Casey Haire: Okay, very good. And just last one for me, switching to capital, you guys well above your, above 11% CT1 and a sub tangible book stock price. Just wondering what’s holding you back from being a little bit more aggressive on the buyback?
Jay Siddhu: Okay, see, we will always be on that. And, but for right now, we see, like I said, we see opportunities for some loan growth next year. And we are well, we are done with our remix. We are seeing continued growth in our deposits. So I think buying back common or redeeming are preferred are all the things on the table. But we will update you on a regular basis. But for right now, we would like to see our TCE ratio go up even higher. And our target is 7% for that.
Casey Haire: Understood, thank you.
Operator: Our next question comes from Peter Winter from D.A. Davidson. Your line is open.
Peter Winter: Good morning. So it was nice to hear about the outlook for loan growth next year, high single digit, low double digit. Where do you expect the growth to come from besides the specialty lending businesses? And then secondly, I heard you say that there’s no additional remixing of the loan portfolio, but would you expect some certain other portfolios just to, naturally run down?
Sam Sidhu: Hey, Peter, good morning Yep, so, I think that, on the loan opportunities, we continue to see a number of attractive opportunities. we’ve been very focused on integrating the venture banking acquisition, as well as really increasing our capital ratios. And that’s evidenced on the CET1, is almost 200 basis points up over in just a six-month period. So now that we’ve sort of, as you heard Carla say, we’ve finished that remix. We’re going to be very focused on growing across verticals that are focused on strategic relationships. We’re continuing to see opportunities in fund finance and lender finance and real estate specialty finance, healthcare, equipment finance, at floating rate spreads of 300 to 350 basis points. Venture banking is at prime press up to 100 basis point And obviously the venture banking portfolio comes with the, the extra added benefit of significant deposits relative to commitments and definitely relative to outstandings.
Peter Winter: And are there any other portfolios, that continue to kind of migrate lower? And is that slowing?
Sam Sidhu: Yeah, we’ve discussed historically, multi-family. our multi-family portfolio is just under 4%, book yield. You can get about at least 150 to 200 basis points higher today. But having said that, it’s still, not accretive to margin and not accretive to some of the other strategic opportunities that we have when we think about capital allocation for next year. So that’s an example of a portfolio that is being de-emphasized. As a reminder, there’s about $250 million plus or minus over the next four to six quarters of maturities in that portfolio.
Peter Winter: Okay and then Sam, how much, can you just talk about how much is left in turn, or rather how much in broker TDs mature in the fourth quarter and just the ongoing opportunities to reduce TDs and federal home loan bank borrowings going forward?
Sam Sidhu: Yeah, so Peter, it’s a similar amount in the fourth quarter as we had in the third quarter. The third quarter, I believe it was $900, $950 million plus or minus. And on the FHLB side, we have somewhere around $300 million plus or minus of additional expensive callables that we always had the intention of redeeming, hence why the advances were taken as callables, which we expect to also sort of reduce in the next couple of quarters.
Peter Winter: Just my last question. Jay, you’re 72 years young. Just wondering what the future plans are. I think you once said if earnings got above $6, you consider retiring and there’s still plenty of golf courses for you to be played.
Jay Siddhu: Yeah, thanks for asking that. I also had said that at that time, you were expecting in 2025, 2026 to reach $6. I’m so pleased that our shareholders will benefit from the fact that we are running three years ahead of plan. So, we will update you, but I see so many exciting opportunities. I’m the largest individual shareholder in the company and I’m very excited about the opportunities for us. And so, we will just look out, but at least for the next two years or so, I intend to remain active.
Peter Winter: Congratulations on a really solid quarter down the line.
Jay Siddhu: Thank you.
Operator: Our next question comes from Michael Perito from KBW. Your line is open.
Michael Perito: Hey, good morning, guys. Thanks for taking my questions. I wanted to just start, apologies if I missed this, jumped around a little bit this morning, but are you guys expecting a similar kind of bumping capital in the fourth quarter that we saw in the third quarter? And I guess as differently, still kind of the expectation to get to 7% by year end. And then kind of as a followup to that, but I know you’re not providing 24 guides yet, but any initial thoughts on kind of overall balance sheet growth for next year? Is it fair for us to think that, there’s probably some room for growth, but top of mind is still making sure those capital ratios continue to build and kind of reach the more seven and a half, 8% level. Is that fair or should we rethink about it differently?
Sam Sidhu: Hey, Mike, thanks for the question. So, firstly on CET1, we’d given the target of 11 to 11 and a half. We’ve reached the range that feels like a good operating range for us. We’re not looking, you won’t necessarily see the same type of jump as we’ve been optimizing throughout the course of the year. Plus, we had the extra benefit of the, tailwind of the accretion. So that’s sort of how we’re thinking about the range, obviously organic capital creation just in the fourth quarter is going to bump that up, to the high end of the range, if not higher. And that gives us a very strong jumping off point, for next year, when you sort of think about the organic capital creation, maintaining that range and that discipline and thinking about what that means for loan growth, relative to our 75% plus or minus loan or deposit ratio.
