Ben Gerlinger: Got you.
David Morris: Well, one of them I could tell you is we don’t really do C&I variable and we are putting in a C&I platform that will hopefully be able to attract depositors and the C&I customer to the bank, okay.
Ben Gerlinger: Sure. Yeah. No. I really appreciate the color over there. Thank you.
Operator: Our next question is coming from Andrew Terrell with Stephens. Please go ahead.
Andrew Terrell: Hey. Good morning.
David Morris: Good morning.
Andrew Terrell: David, maybe just on the last point first, getting into maybe a little more C&I type lending that could bring deposit relationships with it as well. Can you just talk about maybe, I mean, obviously, maybe a bit different type of lending than current composition of the balance sheet. Can you just talk about kind of risk parameters in place as you make that kind of pivot or step more heavily into that market?
David Morris: Well, let me step back for a second, Andrew. We already do C&I and we already have the risk parameter set, okay. They haven’t changed. The issue is it takes us two weeks to do alone. It needs to be done within a day. On a C&I loan you have to be able to have this loan done within a day and it takes us two weeks, okay. So that’s what we are really doing.
Andrew Terrell: Okay. Got it.
David Morris: Okay. And just so you know, on the rest of our book, we have either decreased or have loan-to-value on almost every product twice, okay. So by 5 basis points each time and we have increased our DCF — DFCR wise by 5 basis points also on every product type. So we did that over the year too. But that isn’t — we are not even seeing loans that fall out of those boxes even right at the moment.
Andrew Terrell: And what are aggregate across CRE portfolio aggregate loan to values and debt service coverage rate at?
David Morris: I would say aggregate would be the policy, probably, the aggregate is 125, actuals will probably be north of 130 and loan-to-value is around 60 now and I would say actual would be probably in the 50s.
Andrew Terrell: Okay.
David Morris: Now mortgage is slightly different. Mortgage is still — we haven’t — we are still max, max is 70% loan-to-value, but most of our average loan to value on mortgage is around 60%,okay.
Andrew Terrell: Okay. And if I could shift over to the fee income side, can you just maybe provide some expectations for gain on sale and then overall fee income as we move into 2023?
David Morris: Well, we are seeing the New York that investors come down from their 8.5%, they are in the 7.5% range now. We are still not producing loans at 7.5% and mortgage we are around the 7% rate. So if they could get that — if we can get it down a little bit further, we could be selling some. We do have two $30 million pools out to a local — not a local bank, but to a bank, another Chinese-American bank that’s on the East Coast that they would want to possibly purchase. So we are looking at that also. Our one of our major goals is to get the gain on sale of loans back up to about a $2 million per quarter number, okay.
Andrew Terrell: Okay. And then last one for me is just kind of a point of clarification on the margin and the interest-bearing deposit costs. I think you mentioned spot interest-bearing costs at the end of the year low 4%. I just want to make sure I am hearing you right, but the full quarter average for interest-bearing costs was 1.93%…
David Morris: Right.
Andrew Terrell: what that cost was at the end of December?
David Morris: Right. That’s what that is.
Andrew Terrell: Okay. That it was low.
