Martin Birmingham: It’s consistent with my comments earlier in terms of liquidity, capital and earnings. And I remain — we, as a company, remain open to that opportunity. We’re aware of the transactions that have happened. And to the extent that it’s something we can take advantage of, we will thoughtfully consider it.
Alexander Twerdahl: Appreciate taking my questions.
Martin Birmingham: Thanks, Alex.
Operator: Your next question comes from Matthew Breese of Stephens Inc. Please go ahead when you are ready.
Matthew Breese: Hi, good morning. I was hoping we could start on the NIM outlook.
Martin Birmingham: Good morning, Matt.
Matthew Breese: Good morning, guys.. Where and when do you expect deposit costs to peak in 2024? It sounds like it’s back half of the year type event. And then can you remind us of what percentage of loans repriced immediately?
Jack Plants: Sure. This is Jack. I’ll take that one. From a cost of funds perspective, our modeling indicates that the cost of funds is expected to increase around 20 basis points from the fourth quarter of 2023 to the fourth quarter of 2024. However, when you look at the earning asset side of the portfolio, that’s up approximately 40 basis points over that same period, which is contributing to the modest margin expansion that we’re guiding to. And then on the variable component of the portfolio, I think it’s around 33%.
Matthew Breese: Got it. And then could you just give us some additional color on what the blended new origination yields are on loans versus what’s rolling off? What is that roll-on versus roll-off dynamics?
Jack Plants: I think we put a slide presentation that shows roll off, we have [indiscernible] expectations for [Technical Difficulty] 2024. The [Technical Difficulty] say, range anywhere from 60 to 300 basis points on a roll-on basis over what’s coming off depending on the portfolio. We ultimately didn’t want to guide to our full coupons that we’re putting on, just to limit some competitive pressures we might see in the commercial space.
Matthew Breese: Okay. And what was the anticipated securities cash flow for the year?
Jack Plants: $150 million.
Matthew Breese: The last one I had was just on the commercial rate relationship of $13.6 million. What type of loan was that? Was that office, multifamily, industrial? And then where was it? Was it in upstate New York or D.C. or one of your other geographies?
Martin Birmingham: Upstate New York, call it the Finger Lakes, a really unique small city that’s grounded by the headquarters of a large Ivy League institution and another elite college that calls it home. And we’re very confident as a result of the unique characteristics of that. The collateral values are solid. It’s just the issues that we talked about with working through some short-term issues here. But it was a light industrial loan that’s tied to one of the major economic drivers of the community down there. And it is a club deal. So we’re not leading it. We’re participating in the [indiscernible].
Matthew Breese: How interesting. What’s the — do you know what the [indiscernible] size is?
Martin Birmingham: I don’t off the top of my head.
Matthew Breese: Okay. I’ll leave it there. Thank you very much.
Operator: Thank you. I would like to hand it back to Mr. Birmingham for any closing remarks.
Martin Birmingham: Thanks very much for your assistance this morning, operator. And to those who attended the call, we look forward to building on this conversation with our second quarter results.
Operator: Thank you all for joining. I can confirm, this does conclude today’s conference call. You may now disconnect your lines, and please enjoy the rest of your day.
