Mark Fitzgibbon: Okay. And then last question, Avi, is — and I apologize if I missed this. If you could help us think about the trajectory of expenses. I know you’ve certainly done a good job of offsetting the incremental costs from the teams, but how are you thinking about things going forward?
Avi Reddy: Yeah. So, I mean, really, the way we look at the company, Mark, is really OpEx to assets, right? So first quarter, we were around 140 plus or minus OpEx to assets. We’re around 150 right now. I mean we need to operate the company at that level, right? So this quarter, there’s a bit of a tick up because in the month of April, obviously, you’re going to have the annual merit increases going to impact. We have some of the group hires come in over there. But I would say managing that at around the 150 level is kind of what we’re focused on and really figuring out a way and looking across the organization, which we do continuously. We never really had a cost savings plan out there, because it’s just built into our DNA in terms of how we manage the expense base.
Mark Fitzgibbon: Great. Thank you.
Operator: Thanks, Mark. Our next question comes from Steve Moss from Raymond James. Your line is now open. Please go ahead.
Steve Moss: Hi. Good morning. Kevin, congratulations on your retirement, and Stu, congratulations on your promotion here. My first question, just on — following up on the margin here in terms of maybe just thinking about funding costs and the trajectory there. You did see a slowdown in the pace of interest-bearing deposit costs, and Avi, I do hear you in terms of Federal Home Bank advances maturing over the next 12 months. Just kind of curious just how you’re thinking about where your interest-bearing deposit costs could peak out?
Avi Reddy: Yeah. I think, so our cycle-to-date beta, Steve, on a cumulative basis is around 38%. I think our current models probably say, mid-40s is kind of where we peak out at this point in time. We’re obviously going to have a little bit more pressure here in Q3. But the tailwind that we have, obviously, is these new deposits, as Stu said, right, you add $75 million of deposits at a 1% cost. Our marginal cost of deposits coming in is a lower — is a lot lower than a lot of our peers. So I would say at this point, mid-40s is kind of what we’re thinking in terms of deposit betas.
Steve Moss: Okay. That’s helpful. And then in terms of just on the asset side with securities, just if you can remind us what’s the average life or duration of the portfolio?
Avi Reddy: Sure. So it’s around three years, the effective duration on the securities portfolio on the AFS side.
Steve Moss: Okay. And then in terms of the — in terms of loan pricing, I hear you guys in terms of, I think, it was mid-7s. Just curious here, as the mix has definitely improved and you look at the margin cost of funds, do you think we had towards like an 8% handle or is the competitive environment closer to the 70s range?
Avi Reddy: Yeah. No. It’s a mix, Steve, right? So on the C&I side, we’re in the is at this point in time. If you do a swap at SOFR plus 250, we’re already getting over 8% at this point in time. So, yeah, I mean, it’s — I mean, right now it’s around 7.50%, as Stu said, it’s a mix. But Obviously, with the recent Fed hike, it’s going to go up a little bit more. Again, we’re really pricing our products to really grow business loans and we’re not really seeing any slowdown in that. We’re obviously a little bit above the market on the multifamily side and being selective on the investor preside.
