And one of the things that we have noticed is that with all of the dislocation that you referenced, there are very few banks that had a running head start of an existing business that as we did, we’re combined on a combined basis, over $1 billion in outstandings, about $2 billion in commitments right now in this vertical. And with that nationwide presence plus a truly best-in-class team really is going to set us apart, both on the deposit gathering side as well as thinking about continuing to grow from this space over the next couple of quarters in the future in 2024 and 2025 from a credit and lending perspective as well.
Peter Winter: Got it. And then what inning do you think we are in terms of exiting these nonstrategic relationships? And then would you think that you’re going to grow the balance sheet next year?
Sam Sidhu: Yes. Good question, Peter. So in terms of the nonstrategic exiting, the plan was to have these to be gradual over the course of the year. We had an upside opportunity to acquire the FDIC portfolio as well as to recruit the team, as you know, that happened very late in the quarter, and we thought it would be prudent to execute on a number of things late in the quarter to do what I would call sort of a cleanup catch-up. These non-bilateral syndicated capital call lines were all maturing in the next call it, 100 days, say 120 days. So truly this was really an acceleration; make sure that we had both the cash and liquidity on-hand so that we were not going one step forward, two-steps forward, one-step back from a deposit remix perspective.
But also that we left the capital headroom and stuck to our very important and differentiated commitment of that significant capital increase by year-end. So to summarize, this was sort of a catch-up cleanup quarter. You’re going to see us have sort of a clean focus through the remainder of the year and we’re really focused now on continuing the remix on the deposit side. Having deposit growth exceed or core deposit growth exceed loan growth and when you trade out BOLI at 2.5%, et cetera, this is just an opportunity for us to really focus on the core strategically important liquidity-led credit verticals that we’re in.
Peter Winter: And so would that lead to – that would accelerate or grow the balance sheet that you can start growing the balance sheet next year?
Sam Sidhu: It’s too early to say at this point in time, Peter. I think really our focus is just too kind of put a finer point on that. We have $400 million of remaining cash flows in the remainder of this year on our securities portfolio. We have $1 billion plus of loan maturities. There’s plenty of opportunity for us to continue to grow originate. We did gross originate in the second quarter to the tune of $500 million plus, and we’ll continue to do franchise enhancing. Again, liquidity lead, deposit-led lending. And we as an industry will reevaluate as the year progresses. At this point in time, we have no plans to increase the balance sheet from where we are because there’s enough opportunities in the deposit remix side and as well as on the loan remix side going back to deposit opportunities.
Peter Winter: Got it. And just my last question. Can you just provide some color around this $5 million loss on the sale of the capital call line? I guess for me, I was surprised just given the long history of virtually no credit losses in this type of business line?
