So, I think there’s a really good message embedded in that about the overall margin for our company. The only other nuance to that is, that’s really based on forward rates, which, of course, has one easing today built into the back half of next year. So, those comments are prefaced on the current rate environment, which has an end to the tightening cycle. But there’s good news embedded in what I’m trying to say.
Operator: Our next question comes from the line of Bill Young of RBC Capital Markets. Please go ahead.
Bill Young: Just to start, maybe just a follow up on Mark’s last question. I know you don’t want to give much guidance for 2024. But you kind of — David alluded to low single-digit declines in the NIM as we go into next year. I guess just why is that, if we kind of think that — if we assume the Fed’s kind of done or close to done — kind of where is that incremental pricing pressure coming from that will kind of offset asset repricing opportunities going into next year?
David Rosato: It’s more on the liability side. Just when you think about the role of the CD book, it takes a little bit of time for all of that to roll over. So we have roll — I mean we’ve got most of the fourth quarter, and what I was telegraphing was the easing that’s built into the market doesn’t actually occur until the beginning of the back half of next year. So unless the market sniffs that out earlier, economic weakness and forwards come down more, you’ve got essentially almost a full pricing of the CD book that’s going to — has a lag effect. It had a lag effect on the way up, to have a bit of a lag effect on the way down. Until that happens, banks are still competing for deposits. And we see in our markets, we see some fairly aggressive pricing from — interesting to me, both larger and smaller banks. So, it’s simply that.
Bill Young: Understood. That makes sense. It makes sense. Okay. And then just on maybe loan growth, maybe a two-part question here. First your thoughts on whether the $9.2 billion to $9.4 billion in the back half of the year, is that still a good number for you in terms of a target? And then on C&I, balances have been under pressure for the last couple of quarters. I guess what are you hearing or seeing from customers here? How does that impact your thinking on the growth mix in the near term because I know it was — I think it was 70%, 75% commercial was kind of the target for where you’re gaining our growth from.
Nitin Mhatre: Yes. So Billy, I’ll give a high-level overview and then David could give more specifics. So I think specific guidance, the number that you pointed to, $9.2 billion to $9.4 billion. I think we might be on the lower end or even slightly lower than the lower end at this point of time. We see the slowdown in the pipelines across all books. So that’s going to show up in the queue — we did — I think David did provide guidance for the second half of growth of 7% to 11%. And again, I think it will be on the lower end of that or even slightly short of that. And I think that’s a good thing in the environment that we are in. The second part of your question is, yes, we do expect that the commercial book goes from 65% to 70% over time.
And our teams are doing a fantastic job managing the balance sheet and even on a residential book, we’ve slowed down, we pretty much stopped third-party originations. We’ve slowed down on the originations and have improved our ability to do secondary market sales, which were more than 20% last quarter. So I think it’s a mix of activities in kind of accordance to the market environment.
