Paul Perrault: We are not seeing any stress in our book and I don’t mean to be cocky, but in the Metro Boston area, there is occupancy weakness in the old financial district, which tends to be bigger, older buildings, which we don’t have much involvement in. But it appears that like the seaport area, the newer part of Boston is still quite robust, stuff is going on and here in the Back Bay, things are relatively stable. But no, all is good.
Mark Fitzgibbon: Okay. Thank you.
Paul Perrault: Thank you, Mark.
Operator: Thank you, Fitzgibbon. The next question comes from the line of Steve Moss with Raymond James. You may proceed.
Steve Moss: Good afternoon. Maybe just following up on
Paul Perrault: Good afternoon, Steve.
Steve Moss: Hi, Paul and Carl. Maybe just following up on the margin here. Just curious, maybe a little color around loan pricing, just kind of what you are seeing in your markets as we headed into the New Year?
Carl Carlson: So spreads really have not — are still hanging in there quite nicely. So, of course, with the yield curve continuing to move up a little bit, in the short end particularly we are still seeing nice yields in that area. I think the challenge is the inversion of the curve. We have seen that continue to come down in the longer end. So that kind of — so spreads are there, but you see in the coupon a little bit — get a little bit more challenged, particularly when you are comparing to our funding side. So new loans, you are adding those at a reduced spread to what our net interest margin is at the moment in general. So that’s something that gives you a little bit of color. I kind of provided what the lags were, the coupons and the spreads that we booked in the fourth quarter, so in my comments.
Steve Moss: Okay. Got it. That’s helpful. And then maybe just in terms of, just curious on your — on just the Brookline side of the house, your CD bucket, you have about $900 million or so in CDs for the quarter, with an average cost of 123. Just kind of curious what’s the remaining average life there kind of just how we think about the re-pricing dynamic there?
Carl Carlson: So we see that stuff rolling or re-pricing at about — it’s about $75 million a month in CDs that kind of roll on a constant basis that re-price. I don’t know if that’s helpful for you.
Steve Moss: Okay. And kind of just curious maybe where are your rack rates these days?
Carl Carlson: What we are booking new production at?
Steve Moss: Yeah.
Carl Carlson: It’s in the 4s at this point.
Steve Moss: Okay. That’s helpful. And then just in terms of just thinking about loan growth here kind of it sounds like you are still upbeat about business opportunities, kind of curious how you are thinking about the pace of loan growth going forward here?
Paul Perrault: Well, as of today, Steve, the pipelines are still very strong. You saw we had a really big fourth quarter. We are already seeing very good production so far. So I am optimistic that we will see the kind of historic growth that we have had, maybe a little bit better, maybe not and we are seeing it at all three banks.
Steve Moss: Okay. Great. Appreciate that. Thank you very much.
Paul Perrault: Okay. Yeah.
Operator: Thank you, Mr. Moss. The next question comes from the line of Laurie Hunsicker with Compass Point. You may proceed.
Laurie Hunsicker: Hey. Hi, Paul. Hi, Carl.
Paul Perrault: Hi, Laurie.
Laurie Hunsicker: Just going back to expenses and I just want to make sure that I have this right. PCSB has been running, I guess, pretty everything about $9 million a quarter. So once it’s fully phased in, call it, $6.5 million or low $6 million a quarter, assuming that 30% cost saves is still about right, does that gel with where you guys are?
Carl Carlson: Yeah. With a little bit of increase because of FDIC insurance and just natural
Paul Perrault: Inflation
