Mark Klein: Well, I think, Brian, it’s kind of consistent, but it’s also very bullish. As I mentioned, we think that SBA program as a preferred lender really fits quite well into finding some of the deals we’re finding, which would be generally a replacement of equity with debt for companies changing ownership because of aging management and so forth. It’s playing really well into that arena of the SBA. And we not only get good yielding residual portfolio. We sell off the parts that we want. We keep some of it for net interest margin in comparison. And obviously, getting that C&I deposit account is really important, which they’re willing to do. So very bullish on that in a market where the economy may be slowing a bit. And I think we’ve found what we’ve generally liked.
We’re trying to score a few more of them so that we can be more nimble with the process. But we expect that $15 million to $20 million in 2023 is kind of our bogey, and it gets us back to where we pretty much landed before COVID.
Anthony Cosentino: And I would just supplement there, Brian. Traditionally, we’ve seen SBA, call it, as a percentage of that commercial loan pipeline to be in the kind of mid- to high single digits. That number is, call it, 20% to 25% now. So that $60 million, you’ve got a fairly strong pipeline out there. And again, those are a little bit more risky because they take a little bit longer, but that’s why you try to have a big pipeline in there to get that to the bottom line.
Mark Klein: And Tony, some of it is on client need.
Anthony Cosentino: Yes.
Mark Klein: But Brian, half of it is on more appointed calling in those 1,900 calls, where we’re doing more calling on the C&I kind of thing, like we talked about over a year ago. But it’s easier said than done because they’re harder to find, they’re more work, and they’re a little – more elusive. But it’s making some difference on the SBA platform.
Brian Martin: Right. And on that 60 – on that piece of the SBA portion, some of it’s going to go – I guess, if that’s part of – that’s a good chunk of the pipeline. A good piece of that, if it gets done, gets sold and you keep a limited piece of it. So the $60 million pipeline per se is somewhat diluted by some of that going sale market and coming on balance sheet but getting the benefit both sides on the fee income side and the piece you put on the balance sheet getting the revenue. Is that how you think about it?
Mark Klein: We’d like to have our cake and eat it too. We’d love to be able to get the gain as well as the balanced growth. But you’re exactly right. Some of that is going to be SBA, but we’re selectively deciding how they’re priced, what is the market value if we sell versus the breakeven on the net interest margin. So we’re constantly deciding per deal. What do we do with it? Do we put it on our books and keep the gain longer term or do we sell it and take it upfront? And I know, Tony, we’re kind of evaluating each one as we speak. And that’s probably a nice balance of each in there.
