Just wanted to get an update on how debt service coverage ratios look and how you might be working with certain segment of those borrowers to kind of deal with the increased debt service?Li Yu At present time, that I know, okay, we are not having any, but I’d rather have Nick answer that.Nick Pi Just like Mr. Yu mentioned that we do not see anything happening at this time. No, I don’t have any information on that.Edward Czajka Matthew, I think it’s — that’s a good question, and it actually leads me to another point I’d like to bring up. But it’s interesting, as Mr. Yu talked about the CMBS debt cliff that’s coming due, $1.5 trillion or whatever it is over the next 3 years. With those assets repricing up, the debt repricing up, I think it’s very notable that our portfolio has already gone through that.
As opposed to most banks portfolios are still waiting for that cliff, ours because we’re 80% prime-based have already seen that, and to the fact that delinquencies are almost zero, non accruals are almost 0, I think, bodes well for the fact of our credit quality and our underwriting and for the fact that this cliff that everyone talks about may not be as devastating as it originally as thought.Matthew Clark Great. Yes. And then just last one for me, some clarification on the noninterest expense run rate outlook. Ed, I think you mentioned maybe slightly above $20 million run rate. I assume that’s the high end of the range you’re anticipating this year?Edward Czajka I would call that the middle part of the range, Matthew. As mentioned, there’s inflation and wage inflation continues as well.
So.Matthew Clark Okay. Do you want to reset that range or…?Edward Czajka No. I’m good with it.Operator [Operator Instructions]. This concludes our question and answer session today. I would like to turn the conference back over to Mr. Li Yu for any closing remarks.Li Yu Thank you for your interest. But it is interesting to have everybody asking about the upcoming CRE crisis, especially in this office building area. But I want to recall my personal experience seems to be last 4 years, first started with retail, okay? That big problem that we will have in the electronic, I mean, merchandising. And then, of course, pandemic and the hospitality situation comes along playing, then probably a combination of something. And now obviously, it’s office leading it.
Although it sounds funny, it looks like a flavor of the year. But in any event, last two when we are fortunate that our underwriting standard — underwriting procedure as we previously explained to you, how do we underwrite our hotels, underwrite our retail, basically, we avoided the mall situation. We emphasize on the neighborhood center, so that everybody needs every day enough. So I hope this time, [indiscernible] will be equally as fortunate without the portfolio, okay? Thank you very much. And okay, it’s truly be a very, very eventful quarter, and thank you for your attention.Operator The conference has now concluded. Thank you very much for attending today’s presentation, and you may now disconnect your lines.
