And so that would — is a revenue source that really doesn’t have an expense tie with it. So, you may be a little bit — you may be jumping up too quickly.Casey Haire Okay, understood. Thank you.Operator The next question comes from Brad Milsaps with Piper Sandler. Please go ahead Brad.Brad Milsaps Hey thanks for taking my questions. Dale, I just wanted to — hey Ken. Just wanted to follow up on the spot rate discussion. I was encouraged to see those lower on the deposit rates at the end of the quarter. Do you think that’s sort of a onetime phenomenon? And do you — would you expect those to sort of accelerate again?I think you mentioned you thought your deposit growth would mostly come from higher-cost sources, but just wanted to get a sense of sort of squaring those spot rates versus kind of what’s going on in the environment with your deposit growth goals?Dale Gibbons Well, so I mean — yes, I mean, I do think that we have two sources of deposit growth here.
One of them is at a more marginal cost, and that’s going to be kind of new money, I believe. And the other is recovery of funds from clients that pull funds out in kind of the last three weeks of March.And I think that we’re going to have success on both of those categories in terms of where the lower cost money when where it came from, it really was predominantly in the tech space. We’ve talked to these enterprises. And a lot of them say, they’re going to come back. They just want to see a little bit of calmness and stability kind of reenter the space. And so I think we’re on track to that. So, I think that’s a portion of what you’re going to see.Brad Milsaps Okay. And do you have a sense for maybe ECR deposit growth? I mean those were basically flat linked-quarter.
Is that — what percentage would that be of kind of how you’re thinking about growth throughout the year?Dale Gibbons Yes, I think ECR deposit growth is going to climb as well. A lot of that comes from different elements of our HOA division as well as our mortgage warehouse operation and escrow funds related to principal and interest in title and taxes and insurance, those heavy CRs with them. And I think we’re optimistic about how that can go this year, too.Brad Milsaps Okay. And then just a follow-up on the loan spot out rates that you disclosed on slide 14. You gave the average of 6.28%. But I assume that includes the loans that you moved to held for sale at the end of the quarter. With the spot of 6.45%, is that — I assume that would exclude those loans held for sale, so it would be up fairly materially over the average.
If I were able to back out those loans that you move. Is that the right way to think about it?Dale Gibbons It is the right way to think about it. Yes. And we’ve kind of — I’ll say, reverse engineer in on page 18, where we took the spot yields for the entire quarter and what that was in that spread and hence coming up with $31 million is the revenue piece associated with the HFS disposition.Brad Milsaps Got it. And then finally for me, the bucket that you term is 2C, I guess, the $3 billion of non-contracted plan sales, is there anything that, in your mind, that would hold that up or maybe why that is — I mean, I know you guys have been extremely busy, why that isn’t under contract yet? And then just appetite for further unwinding of any additional credit link notes that you might have out there?Ken Vecchione So, I think it’s want to say that we’ve got 50% of that already cemented and we’re just waiting to close towards the end of April.
The other $3 billion were in active conversations with. And so we don’t see any reason why we’re not going to get it done by the end of Q2. I mean, could something drag into — a little bit into Q3, maybe. But right now, we’re encouraged with the conversations we’re having with the parties across the table from us.Brad Milsaps Okay, great. And anything else on CLN unwinding and think you’re kind of done in that regard?Ken Vecchione Well, there will be some more CLNs that unwind as we — as part of the $3 billion that we’re looking to sell. And that’s all factored into our net CET1 side that we have. Of course, you lose capital efficiency when you unwind them, but you’re getting rid of the assets on the other side, net-net, these transactions are all capital accretive to us.Dale Gibbons Yes, the capital call and subscription in CLN, which is the one we’re talking about is already contracted.
It’s being unwind daily. They’re taking loans out of that every day. And so it’s just whittling down. I think it’s going to be over by the end of this month and so that will be gone. In terms of the other CLNs we have, we have — we still have three that are all residential. We don’t have plans to unwind or dismantle those.Brad Milsaps Okay, great. Thank you guys.Operator Our next question comes from Timur Braziler with Wells Fargo. Please go ahead Timur.Timur Braziler Hi good morning. Looking at the HQLA build in the quarter, can you tell us where we are in that process, maybe provide like HQLA to total assets? And as you continue to build that out, is that additive to the current securities balances or is there going to be some additional repositioning that kind of keeps the securities book flat while HQLA grows?Ken Vecchione Yes.
So, I mean we’re going to be taking that up. I don’t have a limit for you. I mean, there’s demand associated with HQLA as you surpass $100 billion. So, we’re going to be on a trajectory to kind of have that rise. But — and so over time, I think it could displace something else in the AFS book or whatever that we have presently.But I wouldn’t look for that to be — that’s not going to be some substantial kind of step variable that you’ve got to leg into. It’s going to be something that we’re — as we’re — as our loan to deposit ratio descends, we’re going to be climbing that ratio. But we’re not going to — it’s not going to jump in any substantial way that’s going to kind of, I don’t know, disturb margin or things like this.Dale Gibbons Yes, I would say that’s going to be informed by our insured to uninsured level, that’s number one.
And again, back to lessons learned, if we — if some large corporates bring back their money, then we need to sign a higher level of volatility to those dollars and then hold some of those dollars in HQLA. So, that also will be part of the composition mix fabric of the new deposits coming in that we’re going to have to determine.Timur Braziler Okay. And then construction loans continue to grow at a nice clip. Curious if you can provide what the current unfunded balances are in that book and what the funding schedule looks like there for the rest of the year?Tim Bruckner Sure. Tim Bruckner here. Hi.Timur Braziler Hey Tim.Tim Bruckner Okay. The funding schedule for the rest of the year rolls out at about $400 million a quarter. So, within our funded loan balances and forward projections, that’s accounted in the volume.
That represents the trajectory of the unfunded for this year.Timur Braziler Okay, great. And then one last one for me, maybe going back to Steve’s question. On the bigger picture front here, where do you ultimately see Western Alliance falling into the broader technology innovation sector once that recovers, assuming there’s going to be quite a lot of dislocation from Silicon Valley clients. And do you ultimately see Western Alliance playing a larger role in that sector?Ken Vecchione I think it’s going to be a sector that’s going to be positioned against the other growth areas that we have. So, not going to be — it’s not going to overwhelm the deposit composition or the loan composition, that’s something we’ve seen. So, we’re not going to be the new tech bank.
But I do feel very strongly that the others that are picking up the tech people out of SVB, and there have been a number of banks.I think people are going to migrate to us and stay with us because one, consistent performance is very important here, not only a consistency of the people that you deal with, the consistency of the credit granting process and the credit review. And we’ve seen over our time here, banks that have jumped into tech and innovation, and they think it’s C&I lending.Ken Vecchione Tim Bruckner can pick up on this in a second, if you like. But it is not. And we’ve seen people jump in and say, hey, I’m here to provide you credit. And all of a sudden, they see, wait a minute, you’re lending against possible negative cash flows or clearly negative cash flows, you’re lending against VC’s commitments to put in money over time, it’s a different C&I loan.
Tim, do you want to pick up on that?Tim Bruckner Yes. Thanks Ken. It is. And as our plan and strategy discussed today indicates, we recognize and adapt to a changing environment. In the tech space, we’ve got a change in competitive landscape with respect to the lenders involved. And we’ve got a changing landscape with respect to the VC. So, we’ve got that in evaluation.We think that we are well suited in this space that we have a deep understanding of the space, but we’re moving forward fully advised by what we’ve seen and are seeing and the changes that have presented themselves. So, I don’t expect that this will hold a significantly larger position on our balance sheet as we move forward.Timur Braziler Okay. Thank you for that color.Operator Our next question comes from Ben Gerlinger with Hovde Group.
Please go ahead Ben.Ben Gerlinger Hey, good afternoon. I was curious if you guys — I mean, just kind of philosophically speaking, Western Alliance has always been entrepreneurial in both the left and the right side of the balance sheet. And it seems like on the left side, you guys are retrenching — you’re sticking with your core clients, partially given the volatility and then also just economically speaking, I’m sure you’re tapping the brakes a little bit.But as we shift beyond a recession or go through one and get through the other side, has the DNA changed on how Western Alliance operates? Could we see you guys reenter the market that you’ve left, just kind of thinking longer term growth and where that could come from?Ken Vecchione Yes.
