Mark Fucinato: Yes. It’s kind of like a — given where rates — given the rates that you get paid on reserves at the Fed, I mean, I think what Tom said, you might just want to just net those two numbers out and look at a net number because the financial impact of that is going to be pretty negligible. So — but so just keep that in mind.
Nathan Race: Got it. No, very helpful. And just kind of thinking about the balance sheet growth trajectory in the next year, I think Tom alluded to kind of low to mid-single-digit loan growth for the fourth quarter. Curious in terms of how the pipeline looks and kind of the prospects going into next year relative to Terry’s question around some of the competitive dynamics in Chicago, curious, how you guys are thinking about overall growth in loans and core deposits in 2024.
Mark Fucinato: I think I would kind of refer to what the guidance that Tom gave at this point. I mean pipelines are healthy. Activity is — I mean, generally speaking, solid. I mean there are some areas, notably real estate. I mean real estate is no surprise, no — as you would expect slower given its probably the most interest rate sensitive sector of our portfolio. So you have lower activity both on the origination side and on the payoff side. So we’re anticipating, no change there. We’re anticipating that will continue into 2024. We’re also anticipating the point that we just made right before in terms of some remixing within the portfolio, we’ll pay attention to what kind of like our core origination rates are – but just know that in some cases, we will get pay-offs, we won’t renew loans, we’ll get the cash and then we’ll redeploy that within the portfolio.
So you don’t necessarily will see net loan growth, so to speak, but it’s just being — it’s just assets being replaced by – by originations into our core businesses. But to answer your question, I mean, obviously, we had, I think, the number — the GDP number yesterday kind of explains and points to the fact that the economy has remained pretty healthy, we tend to be more cautious. Our view is more cautious. There’s a lot of uncertainty out there. And we’re tending to – to want to have a more cautious view of that. But so far, pipelines remain healthy, particularly on the commercial side. Our government-guaranteed lending business is a bit slower compared to years past, but they’re seeing a fair number of opportunities. So that remains, I think, okay, given the rate environment.
Our leasing business has shown really, really good growth over the past year. Some of that is a catch-up from supply chain issues that were happening earlier as people had put orders for equipment, we just couldn’t get the equipment, and therefore, that kind of delays. So we’re catching up with that, which is helping in terms of growth. But all in all, I think the – the guidance provided may should give you a good picture in terms of kind of what we’re seeing at this point in time.
Nathan Race: Yes. That makes sense. And if I could just ask lastly on credit quality. Obviously, some continued normalization charge-offs this quarter. Curious how much of that was driven by SBC and just generally kind of what you’re seeing in SBC credit quality these days. I think that’s just increasingly a topic of concern across investors just given the rate shocks that have impacted
Alberto Paracchini: Yes. I mean so – two comments, and I’ll let Mark jump in, but two comments generally speak. I mean all of the charge-offs that we saw this quarter, just think about, it’s just basically taking charges against reserves that we established in prior periods. So it’s just a realization of the asset got worked out. And essentially, we just took the charge accordingly. And that’s just normal course of business. I don’t think SBC was any different this past quarter as far as charge-offs. That portfolio, as we stated in prior calls, that portfolio has behaved fairly well above expectations given the environment, borrowers there have, I think, prepared and anticipated for rate increases and have absorbed those, I think probably looking back better than we anticipated. Mark?
