Operator: Your next question is from Michael Perito of KBW. Please go ahead. Your line is open.
Michael Perito: Hey, guys. Good morning. Thanks for taking my question.
Tony Labozzetta: Good morning, Mike.
Michael Perito: Tom, are you able to maybe rehash or update us on kind of where — obviously some time as past rates have changed. Do you have new kind of pro form a capital ratios for the bank, assuming Lakeland closes in the back half of the year at some point or a range or just some guidepost around how you’re thinking about that?
Tom Lyons: Really trying to look where we stand versus total risk-based capital at the bank level. That’s the weakest ratio among there, where we’re in excess of well-capitalized levels on our pro forma projections. So they have improved over the course of the years, both companies have managed their capital and had good earnings over the course of the first six months.
Michael Perito: So relative to what you guys communicated when the deal was announced, it sounds like they’d be modestly higher, just based on the capital build at both institutions?
Tom Lyons: That’s correct.
Michael Perito: Okay. And I wanted to also just ask on the non-interest income side, if you have any — I apologize if I missed this, but if you have any kind of thoughts on the on the near term outlook here, and then, Tony, maybe a bigger picture question, I don’t know. probably not, but there was a Midwest that actually sold its insurance unit for what I thought was a very, very healthy revenue multiple. I know it’s a business historically you’ve been pretty dedicated to and happy with, but just curious about what your thoughts are there, particularly if we’re in a position where you your loan growth is good and a little extra capital wouldn’t hurt, is that an option you would consider or no? And then just, again, reiterate just any thoughts on the near-term non-interest income guide would be great.
Tony Labozzetta: Sure. It’s not — we recognize the value of our insurance entity. However, they’re producing somewhere around 40% return on that investment. We don’t see this strategy peaking out. I think it can continue to elevate and it’s part of our strategic plan to have a greater percentage of our revenue be comprised of non-spread income. So I think it’s an important part of our strategic planning direction. And while that’s out there, and I’m aware of it, I think it’s — and it’s also a great value-add for our customers. So that’s something that is entwined in there, and it’s very hard to decouple relative to our strategy. So — while that’s out there, I think right now, it’s not a strong probability, but just — you can’t ever say no to anything in our business.
Tom Lyons: Yeah. I mean we like the diversified revenue stream. We got a 35% EBITDA margin. The business is contributing nicely. I wouldn’t…
Tony Labozzetta: Touch it.
Tom Lyons: Yep. Just to add to that, Beacon Trust, though also had a nice quarter. We see AUM back up to $3.7 billion at the end of the period, $3.6 billion for the quarter. Net new clients of eight, about a 22.5% net margin on that business, too. So also contributing nicely.
Tony Labozzetta: Correct.
Tom Lyons: As far as outlook with the total non-interest income, I’m probably being a little conservative, but I just kind of pegged at about $20 million a quarter in the near term.
Michael Perito: Okay. That’s very helpful. Thank you guys for taking my questions, and all the other color this morning. Appreciate it.
Tom Lyons: Thanks, Mike.
Tony Labozzetta: Thanks, Mike.
Operator: Your next question is from Manuel Navas of D.A. Davidson. Please go ahead. Your line is open.
