And even at that rate, those rates are in the high fives. So we’re really not in the market in terms of pricing in that portfolio. And so, we do believe we’re going to have some nice growth with the C&I business and the owner occupied CRE deposit balances, we’re really focused on that. And so the funding on that is important and we think growing good solid business relationship, DDA balances within the C&I and owner occupied sectors of our product mix are very important. So we want to continue to grow that part of the business. But suffice to say, we don’t expect to see this significant growth that we had over this year.
Avi Reddy: Yes, Mark, I just want to reiterate one of the comments we made upfront was if you go back a year, we had significant payoffs in the multi-family portfolio, right? So if you just follow the forward rate curve, 12 to 18 months from now, you could again see significant payoffs in that portfolio, which is going to help with stabilization of the loan-to-deposit ratio over time. We’re not seeing it right now because, obviously, rates are elevated, but we could see that portfolio pay off at a fast level in 2024.
Mark Fitzgibbon : Thank you.
Kevin O’Connor: Well, we’re going to continue to do — from the standpoint of the value of this franchise is building relationships. So we’re going to take this opportunity to continue to do that.
Mark Fitzgibbon: Thank you.
Operator: The next question is from Steve Moss from Raymond James. Steve, your line is open. Please go ahead.
Steve Moss: Good morning. Maybe just starting with — just maybe starting with here. You mentioned that there was an improvement in terms of criticized and classified assets quarter-over-quarter. Just wondering if you could quantify that and maybe just help us think about the reserve here — the reserve ratio going forward?
Avi Reddy: Yes. So this quarter what happen with the reserve was, as part of the merger accounting we had set aside various results or various loans at that point. And some of them were in the criticized/classified category upfront. And over time, we’ve seen a steady improvement in that. So that drove a part of the release this particular quarter. The other thing that we saw was, one of our biggest nonaccrual loans which was on the C&I side actually moved to accruing status this quarter and there’s probably $1 million of reserve release associated with that. I mean, with our substandard loans, we typically provide disclosures of that in our 10-K, which will come up in a month time, but preliminary numbers right now on those portfolios indicate continued improvement in those.
I mean, we’re down significantly since the start of the year. What we did, when you go back and look at our old 10-Ks and 10-Qs, we were very conservative over the course of the pandemic where we moved a lot of loans that had deferrals in them and a lot of that’s getting a lot better. So really back to the peer group median, if not below the peer group median on criticized cost side. But really this quarter, it was a couple of specific loans that came out that had specific reserves associated with them. I think just going forward on the reserve, just general rule of thumb is on real estate loans. We probably have a reserve on investor free and owner occupied free of around 60 basis points plus or minus on new loan growth. And on the C&I side, it’s between one and 125 basis.
So on a blended basis, it’s probably around 80 basis points in terms of the result, which is pretty similar to our overall result right now, which is 80 basis points. So absent any improvement or worsening of economic conditions and absent any changes in our individually analyze portfolios. The way you should think about it is that, we have loan growth in the future, the provisioning on that should be around 80 basis points given our mix.
