking right now. Obviously, we’re getting higher pricing and fees on that than that existing portfolio. So that will more than compensate if the funding we need to raise is higher cost than that 4% I believe it is in Houston right now.
Feddie Strickland: Right. Got it. And last quick question, just is the opening of these new offices and the teams and whatnot already kind of implied in that I think you said $68 million expense guide for next quarter. And does that kind of continue to go up throughout the year or can it be relatively flat from there, next the Houston transaction?
Sharymar Calderon: Yes. That’s we’re expecting the $68 million to be a normalized level throughout the year. That’s factoring in the growth of our team members and everything that we have been mentioning in terms of growth.
Feddie Strickland: Got it. Thanks for the color guys.
Operator: Our next question comes from the line of Russell Gunther with Stephens. Please proceed with your question.
Russell Gunther: Hey, good morning, guys. I just had a couple of follow ups. The first on the loan growth, very clear, momentum is quite strong. We talked around maybe the 15% target year over year. Is that still good with the multifamily or are you kind of talking about that as an overall kind of number?
Sharymar Calderon: So, Russell, if we look at the balance we had in the fourth quarter and we compare it to our projection of growth, we could see from a 10% to a 12% growth year over year if we exclude the effect of the $400 million. If we add back that reduction of the $400 million we could see a number closer to the 17% growth. So I know it’s a little bit of an add back to be able to get to the number, but in overall, we are expecting growth in the next quarters to make it to a 17% growth, excluding that piece.
Russell Gunther: Got it. I appreciate the clarification. That’s very helpful. And again, very clear the opportunity is strong guys. And then on the expense side, so very clear guidance from a core basis going forward. Could you just remind us of what the P&L save will be on expenses from the Houston exit? I think you’ve quantified the number of folks leaving and maybe expensive there, but sort of all in on the noninterest expense piece?
Sharymar Calderon: Yes. From a P&L perspective and just to confirm Russell, the P&L impact in terms of Houston solely. Right. So that would be around $4.9 million to $5 million.
Russell Gunther: Okay. Thanks, Shery. And then guys last one for me. I noticed international deposits were up this quarter. I think you guys had sort of reengaged an effort to try to grow those balances. If you could just give any update there on the dynamics this quarter and strategic focus on that on those balances?
Sharymar Calderon: Yes. I mean, we continue our efforts on our international deposit gathering with then the competition we have in commercial accounts that have that are transactional in nature, where we expect to have an international perspective and more normal level where the balance right now, but for the remainder of the year.
Jerry Plush: Yes. We’re actually, I think we’ve talked about this in the last call, really in a continue to be in fact finding of how exactly we’re going to expand even further there. So we’ll be giving more color either by the end of the second quarter of what the game plan is for the balance of the year to expand there. But we’ve got a number of initiatives you’ll probably see in press releases and appearances and things we’re going to be doing here in the month of May June that will give you much more color as to how we’re thinking about to expand there.
Russell Gunther: Okay, great. All right, Jerry, Shery, thank you very much for taking my question.
Operator: Thank you. We have reached the end of the question-and-answer session. I’ll now turn the call back over to CEO, Jerry Plush for closing remarks.
Jerry Plush: Thank you everyone for joining our first quarter earnings call. We appreciate your interest in Amerant as always and your continued support. Have a great day.
Operator: This concludes today’s call. [Operator Closing Remarks].
