Casey Haire: Got you. And the FDIC, that’s – my understanding is that comes later in the fourth quarter, and it’s onetime in nature? Are you just referring to greater FDIC assessments on an ongoing basis?
Sam Sidhu: Yes, Casey. We’re referring to accruals for larger expenses going forward and what you probably have seen in large commercial banks. And if you really dig in is that this is broad-based across the industry for large commercial banks such just that we have such a low expense base, and we’re highly efficient from a cost base perspective. It’s jumping out, but again going back to sort of the way that we think about efficiency, we’ll have sort of a one to two-quarter blip in our efficiency ratio of the high-40s, and we’ll go back to sort of our once that venture banking team and we sort of digest some of the capital headroom we created in this quarter. We go back to BAU; we’ll be back to targeting 45% plus or minus efficiency ratio in 2024 and beyond.
Casey Haire: Got it. Thanks guys.
Operator: And your next question comes from the line of Frank Schiraldi from Piper Sandler. Your line is open.
Frank Schiraldi: Good morning.
Sam Sidhu: Hi Frank. Good morning.
Frank Schiraldi: Hey just want Sam, I wanted to get – just a follow up on the deposit question. Obviously, that was kind of the most eye-popping part of the quarter. So just the additional $2 billion in the pipeline, just want to make sure I understand. Is that mostly noninterest-bearing? Is that just low-cost in general? Or how would you characterize those balances?
Sam Sidhu: Sure. Great question, Frank and interestingly enough it’s in the similar sort of strike zone as we’re operating in right now, 25% to 35% noninterest-bearing, the rest of it being moderately low cost. And when I say low cost at this point in time, you sort of think of that as sort of at our average cost of deposits as opposed to the marginal cost of high deposits. So our hope is that we can continue sort of in the pipeline, I think that of the $100 million plus that I was mentioning that we’re bringing on per week right now. I’d say about $20 million plus or minus $1 million, if not $30 million, is noninterest-bearing. So that pace is continuing and again, the use of proceeds is going to be paying down the higher costs, letting some digital high-cost digital deposits run off and wholesale deposits in the second half of this year, and we’ll look to continue the trend of this deposit mix shift in the second half of 2023 to set up a really nice platform to jump off of in 2024.
Frank Schiraldi: Okay. So even if is coming on 25% is noninterest-bearing, the stuff that’s coming off is all interest-bearing, all hired yielding or higher cost stuff. So we should expect that noninterest-bearing as a percentage of total to continue to increase, I would assume, over time.
Sam Sidhu: That’s the hope, Frank. Obviously, you can’t fully control these things, but that assumes sort of static noninterest-bearing balances from where we are today, which we think is probably accurate given the customer relationships and conversations, as you can imagine, for someone to hold a noninterest-bearing account, there has to be either a true 100% operating account or an incredible value-added proposition like payments that would have you not demand to put those into an interest-bearing account or at least to move some of it into an interest-bearing income.
Frank Schiraldi: Sure. Okay. And then you mentioned the capital call lines. The sale of the business in the quarter was sort of a one-off. There’s no deposits tied to it. So at this point, generally speaking, what’s on the portfolio is there – its operating stuff where there is deposits funding those lines? Is that fair? And so you wouldn’t expect – and that’s why you wouldn’t expect additional kind of one-offs on that side of the business?
