And then in your comments, Jared, you have very briefly kind of mentioned the payment product. Can you kind of just update us, you said things are tracking on schedule, what kind of updated us on where things are and kind of transactions or other kind of metrics you could provide for us?Jared Wolff Sure. Well where we sit today is we intend to onboard clients beginning in the second half of the year, early in the third quarter and hopefully a little ahead of that. And we’ll start building traction through the end of the year, so that we think by early 2024 and then on through 2024, this will be a really big contributor and a meaningful one to our numbers that year in terms of being common and likely deposits.The way that we’re looking at onboarding clients is we we’re going to walk before we jog, before we run.
And so, we’ve been building our risk infrastructure and we’re testing it now and making sure that it’s right. And we expect to be onboarding clients here very shortly because you can test as much as you want in kind of a non-live environment.But I think, you got to bring on some real clients to then test the system and make sure it does what you think it’s going to do, the way you think it’s going to do it, and then you start adding more clients. And in fact, we’ve been in very close touch with the regulators as we’ve been doing this and I think, the approach that we’re taking is the right one. And I don’t, I don’t have much more to add there, Gary, other than, I fully expect us to be bringing on clients in the second half of this year and, they’ll be — we’ll start with clients that are a certain size and obviously they’ll grow in size and volume as we get through the year.Operator Our next question comes from Matthew Clark from Piper Sandler.
Please go ahead.Matthew Clark On the margin front, do you happen to have the spot rate on deposits at the end of March and the monthly margin in March, just to give us some visibility?Jared Wolff Yeah, I don’t think we’ve — I rated, did we disclose that or not?Raymond Rindone We didn’t disclose the flat rate in March, no.Jared Wolff Okay. I would say that, just generally. So this excess liquidity that we have on the balance sheet affects our margin by, I don’t know, seven to 10 basis points. It’s about $2 million of expense of interest expense that we’re carrying until we choose not to carry it. I certainly want to wait and see what happens with First Republic and then we’ll take it down, but it’s about $2 million of, of expense and seven to 10 basis points on the margin.And so, I think you can expect to get a benefit there when we take that out, but on the other hand, costs in March were definitely higher than they were averaging for the first quarter.
And so I could see our margin being down 10 basis points to 15 basis points in the second quarter, maybe 20 basis points.I just don’t know. It’s going to really depend on the flow of non-interest bearing deposits and I don’t know that anybody can predict what that’s going to look like. And obviously if we see good loan opportunities and we choose to do it and we want to borrow to do that, it might affect our margin, but we’re going to make more money and so it could be 20 basis points down. Matthew, I just don’t know where it’s going to be. We were looking at it last night and there’s a whole bunch of factors that affect it. So I hope that that color helps though.Matthew Clark Yeah, I’m just looking for a guidepost on the deposit side at least.
And then just on the non-interest bearing deposit front, growing encouraging to see that you grew commercial accounts, but can you give us some sense of what you witnessed in terms of the runoff and whether or not there was anything chunky in there, whether or not you expect some of that to come back and whether or not there’s some lag effect in terms of opening new commercial accounts and bringing other deposits?Jared Wolff There’s definitely a lag effect. So, that’s part of what we see in the pipeline in terms of not only new accounts, but also the volume, that we’ll get in those accounts. It does take time to fund them. After you open the accounts, although, we bring it over pretty quickly.In terms of, kind of chunkiness or things like that.
I think anything that we didn’t lose any relationships. And so I was really pleased that nobody said, hey, we’re pulling our money, we’re going over here, but like every bank, we certainly banks our size, we experience clients saying, look, I’ve got this new money coming in and my board wants me to spread it here or spread it there. So we think that there’s opportunity for some of those funds to come here.I was on a call with a client the other day who has an infusion of some money from a private equity firm, and the private equity firm said, hey, I know that’s your primary bank, but we’d like you to maybe put this money, this infusion somewhere else that one of the money center banks. And those conversations are definitely, definitely happening.So I think that, and they of course, advocated for us and they said, hey, we want to get you on a call with Bank California and we’ll get their people on the phone.
So that is happening, which is why, we’re not losing any money at this point. It’s all the opportunities ahead of us to bring that stuff back or to bring in new clients. And so, that’s why I see our deposit base continuing to grow because we did so well in spite of all of that.Matthew Clark Okay, great. And then just a housekeeping item, if you have it, the weighted average cost of that you repurchase stock this quarter?Jared Wolff We have not. We haven’t disclosed that. And Matthew, I think, we did say that a lot of it was purchased below tangible book. It was, we said the number that we did through the end of March, and then how much we got it we bought after the end of March. So you can kind of figure out where we might have been.Operator The next question comes from Kelly Motta from KBW.
Please go ahead.Kelly Motta Hi, thanks for the question. I’ll carry on the repurchase commentary. Clearly, you were in the market and continued to be this quarter. As you look ahead, capital levels are really strong, which, bodes well in this environment. What’s your appetite for repurchases here and maybe an outlook for capital management going forward?Jared Wolff Yeah, thanks Kelly. Look, we feel really good about our company and where we sit for all the reasons we mentioned in our prepared remarks and, the fact that we’re choosing to kind of be a little bit more conservative here and to focus on growing our deposit base and build and focusing on our strength and I think is fine. Absolutely we’ll take the opportunity to buy back our stock.We have a repurchase authorization for $35 million.
I think it’s kind of pretty low relative to our capital levels, but we wanted to be prudent not knowing what the environment was going to look like, and we’ll be opportunistic in buying back our stock. I certainly don’t like our stock at these levels, but if it is going to be at these levels, we think it’s an incredibly good bargain to buy our stock here.Kelly Motta Understood. Switching over to credit…Jared Wolff Oh wait, Kelly, one other thing, just to reflect on that, we’re sitting with such low levels of unrealized losses in our available for sale portfolio and even in our HTM that, we know that our — and our securities portfolio is also highly liquid in terms of its moderate to low duration. And so our tangible book value doesn’t have the numbers running through.We continue to grow a tangible book and so it’s just kind of surprising kind of where the stock is sticking out even with 36% non-interest bearing and so there’s a whole bunch of reasons why we should keep buying our stock and as long as it sits down here, I think we’ll be appropriately opportunistic.Kelly Motta Got it.
