Alex Ko: So then, our specified loan out of market. And we have tot of about $410 million of out of market that is considered out of state or out of market . Our policy limit is about a little bit higher than that we — that as David mentioned earlier, that is our main focus to derisk our out of market lending.
David Morris: Yes. Now, Andrew, I do want to step back and tell you that we do have mobile home parks out of market. And with both are not going to — that’s part of our core business. So we’re — that’s slightly different. But that’s in that $410 million number.
Alex Ko: That is included. Yes, that’s correct.
David Morris: Okay. So the number is probably closer to $250 million that we’re targeting to get off the books.
Alex Ko: Yes. Actually a little bit less than that.
David Morris: A little bit less than that. Yes.
Andrew Terrell: Got you. Okay. And then could you maybe give some just color on what types of relationships those are? And then just given they are out of market, how are they sourced? Are they primarily syndications?
David Morris: Our market are mainly — range from multifamily term loan, to bridge loan. Those are relatively short term. Originally the term is about one to three years.
Andrew Terrell: Yes, most of these were originated in 2020 — 2019-20 20.
David Morris: And we basically start to derisk starting from last year.
Andrew Terrell: Okay. And then just to clarify. So there’s around $250 million maybe not all of that runs off this year, but that’s kind of the portion that you might look to about a market that you might look to run off the balance sheet, do you think you can still grow loans in the low single digit range in 2023 despite that, call it, $250 million headwind?
Alex Ko: Yes. I think so. We may not have stellar growth. We may have a quarter with declining loan growth. But I think overall we could do that.
David Morris: And I add a little bit, actually the loan demand is actually high. we are very cautious in underwriting and also very cautious in us do our due diligence in this market.
Andrew Terrell: Okay. Understood. And then last one for me and then I’ll step back. Can you just remind us what the exposure is to office commercial real estate?
Alex Ko: It’s about $50 million.
Andrew Terrell: Okay.
Alex Ko: Yes, about $50 million. So it’s not very much.
Andrew Terrell: Yes. So just a really small portion. Okay. Well, very good. Thank you for taking the questions.
Operator: Thank you. Your next question is coming from Kelly Motta from KBW. Your line is live.
Kelly Motta: Hi. Thanks for letting me ask a follow-up. I note that — I have heard that one of the things you’re looking to do is keep liquidity higher on balance sheet. I saw you build cash by about a $15 million bucks, at least on an end of period to about $200 million. Is this a good level of cash you like to run with or any excess in that? I’m just trying to get a sense of that as we work through the size of the balance sheet.
David Morris: Sure, Kelly. As you noted, we have a cash including due from banks. So we have a $231 million as opposed to last quarter, December year ended it was only $83 million. So intentionally, we increased. But given the market volatility, I would expect to continue to maintain this level or even higher as it deemed necessary. But I think this quarter, the management’s top priority is given what’s happening, it was a liquidity management. I believe we did a good job in terms of liquidity, including this available cash to be sufficient enough to weather through this liquidity challenges.
Kelly Motta: Thank you. Maybe last one for me is, your pending deal. Just wondering if that’s gateway, is that’s something you’re still looking forward to doing or any changes in thoughts around that with the market volatility and it’s — I know about extended a couple of times now.
David Morris: We continue to have discussions with all the relevant parties. No decision has been made at this time, Kelly.
Kelly Motta: Thank you.
Operator: Thank you. Your next question is coming from Ben Gerlinger from Hovde Group. Your line is live.
Ben Gerlinger: Hey, guys. Appreciate the follow-up. I was curious just on a positive mix shift, obviously, time deposits increase for you and every other bank when rates go up. I was just kind of — do you have any internal guardrails? I’m looking back over relatively short couple of year history and I see something close to 70% total of funding. I was just curious if you have any sort of red lines that you won’t exceed?
Alex Ko: Of CDs?
Ben Gerlinger: Yes, relative to total. I know you guys want to get the loan to deposit ratio lower, so it mean, you either got to reduce in the denominator or reduce the numerator, increase the denominator. But in CDs, that was the only thing that’s really kind of working in this market for any bank. I was just kind of curious.
Alex Ko: Right now, we do have — under our (ph) guidelines, we do have policy limits. Yes. And I can’t recall what they are, but we do have them. Okay.
Ben Gerlinger: Got you.
David Morris : And like I think it’s something like 66% or 65%, but I got to go back and check. And maybe less — maybe 60% now.
Ben Gerlinger: Okay. Got you. And then just wanted to follow-up on the question –
