Laura Hunsicker: Okay. Great. And then can you share with us what actually triggered the nonperforming status, i.e., did they hit a maturity wall? Or was it just something else?
Jim Fitzgerald: Sure. So these are — again, every loan every situation is slightly different. But I think in general, to answer the question the way you asked it, these are buildings that had lease issues, at least leases had come up. They had vacancies in the building, which led to deteriorating cash flow, and they had the borrowers have elected not to support the assets. Our strategy in that situation generally is to work with the borrowers to try and sell the buildings and as appropriate manner as possible to optimize price but also timing. And that’s what happened really in all three of these cases.
Laura Hunsicker: And then just in terms of thoughts on selling some office, some of your peers sold office loans in the third quarter. including 1 who took a $0.37 haircut, how do you think about selling these? Are you actively trying to sell them? Or what can you share with us there?
Jim Fitzgerald: Yes. So I would say our managed asset team who does a very good job here. Every time they get an asset and the same would be true for these three very and this didn’t just these issues just didn’t appear late in the third quarter. They’ve been monitoring these loans for a period of time. But — but to answer the question, they do an asset-by-asset review and figure out the optimal strategy. They include things like note sales, as you referenced, the benefits being it moves out quickly. Sometimes price is less than one would like there. But for each individual asset based on the facts and circumstances that strategy is developed, — in the cases of these three, it’s to take the buildings themselves through the sale process. That’s how we thought we would optimize our proceeds.
Laura Hunsicker: And then just sort of one last question on this. The $717 million investor Cree book, what is the specific reserve you have against that? Is it just on the 3 loan by the $7 million or is there more there?
Jim Fitzgerald: So we have specific reserves against the three loans that we’ve been talking about and you just referenced. And in addition to that, the CECL calculation that we do has a lot of risk factors for all commercial real estate and included in there are certain attributes that we think the office portfolio has but it’s in the general reserve in that way. So I think the way you’re asking the question, it’s really just the specific reserves on these 3 assets.
Laura Hunsicker: That’s $1 million. Okay. Great. That’s helpful. And then — just going back to the SNC sale, can you help us think about when in the quarter that occurred or impacting margin in the quarter? Or how much in net interest income it did or didn’t contribute. Just trying to — and I understand and then if you also have a spot margin for the month of September, that would be helpful.
Jim Fitzgerald: Yes. So I’ll probably start there because it’s pretty consistent — is very consistent with our guidance for Q4. So the closing margin was in the 260s, again, consistent with our guidance. To answer your question, the SNC sales wasn’t one loan, it was multiple loans and they happened over the quarter. It tended to be a little bit earlier in the quarter. The one thing I always get worried about doing one specific month on the margin, there’s always lots of ins and outs, and September happens to be a seasonally lower month for municipal deposits. So September has a little bit more in borrowings than the months of August and July. And also there’s a day count difference not to get too great, but there’s a day count July and August at 31 days, which may not sound like much, but can have an impact as well. But to answer your question, the exit margin was in the 260 and very comparable to the guidance we gave for Q4.
