David Rosato: The only thing I would add to that is our, when Nitin says our pipelines are slower or lower, that’s by design, okay? So we certainly have the ability to land more than we’re lending but we’re repositioning under the leadership in commercial of Jim Brown to work to lend and create deposits, which is a modest or a change in our philosophy. So fuller both sides of the balance sheet relationships is what we’re going after rather than just extending high-quality credit. And I think we’ll be very successful with that. Overtime, it takes time, didn’t referenced in his original comments that the industry disruption has allowed us to hire deposit-focused commercial bankers and we will continue to try to do that. So that’s the real color behind what we’re trying to achieve here.
Operator: Our next question comes from the line of Dave Bishop of Hovde Group. Please go ahead.
David Bishop: Just curious, obviously, there’s been some maybe year-over-year pressure data processing technology and communication costs and you noted the sort of the revamp of the digital banking platform. Just curious maybe is there a potential to enumerate what the savings are and once that’s implemented and maybe what — how much of that year-over-year pressure has been related to sort of that initiative?
Nitin Mhatre: Yes. Dave, I’ll ask Sean to talk about the technology kind of outlook here, Sean?
Sean Gray: Yes, there is opportunity. It’s a lower unit cost going forward. So, we anticipate very low single-digit reduction off of where we are today.
Nitin Mhatre: Okay, what is the second question again?
David Bishop: Yes. And that second question, Nitin, obviously, with expenses in the crosshairs. And maybe this is something you’ve thought about or pursued and just doesn’t make sense in the current environment. But I appreciate the disclosures around the runoff portfolios, Upstart and Firestone. Any potential for maybe a bulk sale there or partial bulk sale, just accelerate the reduction of some of those noncore portfolios and maybe the expenses attributed with them?
Nitin Mhatre: I would say, Dave, we’re looking at everything, right? So, I think you started with expenses. So, all options on the table, real estate, procurement, suppliers, org structures, discretionary so that’s on the expense side. Similarly, on the balance sheet side, to your question, yes, we’re looking at every optionality, we have to improve the balance sheet mix. So yes, everything is on the table.
David Rosato: And Dave, I would just go back, I thought I had said this last quarter. So last quarter, we were calling out the double technology expense, so to speak because of the Narmi conversion that we talked about. And I mentioned that in our comments today about the reduction in our legacy deposit system. So that’s about $0.5 million a quarter or so. So that has come out of the run rate yet, but it will as we go through this quarter and into next year. The problem with technology expenses, there’s always more around the corner. And that’s what we have to be diligent around.
David Bishop: Got it. Then one final question. Just curious, Nitin or David, just new commercial origination yields where you’re onboarding new commercial loans?
Nitin Mhatre: Yes, they’re about closer to 8%, I think 7.75% to 8%.
Operator: Our next question comes from the line of Chris O’Connell of KBW. Please go ahead.
Chris O’Connell: So I wanted to talk about the share repurchases. This quarter, it was a little bit less than half or so. It seems like of the repurchases last quarter. And I believe this plan that you’re currently on ends at the end of this year. Just wanted to know what your appetite was going into the fourth quarter, whether you think it will look a little bit more like 3Q levels or 2Q and whether you intend to re-up the plan as we move into 2024.
