Jim Dullinger: At this stage, you know, as interest rates may or may not have peaked. We do believe that there’s still at risk for some level of decline. That said, there’s other characteristics that we’re observing in terms of new account sign-ups and volume of account activities, which are showing some promise. We do actively work with our BaaS partnership to identify ways of increasing customer adoption and customer utilization. So that is a very active process that’s underway. So our hope and desire and effort is exactly what you’re suggesting, which is to work to grow that business and hopefully offset some of the decline that are linked more directly to interest rates.
Greg Pendy: Okay, helpful. Thanks a lot.
Luvleen Sidhu: Thanks, Greg.
Operator: Your next question comes from the line of Bill Dezellem with Tieton Capital. Your line is open.
Bill Dezellem: Thank you. I actually do want to pick up further on the deposit commentary. Have you been seeing a slowing in the deposit run off after June 30th, or what have you been seeing since June 30?
Jim Dullinger: Yes, Bill. Good to hear from you is, we definitely see some moderation. I think when we had our last call, we spoke to stabilizing and stabilized, right? That trend line has taken a bit longer than we anticipated in the prior call, but we are starting to see encouraging signs that the rate of decline is certainly decreasing. And I think as, as Raj had mentioned, we are optimistic that with the efforts by the company, we will be in the stabilized position and hopefully return to our growth position in 2024.
Bill Dezellem: And so since June 30th, you have seen, a moderation in that decline.
Jim Dullinger: What we’ve what we’ve seen is exactly as you just articulated. The rate of decline is moderating from what we experienced in the first-half of the year. That’s correct.
Bill Dezellem: Great. Thank you, Jim. And then let’s talk about First Carolina, please, and the amendment. What effectively does that do since you don’t have regulatory approval yet or approval yet, walk us through what it really, effectively does, please?
Luvleen Sidhu: Yes. So we recently entered into an amendment of our deposit agreement with First Carolina Bank, really to be able to ensure that we can push forward on our mutual commitment, to transition these deposits as soon as possible onto First Carolina Bank’s balance sheet, you know, I don’t I don’t really want to comment on a process. It’s really, geared towards our bank partner and it’s their process. Again, these are very much about, you know, our characteristic of balance sheet of deposits on the balance sheet. And that is something that our bank partner is comfortable, sort of, moving forward with in either direction. And so that has been a huge asset and a great victory for us mutually that we don’t have that obstacle and we’re ready and able to move forward.
Bill Dezellem: Thanks, Luvleen. And so to add some clarity to make sure I’m following you that First Carolina has decided that however these deposits are characterized, they’re okay with that. So they’re ready to start bringing them on, now onto their balance sheet. And, ultimately, the what the regulators determine in terms of how those deposits are characterized, that’s really now what you’d be waiting for. Or I guess not you, it’s what First Carolina would be waiting for essentially to get the accounting dialed in.
Luvleen Sidhu: That’s right, Bill.
Bill Dezellem: Great. Thank you. And, and lastly, once agreements are in place, when we and assets moved, et cetera, et cetera. Can you be more competitive for some of these rate sensitive deposits. And I’ll tell you the spirit of the question is, is you’re competing in many cases against, institutions with a branch network and therefore, a cost structure associated with that. So in theory, your cost structure should be really, quite competitive once you get, all of your agreements in place. So how are you thinking about that longer term with those, competing for, width and for of those higher — more rate sensitive customers.
Raj Singh: Hey, this is Raj. obviously, that is a consideration and that is something that we do discuss with our BaaS partnerships. And at this stage, we don’t have a current plan in place, but it is something we’re in consideration of.
Bill Dezellem: And if you were to have a partner that wanted to be more competitive that way, is that essentially where, I mean, some combination of the bank, the BaaS partner, and BMT would each take a haircut of some level in their margin, which ultimately ends up in the consumer’s pocket to make you more competitive. Is that some form of that?
Raj Singh: Yes, absolutely. That’s one of the models that we’re contemplating and reviewing.
Bill Dezellem: Great. Thank you all for the assistance.
Luvleen Sidhu: Thank you.
Raj Singh: Thank you.
Operator: There are no further phone questions. I turn the call back to Brian for web-based questions.
Brian Prenoveau: Thank you, operator. I am not currently seeing any questions in the queue, so I will turn the call back to Luvleen for some closing remarks.
Luvleen Sidhu: Thank you, Brian. Thank you everyone for joining us today. We’ll see you next quarter. Thank you.
Operator: This concludes today’s conference call. You may now disconnect.
