Kelly Pecoraro: So I think, at 12.31%, our pipeline was strong. We had about $25 million in our pipeline, $20 million of that in the C&I space, which we were pleased with. The yield on that is just around 8%, 8.2% on that pipeline.
Chris O’Connell: Great. And so, for the mid-single-digit loan growth, are you expecting that to be more back weighted and for the pipeline to pick up over the course of the year?
Kelly Pecoraro: I think as we look at it, having $25 million in our pipeline right now, we continue to respond to the market and what’s available to meet the strategy of shifting to C&I. So if deals become available, we’re actively looking at that. We are hoping to have the growth come in sooner as we benefit from that throughout the year, but we will be cautious in terms of extending our price.
Chris O’Connell: Got it. And for the securities portfolio, I appreciate the color on the duration. For the next few quarters, do you think that you’ll let that run off to the extent that you have stuff maturing? Or do you expect to keep it fairly stable from here?
James Nesci: I think there’s a couple of opportunities in the marketplace with some higher-yielding securities as some of our securities roll off due to maturities. We are seeing some opportunities to reinvest at higher rates sort of letting the natural maturity to take place and then reinvesting as I said, in a higher interest rate.
Chris O’Connell: Okay. Great. [Multiple Speakers] Sorry. Go ahead.
Kelly Pecoraro: We look for opportunities and look for the highest and best use of the proceeds as they mature where we can put them into higher yielding, is it going to be securities? Or is it going to be loans.
Chris O’Connell: Got it. And as far as gain on sale going forward, given the level of resi that you guys have been producing, I mean, do you expect that to tick down a little bit near term? Or do you think it could stay in a relatively similar range?
Kelly Pecoraro: Well, I think we’ll be in a similar range. The majority of that gain on sale was in the [FDA] (ph) product, not in the resi product. And as we look to the future, depending on what the markets do, we will look to be an active participant when the opportunity is present.
Chris O’Connell: Great. And on the expenses for the sub-$14 million, just to start off the first quarter. I know you guys have been kind of looking for efficiencies and ways to help keep that relatively contained. How do you think overall expenses will play out over the course of the year? Do you think it will be fairly flattish from that sub-$14 million after the first quarter? Or…
Kelly Pecoraro: Yes, Chris, we think that $14 million is probably or just below $14 million is a good run rate number from a fully baked in. We continue to look at our contracts, professional fees, where we’re spending money and driving the institutions being efficient.
Chris O’Connell: Okay. And then asset quality seems pretty stable, quiet this quarter. Anything that you guys are seeing within your portfolio that gives you any concern?
James Nesci: Not at this juncture. We keep coming through it. And so far, it’s been very good. Nothing has popped up as of today, everything looks good.
Chris O’Connell: Great. That’s all I had. Thanks for taking my questions.
James Nesci: Thank you.
Kelly Pecoraro: Thanks, Chris.
Operator: That concludes the Q&A portion of today’s call. I’d now like to turn the session back over to Jim Nesci for any closing remarks.
James Nesci: Thank you, operator, and I’d like to thank all of our shareholders and customers who have joined us today. I look forward to speaking with you again next quarter. Thanks, and have a great day.
Operator: That concludes today’s Blue Foundry Bancorp Fourth Quarter and Year-End 2023 Earnings Call. You may now disconnect your line.
