We’ve had a lot of success there. We’re continuing to have success. We’re going to continue. You’re going to continue to hear. We’re making hires there. We’re putting brick and mortar there. And we’re picking up a significant amount of business in that marketplace. Florida, I would say, is almost exactly the same thing. We have a lot of our New York, New Jersey base is also planting roots in Florida, and we’re supporting that. And as word is getting out about the way in which we do business, the types of businesses that we’ve been supporting, we’ve also been getting organic growth in that Florida market as well. We’re very excited about the folks that are supporting our team down there. And we’ve had, I think, some really good successes for the short amount of time that we’ve represented that market.
Now, we’ve always had some assets in Florida. I would say always, probably for the last 10 years or 15 years. But it got to a critical point where we really needed to have a substantial boots-on-the-ground effort there, and that is now paying some very, very nice dividends. Bill, if you want to add some color to that.
William Burns: We have close to $500 million of deposits that are domiciled in Florida, so that’s a nice number. The loan total is about $200 million to $250 million down there and growing. And Long Island, we’ve always done some business in Long Island, so it’s part of our balance sheet, and there’s close to $500 million of deposits there and we’re going to continue to make inroads to grow in that region.
Frank Schiraldi: Okay. Great. And then just in terms of with a little bit of a mix shift anticipated on the loan side, can you just remind us, where your CRE concentrations are currently and where do you think you’ll get to or what are you anticipating to get to on that front, say, by year-end?
William Burns: Frank, it’s similar to the loan-to-deposit ratio. There’s no one out there forcing us to lower our concentration levels, but, we recognize that the market likes to see lower levels, so we’re moving that ratio down slowly. I think it’s been down the last five quarters at least and we’re somewhere in the 435% [ph] range is the percentage, and that’s down from the previous quarter.
Frank Schiraldi: Okay. So, it’ll continue to fall, but there’s no hard and fast target?
William Burns: Right.
Frank Schiraldi: And then just lastly, you guys talked about in the release, a $20 million, 90 days plus still accruing. You talked about low-LTV, and I wonder if you could just give us a little bit more color on that front in terms of location. Is this, I guess, investor Cree? And on that loan-to-value ratio, how updated is that appraisal? Thanks.
William Burns: Yeah, so it’s a New Jersey multifamily property. The loan-to-value at 60% is very recent. We just got a recent appraisal on it, and the owner is just going through some negotiation issues with the purchaser, and that’s what’s holding it up. But, very well secured.
Frank Schiraldi: Okay. I’m sorry, you said the borrower is going through some negotiation with the buyer?
William Burns: Yes, the borrower-seller, and it’s under contract right now.
Frank Schiraldi: Okay. That’s great. And then just a point of clarification, Bill, you mentioned, I think 10% growth in fee income. Was that year-over-year, or what was the guide there?
William Burns: I’m hoping that the fourth quarter will be 10% higher than the first quarter. Okay, that’s my objective.
Frank Schiraldi : Okay. All right. Fair enough. Thanks.
William Burns: Thank you.
Operator: Your next question comes from the line of Tim Switzer with KBW.
Tim Switzer: Hey, good morning. Thank you for taking my question. I appreciate the color on the degree of NIM expansion you guys expect over the rest of the year without any fed rate cuts? Can you maybe help us quantify, the magnitude of NIM expansion once we get maybe one or two fed rate cuts in the back half of the year, and, the deposit beta expectations you guys have on that?
Frank Sorrentino: Well, first, I love your optimism that we’re going to get one or two rate cuts at the end of the year. I think, that’s starting to get a little faded. But let’s hope you’re right.
William Burns: I’m not sure, Tim, if you were on the last call. But we have a formula that for every 25 basis points of fed cut, we’ll improve our margins by five basis points. And, of course, that’s on top of the, margin expansion going on without any rate cuts. And, yes, it’s dependent upon what the beta might be. Some of us believe that, the banking industry is just waiting for a rate cut and it’s going to be a very high beta on the way down. It depends, how tight money is and whether or not, we’re still fighting over funds. It’s a middle-of-the-road beta that we use for that estimate.
Tim Switzer: Okay, that’s helpful. And do you think that five basis points changes one way or the other as we progress through the cycle? I know this could be getting really optimistic, but if we get a series of rate cuts, does that change over time, maybe deposit competition lessens as we get deeper?
William Burns: Yes, it’s always subject to volatility, those estimates. As we pass through, let’s say, for example, there are no rate cuts for five years, we would continue in our view having improvement in our margin. And so the rate cuts would have less of an impact. But I’m looking at right now in my head, let’s say, we’re going to go through the end of the year with no rate cuts and then it’s going to start next year, and then those estimates, I stand by, if that helps you.
