Question-and-Answer Session
Operator
The floor is now open for questions. [Operator Instructions]. Thank you. Our first question is coming from Mark Fitzgibbon of Sandler O'Neill
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
Good afternoon, George.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Hi, Mark.
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
George, in your comments you said that you expected net interest margin to begin to expand in '08 as a result of the steepening curve and the Fed cuts. Does that necessarily mean that you don't think the margin will expand in the fourth quarter?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
It will... it could to some degree. I don't think it will be dramatic because we do have a bump a slow of borrowings that have to be maturing in the fourth quarter. So if anything, it would be moderate and probably be close to flat for that quarter, but then it should start right after that.
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
Okay. And then, because it is such a hot button issue with everybody, I thought it would be helpful if may be you could share with us where the increase in NPAs geographically where are those and perhaps also if possible to give us a sense for what the average loan-to-value ratio is on your residential book?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
That ones easy because if we're still... we're still under 65% Mark. Frank...
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Mark, let me just add a couple of comments on the margin question you had earlier. One of the things to keep in mind, as we look... as George said as we move forward into the fourth quarter, we still have approximately $500 million of borrowings... fixed rate term borrowings that are schedule to reprice and they currently have a great... just over 3%. So if you look at repricing those in a market even after the last two days on similar fixed terms, you are taking about a rate up in the 470 range.
So, we still have some of that, we have to work our way in the fourth quarter, some again in the first quarter of the average... weighted average rate on the borrowings in the first quarter is just about 3% as well. So, it might take us a quarter or two before we relieve the pressure of the borrowing repricing upward to get the positive impact on the margin.
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
Okay. And geographically are you seeing any... I mean is it markets like Florida or California where you are seeing that uptick in residential NPAs?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
We are actually spreaded out pretty nicely throughout the country Mark. We've been looking and in fact we are studying and looking for, you know, terrible parts of the country that we might have some exposure, but we are not feeling any real thing anywhere, and again a lot of that has to do to the quality of the loan underwriting we have here to start with.
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
So, not really seeing any upticks in over 30 days delinquent or 60 days delinquent buckets?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Not anything really serious.
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
Great. And then lastly, you guys did a lot less multi-family this quarter, is that because you just didn't like the pricing and sort of what you are seeing in the market today on typical multi-family loans you are doing in terms of pricing?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Well, the pricing is the answer to that really. The flow which had one-to-four has been terrific because there an awful lot of non-players anymore in the single-family market. So, we are getting a great flow in that direction, which is were... which has resulted in some higher pricing in that area and also allowed us to strengthen some of our loan already, conservative loan lending standards. But, on the multi-family reason that is down it is exactly that, that is strictly tremendous competition and upwards of 3/8 to 0.5% below one-to-four.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Just to give you an idea Mark just even after the some of the rally storms in the last two days, we can do a 5/1 single family loan at about a six in a quarter rate. That's about 2/10 over treasuries. The competition out there for multi-family is probably five and seven and eight or close to six. So despite all the Wall Street conduits being out of it spreads have widened out on both industry lines, both clearly on a one-to-four with less credit, particularly our credits. It doesn't make sense for us to compete that competitively in that market
Mark T. Fitzgibbon - Sandler O'Neill & Partners, L.P
Great, thank you very much.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Thanks, Mark.
Operator
Thank you. Our next question is coming from Bruce Harting of Lehman Brothers
BruceW.Harting - Lehman Brothers Inc
First, can you just sort of describe the single family opportunities a little more in terms of the pricing on jumbo or other loan products where you see great opportunities right now and how long do you think that sort of opportunistic pricing lasts and what if the GSEs are given little more ability to get into some of those markets, will they penetrate that pretty quickly, or do you think it will be... happen with the delay and then how are you funding the good loan growth, in sort of what term? Thanks.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Well most all of our originations, Bruce, as you know are on the 3/1, 5/1 arms. It's been in this mid 70% range for a number of years now, including now, and so that's our main go-to-product. We are seeing demand all over the place because of the dislocation. I don't think that the pricing is as high. You've got tremendously high pricing, which I think has come down a bit now on the 15 and 36, which we are not really looking for portfolio at all. But the... just the players are way down in the single family areas. So we are getting an awful lot of things sent our way even while we raised lending standards higher than we already have had. So we are having a good time.
The justification for Fannie and Freddie raising the limits on loans just isn't there at all. In fact I saw on the paper today, you probably I am sure did also, where Freddie and Fannie just announced that they won't be going down from 417,000 in the upcoming year, but I think there's been an awful lot of chatter in Congress about what are we really accomplishing by raising the ceiling for Freddie and Fannie in the secondary market, when we have got all the sub-prime problems that they certainly could do something with. So I think the focus on beyond that would be GSEs.
Operator
Thank you. Our next question is coming from Matthew Kelley of Sterne Agee.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Yes. I just wondering if you could just quantify those numbers again on the amount of borrowings that are rolling over in Q4, and then any detail for the quarters Q8 and what costs those are coming of that? And then what type of structures are you doing into today, are they callable type of structures or straight advances?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Sorry, Matt, I will take handle on that question. The fourth quarter refinancings that are previous fixed term is $450 million of borrowings coming due at 317. We have another $400 million to $500 million of short-term borrowings, but right now are probably slightly above Fed funds. So, obviously further decreases by the Fed would approve those, but they are still above Fed funds right now. That's our fourth quarter and as we move out of the first quarter there is only a $100 million of previous term borrowings out there at about 310. In terms of the new funding that we are doing either term borrowings two or three year or some of the money we are keeping short in anticipation of potentially a Fed decrease.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay.There been new two year fixed rate money is like 465, 470?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Yes, 470 would be three FHLB advance.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay. So, really over the next couple of quarters than your borrowing costs are going up, but if you look on the deposit side that the product you guys were using the liquid CD product that's now 440 just on your website, so it looks like that's going to be coming down a little bit though?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Well, we've the CDs which are over the next two quarters are probably in the 450, 460 range.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
The problem in the CD market right now is as you know those mortgage banking companies that become thrift and those mortgage bankers that are a thrift are scrambling for money everywhere and you are seeing some dislocations in the pricing on under one year CDs. So, when we can burrow much cheaper than some of those rates we will probably do some of that for a while until some form of normal fee reappears in the marketplace, but the deposit pricing is pretty terrible due to the push by the mortgage banker to close/thrift.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay. I mean just as we think about modeling '08, '09 and borrowings are coming due will you be using any callable structures that I mean the discount there is pretty significant if you are selling any optionality today?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You can... we've always considered the full gamut of what's available all over the place, and yes we have some of those callables. We do use those from time-to-time, and we actually tried to fill these issues that we need to fill for interest rate risk management, so it could be some of them, could not be some of them, it depends. We are very flexible.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay, All right. Thank you.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You are welcome.
Operator
: Thank you. Our next question is coming from Bob Hughes of KBW.
RobertH.Hughes - Keefe, Bruyette & Woods, Inc
Hi, good afternoon guys.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Hi, Bob.
RobertH.Hughes - Keefe, Bruyette & Woods, Inc
I guess my first question had to do with flexibility on deposit rates and I think you partly answered that. Is it fair to say that there is limited flexibility to really ratchet rates down right now given some of the rates being hung out there in the market by others?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Yes, it's pretty difficult. Yes, I mean you can take them down a bit, but you can't take them way down because some of the super high rates are out there and they are in the $17,000 a day for Countrywide and the Times for example.
RobertH.Hughes - Keefe, Bruyette & Woods, Inc
All right. And then, secondly, forgive me if you have already answered this. I had to jump off for a few minutes, but the increase in NPLs you saw on the single family portfolio of this quarter, I think you might have commented on there being no necessarily geographic concentrations or anything but is this... any of this come out of the stated income, stated assets stuff you guys had did some limited originations of?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Not really. No discernible flow from any one place at all.
RobertH.Hughes - Keefe, Bruyette & Woods, Inc
Okay.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Just random happenings and lot of them are the normal divorces and the onuses and then more of them. Some of the other things I think that will happen with this stuff as we go forward is people are going to retire or move somewhere downsize or something like that. There will be some difficulty in selling the homes. That's going to be the practical problem.
RobertH.Hughes - Keefe, Bruyette & Woods, Inc
Okay. Your expectation is while that may put some pressure on the margin etcetera going forward in some non-earning assets that in general lost content on those will be pretty limited giving your LTVs across the portfolio.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Yes, definitely, first of all, we don't expect a whole lot of those in non-earning assets. We don't expect the whole lot of those kind of things to happen, but with our LTVs where they are, it will take some doing to get them down to real problems.
RobertH.Hughes - Keefe, Bruyette & Woods, Inc
Okay, thanks George.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You are welcome, Bob.
Operator
Thank you. Our next question is coming from Collyn Gilbert of Stifel Nicolaus.
Collyn B. Gilbert - Stifel Nicolaus
Actually, both Bob and Matt asked my questions, so I am all set.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Okay.
Collyn B. Gilbert - Stifel Nicolaus
Thanks.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You are welcome.
Operator
Thank you. Our next question is coming from James Abbott of FBR Capital Market.
James Abbott - Friedman, Billings, Ramsey & Co
Hi guys.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Hi, James.
James Abbott - Friedman, Billings, Ramsey & Co
Actually Matt was or Bob rather was sort of my question, but just to add... just to get a little bit more color on there, I guess can you gave us the loan-to-values on the non-performing assets. I mean it seems like it is rising at a little faster pace, but may be what the bourses rate is doing like that, and I'm trying to figure out why someone would default on the mortgage and see if we could dig into there and see if you can figure out the loan-to-value on that. I know the portfolio overall, but is it the 80% loan-to-value?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Let me James, there is just one gave me a statistics that I found interesting I was just looking at. Out of our... we have 32,500 residential loans on our books. 234 or 0.7% of them or more than 30 days delinquent all the way up to being in foreclosure. So, it's really what we claim with small piles and 32,000 loans are all over the country. We did work on diversity. They are coming from all different parts and for the most part these are normal calls delinquencies. Moving the divorce, but lost their job kind of thing. The great many of these are those, these are not coming from junky, sub-prime garbage. These are almost normal, I would say the flow and the increase is a little higher on balance than it has been in recent times, but there is nothing... there is no real in that sample, which is only 234 loans out of whole lot of big bunch I talked about. They are from all over the place and there is no collection of them in one place at all, or one core.
James Abbott - Friedman, Billings, Ramsey & Co
Okay. Well, I guess, I am just... we are just seeing maybe, you are going to be explained by people trying to sell their homes that seems to be more reasonable, because it's hard for me to get comfortable with the bourses or almus [ph] business stuff like that causing it, it could have been two or three quarters in a row where it's being increasing and I know it's been an awful very low base, I am not criticizing that I am just trying to isolate what's the cause is. Can you give us a sense as to... you are suggesting the loan-to-value is on the non-performing assets are the same as the portfolio, there is no difference there?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
There... yes, they were originated at the same as any event; I don't know exactly what everyone of these loans is now. But, you know, if they are just... there are normal reasons of what's happening. If there are some more happening, let's say there is an extra 100 in here or 75 in here than we normally would have. That could be related to some areas that have some problem in moving properties these days because I think the difficultly in this market is going to be selling houses so all. And that's giving some people problems because they can't get out of their house. So, that makes for a practical problem, and some of those homes have to be caught up in that where there is... let's say there is a bunch of sub-prime in their area a low level houses, and I don't say whether these are all lower heights, they don't have the balances.
But, if they could be in an area that real estate is not moving, and if you need to move for some financial reason, and you are not able to a problem will arrive even from a good loan.
James Abbott - Friedman, Billings, Ramsey & Co
Yes.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
But, I think all of our stuff is unrelated other than in general... generally to the sub-prime garbage out there.
James Abbott - Friedman, Billings, Ramsey & Co
George, do you guys have a lots of 3/1s and the 5/1s as you've talked about and so you probably have a better insight into what happens when mortgages reset from lower rates to higher rates. Can you give us any sense that everybody out there all over the TV, analysts, across the board nobody has a clue as to what is exactly going to happen when these reset, but you guys are closer to the scenario, because you have that. What can you tell us there in terms of trends as these mortgages are resetting from 4% as they originated in 2003 or 2002 to 6 or 6.5?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Well we are not seeing much problem... much of any problem from that at all, in fact, what we are doing since we made good loans to start with, we have a call program going on, what we call those that are about to mature, and if the go-to rate on the one year adjustable is higher than they can get another 5/1 or 3/1 on. We'll offer them reify. We are offering people ability to reify their moments, they're with us and whatever the going rate is 3/1 or 5/1 is, which certainly is less than the adjustable and wherever it's going. So, we are giving people an opportunity to stay with us. We've got the payment history with them and everything else, so that's keeping some of our loans on the books.
James Abbott - Friedman, Billings, Ramsey & Co
So, when they are resetting, but it's still an increase of maybe a couple 100 basis points, it may not be as deep as they would have been, if it was just been allowed to reset naturally, but by reifying you are still getting them to a product, that's probably a couple of 100 basis points higher than where they had been?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Yes, but we underwrote these loans, on many of these loans on the basis of the whole 30-year term with, old term of those loans. So, we underwrote these loans initially on the basis if they would stay for the term. Not just three or five years.
James Abbott - Friedman, Billings, Ramsey & Co
So, your customers... you are suggesting your customers are not necessarily if they are doing well or not in, through the reset cycle, they are okay, you are not --
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Yes.They are okay, but the vast majority of them overtime, I mean someone takes a while when they first get the notice they are going through the new adjustable rate, they'll reify in sometimes they don't realize, but most of them... most of the people in this category reify these loans into a new 3/1 or 5/1, that didn't go to the adjustable.
James Abbott - Friedman, Billings, Ramsey & Co
Okay.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Jim can I add... just add a couple of points to that.
James Abbott - Friedman, Billings, Ramsey & Co
Yes.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
If you look at the last page, or at least where we have the weighted average coupons of our portfolio, our one-to-four family coupon, weighted average coupon is 565 right now. A new loan is about six in a quarter. So, yes, there are loans that maybe repricing potentially 200 basis points, there are others that are not. So, as George said, they are going to reprice into a new loan that is not significantly higher than the rate they have.
Going back to the non-performing question you had early, well we don't have LTVs with us right now. I can't tell you that out of about 235 non-performing loans that are single family, about half of them are originated prior to 2003, so if you want to look at LTVs that have always been below 65% and 2004 as the peak. There is a significant portion of those loans that the LTVs are probably even now so below, much further below 65% with the price appreciation it would have had and that there delinquents of the reason that George said.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
The other thing about our quality delinquents, if you will, is as we pointed out many times we are not... we have not been big in the home equity market. So our borrowers, yes they could have added the secondary home equity line or something later on after they did make the mortgage with us, but we didn't load up everybody with 90% or 100% of that in tandem with home equity loans or mortgages in the initial point. So lot of these people have intelligently dealt with their borrowings efforts and so they are in better shape to start with.
James Abbott - Friedman, Billings, Ramsey & Co
And those are all excellent points. I appreciate all that detail. Last question is this as you... have you... if you had the work close on any homes and what sort of severity are you seeing when you are having to sell the home, is it... are you experiencing any of that. Can you give us a sense of how much of a hair cut we should expect?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
It is not an answerable question specifically, if they where you are and how many other problems are there in the area, all those kind of things, but our loans and our problem loans a few that we have developed a few that we have are spread all over the place, so what happens in Garden City may not happen in boom in New Jersey.
James Abbott - Friedman, Billings, Ramsey & Co
Okay.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
There is no... there is no absolute trend anywhere.
James Abbott - Friedman, Billings, Ramsey & Co
Okay, thanks again for your time.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Its okay.
Operator
: Thank you. Our next question is coming from Al Savastano of Fox-Pitt Kelton.
Albert H. Savastano - Fox-Pitt Kelton Cochran Caronia Waller
Good afternoon guys, how are you?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Hi, Al.
Albert H. Savastano - Fox-Pitt Kelton Cochran Caronia Waller
I was just well wondering if you could comment on the piece of asset repricing over the next year?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
The piece of asset repricing well. Go ahead Frank.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Well, I guess I'll give you an easy number, first which is the securities portfolio. We are talking about 2 in a quarter $225... sorry $225 million, $250 million a quarter, that's pretty consistent what we had in the past. And on the home mortgage portfolio, if you look at our GAAP table, which will be disclosed in the Q, which is pretty similar to where we were in June and you are talking about anywhere from $4.3 billion to $4.6 billion in mortgages scheduled to repricing.
Albert H. Savastano - Fox-Pitt Kelton Cochran Caronia Waller
And what kind of rates... what's the upside of the rate on the mortgages, is it about 100 and 200 basis points?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Yes, Al, it's a question we really can't answer simply because out of that $4.6 billion, about half of it is an estimate based on what loans will pay off and people will pay off their loan because they are moving, because they suddenly got a big chunk of money. There is not a scheduled rate that goes along with half of those dollars as it would with the borrowers or the CDs. So I really couldn't give you a rate. It could be a 4.5% loan or it could be a 6.5% loan that chooses to pay off next month.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
All we are trying to figure out how positive a yield curve we are going to have and if I... if you can give us the answer to that we could probably give you a proper answer to loans repricing, it's going to really depend on how this curve works out.
Albert H. Savastano - Fox-Pitt Kelton Cochran Caronia Waller
I understand, but if you looked at it today, is a 100 and 200 basis point reasonable?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
No, no.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
I don't think so.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
I would say that's too much especially in terms of the amount of... relative to your entire size of portfolio of $15 billion. If you look at our margin tables over the last couple of quarters you have not seen that big a change in the coupon on our mortgages.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Because every basis point helps.
Albert H. Savastano - Fox-Pitt Kelton Cochran Caronia Waller
That's okay, thank you.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You are welcome.
Operator
Thank you. Our next question is coming from Sal DiMartino of Bear Stearns.
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
Hi, good afternoon everyone.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Hi, Sal
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
Hey, not that I think credit is a big issue, but I just want to get a little bit more clarity on two things. One, the charge-offs you had this quarter was in the construction, I guess construction loan.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
One loan.
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
Right, one loan, and can you just remind this... the size of your construction portfolio and the geographic breakdown? And then the other question I have is one of your competitors who reported yesterday, who is also very conservative lender, went back and stressed test their residential portfolio to see where current LTVs and FICOs stood based on current appraisals. And I am wondering if that's something you've done or are thinking of doing?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
We always review our portfolio for FICO scores. Appraisals, we have conceptual ideas of the various areas. And as you know Sal, we've just spread it out pretty much all over the place. So, we have ideas where these things are. But one of the things that you have to remember and I always go back since I am as old as I am, I got history. So if you go back to the 1990 area when we had the dislocations there.
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
I actually remember that.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
And I have talked about this before, but I remember Monte and I sitting down and talking about it. We feel our residential portfolio might have LTVs and average over a 100. But mostly that's why we like it under fours. The residential houses, when you buy your house and you are comfortable in your home, you like the neighborhood, the kids love it, the dog loves it, your wife especially loves it, you are not going to move, you are not in there to trade your house. So we think we had 100% LTVs, 110% LTVs and yes, if you end up with foreclosure, you are not going to do very well with it. But a lot of people don't even pay attention to that. They are happy to pay the rent or mortgage them.
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
And any color on the construction?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Its well under a 100 million at this point and there isn't... and it's all over but mostly in our in our local areas. Mostly our local price rate area, in fact it all is.
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
Okay, and the charge-off was local as well?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Yes.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Yes.
SalvatoreJ.DiMartino - Bear, Stearns & Co. Inc
Thank you.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You are welcome
Operator
Thank you. Our next question is coming from Mathew Kelly of Sterne Agee.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Just to kind of reconcile the margin guidance here and after some of your commentary in the Q&A. I mean it sounds like the expectation from margin expansion is coming primarily from improvements in asset yields because you don't have much flexibility on deposit costs as you mentioned and borrowings that are coming due over the next couple of quarters are actually rolling into higher rates, so I mean the expectations for better margin is entirely driven by portfolio at 540 coming in with new yields, coming in at north of six, is that correct?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
No, I would disagree with that. I think... I think there is opportunity to contain... we have the option of borrowing or savings deposits and we can get down to the lowest common denominator whichever place it is. So I think there is a chance to not have to raise... not have to have savings rates to go fly in all way that meets the ones out there for competition when we can borrow cheaply. What we were saying was we are going use, which we haven't done in the long time, we've been carrying down the borrowings but the reason we did that was we could use them in periods where they require, and if we are going to have for high flyers out there they can't raise money in the markets so borrow it anywhere and they have to pay high rates to deposits. We don't have to go there. We can go to the borrowing window. So we will have the ability to keep our savings deposits priced reasonably and any additional money that we need to go get we can go and borrow it.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay. So, to get money cheaper I mean you have to take on the callable structures in a low 4s because the fixed rate stuff is in the high 4s?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Well, it is right at the momentum. Everything is what it is at the time you are looking. So we've seen great pricing that's where the some of the these 3% is they were coming off now, where bargains a number a years ago. And then we did the borrowings instead of doing savings we've got borrowings in three. I mean you do get some dislocations in the borrowings in time-to-time.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
But, the ones that are coming off are fixed rate advances you took out a couple of years ago?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Not all of them. Not all of them, some of them are.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
So, the FHLB is calling some of that stuff in?
George L. Engelke, Jr. - Chairman and Chief Executive Officer
No.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
The ones that I... ones that I discussed for the first quarter... sorry the fourth quarter and the first quarter our fixed term borrowings that we did...
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Seven years ago.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay. And throughout the course of '08 as things come due there is going to be more fixed rate stuff coming off or is it stuff of your things can get called, explain that?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
No. For the rest of '08, the second half of '08 those borrowings coming due are in the 540, 535 range.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Fixed rate?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Fixed rate, yes.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Someone has call terms in them, but they are maturing '08 as well. Additionally, if you look at where our currency decose [ph] are and where we are currently offering rates. We are currently offering rates lower than weighted average rate at the end of the quarter. So, as George said earlier, whatever deposits we can get, we will get at possibly cheaper rates.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay, I mean it looks like that lead product is that three months liquid CD at 440.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Yes, some days it is, and some days it's not.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
It's not bad, it's not as highest rate right now, that's...
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay. And can you just quantify the dollar amount coming off from that 530 to 535 level later in '08?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Yes, I can tell you that in the... yes just give me a second. Second and third quarter, there is about $1.7 billion, coming off at a... let's say a 530, 535 rate.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay.
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
So, there is some savings there as well.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
And it maybe more but I...
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Depending on where funding is at that point in time and as George mentioned earlier, we could do term borrowings, we can do a mix of some structured borrowings. We used them in the past comfortably, it will be indexed.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Great, if nothing changes right now, if you took those one into two or three year structures, it would be about 50 to 60 basis point improvement?
Frank E. Fusco - Executive Vice President, Treasurer and Chief Financial Officer
Correct.
Matthew E. Kelley - Sterne Agee & Leach, Inc.
Okay, got it. Thank you.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
You are welcome.
Operator
Thank you. Since, there are no further questions, I would like to turn the conference back over to Mr. George Engelke for any additional or closing remarks.
George L. Engelke, Jr. - Chairman and Chief Executive Officer
Hey, I would just like to thank you all for being part of this, this afternoon, and let's keep moving to that positive yield curve. Thank you.
Operator
Thank you. Ladies and gentlemen, this does conclude today's teleconference. Please disconnect your lines at this time, and have a wonderful day.
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