The vast majority of our real estate portfolio has lease expirations out 2024 and later. So far, what we’ve seen is decent renewing. We are seeing some movement down in price per square foot. But what we’ve been doing is going through all of the lease portfolios — sorry, the office portfolios and stressing both vacancy rates and lease rates to see what the debt service coverage ratio is and what making sure that we’ve got adequate coverage. If we talk about our expectations for charge-offs, in — as we go into this year. That’s the place where we’d have the most concern. When we talk about charge-offs moving up from the levels we’ve seen in 2022. It will be some of those portfolios that is still a place where we’ve really got our eye.
Operator: Our next question comes from Frank Schiraldi from Piper Sandler.
Frank Schiraldi : Hi, Darren. Just wanted to ask about — just, I guess, a follow-up on the office book. If you could just remind us where that total office exposure is and then specifically the exposure in New York City?
Darren King: Probably you should — you’ll see this when the K comes out. But the office exposure in total is right around $5 billion. When you look at what’s in New York City, it’s about 15% that would be New York City. It’s pretty widespread across predominantly the Northeast.
Frank Schiraldi : Okay. And then just a follow-up on CRE. In terms of — I think you mentioned that the permanent CRE book was sort of flattish linked quarter with construction balances rolling off. And it sounded like — I just want to make sure I understand that for 2023, is the expectation that, that permanent CRE book will grow just to a lesser extent than the C&I book? Or do you still — are you still looking for outflows in that or thinking about outflows in that CRE book?
Darren King : Yes. Yes. Overall, Frank, we’re thinking that the overall CRE book does continue to drift down, but at a much slower rate than what we’ve seen in 2022. It will be a modest decline — well, on average, it’s actually going to be up because of the People’s United. But if you look versus the fourth quarter, the permanent book on average is relatively flat compared to where the fourth quarter was. And most of the decline would continue to be in the construction side of things. Remind you the construction portfolio is the one that — is one of the ones that tends to carry higher loss rates in the stress test, which is part of the reason why we’ve been working to obviously support our customers so that they can finish the projects, but then to not add meaningfully to that once those reach their completion and find permanent financing.
Operator: Our next question comes from Ken from Jefferies. Go ahead, Ken.
Darren King: Maybe we’ll continue on, and we’ll catch Ken in a little bit.
Operator: Our next question comes from Ebrahim Poonawala from Bank of America.
