Manan Gosalia: Hi, good afternoon. On the NIM trough in the second half of ’24 is a little later than what others are suggesting. I hear your comments on the 50% beta on the downside, but are you modeling some sort of lag into your deposit betas on the way down? Because I know you also mentioned that the NIM should rebound in 2025 after the lower funding costs kick in. So, I was wondering if there’s a little bit of lag there.
Christopher Del Moral-Niles: There’s a little bit of a lag, I would say, driven by the fact that, you have to remember, we have a fair amount of CDs on the books. And so those CDs, for example, our Lunar CD Special that’s in the market today will be in place for the next 6 months. So, we’ll book those here January and February. They’ll be with us until July, August. And so, there’ll be a bit of a lag because of those CDs that we’re pricing today versus what will happen. So, again, depending on the timing and the pace of rate cuts, we could outperform that. And certainly, as those roll over six months from now, we would expect to fully participate in those benefit of the lower responding costs at that point in time.
Manan Gosalia: Great. And maybe flipping over to credit, there remain a lot of concerns around California commercial real estate. Can you talk about why your book is different? And also what you’re hearing from borrowers right now? And how negotiations are going given that — given the outlook for lower rates coming up?
Irene Oh: Yeah, thanks. That’s a great question. And as you can see from what we’ve reported, when we look at the criticized classified assets, those ratios, non-performing loan ratios, the criticized loans are down, non-performing loans are down. We’re pleased with that. As we look at the different categories, office, multifamily, et cetera, would then increase, we’re comfortable with the loan grades. We’re also very pleased to see that there are not a lot of new problem loans that are coming up. So overall, these conversations with customers certainly there are some that we’re working through, but it’s very manageable at this point and we’re very pleased to see that. All the efforts and work that we went through the last couple of years to shore our borrowers, have them pay down, have them swap, buy cap, those are all things that we see as positive today.
Dominic Ng: Also as we highlighted in the previous calls before that we don’t have that many loans mature, well, neither in 2023 nor in 2024. There’s very small percentage of loans coming due. So, we actually really don’t have much opportunity to have too many conversation with our customers in terms of dealing with some of the challenge when it comes to refinancing and keep in mind that we have very low LTV and our portfolio is quite granular. So, I think that’s the reason why our portfolio so far stands up really well versus some of the other banks.
Manan Gosalia: Got it. And sorry if I missed it, but did you update what your reserve levels were on CRE Office? And if it’s still around 2.3% or so as it was last quarter, can you talk about what keeps you comfortable with that level of reserves?
Christopher Del Moral-Niles: It’s on Page 12 of the slide deck and it was 2.43% at year-end, which is up obviously from the 2.3% you cited.
Manan Gosalia: Got it. And what keeps you…
Irene Oh: Office and all of CRE, we have a rigorous process where we go through the portfolios, our RMs, our team leaders, credit supervision all work together. And I think as we’re going through these loan reviews on a regular basis and the cash flows from the clients, the properties, those are all things that help us and the cash quite candidly and the network many of our borrowers and going towards that are all things that give us comfort.
Manan Gosalia: Great. Thank you.
Operator: [Operator Instructions] The next question comes from Matthew Clark with Piper Sandler. Please go ahead.
Matthew Clark: Hey, good afternoon, and thank you for the questions. First one just around deposits. If you can speak to kind of your outlook on noninterest-bearing? Down here this quarter. Just your expectation on where that might trough relative to the mix? And then, it also looks like your Chinese New Year special is 5.25% at least on your website. So just thoughts there around kind of growth going forward. Is it going to continue to be dominated by CDs?
