Manuel Navas: That’s great. Just shifting over the equipment leasing growth, seems to be a little bit less this quarter. Is that still coming on at 9% yields and are the expectations pretty much unchanged for the year?
Rich Dutton: The yields are higher. The yields for at least September were 10%. And, you know, as Chuck indicated on the commercial side, even yields that are going on in October have made an increase since the September 30th rate. So volume was a little bit less than we had anticipated for that third quarter. But pipelines are really good. So we do anticipate that volume in the leasing groups to be up quite a bit in the fourth quarter.
Chuck Parcher: Probably just a touch less than what we probably guided for the full-year. But we think we’ll close the gap here in the fourth quarter.
Manuel Navas: And you could always choose to sell more of that if you have any balance sheet constraints.
Rich Dutton: Right. That’s exactly right. We are getting paid less on it for the people purchasing it. So we try to weigh that. We may end up having to do that. Right now, we modeled it going in at keeping 50% and selling 50%. That’s kind of what made the earn back numbers work. We felt made it work. And so far, we’ve been sticking to that. But we may have to shift course depending on liquidity needs.
Manuel Navas: Okay, I appreciate the comments. Thank you very much.
Dennis Shaffer: Thank you.
Operator: The next question comes from Daniel Cardenas with Janney. Please go ahead.
Daniel Cardenas: Hey, good afternoon, guys.
Dennis Shaffer: Hey, Dan.
Daniel Cardenas: You had mentioned on the call that that $2.4 million revenue hole is going to be plugged through increasing your leasing and some revenue opportunities within your current products and services? And then some expense controls. I guess if you had to assign percentages, how would that work out, and how quickly do you think you can fill that hole?
Rich Dutton: Well, we hope to gain a chunk of it through the leasing group because as they became, they were an unregulated, privately held company. And so we had additional expenses in there, consultants that we’ve had to hire. We had to have several, always including accountants and IT people and different things. That, you know, that should be, you know, behind us for the most part. So we hope to pick up some there. We hope to build a little bit more cadence now. I can tell you, the activity of the last four or five months has been much better than the first four or five months of the year, Dan. So if we just continue now to do what we’re doing, we’re going to make up those first four or five months where we weren’t really extremely profitable with that Group.
Dennis Shaffer: Just because we were, you know, they were kind of sidetracked with other things and we had additional expenses and the rates were moving up and just getting everybody on board. So we do think we’ll be able to make up a good chunk of that with the Leasing Group. Then there’s some expenses that go away on that side. We’ve identified some expenses on our side, things like overtime and things like that, that we think we can control a little bit more. So we’ve identified some expense things. And then just through normal products and services that we have, Chuck has led a revenue enhancement project team. And they’ve come up. We’ve had people from all over the bank, and they’ve come up with some dollars there as well.
So I would say maybe half of it’s going to come from the leasing side, and then the other half from revenue enhancements and from expense saves. And that’s my best guess right now. Again, we’re working through the budget. But that’s our best guess right now.
