CATY
#Hello, <UNK>.
Yes, <UNK>, we think that 25 basis points probably added only $1 million to our net interest income in the first quarter.
That's according to our models.
The good news is that, there's a lot of moving parts.
We have not increased our deposit rates at all since the Fed increase.
But we continue to see some pricing pressure as our higher rate CRE loans and residential mortgage loans mature.
The new loans are maybe 25 basis points less than the ones that are maturing, so in the second quarter, we would expect the margin to drop by four or five basis points if the interest, because the interest recoveries were outsized.
And the interest recovering in the first quarter, that is related to that same recovery that I was ---+ the B note that was charged off as well as interest applied to principle.
So anyway, the second quarter of the margin should be lower.
There is the day count issue because February was still a short month.
So it's going to be less than 340 but hopefully not by much.
And then we are trying to run a more efficient, more compact balance sheet so we will try to keep the loan to deposit ratio, net loan to deposit ratio right at 100%.
Hello, Juliana.
I think it's going to be, I would say, I wouldn't say longer, but I would say in a steady and planned basis.
What Mr.
Wu is looking for obviously is to help with the commercial lending area and then there are several lines of business that we are contemplating, but want to make sure that we want to do it a public due diligence before we engage to it.
But at this point in time, we are pretty optimistic that Mr.
Wu would be able to help us in many areas.
We have identified two areas that we want to participate.
And we are in the process of planning.
It takes a little bit time, but nowadays what you want to do in new areas is that you want to prepare the policy statement and then go through the risk committee, I guess filtering, and then go through the process.
It's going to take a little bit of time, obviously.
We probably will see the impact in the late second and third quarter.
Again, depending on how soon we get everybody on board, but there are areas in syndications that we will take a close look at, but Kelly is a commercial and ABO lender and we have existing groups in commercial lending and in CBO lending that he will be able to make an immediate impact.
Yes.
That's part of our plan.
This is <UNK> <UNK>, we probably would do something again in August which is when we started our, which is when we resumed our buyback.
I think based on the work so far in defense, we don't think that defast results are going to be much different than the prior year, in our public disclosures.
So, we also look at our stock price too, so we would rather be patient than to get ahead of ourselves.
Well, congratulations or good luck in your retirement.
We will miss your questions.
You always have a lot to say.
Please stay in touch.
Thank you for joining us for this call and we look forward to talking with you again at our next quarter's earnings release.
Thank you.
