David Bishop: Got. Question — appreciate the color on the new hires, a lot of good to England banking experience. Just curious as they hit the ground there, does that make you change — does that provide any opportunities to start banking any new loan niches or geographic expansion or maybe the types of commercial credits you could target? Just curious if there’s — do you foresee any change in the strategic outlook for the company with the new personnel on board?
Nitin Mhatre: Yes, I think the geography doesn’t change. I think we stay within the areas that we operate in, but it will potentially create more opportunities are increasing our strength into some of the specific sectors, not for profits being one of them. There is some more leverage or experience that we would get through private equity, venture capital sponsored deals and there is also a family business kind of vertical that we’re looking at. So I think on the margins. Yes, there will be some new areas, but otherwise, we remain consistent with the strategy of going after high quality clients and more importantly, addressing the needs of the existing clients which is we’re still about 60% of our business comes from.
David Bishop: Got it. And then, don’t know if you have this number disclosed that, the numbers of new relationship lender hires this year, do you know that and maybe what you’re budgeting for 2023?
Nitin Mhatre: Yes. I don’t have it in front of me, Dave, but we did say that on a gross basis, we were looking to hire about 40% as compared to the baseline that we had in pre-BEST and we’re tracking to that number at this point of time.
David Bishop: Got it. And then you noted the capacity on the balance sheet, still relatively low loan-to-deposit ratio. As you look at the balance sheet, just given the competitive pressures on deposit pricing, just curious how you’re thinking of a funding loan growth, is that a combination of deposits and borrowings or maybe use some of the cash flow from the securities portfolio? Thanks.
Nitin Mhatre: Yes, Dave. I’ll ask Stephen to take that question.
Stephen Finocchio: Yes, good morning. This is Stephen. So I think broadly will continue to work on deposits. We do have a little bit more — we tend to have a bit more wholesale funding next year, but not a lot opportunistically in that market on more of a latter basis as opposed to having to jump in later on. So I think, I’m obviously watch the loan growth versus the overall deposit growth. I don’t — I think, we’re still at a good spot around where we are right now and probably will grow a little bit on the loan-to-deposit ratio during the year.
Operator: The next question is from Laurie Hunsicker from Compass Point. Laurie, your line is open. Please go ahead.
Laurie Hunsicker: Just hoping that you could give a little bit more color here on the charge-off, so the $11.8 million you had in charge-offs. I guess how much of that was commercial, how much of it was C&I versus CRE? And then, what specifically was related to that one middle market loans C&I charge-offs?
Nitin Mhatre: Yes. This particular credit, Laurie, was about $7 million and the rest was distributed as part of the regular. I think our regular charge-off, historically, have been around $5 million to $6 million. So if you take the commercial credit, that single credit out, we were at about $4.8 million and that includes a mix of commercial and consumer.
Laurie Hunsicker: Got it. Okay. So on that credit, you charged off $7 million and $7 million remain, is that correct?
Nitin Mhatre: Correct.
Laurie Hunsicker: Got it. Okay. And then just remind me, how big was the credit to start with, is it like $20 million or something?
Nitin Mhatre: No, it was $18 million and we took about $4 million in the third quarter and $7 million in this quarter.
