Operator: And your next question comes from the line of Casey Haire from Jefferies. Your line is open.
Casey Haire: Yes. Thanks. Good morning everyone. A couple of follow-up questions, I guess, on the NIM. We got the spot deposit costs, obviously moving in the right direction. I was wondering, given all the moving pieces in the quarter on the loan front, if you could give what the spot loan yield was on 630 and the spot NIM, if you have it as well?
Carla Leibold: Yes. We don’t have the spot NIM that we gave at the end of the quarter, focusing just on the 315 and the spot loan yields, it’s hard to say because it varies so much by the different portfolios. But I think to say on average, 7% or higher was about – feels about right.
Sam Sidhu: Yes. And Casey, just to pride a little bit more color on the loan yields. As you may recall, our specialty lending verticals like a capital call lines, et cetera, we’re typically whereas those were sort of in that 250 to 350 over SOFAR range. They’re actually now at a minimum 300 and actually more in the high end of the range of 325 to 350. These are direct deposit-generating type relationships. Additionally, on the Tech & Venture and Venture Banking Group, you’re typically at a prime plus 100, which is an additional 50 to 100 basis points over those verticals as well.
Casey Haire: Got you. Okay. And then just on the 11% CET1 target. You guys clearly sound like you’re on a nice path. Just wondering do you need to do any more pruning of the loan book? Or can you get there organically? And then how much of the cash position, which is very strong at 10% of the balance sheet, will be utilized to get there in terms of – I mean, you could shrink the balance sheet, obviously, and pay down borrowings.
Carla Leibold: Yes. So just a little bit of color on that you’re right. We can get there from organic generation alone considering on a core basis we made 290 so far in 2023. So the back half of the year that additional retained earnings generation could get you with to our targeted 11% to 11.5% with no other balance sheet optimization strategies.
Sam Sidhu: And Casey, if I could just go back, I just I don’t think we fully answered your NIM question as we talked about the loan portfolio. But just wanted to remind and connect some dots the consumer loan sales were at a weighted average cost of, call it, mid-teens. The Venture Banking loan, which largely filled the whole were at that 9%-ish type range. So while there were very positive trends in the month of June and continuing on into the second quarter, there are also some headwinds, but those are desired headwinds and they kind of neutralized each other as the quarter and the year progresses.
Casey Haire: Right. Yes. No, that’s my point is like the consumer book, obviously had a very nice rate and then the yield on the Venture book is coming in lower. Just understand from a risk perspective, all in that that’s what you guys were going for. But yes, that’s why I was just curious on the loan yield. Okay. And then what was my other – yes, so on the expense side, taking the guide up on the FDIC assessments. Can you just break out what’s the breakdown between what is – how much of that is venture banking versus the FDIC assessments?
Carla Leibold: Yes. So a couple of points there. So first, I’d just like to reiterate that we were on target to deliver our previous expense guidance if it wouldn’t be for these two items. Obviously, the larger component is the increased insurance expenses and then the second component is tied to sort of the full on-boarding of the new venture banking team as well as some increased incentives associated with earth tied to performance. So the larger piece would be the insurance expenses.
