Darren King: I don’t know that I have that right off the top of my — at the tip of my fingers here. Give me one second and let me see if I can find it. But it has — in aggregate, that portfolio has still been above 1. And when we look at the LTVs in that portfolio, they still run below 60% on a weighted average basis. Now obviously, there are some above that and some below. But as we look at it right now and we look at the clients’ ability to support the asset either with cash flow or with how much equity they have in the property where we feel pretty comfortable with where we sit, but we’re watching it. As we’ve talked about, there’s — it’s one of the places where we see the most risk and where we’re focusing a lot of our attention from a credit perspective.
Operator: Next question comes from Manan Gosalia from Morgan Stanley.
Manan Gosalia : I was hoping you can break down your loan growth guidance for next year. In the past, you’ve spoken about the lending synergies from the People’s acquisition and the footprint there. I think you mentioned small business card and equipment finance. So just if you can break down how you see that contributing to loan growth in ’23? And how you see that evolving?
Darren King : I guess as we look at People’s impact on 2023 from a loan perspective, it’s certainly additive. But it’s one of those things where the loan balances take a little bit of time to build and to show up in a material way. So when we look at 2023, we continue our focus on C&I, and we expect to see strong growth in the C&I portfolio over 2023. On an average basis, it prints a big number because it’s four quarters of People’s and not just three, and so 20-ish percent over the average in 2022. But outside of that, it comes down a little bit more like into the 3% to 5% range. There’s a bunch of pieces in there. One of the ones that we talked about that impacted the fourth quarter was our dealer floor plan business. And what we’ve seen is, is some inventory builds as supply chains open up and consumer purchases slowed down a little bit with rising rates, and so we saw some movement there.
We did see some broad-based movement in our core commercial customer. The leasing business where we prefer to call it our equipment finance business continues to show steady growth, which would show up in the C&I balances. And then the other thing where we’ll be intensely focused is on building out our small business and business banking segment. That’s one of the places where we see a great opportunity in the New England franchise and to deploy our methods of banking. When you look at the other portfolio CRE, we talked about relatively flat to slight somewhat down, the consumer real estate also flat to down, and that’s really — that’s the consumer mortgage business, and that’s really just a reflection of normal amortization. And because we will stop holding the originations, we will go back to gain on sale.
