It’s kind of moving around that number. We’re comfortable where we sit with every new lending loan opportunity that’s coming in. We obviously are asking for deposits. Most loans are not self-funding, but as I said earlier in the year, I didn’t think there was going to be much of a loan growth opportunity.As I said, we were going to be low single digits and that’s probably where we’ll end up as based on what we see now. So it’s kind of — we’re kind of trading out of old — trading out of loans and going into new loans and it’s kind of, — they’re kind of replacing each other. So it’s not really putting pressure on the balance sheet.If we saw really good opportunities because we — in terms of volume and we wanted to lever up, if the deposits weren’t there, we would have to pay for it with brokered, which would mean, or some other borrowings, which means that we’d have to charge a higher amount on the loans to get the same yield, because obviously the borrowings and brokers are more expensive.But right now it seems to be moving kind of in tandem, in terms of the loans that are paying off and the loans that we’re finally to replace them, which is, and if we — if we grow a little bit, I think our deposits are good enough to keep our loan-to-deposit ratio around where it is.Timur Braziler Okay.
And then one last one for me again, bigger picture question, just with all the dislocation that’s taking place in your state particularly, is there some sorts of arm race in getting any kind of meaningful scale to better capitalize on that? And I guess just what are your thoughts on broader consolidation activity taking place in California?Jared Wolff Well, I think it’s a little bit early and I don’t think, we’re fully out of the woods yet in terms of how things are going to play out. And I think there’s a lot that depends on what happens with First Republic and where it goes. I think they’re supposed to report earnings on the 24th, and I know there are a lot of interest in that and kind of what they see as their path from here. And so I think there is a lot of things that are waiting for that event to happen.There’s a lot of conversation about the future of banking and consolidation and what that’s going to look like and what size levels are appropriate.
I really like where we sit from a scarcity value in terms of our franchise with the really, really strong deposit base that we have with really good credit quality and high levels of capital.It’s going to give us a lot of optionality to think about how we can grow and what we might want to do. We have a lot of organic options and then obviously, we’ve shown that we’ve been an acquirer in the past. I think there are a lot of smaller banks that might decide that they just can’t get enough scale and I think we’re going to be a beneficiary of that both organically through our acquisition of talent and clients through this disruption in the market and potentially ransactionally, if the right opportunity presents itself.Operator Our next question comes from Eric Spector from Raymond James.
Please go ahead.Eric Spector Hey, this is Eric Spector on the line for David Feaster. I appreciate. I appreciate you taking the question. Just wanted to follow up a little bit on the lending side. Curious where particularly you’re seeing good risk adjusted returns and then where maybe you might have less appetite for credit here. I know you mentioned low single digit growth throughout the remainder of the year. Is it possible that you shrink if you don’t see good risk adjusted returns, kind of just some additional color on the competitive environment too, would be helpful?Jared Wolff Sure, absolutely. There’s a possibility that we shrink. We’re going to optimize earnings and return to shareholder value and we could shrink loans and go one of the portfolio pretty easily when you’re getting returns close to 6% in pretty short duration and obviously in the 5% with very safe place.
So you’ve got to be able to see a good risk adjusted return to want to lend today. You have to be there for your best clients and the ones that are there that have proven themselves over and over again, you want to make sure you’re lending to them, especially at times like this.But if we don’t see anything, I think that that’s really one of the strengths of our franchise is that we do have discretion and restraint, and we’re not looking to grow just to grow in an environment that’s not really a growth market. It’s just not. And I think the outlook that we have that we set at the beginning was cautious. And we remain cautious. We’re really focusing on our deposit franchise and being there for our clients and we’ll lend if we see good opportunities.We are seeing some stuff in Bridge real estate.
