Avi Reddy: Yes, sure. So, Matt, we’ve mentioned in the past, we have a slide in our investor presentation due about the next couple of years in terms of repricing and maturities off the real estate book. We obviously were not big originators back in 2017 and 2018. And typically, those come due five years afterwards, right? So, it’s going to be a steady progression up. I think what’s going to make the difference is, the originations now are really focused on the owner-occupied and C&I side. This quarter, we had a large construction loan payoff, which was a good thing. The rate on that was pretty high. So, I think if you’re replacing loans that are coming off at 5%, 5.5% at 8.5% to 9%, you’re going to see that uptick over time.
And our portfolio is also gearing more towards floating rate loans going forward. So, I think it’s going to be a steady build. We have outlined in our investor presentation too that there’s a big slug of multifamily loans that are coming due in 2026 and 2027. Obviously, with current rates where they are, those are probably not going to prepay at this point in time. However, if you follow the forward curve and rates do drop at some point in 2024 and 2025, you could see some of that come in, and we’ve outlined that’s around 30 basis points of the margin once all those reprice. So, I’d say in the near term, we’re following the cash flows, and it’s going to be based on yields. In the medium and longer term, it’s going to be based on the multi-family coming due.
Stuart Lubow: Yes. I do think we will see a pickup in the C&I business. I’m looking, right now I expect between $100 million and $150 million of C&I business to close in the quarter. We’ve got our first two healthcare deals that will either close late in the year or early 2024, and the yields on those are about 9%, 9.05%, and that’s about $50 million. So, we’re starting to see real traction on the C&I side at this point.
Matthew Breese: Got it. Okay. And then Avi, I know you don’t provide quarterly NIM guidance, but historically, you have kind of discussed for this institution what the appropriate NIM should migrate to over time. And I’m curious, in this kind of yield curve environment, what that migration point, that point of gravity is?
Avi Reddy: Yes. So, I mean, so for example, in terms of the near term NIM, Matt, I probably didn’t mention in my prepared remarks, the spot NIM in the month of September was around 235. So, it kind of stabilized in September. We want to wait and have a couple more months of stability before officially calling the bottom for sure. So, that was the near-term thought process around that. Look, when we do our medium to longer term projections, obviously with the long end being up, that’s a good thing for us, right, because you’re going to be repricing into a higher rate environment as your deposit costs have stabilized. So, I think getting back to that 3%, 3.25% era is the right medium to longer term opportunity for us. And if the curve stays – if it’s less inverted as it is now, and if the five-year continues to stay where it is with 30% DDA, I mean, the probability that we can get higher than 3.25% in the long run.
In the short term, it’s obviously going to be methodical every quarter expansion in 2024.
Matthew Breese: Got it. Okay. Last couple of questions, understanding historically multifamily, particularly rent-regulated multifamily has been a risk-free asset, but does the combination of the 2019 rent law change with the still very tenant-friendly rent guidelines board, higher expenses, higher loan yields, and then the more recent Supreme Court decision, does that change the risk-free nature, particularly with the rent-regulated portfolio?
