Nathan Race: Okay, got it. And then just curious around any additional color you can provide on the charge off in the quarter. It sounded like it came from one loan in particular. So any other color on that would be helpful.
Alex Ko: Okay, yes, I’ll talk about it first and other people can chime in. It was a $12 million loan on our books that we’ve charged us $2.2 million. The reason for the collateral value decrease is at least according to the appraisal is due to this millionaire’s tax where it is in the city of LA and it’s a block away from Beverly Hills which does not have a millionaire’s tax. So with the new appraisal we charged off, they do have an offer on the place that would get us out whole right at the moment. And we’ll see if that can be closed by the end of the year.
Nathan Race: Got it. If I could just ask one more on kind of the expectations for share repurchases continuing, any thoughts on perhaps when that could occur and any governors that we should be monitoring in terms of perhaps resuming cherry purchases going forward?
Alex Ko: We’re very optimistic that we’ll be able to resume our repurchase in the November timeframe, we’re hoping, mid-November. Okay.
Nathan Race: Great. That’s perfect.
Alex Ko: We have 433,000 shares left.
Nathan Race: Understood. I appreciate all the color. Thank you.
Operator: Thank you. Your next question is coming from Andrew Terrell from Stephens. Your line is live.
Andrew Terrell: Hey, good afternoon.
Alex Ko: Hey, Andrew. How are you?
Andrew Terrell: Good. How are you guys?
Alex Ko: Good. Good.
Andrew Terrell: Thanks for taking the questions. I wanted to follow up on some of the questions around the margin, just to make sure I understand maybe the magnitude of how we should think about the move into fourth quarter. Do you have the spot cost of deposits at the end of the quarter, either total or interest bearing?
Alex Ko: Yes, Andrew. Let me give you a breakdown of the spot rate for the deposit now and the MMA account. We have about 2.5% combined. And the savings account, we have about $134 million. The spot rate for that is 1.15%. And CD, let me break it down between those two, under 250 and over 250. Under $250,000 CD, the spot rate is 4.43%. And the CD over $250,000, the spot rate is 4.5%.
Andrew Terrell: Okay. That’s incredibly helpful. I really appreciate it. And then similar question just on loans as well. I’m trying to understand the timing throughout the quarter of when the paydown occurred, the weight on the loan yields. It might be just if you have just like the exit spot loan yield on the loan portfolio or how it’s trending so far in the fourth quarter.
Alex Ko: Well, right now for the fourth quarter, we haven’t had significant runoff at all in the fourth quarter. We expect we have a $20 million mortgage loan sale that’s closing today. And they’re about a 675 coupon. And then we have this $157 million, which is at what, 9.5? 9.5. And we don’t know exactly when that’s going to roll off. It’s currently on our books today. We expect that it would be rolling off by November 15th. It’s supposed to go by the end of this month, but it’s only a week away.
David Morris: Yes. And Andrew, let me give you a little bit more color if that will be helpful on your model of the margin. We had about $45 million loan originated for the Q3. We’ve been talking about the payoff and pay down, but the rate was not bad. And the average rate of 9.75%. And we will continue to originate our loans. Obviously, we are deleveraging the high-risk loans. That’s the one point. The second point, the margin compression for the quarter was due to the payoff pay down. And I did mention $165 million in Q2 and $36 million in Q3. And other than that $57 million that we talked about, that should be it. So, I think that will give you an idea of the loan yield and the margin side of the equation.
