Avi Reddy: Yes. I mean, I think Q4 is a little seasonal for us. At the end of Q4, typically, we have municipal deposits come in. This time around is a little bit of a delay in the municipal deposits come in. We’ve seen a strong January in terms of some of the municipal checking accounts come in, which are related to tax receiver money. So look, we’re going to have some pressure on that ratio. But at the same time, we’ve got various opportunities at the bank, big customers, small customers. And as Kevin said, our lending teams, this particular year are going to be highly focused on gathering deposits and treasury management teams are going to be focused on that. So I think like everybody else in the industry, we had some excess deposits the last couple of years and put that to work and growing the balance sheet was important.
But yes, I mean, it’s going to go down maybe a little bit. It’s really hard to predict where it’s going to go down, but we do feel we have a pretty granular customer base and everything is relationship-based. So that should help us stay well above the peer group in terms of this ratio going forward.
Matthew Breese: And then right now, where are you most competitive in terms of higher rate offers? Is it money market, CDs, high percentage of savings accounts?
Avi Reddy: So we got a CD product out there for new customers and new money, which is a 4.5% rate. It’s a 13 month CD at that point. That’s the highest rate that we have out there. So really on the consumer side, we’re competitive. On the business side, it’s really customer-by-customer, relationship-by-relationship and looking at profitability.
Matthew Breese: Okay. And then I wanted to get a sense for whether or not — look, I know your — all your non-accruals, your criticized/classified are all solid. But as you kind of step back, are there any kind of underneath the hood credit cracks materializing across any of the portfolios? It just feels rather for us to go through this level of interest rate hike and then mix shift in cap rates without really any material credit deterioration.
Stuart Lubow: Matt, I hear what you’re saying and we are laser-focused and we’ve had this conversation, I guess, over the last three quarters as to — do we think there’s going to be a crack in credit, and we’re very watchful of it. At this point, we’re not seeing it. I mean, I think the positive side of our portfolio, we talked about the multifamily being — having a low LTV of 57%. The average debt service coverage on that portfolio is about 1.43. But the total CRE, Investor CRE for LTV is also 57% with an average debt service coverage of 1.78. So I think from a credit standpoint, while we’re always concerned and certainly, as rates have gone up, we’re concerned about stress on different parts of the portfolio. I would say we’re really not seeing any significant material stress in any product line.
I would say probably the only area that some of the customers will be the SBA business, all right? And that’s a small part of our book. But those customers are — some of those customers will struggle with floating rates getting to the level they are today.
