Lynn Kerber: Hi, this is Lynn Kerber. Relative to the commercial portfolio, we’re really basing our new originations on current cost of funds. And so that’s been generally very much in sync over the last year as the rate increases have occurred, generally there’s a few week lag as our pipeline catches up to the new rate, depending on the rate structure in the terms of the funding. But overall, our margin over cost of funds for commercial has been pretty stable. And so if rates start to stabilize, I don’t see that really having a lot of variation.
Nathan Race: Got it. But it sounds like, Lynn; new production on a weighted average basis is still coming on nicely above the portfolio yields coming out of the third quarter.
Lynn Kerber: Yes, it is.
Nathan Race: Okay. Great. And then just lastly, sorry.
Mark Secor: I can add. We — in the presentation, Nate, we have the average production for the last quarter for commercial was 7.5, consumer was just under 9% and mortgage was at 7.6.
Nathan Race: Okay. Great. Thank you for that. And then just lastly, any thoughts on kind of share repurchase activities in the fourth quarter and early next year, just given where the stock is trading today?
Mark Secor: We have the ability and we have 1.8 million shares in a plan that we could repurchase. But we’ve done quite a bit of evaluation of what use of capital and with the current cost of funds to the give up cost of that cash to buy, it doesn’t appear stock repurchase right now is the best use, although it’s always on the table and we’re constantly looking at it.
Nathan Race: Okay. Great. I will step back. I appreciate the color. Thank you.
Thomas Prame: Thanks for the questions.
Operator: [Operator Instructions]. Our next question comes from Damon DelMonte from KBW. Damon, please go ahead.
Thomas Prame: Good morning, Damon.
Damon DelMonte: Hey, good morning, everyone. Hope everybody’s doing well today and thanks for taking my questions. Just want to start off on credit. Obviously very strong credit trends continue with you guys, but just wondering, are there any areas of your portfolio where you may be seeing some early signs of stress and maybe something tied to a particular industry or geography?
Lynn Kerber: Good morning, Damon. It’s Lynn. Thanks for the question.
Damon DelMonte: Hi, Lynn.
Lynn Kerber: As you see in our deck, we had a slight increase in past dues and although it’s still at only 30 basis points, which is a traditionally low past due percentage, most of that was in our consumer portfolio. And as we reviewed those numbers, primarily automobile, and while the percent increased, if you look at our overall portfolio mix, we have been having reduction in our indirect loan portfolio. And so while a percent has increased, the dollar amount hasn’t increased substantially there. Relative to charge-offs that did increase this quarter and that was predominantly indirect auto.
Damon DelMonte: Got it. Okay.
Thomas Prame: Damon, just real quick follow-up on that. I know we’ve seen a lot out in the industry around indirect auto and consumer charge-offs. I just ask as you review our results, please take a peek at Page 8. I think you’ll see that even though Lynn said that we’ll see a little bit increase in our consumer charge-offs simply because where the economy is, our consumer portfolio is high quality borrowers. And so we’re expecting that our trends on consumer charge-offs, even though the industry may go in a different direction are going to outperform there.
Damon DelMonte: Got it. Okay. And then with respect to, I guess, a broader view on credit and you look at where the reserve is that’s been steadily marching down since it obviously peaked during the COVID time like most others. Where do you feel is a comfortable level to settle at? It’s down to 1.14% as of this quarter. So how do we think about settling rate for the reserve and then kind of using the provision line to keep that there?
