And that’s a good starting point for us, because we closed the Centric acquisition in the first quarter. Those two categories together fell to about $4.3 billion in the second quarter. That was a 5.8% decline in those categories. But in the third quarter it fell to $4.2 billion. That was a 3.6% decline in those categories. So just at a macro level, I mean Jane is giving you the color from the street of the day-to-day exceptions that we deal with and customers and those interactions. But on a macro level, I’m watching the numbers and I’ve seen it slow down. That gives me a lot of confidence. And even with that we still have a fairly aggressive assumption that it’s going to continue next year. And even with that we still get things to buy. Oh and one more thing.
I do have the month-to-month NIM answer from the previous caller, from I think Danny, you were asking. July NIM was 3.83%, which is pretty consistent with the second quarter 3.85%. July was 3.83%. August was 3.69% and September was up to $3.76. There you go.
Karl Shepard: Okay. Not that that wasn’t a lot of color, but I’m just going to ask a follow-up on deposits. But the strategic focus is growing deposits to fund loan growth, right? We’ve talked a lot about the pricing pressures and that changing location. Just when you think about driving balanced growth in 2024, it doesn’t seem like it’s going to be a TD special game. It seems like it’s going to be more core relationship growth. But if you could just expand on those comments, a little bit that would be great. Thanks for all help.
A – Mike Price: Jane, do you want to comment and lead us out there.
Jane Grebenc: Well, I think we’re always going to have CD specials at least for the next couple of three years. But as I said before, I don’t think the pace or the height of these specials is going to continue. And we still have a very strong transaction account base and we’ve got a nice savings book. So, I feel very good about our deposit positioning.
A – Mike Price: We have a good slide on Slide 15. This is Mike. Sorry to interrupt. Thanks for that Jane. But our average retail account is $11000. Our average deposit size is 18 you might move over three or four basis points but you’re probably not are 300 or 400 basis points, but perhaps not still inclined over an additional 25 and these are loyal customers and small communities. I mean our community PA we call it the bread basket of our company is $3.5 billion of our deposits, and this great clients deep relationships. Just we do feel confident that we have a good depository and we just — they could surprise us as Jim suggested, but we feel like we’re well positioned.
Karl Shepard: Okay. Thank you. I’ll step back.
Operator: Your next question comes from the line of Manuel Navas with D.A. Davidson. Your line is open.
Manuel Navas : Hey, good afternoon. What are you kind of assuming on that like loan yield repricing kind of in a normal quarter with no hikes, with no change to that funds rate. Do you have kind of a standard loan yield increase?
Mike Price : I’ll just start where I think Jim might have mentioned it, but our portfolio here in the last quarter was about 7.40% in terms of new loan yields and that range from as high as in certain categories as high as well over 8%. And the two key categories are commercial and really equipment finance, and equipment finance is really running in the high 7s. And so those are key categories for us, but there’s good volume there and that volume doesn’t evaporate and even our indirect business has got up almost 7%, 6.85%. So, just good progression by the team in terms of getting paid for risk and wherever they’re out on the yield curve. And so that’s a nice position to start from. Jim, anything you want to add?
Jim Reske : Yes, Manuel, I’d add. So we keep giving you and we were giving you the new loan yields, but the replacement yields, the differential between the yield on what’s coming on versus what’s coming off has been expanding. And that also gives us confidence in the margin. So in the second quarter that differential was 87 basis points, and new loans are coming on the books is 7.01%, but it was 87 basis points higher than what was running off the books. And this is the differential in the third quarter was 115 basis points.
Manuel Navas : Okay. Okay. That’s helpful. Is your thinking about growth in fourth quarter into next year, where do pipeline stand? And there’s usually been a shift towards more commercial at the back half of the year? Is that going to keep happening? Just kind of thought process on the mix of loan growth at the back half of the year and into next year.
Mike Price : Pipelines are definitely lighter than they were a year or two ago, but the two years preceding this we grew in the low teens. And so the — understandably, we do think the kind of guidance we’ve given mid single digits from four to six is very achievable in a variety of ways. And if anything we’re kind of pension volume, if the spread isn’t right or it’s not in the right category. And at the same time we kind of — we cherish a couple of businesses right now that we’re pinching a little bit more just because of where the yields are at.
Jim Reske : And by pinching, we mean, we’re pricing those so that the new origination volume is fairly close to the runoff volume. So the loan portfolio size doesn’t grow, but if the price is upward, which doesn’t create any capital or funding pressures, but has increased yield in margin. And on the consumer side that story is playing out fairly nicely.
Manuel Navas : That’s mainly auto, right?
Jim Reske : Yes. I’m thinking particularly of auto. I think, we’ve spoken about that before, but that’s exactly what I’m thinking about. And that creates room when do you want to — for which no growth that you want to fund and capitalize gives you the ability to do that in commercial lending.
Manuel Navas: Is — can you kind of give an update on equipment finance that’s been a nice place of growth? It seems like yields have kind of gotten even better high 7s. Just the latest there it’s obviously gone from a small base, but the growth has been pretty nice.
Mike Price : Yes. I mean, that’s — it’s now at the group.
Jim Reske : $46 million.
