Christopher O’Connell: Okay.
Susan Cullen: I misspoke. Our crisis classifieds were down 1% quarter-over-quarter.
Christopher O’Connell: Got it. Is that $7 million related to that particular credit? Or just any update, I guess, on that or relationship?
Susan Cullen: The $7 million is not related to the big held-to-maturity security that is driving the increase in our NPAs that is still working its way through the process. We’re still very careful with that security loan — and we don’t have any further details on any resolution at this point.
Christopher O’Connell: Okay, got it.
Susan Cullen: Thanks, Chris.
Operator: The next question is from Manuel Navas from D.A. Davidson.
Manuel Navas: Good morning. I really like to slide for Slide 13 but I just wondered if the scenario is a little different. What happens if the Fed pauses and then holds, basically, do you need the Fed to actually start declining for your NIM to have that kind of inflection? Just kind of talk about that scenario where the Fed holds for a bit?
John Buran: So the loans will continue to be coming on. So right now, loans are either being rolled — they’re either rolling off or; for example, at a 3 handle because they were been put on for quite a while and the loans that we’re putting on right now this past quarter, we had a 6 handle. So we’re talking about a very, very nice increase in the NIM just by stability taking place. And I didn’t mean to say an increase in the NIM but obviously, the positive pressure in the net, let’s just say that — that as part of it.
Manuel Navas: Okay. Because it seems like it kind of really took off once the Fed decline. But there’s a number of different factors at play. Do you have an update on with the current market offers you have out there, are you seeing success? You talked a little bit about — you had success this past quarter but you’re seeing continued success and you’re talking about kind of competition shifting a little bit. You’re seeing more players competing for deposits. Can you just kind of talk about those 2 items?
John Buran: Sure. So look, it’s always a competitive environment in New York. This is — this one has been heightened due to the Fed activity and the removal of liquidity from the market. So we’re looking at other vehicles to compete in maybe areas that might be a little bit less competitive outside of the New York metropolitan area as a means of, let’s say, compensating for the intense level of competitiveness in New York. So I think — it’s always a competitive market here. There’s a couple of things that I think are probably going to write themselves in a few — in a couple of quarters in terms of the extreme competitiveness. But at the end of the day, most of the market in New York is controlled by a few very, very large banks. They have a lot to protect in terms of their cost of funds. So that always has a little bit of a dampening effect, although we haven’t quite seen it yet. I expect that we will see it going forward.
Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to John Buran for any closing remarks.
John Buran: Well, once again, thank you all for your attention and for calling in and for the questions. And just again, I think that our net message is that we’ve got a very strong balance sheet, very strong credit quality. And this environment doesn’t last forever and we’re looking forward to a better opportunity as the Fed starts to reduce some of its aggressive moves. So, thank you again for your attention and look forward to talking to you all soon.
Susan Cullen: Have a nice weekend. Thank you.
John Buran: Bye now.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
