Andrew Terrell: Okay, got it. And then I want to maybe better understand the time deposit portfolio, some of the near-term re-pricing dynamics. I know you had a lot of success in your Lunar New Year campaign early in 2023. And I appreciate the color around the cost or the rate and the term for the special this year, but can you remind us how much in terms of CDs you have re-pricing in the first quarter of 2024?
Heng Chen: Yeah, that’s our highest renewal quarter, because of – we had the Chinese New Year deposit promotion last Q1. So it’s $3.8 billion. The average yield is $4.16. So it’ll flex up a little bit with this year’s promotion. And then Q2, it drops to be $2 billion and the rate there is $4.53. Q3 is $1.1 billion, the rate is $4.41. And then Q4 is $2 billion and the rate is $4.54. So the latter three quarters, there is already a fair amount of CD re-pricing in that rate, in the existing base.
Andrew Terrell: Yeah, okay. So 1Q definitely kind of the heaviest quarter from a re-pricing standpoint?
Heng Chen: Right, yes.
Andrew Terrell: Okay. And then also wanted to ask on just the full year ‘24 guide, do you have an expectation for the low income housing tax amortization?
Heng Chen: Yeah, it’ll be slightly higher than this year. I think the amortization will be maybe $5 million higher than this year’s number. Maybe I’ll email you back.
Andrew Terrell: Okay, perfect. I would appreciate that. That’s it for me. I appreciate you all taking the questions.
Heng Chen: Okay, thank you.
Operator: Thank you. The next question comes from Matthew Clark with Piper Sandler. Please go ahead.
Matthew Clark : Hey, good afternoon. I wanted to just touch a couple more questions around the NIM margin. Do you happen to have the spot rate, I guess, at year end on deposits, either interest bearing or total, and then the average NIM in the month of December?
Heng Chen: Yeah, let me find that. So the total interest bearing deposits at year end, 12/31/2023, is 3.54%. And the December NIM is 3.19%.
Matthew Clark : Okay. Thank you. And then any material prepay fees in the margin this quarter? I think it was a couple million last quarter.
Heng Chen: Yeah, it’s less. It was only 1 basis point this quarter.
Matthew Clark : Okay, got it. Thank you.
Heng Chen: And it was 6 in Q3.
Matthew Clark : Yeah, okay. Thank you. And then the step up in C&I reserves this quarter, it looked like it was up about $11 million and I think your special mention was up. I mean, can you speak to what drove the increase in C&I reserves this quarter, and whether or not that was related to the special mention increase or not or if there’s something else going on?
Heng Chen: Oh, yeah. We had one loan that went on non-accrual in Q3. So we put a fairly heavy reserve on that one loan in Q4. But I think the rest of the portfolio is, we didn’t have to add reserves for that, because most of the increase in C&I loans in the fourth quarter came from that same borrow that came in Q2. It’s a tech company, so with very good credit. It’s a public tech company, so it didn’t need much reserve.
Matthew Clark : Got it. Okay, great. And then the low-income housing tax credit amortization, it sounds like you’ll confirm that, maybe just send that around I guess to everyone, if you don’t mind. But it seems like, would that be evenly spread throughout the year? Is that a fair assumption?
Heng Chen: Yeah.
Matthew Clark : Assuming its $5 million higher from last year? Okay. Okay. Thank you.
Heng Chen: I’ll send it around, yes. Okay.
Matthew Clark : Okay, thanks for your help.
Heng Chen: Yes.
Operator: Thank you for your participation. I will now turn the call over to Cathay General Bancorp management for closing remarks.
Chang Liu: I want to thank everyone for joining us on our call, and we look forward to speaking with you at our next quarterly earnings release call.
Operator: Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect and have a great day!
