So it’s really a different office segment to what we’re seeing pressure in, in the markets very limited exposure to metropolitan areas and almost zero exposure to central business districts, no high rises. There’s not a single office loan in the portfolio above $20 million. So it’s really a collection of small single-story, kind of, split between owner and non-owner office.
Matthew Clark: Okay. Thanks again.
Operator: [Operator Instructions] Our next question comes from David Feaster with Raymond James, your line is open.
David Feaster: Hey, good morning everybody.
Randy Chesler: Good morning, David.
David Feaster: Maybe just going back to the funding side, I’d be curious if you could elaborate maybe on some of the trends you saw throughout the quarter, just kind of looking at the numbers, it looks like the majority of the NIB outflows happened maybe a bit earlier in the quarter. Just curious how flows were on NIB balances throughout the quarter. Whether they stabilize — some of the key drivers of that was the taxes, was it more outflows from the failures? And whether you’ve seen kind of NIB balances stabilized early into the 3Q and late in the quarter end and early 3Q? And just ultimately kind of whether that plays into the stabilization in deposit cost as well.
Randy Chesler: Yes, so let me take a shot at some of that and then Byron will probably have some more comments there. We did see the outflow decelerate throughout the quarter. And so anyhow lot of things happening here with tax payments and some other things going on. 60% — over 60% of those balances stay with us. So even though they leave one category, they move to another. So we’re retaining those within the company, but there is — given what’s going on with the Federal Reserve and now the cautiousness around rates, that’s obviously changed a fair amount of that dynamic. Around 80% of those are tied to operating accounts, and so there — we’re actually starting to see, you know, as the tourist season kicks in some of those accounts, then start to replenish.
So kind of feel like the biggest move there has occurred, and we’ll probably still see some continued outflow, but just not at the same rate that we did in this quarter. Byron, did you want to cover anything there or add anything?
Byron Pollan: Yes, David, you’re exactly right. Non-interest-bearing outflow has happened early in the quarter. And by the time we got to June, we did see some outflow, but very, very modest. I’m looking at the non-interest bearing outflows in June was only $31 million. And that has carried forward into July, looking at just a tiny bit of outflow, but very, very modest. So did see some strong trends throughout the quarter in terms of stabilizing deposit balances. And really encouraging signs that our strong, seasonal summer time dynamics are gaining traction here as well. So I think that’s having a big impact on our outlook for third quarter deposit.
David Feaster: And did deposit costs, kind of, have a similar trajectory again, mostly front-end weighted and kind of a stabilization in May to June. Is that a fair characterization?
Byron Pollan: I do think deposit cost. Probably, the increase in deposit costs was closer to the back half of the quarter than the front half of the quarter, related to some — special pricing that we had and other initiatives that we had in place.
David Feaster: Okay. And then maybe just touching on the deposit growth side, I mean, it’s great to hear you talk about 4,000 new accounts growing. I’m just curious where you’re seeing success attracting clients, obviously you talked about some of the seasonality, but just curious maybe some of the deposit growth initiatives that you have in place to drive core deposits, and ultimately, kind of, how that plays into the deposit growth going forward. And when we can start paying down some of the borrowings in those higher cost wholesale deposits? When do you think you can start doing that because that ultimately plays kind of the NIM trajectory going forward?
