Manan Gosalia : That is very helpful. Maybe just on the flip side, on the funding side, the $360,000 or so pricing that you mentioned that deposits are coming on at right now, would you be able to provide a breakdown between CDs and savings accounts and what those are coming on at right now? Also, if there is any update to the cycle deposit data guide of around mid-50s?
Thomas Iadanza : On regular savings accounts, you’re probably in the mid-3-ish type category, but we also have a high-yield savings account out there in our direct channel, which is in the mid-5s, maybe actually low-5s. And while we don’t have a new CD special, we haven’t had a new one for a while, we’re retaining anywhere from about 92% up of all maturing CDs. So I think that when you think, as I said earlier when I talked about the incremental cost of the next dollar of funding, it’s going to be in that mid to low five ranges. But you’ve got to realize that it’s in certain pockets within our deposit pricing where we’ve had some growth that are a little more competitive. And that’s just for that incremental TD that’s coming on.
I think the bigger piece is, we had our strongest quarter to date of new account opening. So, though you’re seeing a mixed shift still continuing, an average coming out of the non-interest bearing, the number of accounts in non-interest bearing continued to escalate significantly. And we were able to grow both consumer and commercial. And just as an example, in the month of September, it was a blended commercial that came on with that rate of 248 for overall deposit base. So while Mike’s correct in looking at some of those TDs and what that the specials are, keep in mind we’re still originating and opening core accounts in this organization like we haven’t ever historically before. And that will have, continue to have a positive impact on how we think about what those marginal funding costs are.
So, the marginal funding cost that we saw, 360, 370 is for the quarter on that lens, something we anticipate to continue assuming interest rates stay at their current levels to continue assuming interest rates at their current levels.
Manan Gosalia : Great. And the through the cycle deposit beta of mid-50s, any update on that?
Thomas Iadanza : I mean, our through the cycle estimate was for the fourth quarter of 23 years to the third quarter of 2023. We’re in the mid-50s, so it’s likely that we’ll end up above that, but that’s factored into all the commentary that we’ve already given about stable NII in the near term and opportunities to expand NII as we get into 2024.
Manan Gosalia : I appreciate it. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from Steve Moss with Raymond James. Please go ahead.
Steve Moss : Good morning. Maybe just on credit here and just the dynamic of fixed rate loans repricing, just curious what you all are seeing for the impact on debt service coverage ratios and, what’s the dynamic of, how many clients have to put up additional cash to support a loan or a project?
Thomas Iadanza : Yes, sure, Steve. It’s Tom. As I mentioned earlier, we repriced in 2023, or reset the rate in 2023 on $1.8 billion of our loans. We did not have to modify the contractual payment terms on any of it. They just reset flow through with continued, P&I payments. No cash up front to customer. They need it. I want to point out are upfront underwriting, underwrites for conservatively, typically a 1.6,1. 7 average debt service coverage a 60% LTV, so that creates cushion in our upfront analysis.
Steve Moss : Okay. But just given that, you know, rates have moved up quite a bit here in the last month or two, you still expect that dynamic to play out into 2024?
Thomas Iadanza: Yes, I mean, mentioned earlier, but I think there’s another 600 million that will reset over the next six months. We do a forward analysis of this. We don’t expect any different results or modifications based on that analysis today.
Ira Robbins: Maybe just, you know, highlighting what Tom said, and he said it’s twice now, and I just want to make sure everyone is hearing what he said. We did $1.8 billion and now one client has to come and bring additional equity into it. They reset us to what they were. And I think that’s something significant when we look at how we underwrite loans day 1, how we think about resetting these loans and the capacity of our clients to pay. And I think that’s a big distinction with versus what you’re seeing at other organizations today.
Steve Moss : Great. I appreciate all the color. And then just in terms of, as we think about, the outlook going forward here. Just curious, Ira, I know you said you’re focused on organic growth and internally. But, you know, are you seeing more M and A opportunities or, you know, has any thought process changed here just given them the more volatile macro environment?
Ira Robbins: Think on the back end of what we’re seeing with regards to the curve, you know, there’s going be more definitely a lot more in these, based on some of the challenges that many events have. You know, that said, I think we’ve been very diligent and disciplined around our tangible book value. And, to have a deal of work in this environment becomes very, very challenging. So some of the economics need to change you know, if you go back to the tangible book value, we had 330 of 2018, which was the 1st quarter, that that this management team took over, we were sitting at $5.64. They were sitting at $8. 63, which is pretty much $3 of incremental tangible book value. When you add in the dividends that we pay it out, $2.86 during that same period, we have effectively doubled the tangible book value is a five and a half year period.
And I think that’s something that this management team is very, very proud of. We want to make sure as we think about potential acquisitions as we move forward that we’re not generating that kind of a track record.
Steve Moss : Okay. Great. Thank you very much. Appreciate the color.
Operator: Thank you. Our next question comes from Matthew Breese with Stephens. Please go ahead.
Matthew Breese: Hey, good afternoon. Just one follow-up M&A question. Obviously, intensity of the events from March have subsided, but doesn’t feel like we’re quite out of the woods yet. Just wanted to make sure that, you know, when we talk about whole bank M&A versus organic growth, Ira would love your thoughts on, you know, FDIC assisted deals or if that were to still come about, would that be something you’re interested in?
Ira Robbins: I think that we’ve been an active player in FDIC deals before. But they have to make economic and those strategic fit for us. And I think those are still 22 variables that are important to us as we think about those as potential avenues for growth. So that said, there is tremendous internal opportunities that we have today as we focused organically on, like I mentioned earlier, change in the core here is something that’s been significant to us. The growth that we’re seeing in C&I has been phenomenal here. If you look at the deposit age, we’re up to $7 billion in differentiated specialized deposits today. I mean, that has been significant for us. And there’s a lot of opportunities still for organic there. So while I think there’s definitely opportunities we should look at. If there is something from an FDIC, that said, I couldn’t be more excited about what we’re what we’re doing here organically and what those outcomes could potentially look like for us.
Matthew Breese: Got it. Well, I appreciate taking my follow-up. Thank you, guys.
Operator: Thank you. I’m showing no further questions at this time. I’d now like to turn it back to Ira Robbins for closing remarks.
Ira Robbins: Thank you. I just want to thank everyone for taking the time to listen to our call today. And we look forward to speaking to you in three months.
Operator: Thank you for your participation in today’s conference. This concludes the program. You may now disconnect.
