Ben Gerlinger: Hey, appreciate you guys taking the time. It seems like, obviously, you guys got in front of a lot of the deposit pressures and overall deposit growth was pretty sizable this quarter. I was curious if you guys were willing to give — what was the margin yesterday or the spot rate at the end of the quarter? Just trying to get a sense of kind of where we are today given that the margin kind of fell pretty precipitously in the first quarter?
David Morris: Yes, you’re correct. We had a compression on the margin for this quarter, given our deposit pricing has gone up so much of it dramatically. And going forward, margin forecast to be honest, it’s very hard to have accurate margin guidances for now given the volatility. However, in response to your spot rate question, we do have a CD spot rate of about 3.8% as of March 31.
Ben Gerlinger: Okay. I was looking more so for the margin, not a CD, but –
David Morris: Yes, but margin is very difficult. I would expect that it will continue to compress, but not to the level that we have experienced in Q1. Given the deposit side, I would expect that increase will slow down as we said in the prepared remarks. So it will continue to compress, but again, not to the level that we have experienced in the Q1.
Ben Gerlinger: Got it. Okay. And yesterday, I saw you added two board members, more so thinking initiatives. Is there anything — are they brought on for expertise, more consultancy or just kind of thinking the addition of Board members, what we should expect in terms of their addition for RBB as a whole.
David Morris: Okay. Scott was brought on because Scott was a regional director of the FDIC. And so, he will bring on great knowledge of how our regulatory environment and regulatory agencies work. And we’ll be able to assist the board and helping them learn all about those things. And Bob was brought on because of his past experience of running a bank. The only other person who has run a bank before that’s on the board is myself. And so, we believe having Bob on board his connections locally to deposit gathering, to investors and to real estate market, I think is invaluable to the bank. Okay.
Ben Gerlinger: Got you. That’s helpful color. Thanks. I’ll step back.
Operator: Thank you. Your next question is coming from Andrew Terrell from Stephens, Inc. Your line is live.
David Morris: Hey, Andrew.
Andrew Terrell: Hey, good morning. Maybe just a follow-up on one of Ben’s questions. Just to clarify that the CD spot rate at 3.8% at (ph) 31. Just making sure does that include the broker time deposits or is that just retail customer? Is that an all-in number of 3.8?
Alex Ko: Yes, it’s all in the CD rate of 3.8%.
Andrew Terrell: Okay. Got it. And then how does that compare to rates from a retail perspective that you’re offering in the market right now?
Alex Ko: No, we are offering a little bit higher than that. We used to have a deposit campaign, but we don’t do that anymore now, but we just do it in our pocket raise, which is more selective to the customers. It’s a little bit higher than the spot rate that we just discussed.
David Morris: Okay. Gary, are you there? Can you add any of the color of what you’re doing with all the promotions and so forth?
Gary Fan: Yes, sure. I think moving forward, obviously, deposit cost is a priority for RBB, both total number of deposits and then the cost of what we’re trying to get. So a lot of the promotions we’ve been considering we’re doing sort of on a quarterly basis and we’re tailoring those to each specific market. So for example, something in New York that may work better for that customer base, it’s something different than what we’ll be running in California. And that’s sort of a shift in strategy versus what RBB used to do. Generally, I think due to our customer relationships and the kind of existing customer base, as well as the new customers that we have in and around our geographic presence. We’re seeing about 25 basis points to 50 basis points better than our other competitors.
So although the overall cost of deposits has been rising, I think we’re still doing a little bit better than our competitors and a lot of that has to do with the way we position some of the products and services as well as some of the customer relationships we have with our bankers that are on the ground meeting with those customers?
Andrew Terrell: Yes, okay. I appreciate all the added color there. If I can go back to some of the commentary around the loans and deposits. On the loan specifically, how much in loans do you have that you would classify as out of market loans? And then further, how much would you consider out of market bridge lending?
