Brandon King: That’s really great color. And then, I noticed C&I utilization ticked down a bit in the quarter. And I know there’s been some deleveraging from new customers. But I’m wondering just what you see on the front lines there and you’re anticipating that continuing towards the back half of the year?
Irene Oh: Second half of the year, yes. So C&I, I think quite candidly, was just kind of the environment right now. The utilization did tick down a little bit, Brandon, as you mentioned. Now I would share, though, as we look and to a certain extent, there’s only so much we can do with that, right? As Dominic mentioned, commitments are up. I would share, though, when we look at the pipelines, and when we talk to our team leaders, the expectation for the second half of the year, a new client acquisition is something where it is increasingly positive. That’s certainly something that we have factored in for the second half of the year. With that said, given the current environment, and I would say that we’re not necessarily expecting that, that utilization rate will increase substantially from this point. But I would also say no specific kind of areas or concentrations of where that growth is coming from. It’s pretty broad-based.
Operator: Our next question will come from Matthew Clark with Piper Sandler. You may now go ahead.
Matthew Clark: Just to close the loop on the margin, Irene, can you give us a sense for where you think the cycle beta — deposit beta might shake out at the end of the day? I think low 60s is what you were previously targeting but was there on a spot basis. And then if you had the monthly NIM in June, we’ll take it?
Irene Oh: Yes. So the monthly NIM in June was the same as the month end spot of the 2.28%. Also, I’ll share up until now in July, it’s still the same. I’m sorry. I’m sorry. I close deposits not the NIM, right. I think the expectation for NIM is that it will decrease modestly from the second quarter, but still NII with the drivers that we’re talking about, we expect that to flatten out and improve.
Matthew Clark: Got it. And then just on the media entertainment portfolio, I know it’s only 4% of loans. But can you speak to the Hollywood shutdown and how that might impact the portfolio and what you might have in place in terms of structure to protect yourselves?
Dominic Ng: Yes. From a credit risk perspective, we don’t have any concern. But from a production, like growth volume on loan origination point of view — but actually, we booked a lot of entertainment content production loans. But if there’s a strike, you’re not going to draw down. So we hope that strike doesn’t last too long. But if it’s sustained for an extended period of time, then we will have some loans that may not have the kind of drawdown that we would like to have, and it’s not going to have any credit quality issues. So, the beauty of this is that that’s why we have a very diversified loan portfolio and its entertainment content production financing slowing down a little bit. Some of the others just have to make it up.
