So it certainly feels like we’re approaching the bottom there.
Nicholas Cucharale: That’s helpful. And then lastly, do you have the AUM for Courier at September 30th? I’m just trying to gauge the impact of the weaker equity markets in the quarter.
Jack Plants: Yes, it was $2.7 billion.
Nicholas Cucharale: Thank you for taking my question.
Operator: Our next question comes from Damon DelMonte with KBW. Your line is open.
Damon Del Monte: Hey, good morning everyone. Hope everybody is doing well today. Just wanted to ask a couple of questions here. Starting off with probably for Jack. On the securities portfolio, we saw a pretty decent decline this quarter. I think in the past, you’ve given projected cash flow expectations. Could you just remind us of what your quarterly cash flows are and kind of your thoughts on where the security settle in as a percentage of average earning assets?
Jack Plants: Yes. The cash flow that we’re projecting is $140 million annually on the securities portfolio. And relative to the percentage of assets, I look at the securities portfolio as a collateral source for our public deposit base. But we also have alternative sources available through Federal Home Loan Bank. Municipal lines of credit, which we’ve been able to bolster our position there through additional collateral that’s been posted. So I think that we can drift a little bit lower on the securities portfolio outstanding as we take cash flow off and let it reinvest into loan outstandings, and then we’ll use alternative sources to support our public deposit base.
Damon Del Monte: Got it. Thank you. That’s helpful. And then I guess, Marty, can you just give a little bit more perspective on your outlook for loan growth here kind of going into the fourth quarter? Do you think things kind of stay moderate through year-end and kind of given the forward look on pipelines, do you think things kind of pick up as we move into — move in and through 2024?
Martin Birmingham: Definitely, as we’re continuing our conversation this morning, Damon, we’ve seen loan growth moderate in the second half of the year. That will continue through the fourth quarter. And we are in our midst of our planning season for 2024, and we’re looking at a lot of different scenarios. As we’ve had a hard flood year as an industry this year, we want to make sure as we drive loan growth that we are driving acceptable spreads, risk-adjusted returns, saving space on our balance sheet for those where we’ve got the deepest relationship. So my comment at this point will be that loan growth will be moderate in 2024, moderated.
Damon Del Monte: Got it. Okay. And then just lastly, kind of broadly on credit. Are there any concerns throughout the portfolio I know there’s a little bit of an uptick in direct auto. That’s not a real meaningful concern at this point. But just kind of like your commercial real estate portfolio, any areas there like office where you might be seeing a little bit of degradation there?
Martin Birmingham: We’ve not seen any degradation to this point. In my prepared comments, I did talk about a routine that we’re going to continue to build on, which is taking a deep dive, deeper dives into our commercial real estate portfolio and across those loan categories. So we’ve done some pretty strong sensitivity relative to those loans that we have underwritten in a lower interest rate environment and sensitizing them to the current rate environment plus more interest rate, less net operating income and looking at those outcomes. So we feel very good relative to a severe stress downside scenario, where we end up with most of that analysis showed that we are at or around one debt service coverage or involved, and we’ll monitor it.
