Robert Harrison: Yeah, Dave, I’ll — let me start. There’s a number of things going on. This is obviously very complicated. I think what — by the Mayor setting November 1st open date. What that does, it allows people to plan. It’s not to plan to start coming back on November 1st, but it’s the plan, oh, I can come back to Maui. And the key — one of the key periods for tourism here in the island is the holidays. And so that gives people, do I want to come back over the Thanksgiving holidays or make plans over the Christmas and New Year’s holidays. It opens up that planning window. So I do believe you will start to see activity start to come back over the holidays, maybe not as soon as Thanksgiving, but probably over the Christmas and New Year’s holidays.
That’s an estimate on my part. That’s not an official forecast by Eero, but that just gives people individuals time to think about that. The pace of recovery and taking care of things on the ground in Lahaina. Everybody would like it to move faster, but there is a pace that this goes at. The EPA is there. They’ve made a tremendous amount of progress. I saw an article yesterday, they’re at about 85% removal of hazardous materials. FEMA has been on the ground, been very proactive. I was talking to a friend of mine, who has boat operations in Maui, and Lahaina, yesterday. He said that the Coast Guard has taken out 90 vessels of — I’m sorry, 80% of the vessels of about 100 that are out there that have been removed. So the federal authorities are on the ground, doing good work, doing stuff, but it will take time.
And I think that’s the thing that is really hard to forecast. So when insurance money will come in, when work will get done. But on the tourism side, we have started to see that not only people redirecting out of Maui to other Hawaii islands, but also hopefully making plans to go back to Maui in the near future.
David Feaster: Yes. Okay. That makes sense. I appreciate that. And maybe just touching on the loan side. I appreciate the commentary, loans going to be relatively flattish. I’m just curious how much of this you talked about the construction paying off. We had some headwinds from the dealer floor plan. I’m just curious, how is demand from your perspective? And how much of the slowdown in loan growth is push versus pull, right? I mean a weaker demand versus maybe you’re having less appetite for loan growth at this point in the cycle? I’m just curious, some of the puts and takes on that side.
Robert Harrison: Sure. Great question. We’re still very interested in doing loans that we feel makes sense for us, and we can support our customers. So it’s not us slowing down for sure, but we have seen a softening in demand. And so I think that’s what it is. We had thought that there would be higher floor plan balances and they were down marginally, but the strike has created uncertainty as well. Hopefully, that’s been resolved. But those — the loan demand does seem to be softer. Certainly, in the consumer side with residential down dramatically. HELOC has softened a bit. So it’s much more demand driven than supply driven for us.
David Feaster: Okay. That makes sense. And I guess last one for me, just on the capital front. I mean, regulatory capital is pretty strong. TCE kind of held steady here. I’m just curious how you think about capital priorities at this point in the cycle? Is capital preservation still paramount or just curious whether there’s any opportunities that you see for capital deployment?
James Moses: I mean I think we’re kind of in the same boat that we have been in over the past couple of quarters, Dave. TCE is still probably a little lower than we’d like it to be in uncertain rate environment, see how that sort of plays out. We feel good about the regulatory ratios, clearly, but no new plans in terms of executing on the buyback at the moment. We continue to feel good about the dividend and the way that we’ve been thinking about our capital over the past couple of quarters. So no real changes in that regard.
