Nitin Mhatre: It’s a combination of both, Laurie. I think one part was the reclassification of companies that supply to the office space versus actual office space itself. I think that brought some of the number down. But even if you normalize for it, as I mentioned earlier, to the other question, our balances in the office portfolio went down roughly by 5% and or $25 million.
David Rosato: We had some in our first iteration of going through the portfolio. There were some suppliers to office buildings that were included. So that should not have been included originally. So, we made that change this quarter. But as Nitin says, more importantly, on normalizing for that the portfolio still was down 5%, and it was not through sales or charge-offs. It was simply majorities.
Laura Havener: Got you. Got you. Yes, your CRE in your office slides in the deck are very helpful. So on office, I know you’ve got another, I don’t know, 360-some-odd million that are lapped. Can you talk a little bit about — that’s not included in that number, is that the right number? Is there a better number? And just I guess, specifically, how medical is holding up very well. Lab is starting to see a little bit of weakness. Are you seeing anything there that’s concerning you? Or how is that portfolio looking?
Nitin Mhatre: Yes. No concerns that we’ve seen so far. Greg, if you would like to provide any more color?
Greg Lindenmuth: No, Laurie, we’re not seeing any like early signs of weakness in the portfolio, no increases in criticized or classified. And you can see some of our NPL and NCO rates on the portfolio and even some of the early stage. We’re not seeing anything there.
Laura Havener: Okay. And then $360 million, is that the right number for Office lab? Or is there a better number?
Nitin Mhatre: Laurie, this is Jeff. Sorry, go ahead, Greg.
Greg Lindenmuth: No, you mean office lab. Laurie, what specifically?
Laura Havener: Yes, correct.
Nitin Mhatre: Are you asking about education and medical Laurie?
Laura Havener: I don’t know. I was under the impression you had about $360 million of office lab — some I chatted with you, but maybe I got that firm in core you had just to clarify.
Nitin Mhatre: Yes, the education and medical exposures were $350 million at the end of the second quarter and dropped 9% to $318 million at the end of the third quarter.
Laura Havener: 318, perfect, perfect. Sorry about the confusion there. Great. And then, I guess just sort of very high level, Nitin, can you talk a little bit about — and I realize you haven’t provided 2024 guidance, but can you talk a little bit about what would be your sort of first plan of attack as you derisk the balance sheet just in near-term quarters? How we should be thinking about that when you talk about that priority?
Nitin Mhatre: You broke up a little bit. You said, first, your plan of attack to do what?
Laura Havener: So, in derisking the balance sheet — yes, you mentioned that was a priority. Can you just — in coming quarters, very generally talk about sort of what is your first plan of attack as we look for the next couple of quarters on the derisking strategy there?
Nitin Mhatre: I think I’ll leave that when we provide the guidance because we would have better line of sight, Laurie. But I think broadly speaking to the question I answered earlier. We’re looking at all components of the balance sheet and opportunities that are embedded within it. But beyond that, I think we’ll have better clarity as we go forward. In the meanwhile, I think the teams are doing a fantastic job monitoring the existing portfolios, working with the clients and keep the credit quality as pristine as we can.
