Stu Lubow: Yeah. So just a little more color on that. So of the $600 million of business related loans in the pipeline, about $350 million of that is C&I at a weighted average rate of 8.5% and then our owner-occupied CRE makes up the remainder about $250 million. And then we only have about $50 million in the pipeline on the multifamily side, which is basically existing customers refinancing and/or swaps that are — we’re working with customers. So on the multifamily side, we’re really not competitive in terms of the traditional fixed rate product, but we are still doing swaps in that business for selected customers.
Steve Moss: Okay. Great. Thank you very much.
Operator: Thanks, Steve. [Operator Instructions] Our next question comes from Manuel Navas from D.A. Davidson. Your line is now open. Please go ahead.
Manuel Navas: Hey. Good morning.
Kevin O’Connor: Good morning.
Manuel Navas: As we think about the margin, can you kind of add to comments of when it could possibly trough? Is it just kind of — I know there’s a lot of moving pieces there, but could that be first quarter next year? What’s kind of the initial thoughts there?
Avi Reddy: Manuel, in my prepared remarks, I did mention that we do expect a little bit of pressure in Q3, but that’s going to be less than what we saw in Q2 and then after that stability and growth. So we don’t want to get into the exact quarters over there. But I would say very positive in terms of two items, which is our business DDA is growing again right now. We’re seeing a lot of traction from these new groups that we’ve hired and the 250-basis-point differential between loans that the new are coming on versus the pipeline rate give us a lot of confidence going forward.
Manuel Navas: The expectation that loan-to-deposit ratio kind of stays — will exceed 105%. And this — and you have had very little CD growth. Is that kind of all tied together in the comments about staying short-term funded?
Avi Reddy: No. I think it’s in the context of — we feel pretty confident about deposit growth. So, as Stu said, we probably expect around $200 million of loan growth in the second half of this year. But we do expect deposits to pick up and they have picked up. So we’re actually up around $75 million to $100 million for the month of July at this point in time and as the new groups bring on deposits, we feel pretty comfortable there. We’ve not really migrated our base to as much CDs as a lot of our competitors have at this point. We’re retaining existing CDs out there. But really, our focus is on growing business DDA, business money markets and that’s the kind of bank we want to be.
Manuel Navas: Okay. What type of activity, like, just kind of lending demand are you seeing in the marketplace? You’re making some adjustments to pricing to bring in the type of lending you want. If you had more or easier funding would — could you bring in a lot more? Is it — what’s kind of the demand out in the marketplace right now?
Kevin O’Connor: I mean demand has certainly moderated over the last six months. Certainly, with the current rate environment, it becomes fairly expensive and it makes — it really takes away the opportunity to do cash outs on commercial real estate, debt service coverage ratios get a little tighter. So I think demand is certainly down. We are seeing opportunity on the C&I side and those rates are fairly attractive to us. And that’s really generated by a lot of our new hires in terms of our middle market lenders and C&I lenders that we brought in over the last year and they’ve been able to cultivate relationships that they had and are beginning to bring them over to us as well. So, but certainly, the rate environment has certainly moderated demand in terms of commercial real estate, small business lending, SBA lending, et cetera.
