And I think that it will inform what that liquidity profile has to look like in terms of what funds return and what volatility might be associated with them.Gary Tenner Okay. Thanks. And then in terms of the ECR or the deposit costs in the quarter, since ECR deposits were essentially flat in the quarter, I would have assumed that, that expense item would have moved up a little bit more, given kind of the full quarter fourth quarter hikes and the mix we had in the first quarter. So, I was just wondering if there were any changes structurally to the ECR rates or anything along those lines?Dale Gibbons It’s interesting and maybe somewhat counterintuitive. But what’s transpired is that a lot of the funds we lost, they were larger. And so consequently, they were higher.
And so we lost ECR deposits that were among the highest that we made. And so the actual rate of increase went down because the mean spread relative to, say, under Fed funds.Gary Tenner Okay. So, potentially, as you talk about maybe recovering some of those ECR deposits that have flowed out, that number could have a little bit of volatility to it separate from the rate environment for some period of time?Dale Gibbons It is possible.Gary Tenner Okay. Thank you.Operator The next question comes from Chris McGratty with KBW. Chris, please go ahead.Chris McGratty Great, thanks. Just following up on that one. Obviously, there’s a correlation between your NIBs and the ETRs. Just given the change in the deposit mix over the last year, I guess, how do you see that 35% non-interest-bearing mix progressing?Dale Gibbons This elevated rate environment, I think it’s fairly difficult to get, say, a new DDA that has no ECR in non-interest-bearing.
So, I think that — I mean, at the same time, the dollars that are still there have been through a little bit of volatility and they’re still here. So, my impression is that as we grow, we’ll grow outside of that and so that will continue to whittle down proportionately.But I don’t really see dollar exit from that category. And we possibly could get some recovery, as I mentioned, most of the dollars that went out were in the tech space. And a number of those clients have said we’ll be back when the storm settles a little bit.Chris McGratty Just so I make sure that helpful. Just to make sure I understand. So the 16.5% of NIV have, what you’re saying is the dollars shouldn’t be declined nearly the same rate as what they have, but the mix will have a bias because of growth other were.
Is that the right interpretation?Dale Gibbons Well, the mix will have a — the proportion of mix will have a bias downward, but the dollars will be fairly steady. That’s what I say.Chris McGratty Yes, that’s exactly. Okay, got it. And then maybe if I could, you talk about the mid-80s and the 11% as kind of a medium tier target. You give your efficiency for this year. As you kind of exit the year, I think somebody asked the guy is a little bit different. The kind of the efficiency ratio of the company when we’re all done with the adjustments, how do we think about it relative to that mid- to upper 40s if you’re thinking out one to two years?Dale Gibbons That’s a harder projection to make. I would state that — and as Ken was indicating, AmeriHome seems to be getting real lengths at the moment.
We’ll have to see how that plays out. But if the rate environment — I personally think we’re going to be in a declining rate inflated environment in 2024 going into the general election. And I think that’s probably bullish for mortgages.And with that, that could be a greater proportion of our revenue than what it’s been for the past few quarters. And their efficiency ratio is in the low 50s. So that would be something that would keep it up, although the revenue piece would be meaningful.Chris McGratty Okay, that’s helpful. Thank you.Operator Our next question comes from Andrew Terrell with Stephens. Please go ahead Andrew.Andrew Terrell Question on the CET1 pickup from the dispositions. So the $3 billion of contracted sales in the second quarter gets you a 50 bps or so CET1 pickup or 33 bps net of the CLM.
I guess if there’s $3 billion of loans remaining beyond that, that aren’t contracted for sale just yet, but no further CLN repositioning. I guess, should we think about the CET1 pickup from that last $3 billion pool is closer to kind of a 50 basis point lift on the CET1?Dale Gibbons Well, — good question. So what we have here is we believe we’re going to be exceed 10%. So, — is all of that $3 billion going to be disposed off in the second quarter? I can’t tell you that. We’ve got $3 billion contract that will go. So, is there some tail there associated with it. But when it’s all gone, there’s more pickup there than just to give you over 10%.Andrew Terrell Okay, got it. And then apologies if you disclosed this, but how much should the MSR sale impact servicing revenues this quarter?
And any expectation for go-forward MSR sales?Ken Vecchione Yes. So, MSRs — the MSR was sold, I think, on the last day of the quarter. So it didn’t really impact any of our servicing income for Q1. It was a significant size, $360 million. And we did that in the face of a large money center bank that’s disposing of the MSRs, and we did it right on top of par, right on top of our mark. So, we’re very pleased that we’re able to get a sizable deal off.That gives us a lot of optionality to when we want to come back to the market if we want to come back to the market and the size of the deals. We may do smaller deals if we think the pricing could be better. There’s no rush to go ahead and do them. And so — and again, I would also say if the mortgage market to Dale’s viewpoint of the world, if the mortgage market begins to pick up at a faster pace, then maybe I have to retreat from some of my statements and we have to do some sales.
