Question-and-Answer Session
Operator
(Operator instructions) Thank you. Our first question is coming from the line of Mark Fitzgibbon with Sandler O'Neill.
Mark Fitzgibbon – Sandler O'Neill
Good morning guys.
George L. Engelke, Jr.
Good morning, Mark.
Monte Redman
Good morning, Mark.
Mark Fitzgibbon – Sandler O'Neill
Couple of questions for you. First, could you detail for us how much you have in borrowings that are scheduled to reprice in the fourth quarter and maybe what the average rate on those are?
George L. Engelke, Jr.
We’ve got the search party out right now, Mark.
Mark Fitzgibbon – Sandler O'Neill
Maybe I’ll go on to the second, you can come back to it. That would be great. The second question, I wondered if you could give us a sense for the kinds of spreads that you are seeing in the multi-family business over the five-year treasury rate. What kind of spreads are available today?
Monte Redman
Mark, in terms of our pricing, to give you an idea, our one-to-four family rate to 5/1 hybrid ARMs that we do are just under 6%. And that’s where the market is. There are – on the multi-family, I’d say there are 6.375 – would be out – is out floor. So we are not going below – we are not originating below 6.375. And as you see, we are really not growing that portfolio. We’ve said all along we are never going to make multi-family commercial real estate loan below multi – before below single-family levels. And in this market, it is prudent to go below that level. So we are not making that many loans to the multi-family market, but up floor it’s 6.375 right now.
Mark Fitzgibbon – Sandler O'Neill
Okay. And then –
George L. Engelke, Jr.
Frank has the answer to part one, Mark.
Mark Fitzgibbon – Sandler O'Neill
Okay.
Frank Fusco
Mark, for the quarter it’s about $1.8 billion (inaudible) at 2.45.
Mark Fitzgibbon – Sandler O'Neill
2.45, Frank?
Frank Fusco
Most of that borrowings is short-term right now.
Mark Fitzgibbon – Sandler O'Neill
Okay.
Frank Fusco
We don’t have the benefit, as we talk about in the past, but while we are on that in terms of margin going forward, just to give you a little piece of where we think the margin is going, if you take a look at the cost of liability, both deposits and borrowings, if you go back to – for the second quarter, the average rate was 3.51%. At June 30 – you know, we’ve put this in our press release. At June 30, that average was down to 3.36%, which led to the benefit in the third quarter. Now for the third quarter, the total cost of liabilities was 3.30%. But at the end, at 9/30, that was down to 3.20%. So, although we don’t have a lot of borrowing as coming due, we have benefits that are basically accrued during the quarter. We’ll get the full benefit in the fourth quarter.
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