Avinash Reddy: Yes. So, on an average basis, Chris, they probably should get to around, call it, around $400 million of deposits, plus or minus, maybe between $350 million and $400 million, by that point for Q4, basically. So that – when you look at that run rate, then it starts becoming breakeven to positive at that point.
Christopher O’Connell: Got it. And as far as the balance sheet movements in the quarter, on an end-of-period basis, the borrowings were a lot lower than on the average basis. I mean, were those paid off pretty late in the quarter? And do you have any sense, of how that’s going to impact the margin going into 2Q? I mean, was it included in the March 2023 margin? Or is there a further benefit of that coming into the second quarter?
Avinash Reddy: Yes. A little bit further benefit, Chris. So if you look at – I mean, the easiest way to look at it is if you look at our short-term investments that we had, it was around $300 million more this quarter than, we had last quarter. So for the full quarter, the impact was more. But in my prepared remarks, what I tried to say was in the month of March, we paid down the borrowings starting on March 1, but we’ve probably done by March 20. So there’s probably around a three basis point drag, even for the month of March. So that $223 million margin for March was probably more like $225 million to $226 million, as an exit run rate going forward into the second quarter. And that doesn’t include the benefits of any further paydowns that we’ll have of borrowings and broker deposits going forward once deposits start coming in.
Christopher O’Connell: Great. And I know you guys don’t give short-term margin guidance. But based on that commentary, is it kind of safe to assume that you trend back up, to close to the levels that you were at into Q4, of ’23, and kind of migrate consistently upward for there, as kind of overall balance sheet repricing occurs going forward?
Avinash Reddy: Yes. I think overall, the way we describe it is an upward bias. I think last quarter, our guidance was the margin will be within a few basis points. And I think without this liquidity build, it would have been within a few basis points and obviously it’s a little bit down. But I think it’s fair to say upward bias, the individual factors are stabilization in the deposit cost, which helps, not having a liquidity drag, which helps. And then there’s two points more originations on the loan side, which also help – and then as you see more paydowns. And in the third quarter, we have some treasuries maturing. We probably have around $70 million, $75 million, I believe, in the third quarter. Right now, the yield on those strategies are like 1%. So that’s going to help as well. So you’re going to see a little bit of that into Q3, and into Q4. So I think, I’ll leave it at upward bias, and it will be a function of closings on the loans side.
Christopher O’Connell: Great. And there were some changes announced impacting the overall New York multifamily space, with the budgeting being passed in the past week or so. Any thoughts or color as to how you guys think that will impact the market and if it will be significant at all? And just any general, I guess, thoughts on the state of the New York multifamily market, and how you expect to manage your exposure going forward?
Stuart Lubow: Yes. So I mean it’s still a little early, to ascertain what the ultimate impact is going to be. They still have to work out the details. And it’s certainly better than what the advocates wanted. It’s not necessarily where all the landlords want it to be. So I mean, I still think that has to work through. I think – on the margin – it could have been worse and it’s probably a net positive overall. But it’s still got to work through the process, and we have to see how it actually affects the market.
Christopher O’Connell: Got it. And any sense to Stu were there any rent-regulated multifamily maturities in the first quarter? And if there was where the new debt service coverage ratios, were that they repriced?
Avinash Reddy: Yes, I don’t have that off the top of my head, Chris here, but we had a very small amount in the first quarter, probably don’t know $30 million plus or minus of multifamilies and most of them took the option basically to reprice. And we can follow-up after the call with…
Stuart Lubow: Yes. I mean they’re all paying, they’re current. And it was a relatively small – handful of loans that repriced during the period, and they just repriced. And the way it works in our world is, if you take the repricing, you have to pay a fee. So they paid the fee and they’re repricing and they’re current.
