And the entire portfolio is about $1.50 billion. And it is geographically diversified. It’s tenant diversified and very granular. The average note in that portfolio is $1.8 million. We have about 585 notes. So we monitor that and can monitor that portfolio really closely. So we do have this credit that was previously identified. We allocated for it last quarter. And as we review that credit, we decided to charge that allocation down this past quarter. We are monitoring office very closely, and we see stable trends there right now, but we’re monitoring it very closely.
Frank Schiraldi: Okay. Great. Just for clarification, Curt, you mentioned a couple of numbers there in terms of $1 billion, I think $1.50 billion and $550 million. The difference is, the $550 million is office over — office loans over $5 million. Is that what you said?
Curt Myers: Correct. And then the $1.50 billion is all office. So the difference between those is really the smaller credits through our footprint.
Frank Schiraldi: Got you. Thank you.
Curt Myers: Thank you, Frank.
Operator: Thank you. Our next question will come from Daniel Tamayo of Raymond James. Your line is open.
Daniel Tamayo: Thank you. Good morning, everybody.
Curt Myers: Good morning, Dan.
Daniel Tamayo: Maybe first, just a clarification. In the slide deck, I think it says the NII guidance, the $895 million to $915 million is fully tax equivalent. I thought I heard you say, it was non — not fully tax equivalent in your comments, Mark. I just wanted to make sure we’re on the same page there.
Mark McCollom: Yeah. To clarify that, we had actually filed an amended 8-K this morning, correcting that footnote, Danny, it should say non
Daniel Tamayo: Got it. Okay. Thank you.
Mark McCollom: I apologize for that clarification.
Daniel Tamayo: No, not a problem. Then I guess, just on the fee income guidance, if we take the midpoint of that guidance, it seems to be about stable from 2022 considering the headwinds in mortgage banking and overdraft with your recent policy, what are the items that you’re kind of expecting to see offsets to those headwinds in 2023.
Curt Myers: Yeah, Dany. We see wealth management, as we look forward, it’s somewhat market dependent, but that business continues to grow and I think will be positive. And the underlying treasury management and commercial and the payments overall, those activity-based fees in commercial and consumer, we see positive momentum there. So those are the — we see mortgage stabilizing year-over-year, and we see those positives potentially giving us growth opportunity, but overall, a pretty stable year-to-year. We’re going to have pluses and minuses. As I referenced in my comments, we really see the diversification of all of our different fee income business lines helping us as you’re always going to have things going up, things going down.
Daniel Tamayo: Great. Thank you. And then switching gears to credit here. I know that things seem to be really strong still overall. But just curious on reserves, they came down a bit, if I’m not mistaken this quarter. And thinking about through the rest of the year with the potential for a recession coming, how you’re thinking about? Where that number could go if things do worsen a bit from a macro standpoint, kind of putting aside what happens with the charge-offs?
