Operator: Thank you for your question. The next question comes from the line of Paul Patterson with Glenrock Associates. You may proceed.
Paul Patterson: Hi. Good morning.
Scott Seu: Hi Paul.
Paul Patterson: Can you hear me?
Scott Seu: Yeah.
Paul Patterson: Hi. How are you doing? Okay. Just on the CD thing what’s the rate differential that you guys are providing for CDs now versus regular deposits?
Paul Ito: So, it’s about 1.25% difference between CD rates and deposits.
Paul Patterson: Okay. And what’s the absolute number, I guess?
Paul Ito: So just to clarify and maybe I’ll just have Dane. He has the numbers in front of him.
Scott Seu: Dane Teruya, is the CFO of American Savings Bank.
Dane Teruya: Hi, Bring up CD REITs, in the range of about 3.75.
Paul Patterson: Okay. And then on Slide 10, you have — and I apologize for missing this, I must have been a little distracted. What is this 10-year deposit, for 10 years? What does that refer to? Could you just — I apologize for missing this. Could you elaborate a little bit on that again?
Paul Ito: Okay. I’m sorry, we’re going…
Scott Seu: While Paul brings up that slide, Paul what we’re trying to focus on is the fact that at American Savings, many of our deposits have very long duration with us. So these are not deposits or customers that are coming in and out, and that’s what we’re trying to stress. We’ll get that point across there.
Paul Patterson: So I mean, in other words you said that 10-year CDs, with you guys?
Paul Ito: No, no, no. This is — their relationship with the bank. So, having been a customer for the bank.
Scott Seu: Yes, that just underscores the retail — the heavy retail base that we have here at ASB.
Paul Patterson: Okay. I’m a little bit like wow. Okay. That’s, helpful. Yes, I guess that makes sense. And I just was wondering, if there’s talk about doubling the FDIC insurance to 500, if that were to happen what would happen to that 1.2 — the 15%? Do you have any — I mean in other words what would the uninsured rate be? What would be the percentage of deposits that would be uninsured if they were to double it?
Ann Teranishi: Yes. Paul, this is Ann, Ann Teranishi. So the 15% would dip far lower. Our average retail deposit amount is 16,000 and our overall average is 18,000. So it just gives you a sense of the size and scope of our retail deposit base. So yes, we imagine that that amount would go down further. We haven’t done specific calculations around that $500,000 amount.
Scott Seu: Yes. And Paul, I’d just reiterate an interesting factoid which is ASB in terms of its amount of insured deposits at 85%, actually is one of the highest performing banks in the entire country from that perspective. So we would see — we would continue to have that view.
Paul Patterson: Yes. No, it looks — I mean and the commercial looks — and you guys highlighted, this very diverse. I was just wondering, are you seeing any vacancy issues or — within any of the areas that you’ve got exposure to?
Scott Seu: Nothing significant. In fact, the overall occupancy here in Hawaii, has been fairly strong considering both office and retail. Most of the activity that you’re seeing in some of the other cities like San Francisco, and other locations Hawaii, is doing much better than those locations in terms of vacancy.
