Alex Twerdahl: Great. As I think, if I’m remembering correctly, it’s normally around a 30-month product that just in terms of the sort of the life of the typical loan. Is that extended out as a result of rates moving higher — churn is slow?
Jack Plants: Yes Alex, this is Jack. So over the course of the past, I would say, two to three years, customers have had more of a desire to move into the five or six-year term, which has had a little bit of an impact on duration extension in the portfolio. So we’ve moved from about a three-year duration to about a 3.3 year duration.
Alex Twerdahl: Great. Thanks for taking my questions.
Marty Birmingham: Thanks Alex.
Operator: Thank you. Our next question comes from Nick Cucharale from the Hovde Group. Nick, your line is now open. Please proceed with your question.
Nick Cucharale: Good morning, everyone. How are you today?
Marty Birmingham: Good. Nick, how about yourself?
Nick Cucharale: I’m doing very, very well. Thank you. So First on the tax credit business you mentioned the noise in that number for the quarter as you added new credits and book to gain. What are your expectations for that fee item? And is that included in the flat year-over-year fee guidance?
Jack Plants: Yes, this is Jack. I can take that one. So we do have a pretty active pipeline of low-income housing tax credits and historic tax credits that are in process. And the timeline around when they are placed in service isn’t exact. It’s not an exact science but it does impact our — and inform our forward tax rate guidance.
Nick Cucharale: Okay. And then great credit performance in the consumer indirect book. Was there anything atypical like a large recovery that benefited the charge-off number this quarter? I know you touched on the underwriting standards. But more broadly speaking, are you being more selective in that portfolio as well?
Marty Birmingham: So we did have very strong recoveries in the quarter and used car prices have moved around. I think as a result and our experience of the coupons going up so dramatically, used car prices are in demand. It’s one way consumers are navigating the higher cost of cars and associated loans. And as a result of that, where we have had to work through situations in terms of repossessions and liquidate and collateral, it’s worked out in our favor.
Nick Cucharale: Okay. And then just a follow-up on the lower sequential investment advisory results. Can you help us reconcile the reduction in transaction-based fees with the AUM increases from the strongly positive equity market results in the quarter?
Jack Plants: Sure. So when you think about the allocation of that customer book it’s about 65% equity, 35% fixed income. We viewed historically the wealth management firm as including Carrier Capital legacy HNP and then that retail branch network. And that retail branch network is what drove the higher transaction volume was an LTL-based platform that we’re on. We’ve focused less on that moving forward and more on the high net worth individuals and that was a short-term pain point in the merger, but we’re working through that and focusing more on building deeper relationships with larger account balances.
Nick Cucharale: Got it. And then lastly on the BaaS initiatives, I’m sorry if I missed it. What were the deposit balances at June 30? And are you still expecting $150 million in deposits by year-end?
Jack Plants: Yeah. We are still expecting $150 million by year-end. They were nominal at the end of the second quarter I think they were around $2 million and we’re about one-third of the way through that $150 million target as we stand today.
