Tory Nixon: So we — our total commitments in the SNC portfolio is around $3 billion. Our outstandings are roughly $1.8 billion. We lead a couple of deals today, but most of them are just a participation with ancillary business. And it is not a part of the organization that we are growing really at all. We have really straight guidelines of what we want to be in and what we’re going to do and obviously has got to have significant ancillary business, including deposits to even consider.
Brody Preston: Got it. Okay. Thank you for that. And maybe just on the office portfolio, you gave great detail there, but I was wondering if you happen to have what the ALLL for the office portfolio was?
Frank Namdar: Yes. We — yes, thanks for the question, Brody. We choose not to provide that much detail surrounding ACL on that portfolio. We feel that there’s enough detailed information provided elsewhere for the group to really ascertain the quality of our loan portfolio, which is high. Very good quality.
Brody Preston: Okay. Cool. And then I did want to ask, this was more of interest for me. Just on the multifamily originations this quarter. I just noticed that there was like a big difference, I think, between the debt service coverage ratios that you initiate — that you had originated last quarter. I think they were like 1.7 and this quarter, they were 1.32 and like that’s still healthy, but it was just a big difference. And so I just want to know if there’s anything specific that kind of caused that?
Frank Namdar: Nothing specific, Brody. I — without having that detail in front of me, it’s hard for me to say, but what I would intimate from this is that we had extremely strong sponsorship on those deals and their relationship-based opportunities. So we have the banking relationship and knew the client.
Brody Preston: Got it. And then I just had a couple of last quick one’s for you. Just on the nonaccruals. I wanted to understand was the — was any of that included in the delinquencies just because when I looked at the buckets that you disclosed on page 20. I noticed that the DQ rates had kind of moved higher for owner-occupied and C&I and mortgage and then FinPac as well. I just wanted to make sure, was there any kind of overlap between the nonaccrual moves and the DQ moves?
Frank Namdar: Explain DQ moves.
Brody Preston: The delinquencies. So the mortgage went from 0.43 to 0.59, the C&I went from 0.3 to 0.6 on the total delinquencies owner occupied from 0.23 to 0.51.
Frank Namdar: Yes. That was primarily centered in a couple of loans, Brody.
Brody Preston: Okay. Were those the ones that you talked about earlier?
Frank Namdar: Correct.
Brody Preston: Okay. And on — and then this is my last one. On the one that you talked about earlier where they just decided to — or I guess you said they have been struggling for a bit, and then they ceased operations. What was the collateral that was backing that specific loan? And I guess, like how does the workout process evolve here from when a business just decides to shut down kind of what do the steps look like?
Frank Namdar: That was an owner-occupied commercial real estate piece of collateral. The — what we do initially, obviously, is we downgrade it, we then get the property reappraised, which did come in. And I’ve said on these calls historically about our lending discipline and our aversion to leverage. Well, it played out in this case because we got the property reappraised. We still have equity in the property. And we continue to work with the borrower on trying to structure an orderly way out of this. We will not take a loss on this piece of property.
Brody Preston: Awesome. That’s fantastic. I appreciate the detail. Thank you very much, everyone.
Operator: Thank you. One moment please. Our next question comes from the line of Chris McGratty of KBW. Your line is open.
