David Feaster: Maybe just starting on the pipeline and the origination and loan growth side. Obviously, the pipeline decline – sounds like it’s kind of a combination of maybe less appetite for credit from your standpoint, especially on the NOOCRE side, as well as weaker demand. I’m just curious, where are you still seeing good opportunities? What segments can still drive growth here and can pencil out even at higher rates? And then just how new loan yields are trending?
Jeffrey Deuel: Bryan, do you want to take that one?
Bryan McDonald: Yes. Sure, David. We have been – in the spring, we saw a big increase in real estate requests come in as other banks were pulling back on that category. And then concurrently, our prepay levels have come way down from what we had the last few years. So really, what we’ve been doing is managing our concentration levels has been the primary driver behind the heavy filtering we’ve done. Not to get too high in terms of our construction concentrations and our investor CRE concentration. So that was really the primary reason. The rates at the time were also a consideration in the spring, just as the new yields really hadn’t adjusted. If you fast forward to today, the pricing is good on the investor real estate on the request that we’re seeing coming in.
We’re just feeling – so, we’re still building on that, but at a much lower level. So it’s strong in that category. C&I activity, we’re very focused on that. We’ve got a nice customer base and prospect base we’ve been going after. But the pricing pretty competitive in that space, obviously, because of the deposit aspects of those relationships. And in many cases, the customers we’re looking at have very significant deposit levels. So from that standpoint, it makes sense if the loan pricing is competitive. And then overall, just with rates of customers that have been in business for 15 years or 20 years. They’ve experienced these rate levels in their business history and are reacting as strongly as some of the business customers that, have been in business for maybe the last 10 years or 15 that haven’t experienced rate – these levels.
So they’re maybe pausing a little bit more on new projects. In general, the health of the local economy and the customer base is really good. Liquidity levels are strong. We are seeing a bit more use of cash to expand versus using gas in part, because of the pricing on new loans. Again, not a surprise with the liquidity levels that the customers might use more liquidity first. But overall, the economy is good. We’re just – we are seeing a dip in demand, again, primarily based on rates. On the nonowner side, that’s been our own choice to filter that hard. The volume has gone down in the market. But we could take a larger share if we chose to. And then you also asked on new rates, and I did mention those, the total for the total portfolio of new deals closed in the quarter, the average rate was 6.54%, which is up 27 basis points from last quarter.
David Feaster: Okay. That’s great color. And then maybe touching on the other side of the point on the credit front. I mean, credit is phenomenal. Nonaccruals are down. You’ve got the large ag recovery I’m just curious, we already touched on office, but maybe more broadly, what are you seeing on the credit front? I mean, we’re starting to see some cracks and normalization in the industry. It can’t get better than zero. I’m just curious, what are you watching? What are you seeing? And then maybe if you could talk a bit about what drove kind of that increase in classified balances in the quarter?
Jeffrey Deuel: Tony, do you want to take that?
