Manuel Navas: As you kind of felt that rate increases you’ve done so far might kind of stabilize a little bit. Do you have a one number beta assumption for the whole book or do you kind of separate that into two levels.
Pat Barrett: I’m not sure we are having a broad core to give you that number. I would say, you’re accurate that we think that the worst is behind us in that regard, and you can appreciate if we were to make decisions over the last 45 days over, whether we should pay a price and hug a deposit or we’ve decided to do that, right? So we were in the side of being conservative. So as I said earlier that, I think that pulled forward some of it, we’re seeing a lot fewer of those conversations now. So I think that the tempo is going to slow down and what we did the last two weeks, three weeks in March were things we probably would have done in April or May anyway, we just did them a month or two earlier.
Manuel Navas: Okay. On the loan growth in the pipeline. I think previously, some of the construction fundings you guys have expected weren’t showing up in the pipeline, are they all there now? Is that pipeline encompass all kind of future construction .
Pat Barrett: Yes, that would be an undrawn commitment. That’s where you would find that. We wouldn’t put that in the pipeline. Of the existing infrastructure loans that are yet to draw.
Manuel Navas: Okay. And then in some of the revenue opportunities that you highlighted before, including Mortgage banking. Is there any number you can place around it and also where you think big-picture, you thinking more of various local businesses, are you considering regional national businesses. Just kind of some of your thoughts there.
Pat Barrett: We have treasury products, that’s done quite well so far and we want to kind of double down on that product and that product serves a wide variety of folks. So we’ve got small businesses that are akin to that and we have mid-sized businesses that are clients of that are akin to that $100,000 and focus and keep $20 million and we’ve got the product suite to do that and shown competitiveness in that. That’s interestingly a deposit opportunity, but also a fee opportunity, because one is we’ve learned as we went through this, you saw the transaction volume, right. Maybe there is some there are some segments that could pay us more appropriately for the stuff that we’re doing for them. So we’re trying to look at that, but it’s too early for us to give you a specific number.
And around mortgage, given the rates and the volumes today, you’re not going to see that change in the third-quarter. But that market is notorious, it changes quickly, we’ve been in mortgages since 1902, but admittedly, in the last decade we’ve spent less time on them. Any comments you want to make Joe?
Joe Lebel: I think the only thing I’d add there is that, we do expect to expand the geography, because we historically have been New Jersey-based, central southern New Jersey-based residential mortgage lender, and we have licensing in most of the states. I think 47 states and not that we’re running national tomorrow, but we’re in Boston, in New York and Philadelphia and Baltimore and I do think there’s an opportunity now when the market is quiet, it put on some good talent. And treat them fairly and prepare for the next not only refinance opportunity, but also purchase opportunities as rates get more normalized.
Christopher Maher: One of the things we determined in our strategic review in the last six months is that, we have an infrastructure that’s appropriately tuned to do most of what you would need to do. We’re just taking that out and trying to get more value out of it.
Manuel Navas: That’s really helpful. As loan growth kind of down shifts and hopefully the environment clears up for capital deployment, is buyback kind of the preferred use of capital?
Pat Barrett: It all depends on kind of what we see in the market, if the credit spreads we’re seeing now, we love the commercial banking business. I don’t know if those are going to persist, but we’d have to get a little more comfortable about the environment, about the marginal cost of funding. But the first thing we’d like to do is to grow the Bank, but adds in a prudent opportunity to do that with capital. If we don’t think we can do it and capital starts to build-up to a point, then yes, buy backs are a nice tool.
Manuel Navas: Okay. Thank you very much for the comments.
Pat Barrett: Thank you.
Operator: We currently have no further questions. I would like to hand back to Christopher Maher for final remarks. Please go ahead.
