You see the things slow down, okay? And — although the payoffs still continued and by those familiar names, you wonder why they still want to do that, but it’s still paying us off with a 5% 10-year mortgages, 5-year mortgage, maybe it’s because it can I mean, they committed a time ago. But again, that’s something as we see as a corporate strategy, we don’t match that, okay? That’s a micro situation. So we really don’t know after May, when the Federal Reserve has indicated if they are holding the rates stable versus what — whether that will spur up the investment, I mean, activity of our customers, okay? And so that’s one thing in the security. The macro side is, again, under the current liquidity environment, will we be able to get substantially more deposit like we used to do, okay?
The question is also how much you have to pay for it. Right now, everybody is competing for these deposits fearlessly, okay? So these are the things we’re facing. If you ask me in May, I will tell you our vision better. Right now, I have no clarity on this point. I’m sorry about that.Clark Wright No worries, understood. Lastly, SBA production and demand trends, it looks like you had a gain on sale of SBA and resumed selling. Maybe if you could just point to some of the demand trends that are going on and as well as the gain on sale premiums?Li Yu Okay. [indiscernible] do you want to answer the SBA?Wellington Chen SBA definitely, again, as we mentioned earlier, that this is a new initiative, we are trending very carefully, methodically and especially during the current situation.
However, we are moving forward. We do have a pretty solid SBA pipeline. And we think that for small business and it’s something that we will continue to move forward.Operator And our next question will come from David Feaster with Raymond James.David Feaster Maybe just following up on — I know you don’t — the loan question is hard to answer, but maybe just asking a little bit different way. I mean, you’ve done a phenomenal job actually pricing loans and getting paid for the risk that you’re taking. And I guess you not having as much of an appetite for credit here, but where and demand, especially given the structure and the standards in pricing that you have. But where are you still seeing good risk-adjusted returns? What segments are still able to make projects pencil and is it a market or geography?
I’m just curious, where are you still seeing good opportunities at this point?Li Yu Well, what we are seeing right now is really not so-called category type of situation. We’re seeing the individuals. We still have customers that they have — individual customers that they have projects they want to continue to do okay? Right now, it seems to be — by the way, I wanted to tell on the C&I side, right now, we don’t see C&I being the big growth factor as of right now, because the interest rate situation, okay. But on the real estate side, we’re seeing — there are still projects going on. People need to get it purchased or get it developed, they get it on. So these are the individual cases. They will be subject to much intense individual underwriting of the loan.
So these are the risk return opportunity. Unless there’s a good return, we won’t do it. We’d rather just keep a good liquidity into the situation right now. Now long term, as you all know, there’s so many zillion dollars, billion and billion dollars of so called CMBS fall-offs from the current maturities, okay? It is the report of everyone, including you that many of them would be either remargined or foreclosed or whatever, rearranged, okay? And traditionally, if past is any experience in future once every few years, we face situation at that. There’s a lot of value changes and these things become variable. We’re ready to pick a few of the remargined items.David Feaster That makes sense. And so some of those CRE projects that you’re talking about, how is pricing in those types of deals?
What are you able to price those types of things at right now?Li Yu Basically prime-based lenders, usually is prime plus — I mean, we go up and down from prime plus half. That’s what we do now.David Feaster Okay. And then you guys have been one of the most rate-sensitive banks around. You guys have done a phenomenal job. And Ed, you and I have talked about it before. I’m just curious how you think about managing your rate sensitivity at this point in the cycle and potentially maybe taking some rate sensitivity off the table? And how do you think about doing that?Li Yu We have several initiatives of doing. One of them is if some of customer wants to convert their loans into fixed rate. We will now start to consider it, but the rate has to be, I mean, acceptable to us, okay?
So there are a number of them has been started to try to thinking about converting okay. That’s one of them. Second of them, almost all of our floating rate loans, as you know that we have a floor. Currently, the floor is averaging over 6% averaging. There are some older loans that is in the 4% rate, that newer loans in the 7% range, right maybe 5% as up 5%. Eric, here the number, we came back. That serve is a so-called a management tool during a rate decreasing environment. That’s why I think Ed has provided you previously with a chart shows you during the rate reduction time, Preferred Bank’s earnings actually increased, okay?David Feaster That makes sense. And then I guess just last one for me. Maybe just given some potential revenue headwinds, just given the rate environment, rising deposit costs and those types of things.
Obviously, you guys run an incredibly efficient institution. But there are some headwinds, right? I mean you got inflationary pressures rising at the IT costs, you guys are continuing to invest in the future with the Texas expansion and the SBA build-out and all those types of things. I’m just curious how you think about expenses in the near term? And any commentary on that front?Li Yu We are continuously looking at opportunistically. We have previously committed to a couple of new branches. One of them is just signed a lease. We will get into that. But basically, the growth really has to come from the adding of the personnel, which is a continuous and the broadest task, and we will continue to do that. As long as any opportunity for the expansion in sort of like a big office or big operation type of thing, we hope that you will fall on labs.
I didn’t see anything right now.David Feaster Okay. So we kind of talked about like an $18.5 million to $20 million kind of quarterly run rate. Is that still pretty reasonable?Edward Czajka Yes. Probably going to be just $20 million, maybe just slightly north of $20 million, David.Operator And our next question will come from Tim Coffey with Janney.Timothy Coffey Ed, I was wondering, can you kind of talk a little bit about the brokered CD market right now and how that — if that has any kind of interest at this point? I mean given the stuff that you’ve already done conference call to date.Edward Czajka I’m sorry, what’s the question, again, Tim, specifically on broker?Timothy Coffey Yes. Are you looking to add more? Or do you feel like you’ve done enough?Edward Czajka No. No, we’re not looking at more, we’ve done what we’re going to do.
And yes, to Mr. Yu’s point, we took out the FHLB advance as well. I don’t envision us replacing that once that matures. But obviously, we don’t know the future, but given everything we know right now, if things progress out the way we expect to, we won’t renew that one. But the broker market is actually calmed down since the crisis.Timothy Coffey Yes, it has hasn’t. And then if we start to see kind of rates roll over back half of this year, do you think that you’ll start seeing a bigger pipeline in terms of loans?Li Yu Yes. Our — Its kind of a rate-sensitive situation. On the lower rate situation, our production is really jumping up.Operator And our next question will be a follow-up from Matthew Clark with Piper Sandler.Matthew Clark I just wanted to get an update on kind of the health of your variable rate borrowers given that you got 80%, 85% of your loans variable rate, you’ve seen loan yields up 300 basis points from the lows.
