Patrick Dignan: No, I think you’ve got it. Well, maybe just that we frequently update. We look at valuations quarterly and we do a lot of stress testing on values, where the cap rates are moving up and expenses are moving up and it’s a lot of factors that influence value. And so — and it’s kind of a moving target right now. And we’re constantly rolling up our own portfolio. And so we expect there will be some movement on the valuations. But historically, we’ve taken a relatively conservative approach.
Alex Twerdahl: Okay. And then I just have a few more questions. One on the deposits. And can you talk a little bit about the laddering in the deposits, the broker deposits that you put on, along with the purchases last quarter. And really, what I’m trying to get at is whether or not the bulk of the deposit repricing has already happened. And as that portfolio amortizes or pays off, potentially, there’s not a lot more in terms of deposit repricing higher that we could see?
JP Lapointe: Alex, the majority of the deposits that we put on last quarter for the purchases, especially the big one were 6, 9, 12 months. So of that purchase what we funded with broker deposits, about 50% was 6 months which would mature in June. 25% was 9 months and 25% was 12 months, so September and December maturities are those. We did have some other brokered deposits that we took out last quarter with shorter terms but primarily the bulk of it, almost $350 million that we did there was 6, 9 and 12 months.
Rick Wayne: Alex’s question is also the weighted average rate on those deposits and what we would replace them when they mature in this calendar year.JP?
JP Lapointe: Right now, the broker market is a place with brokered deposits. It’s around 5 right now. However, then these mature, it could be anywhere that broker market jumped up in March given everything that went on in the profit front. So depending on what the Fed outlook is and when each of these sets of deposits are such mature, it could be 5 or hopefully lower than that when they go to revolver.
Rick Wayne: And the weighted average rate of the…
JP Lapointe: Brokered on at March 31 is 4.7.
Rick Wayne: 4.7?
JP Lapointe: 4.47.
Rick Wayne: Okay. So we have, Alex, those that are maturing, maybe — and that would be about 50 basis points of increase if we had to replace some today at 5.
Alex Twerdahl: Okay. And then on expenses, expense control, as I was certainly better than I had modeled given the large increase in the balance sheet. Can you talk about expectations for the next couple of quarters?
Rick Wayne: Yes. Well, first, there were — they were higher in card, one because of the increase in deposit insurance and that’s about — what is that?
JP Lapointe: 345.
Rick Wayne: $345,000 for that. And then we had some higher professional fees in their — in the next quarter, I think it will be higher most likely because we have incentive comp that we true up in the fourth quarter. And so there could be more for that for all of our employees. But I think kind of on that on a run rate what you’re seeing in the third quarter is more or less about what we would expect; that was — the banning with people and have been a few more might be $14 million maybe — now that the balance sheet is . Other than that I was saying in the fourth quarter, it kind of would be that plus what goes in their predation.
Alex Twerdahl: Got it. And then my final question, just noticed some gain on sale of the SBA loans in the — in this first quarter or third quarter for you guys. I know you’ve been working on rolling out some new products with the private equity partners that did the PPP with. Is this — can you give us any update on that partnership in that program? And are we starting to see a little bit of that come through on the income statement?
Rick Wayne: Yes. The group is not where we have a 5-year exclusive marketing agreement with that they’ve been going to market initially trying to get the PPP loans of $115,000 that were on loan source but the loans are to market to them a small balance ; a lot of them under 25,000 and then more to $250. They kind of averaging about $75,000 a long summer at the 25 and some are bigger. It looks like they’re only now at a rate of $4 million, where we sit today, $3 million to $4 million a month. So it’s improved a lot. It’s not where we think it can get to, or I should be . No, I’m not going to read the forward statement. But so on the amount, we’ll see what happens. It will slow momentum now. The technology has improved dramatically; the marketing has improved a lot as well.
And so what that represents is the loans that we sold in the March 31 quarter, I would expect that the June 30 quarter small lot higher, let’s say and very round numbers a gain on those so for — it’s about 10% as a little bit more maybe 11%. I think that’s probably a good average to use. If they do, say, they think $4 million a month, that’s — that’s $12 million a quarter and our share of that’s about $600,000. And then we wanted up holding on our balance sheet. The part that is the guarantee part that’s guaranteed part of the loan, it’s not so — and if there are any losses, we eat half of them.
Alex Twerdahl: Okay, that’s all my questions for now. Thank you for taking them.
Operator: And we have no further questions at this time. Now, I will turn the call back over to Mr. Rick Wayne for any closing remarks.
Rick Wayne: Thank you very much for that and thank you all for listening; and Alex, for your excellent questions. We look forward to talking to you again after the end of our fourth fiscal quarter June 30 and we’ll be reporting both on that quarter and on the year. And thank you and wish you all a great day.
Operator: Ladies and gentlemen, this concludes today’s conference. Thank you for participating. You may now disconnect.
