David Feaster: Okay. And you touched on this several times about having maybe a bit more of a cautious outlook, which makes a ton of sense. I’m just curious, where are you seeing loans come across your desk that still bring risk — attractive risk adjusted returns? And just any other thoughts on or commentary from the demand side from your standpoint, where demand is slowing, where it still remains solid, especially just in light of some of new hires that you’ve made?
Jared Wolff: Sure. That’s a good question. So where we see opportunity that we think is attractive, we continue to see good opportunities in financing streaming content. It’s slowed a little bit, but there’s still a lot of content creation going on. These channels have to get filled even as other things slow down. And that’s been really stable for us. We’ve carved out a really good niche. Our team is excellent at it. And we’ve now got a lot of people coming to us asking for our financing and we’ve put together really good programs. So I would also say healthcare as an area that continues to thrive in our market and there are opportunistic things to do in specialty hospitals and financing physician practice groups and things like that and our team is smart there.
Education charter schools is something where we have a niche, that is deposit rich and continues to be good in terms of financing charter schools with basically revolving lines of credit that help them bridge the receivables they get from the state. And there aren’t a lot of banks that know how to do that. And so we’ve been successful with that. On the real estate side, it’s very, very slow, certainly on the permanent financing side, the things that are getting done today are the things that need to get done because people basically just flipped into a floating rate note or they reach maturity. There is some bridge stuff. So our most sophisticated borrowers are the ones that are seeing people who are in — who are caught in a situation where they can no longer afford the loan and are trying to be opportunistic to take stuff out.
So when we have strong guarantors who know what they’re doing and they did this in the last cycle, we want to be there to support them. They personally guarantee the loans, they’re a loan to values and they have a track record of execution. So — but that’s a lot slower than it was. That activity is still being impacted by rates. Everything else is pretty slow. I mean, C&I is, as we said is very, very slow. I worry about businesses that get caught with oversupply and then they get slow paid by their own buyers. So we’re just being super cautious, but that’s some color.
David Feaster: Maybe staying on that topic, what are some — just from your perspective, I know you guys are sitting kind of in the catbird seat with really low risk loan portfolio. But if you look at the market, I mean, what are you seeing that is causing you some concern? I mean, investors are obviously focused on CRE and notably some of the segments within there like office and those types of things. But just curious, maybe from your standpoint, what are some of the segments that you might be more cautious on and continue pull back on? And just the credit environment and the market for — from a credit standpoint in your opinion?
