Stuart Lubow: Yes. Matt, not really. I mean, we took that into account in terms of our underwriting as we originated from 2019 on. And at Dime, legacy Dime, we changed our underwriting guidance to take that into account. You have to remember, we really never did any repositioning multifamily. We underwrite very stringently. We raised our underwriting criteria, and we always had a very low LTV. And so, what we’re seeing is that we haven’t had any pressure in terms of the credit quality on the multifamily at all. And in fact, we have a significant amount repriced this year where we haven’t been asked for modifications. They just moved into a higher rate, which was obviously a positive. And so, we’re not seeing the pressure that others have, but when you have a 58% average LTV, there’s a lot of equity in those buildings, and these are generational owners that we’re not looking for quick hits and repositioning of loans.
So, I think from our perspective, we still feel very comfortable. And obviously, our delinquency and non-performing numbers bear that out.
Avi Reddy: Yes, Matt, the only other thing I’d add is, we really weren’t in the multifamily market in 2017 and 2018. If you remember, that’s when Stu got to Dime and we pivoted our balance sheet. So, for example, we only have $100 million of multifamily loans that were made in 2018. So, a lot of our production is post 2019, and taking this into account already.
Matthew Breese: Got it. Okay. I mean, just industry sources are starting to point to new transaction values down, showing valuations down 30% to 45% in this asset class, and it gets you close to kind of your average LTV of 58%. I guess that’s my bottom-line point. And then, I guess I’d be curious, obviously multifamily can bucket both the market rate and the rent-regulated. How much rent-regulated multifamily exposure do you have today?
Avi Reddy: Yes, it’s around the third, Matt, of our portfolio. Free market is around two thirds. The rent-regulated is around a third basically. Look, I mean, at the end of the day, we can only tell you what we’re seeing in our portfolio. We’re really not seeing any signs at this point in time. So, we’ll leave it at that.
Matthew Breese: Totally understood. Thank you for taking my questions. I’ll leave it there. Appreciate it.
Operator: Thank you, Matt. Our next question comes from Mark Fitzgibbon from Piper. Mark, your line is now open. Please go ahead.
Mark Fitzgibbon: Hey guys. Good morning. Yes. I guess I was curious first, what is the pipeline and new private client teams look like today? And of the private client teams you’ve hired recently, can you give us a sense for how much they’ve already brought in, in terms of deposits and loans?
Avi Reddy: They’ve opened up about 2,000 accounts at this point, and about 1,000 separate customers. Not all of that is funded yet. I’d say there’s probably 500 to 600 accounts that haven’t funded yet. I mean, at this point, they’ve brought in about $250 million, and about 50% of that is DDA.
Mark Fitzgibbon: Okay. And the pipeline team, Stu, would you say still quite a few out there?
Avi Reddy: Yes, I mean, it’s growing really steadily every week. We get reports twice a week, and basically we’re seeing steady growth every week.
Mark Fitzgibbon: Okay. And then Avi, I wonder if you could share with us your thoughts on maybe restructuring some of the available for sale securities book, given, as you said that it’s relatively shortened duration and rates may be stuck up here for a little bit. Is that something you’re contemplating?
Avi Reddy: Yes, I think at this point, probably not – and honest, Mark, I think just having a little more stability in the banking industry in general is important. I think we’re focused on building capital optically. We’re doing that 10 to 20 basis points every quarter. So, it’s pretty short and it’s going to run off pretty quickly. So, I’d say, in the near to medium term, probably not, but something we evaluate and update our analysis constantly.
