Our biggest concentrations in New York followed by California, followed by Florida and New Jersey, but then we’re around in a lot of other states. And we also — on purchase loans, we get whatever the interest rate and the structure of the loan is when we acquire it. That’s a lot of information on your question. I hope it was relevant information that I have given you all that to what your question is. And you didn’t ask exactly about this, but I wanted to just amplify a little bit Pat’s comment about no volume in Q3, but there were transactions we were knee-deep into that have rolled into Q4. So we’re expecting, of course, with the caveat, it is not done until it’s done, we would expect meaningful volume in our fourth fiscal quarter or the one that we are currently in.
Patrick Dignan: The last part of your question was on staffing and I just had to comments, that we’re fully staffed on the lending side. We have capacity to absorb more volume if we can find it.
Richard Wayne: A lot of operational leverage on that. Thank you for pointing that out.
Alex Twerdahl: Yeah, I mean that was — I guess if there was another $1 billion-plus purchase like we saw a couple of years ago, if that would be absorbable in the current staff, and it sounds like the answer is probably.
Richard Wayne: No, it’s not probably. It’s yes. Subject to adding maybe one or two people, but I don’t want to have — first of all, I’m not suggesting at all, I’m just responding to your question million-dollar-question — billion-dollar-question that, as Pat said, we have a lot of people here already and maybe some — and more entry-level folks to help with part of it. But now there’s a lot of operating leverage. And this is what I was going to say, you can do the arithmetic. I don’t want to say anything about that, Alex, but what that would mean to put $1 billion of loans on the books with moderate noninterest expense increases.
Alex Twerdahl: Yeah, understood. Back to the comments on the ATM and I think the comment of significant opportunities. Is the ATM and the amount that you raised was that kind of a specific amount in order to kind of be able to just sort of have that capital on hand? Or is that more testing the market to see how quickly you could bring it in, should you need it, or maybe just a little bit more of the thought process around utilizing that channel and the timing to use it?
Richard Cohen: Alex, I can speak to that. So there was no specific target. What we were trying to do was to utilize the ATM at sensible volumes over a sensible period of time. So we didn’t set out to deliver a very specific target or to achieve a very specific price. It’s a long-term program, utilize it when the opportunities seem appropriate to us.
Richard Wayne: I was just going back to the kind of a hypothetical you had suggested if there were $1 billion portfolio and our capacity is currently $600 million before we earn money each quarter and we wanted to do that, that would require us to go out after the , building up the capital slowly with the ATM to go out and raise capital for that transaction. Which we would prefer not to do with any urgency around that as opposed to gradually building up our capital. Our view is that we will utilize that capital. I’m not saying we’re going to utilize it this quarter or next quarter, but we think it’s — when we’re at stock prices today seems like a reasonable idea to do it in moderate amounts. We were approved for 50 million.
And last quarter we purchased 9.4 million of it. And I want to say we had about 9 million before that. So we have about 32 million left. So we’re doing it moderately. I should point out, I’m not saying we’re going to spend it, sell stock this quarter. It really depends on a host of factors, but that was our thinking for — in the last quarter.
Alex Twerdahl: Yeah, understood. And then going onto expenses and Richard, you mentioned about 1.05% I think you said true-up in accruals that normally would happen in the fourth fiscal quarter. So should we expect going forward to see a more, I guess, maybe like a steadier level of expenses? Normally, we see that fourth fiscal quarter like that pretty decent increase in salaries and then it kind of tick back down in the first fiscal quarter. Is that not going to happen this year?
Richard Wayne: Well, I think that we will have — in the fourth quarter, there will be still money that we accrue. We accrue money for our incentive comp all year around. It’s just that we get later into the quarters, we take a look at how well the Bank is doing. And whether we think — when we look at those that are going to get incentive comp, which incidentally, we pay bonuses to everyone in the Bank, some more and maybe much more than others. But as we get closer to the end of the year — so we were looking at what we thought we needed know in March. So that’s nine months into the quarter. So we added to it for this quarter. I would expect that — no guarantees on this, but it would not be — we’re not going to have the true-up in the fourth quarter, nearly as large as we’ve had in prior quarters.
