Jay Siddhu: Remember stub balances essentially are termed out balances for the most part, Matt. Right? So, these are folks that have a two or five year PPP loan and banks have these on their balance sheets as well.
Matthew Breese : Okay. I was hoping to turn to charge-offs, you know. One, there’s quite a bit that’s coming from the installment book. So maybe just give us a sense for the outlook on charge-offs from here if we should expect something consistent with this quarter. And then secondarily, what are the early-stage delinquencies? What does that look like for the installment book today versus last quarter?
Phil Watkins: Yeah. Hey, Matt, good morning. This is Phil Watkins. So, I think you saw on the consumer side on an aggregate basis, those charge-offs actually came down by $1.1 million in the quarter. And we did say as the consumer HFI portfolio continues to, to mature and decline that you’ll see those kind of continue to come down on, on that trajectory over time. So, it’s not going to happen overnight in a quarter, but that is where we would think things are going. And as far as the, early look into those portfolios, we obviously continue to monitor it very closely. But, as a reminder, our portfolio is very differentiated from the consumer overall. So super, prime and super prime, 730 FICO, 19% DTI, over $105,000 of income. So, we’re, we’re not seeing any, any material changes. obviously there was credit normalization from the, from the unsustainably low levels. But we continue to feel the book’s performing as expected.
Matthew Breese : Okay, I’ll leave it there. Thank you.
Operator: Our next question comes from Bill Dezellem from Tieton Capital Markets. Your line is open.
Bill Dezellem: Thank you. Relative to the loan growth that you were referencing that you anticipate in 2024, would you talk to the category where you see the most opportunity? And to what degree is that opportunity a function of competitors pulling back from those market segments as they’re trying to navigate the environment?
Phil Watkins: Hey, Bill. Good morning. Good question. to sort of recap some of the and bring together some of the conversations we had on the call today. So, we expect venture banking to be a major sort of commitment driver. As you can imagine, these are on average $8 million, $10 million loans, there’s not a huge amount of balance growth that can actually happen in a short period of time responsibly. But we are taking market share, and we have a tremendous amount of deposit only customers and also tremendous amount of net deposit customers that will be on board on boarded lending to the market disruption. Also, in the fund finance space and the capital call line, side of, we sold all of our non-bilateral loans last quarter and we’re starting to build a great pipeline of 100 basis points of extra spread, plus the Fed, plus Fed funds increases from where we were originating at the beginning of this year and of last year, in that business.
And that also comes with associated, non-interest-bearing balance deposit growth as well, not only from credit customers, but also from banking, those types of customers. So those are two examples of the most dislocated from a competitive environment. Remember, we have an existing franchise, as well. And we have existing teams that have, built incredible franchises across the board. Our community banking, team that has, expanded over the past couple of years has a great existing and new relationships. our healthcare business, has great opportunities that with a good pipeline building, as does our commercial finance business, colloquially known as our equipment finance business.
Bill Dezellem: And so if I am hearing you correctly, you do have some of the growth next year will be a function of some of the dislocation of some of these segments, but others will simply be a function of the areas of strength that you have for lending, irrespective of the competitive environment.
Phil Watkins: That’s right, Bill.
Bill Dezellem: Great, thank you. And great quarter.
Operator: This concludes the question-and-answer session. I will now turn the call back to Sam Sidhu, President and CEO for closing remark.
Sam Sidhu: Thanks, Brianna. Everyone, we’d really like to thank you for your continued interest and support of customers, Bancorp, and really look forward to speaking to you again soon. Thank you.
Operator: This concludes today’s conference. You may now disconnect.
