Mike Roffler: Yes. And Abraham, I want to clarify on Dave Rochester’s comment at the lock production on the single families — a little under 5% is what I meant to say about 4.80. But these are still as we’ve said, in the past, eight plus clients and they get very good pricing for full relationship and full service at first Republican.
Unidentified Analyst: That helps with the clarification. Thank you so much, and thanks for taking my questions.
Operator: The next question comes from Casey Haire with Jefferies. Please go ahead.
Casey Haire: Operating leverage question for 24. Appreciate that the guide on NII up low double digits next year. Just wondering, just given that you guys are doing a good job on the expense front and deferring. I think you bumped it up to 150 million. Just wondering, do we see a catch-up next year on all this expense deferral? Or is there an opportunity to improve the efficiency ratio from that 66, 68 when NIM starts going in the right way?
Mike Roffler: Yes. There’s a strong opportunity in 24 to see a very strong improvement in our efficiency ratio as we’re really looking for ways to optimize prioritize make the company even more efficient than we are today. We expect strong operating leverage into the future.
Casey Haire: Okay, very good. On the switching gears to the loan growth, can we get a sense for how the pipeline is doing at year end versus 9/30?
Mike Selfridge: Hi, Casey. Mike Selfridge. I would say — I would characterize it as healthy, it’s down from the last quarter, but it’s up year-over-year. And obviously, there’s been headwinds on the refinance side. And that’s been more difficult. But there’s other parts of the pipeline, I would note that are doing very well. Business Banking, for example, is at a high, other avenues PLP, PLOC, securities lending. So again, healthy pipeline going into the quarter.
Casey Haire: Okay, thanks, Mike. And just following up on
Mike Selfridge: I was just going to say, the loan growth itself. I’ll also note that CPR are down. And so that gives us a good base from which to grow.
Casey Haire: Yes. And then the capital call that came in a little bit stronger than certainly what you were sort of experiencing in November, just any color on? Does that business picking up?
Mike Roffler: I would say, well, a little bit of improvement from 32% to 33% utilization That’s down from a year ago, which was just over 40%. So that industry is still seeing, it’s challenged in the sense of slower velocity of deals just like last quarter slower pace of fundraising, but cautious, but still active investors. And there was a slight hiccup in private equity activity overall for the industry. And that drove a little bit of the utilization for us.
Casey Haire: Okay, great. And just one more — the spot deposit costs at 12.31 versus 99 bps in the quarter, and also the spot CD costs, if you can provide that given that’s a critical driver here.
Mike Roffler: Yes. We ended the quarter with an average of 99 basis points. And looking at where we ended spot at 1231. We were up about 30 basis points from there.
Casey Haire: Okay. Any color on the CDs versus that 279 level on the quarter?
Mike Roffler: It just tends to move around, depending on where we’re trying to position. So I don’t think it’s a meaningful, I think the 129 spots the right place to be.
Casey Haire: Okay, thank you.
