Carl Carlson: Yeah. So I did not expect us to close — well, I knew that we had some things in the pipeline on leases that had an energy tax credit associated with it. I thought that was going to be 2023 event. It ended up being a December 2022 event. So we did recognize that benefit in Q4. I don’t know of anything right now in the pipeline along those lines. So I will — my estimate right now is taxes — my previous estimates on that in the at least 24% range on taxes. More will come out of that, because PCSB, it’s in New York. So it does have a bit of an impact being in New York. But they also have a lot of municipal securities that we are not planning on selling and so that will have a positive impact on our tax rate. But I think the 24% is my current estimate. We will have a better number to come end of Q1.
Laurie Hunsicker: Okay. Great. And just one last question, just going back to margin. Do you have a spot margin for December?
Paul Perrault: Of what?
Carl Carlson: What our margin was for December?
Laurie Hunsicker: Yeah.
Carl Carlson: I am sure, but I don’t, I am like…
Laurie Hunsicker: Okay. No. That’s okay. Thanks. Thanks for all the color. I appreciate it Carl.
Carl Carlson: Yeah.
Laurie Hunsicker: Thanks for all the color.
Carl Carlson: Thank you, Laurie.
Paul Perrault: Okay.
Operator: Thank you, Ms. Hunsicker. The next question comes from the line of Chris O’Connell with KBW. You may proceed.
Chris O’Connell: Hey. Good morning.
Paul Perrault: Good morning, Chris.
Chris O’Connell: So I wanted to start off with the interest rate risk slide and in your earlier commentary, it sounds like ex-PCSB, there’s still a bit of core margin compression coming? And just trying to reconcile that, it looks like the forward implied rates and the NII going up on a flat balance sheet there for that slide. So maybe if you could just comment on that or kind of connect it to?
Carl Carlson: Sure. Just to give you a little bit of background on this. So we start from a sensitivity standpoint, when we are running our asset liability models from and this is more of a governance and risk management standpoint and looking at the position of our organization on an ongoing basis. And one of the things we say is what’s the forward curve suggesting rates are going to do and what if our balance sheet doesn’t change at all, keeping it flat balance sheet. And so that gives us a starting point. And it’s something that we can continue to look through time, are we getting more sensitive or less sensitive? How are we positioning the balance sheet in this? Then we can run a lot of different scenarios around that. What if deposits run off $200 million?
What if loans grow $200 million? How is that being funded? What is the impact on that? And so we can run a lot of different scenarios that may become our base case. And sometimes I talk to you guys and tell you what we think our base case is and what we think our margin is going to be and what our projection for the margin is going to be. Naturally, there’s a lot of moving parts and things change, and it never happens the way you expect it to happen. But I want to try and at least provide you some guidance with that slide to say, this is kind of where we are today and our current projections with that. And when I say the forward curve, it’s as of December 31st. That’s the forward curve that we use. And it does include all of our rates. So it includes what are we booking CDs at?
What terms are we expecting CDs to book at? Things of that nature. What’s the rollover in our loan portfolio? What’s the new loan originations going in at our loan portfolio? But then we can do models away from that. But that gives you our baseline because I know you guys have your own models and how you guys do and I don’t know if it’s helpful or not for you to understand that, but we provide that information. And I think on that slide, we give you a good sense of what the loan originations were in the quarter and say, hey, this is what’s the percentage of them that are re-priced immediately or within three months, what’s more of a fixed rate and what’s more of a floating rate that re-prices maybe in three years or five years, and then, of course, what the whole portfolio looks like and the duration of that portfolio just so you have a sense of where our risks might be.
Chris O’Connell: Got it. So just a result of the growth and the potential for a little bit of a mix shift on the funding side going forward, it sounds like. Okay. Great. And for the potential restructuring, I know things still being considered and that you don’t have exact numbers, but do you have like a rough estimate of a dollar level of their securities portfolio that you are thinking about selling off?
Carl Carlson: The total amount that we are going to sell off in that securities portfolio? I would
Chris O’Connell: Yeah. Yeah.
