Broderick Preston: Got it. Thank you for that detail. And then the last one I had was I did notice that when I was kind of comparing the investor CRE slides quarter-over-quarter. I did notice that there was a step-up in the substandard and special mention office portfolio. I wanted to ask if that was the result of any reappraisal that you had done or if it was something different?
John Corbett: Yes, Broderick, it’s the second quarter of the year. So this is when we get in a lot of the year-end financial statements. So we’ve been actively doing the normal servicing of the commercial loan portfolio. And to your point on Page 25, you can kind of see that over the last year, special mention loans have been trending lower. Substandard loans have drifted higher. If you put it all together, we’re roughly flat from about where we were a year ago, but we are seeing a mix, and I think it’s predictable. We’ve been upgrading hotel loans coming out of the pandemic, and we’ve been putting some of the office deals on watch. If you look at our NPAs today nearly 60% I think Will said this in the prepared remarks, nearly 60% of them are current on payments, about $19 million have a government guarantee.
There were two C&I credits that migrated to non-performers in the second quarter. One, we feel pretty good about. We don’t think there’s a loss. The other one might have a charge in the third quarter. But based on what we know today, we should finish the calendar year with total charge-offs probably at or below 10 basis points.
Broderick Preston: Got it. Thank you very much for that. I appreciate it guys.
Operator: Your next question comes from the line of David Bishop with the Hovde Group. Your line is open.
David Bishop: Yes, good morning gentlemen. Most of my questions have been asked and answered. Just one final question maybe on new loan origination deals. Just curious where you saw those trending this quarter relative to last? And are you seeing any differential or better pricing in some of your markets and others. Just curious what you’re seeing overall in terms of new loan origination yields?
Stephen Young: Yes David, this is Steve. They did improve for the quarter. And I guess, I don’t have the data right in front of me as far as where they trended up from the first quarter. But part of it is I do have the residential loan yields which I think was in the 6 20 range, give or take. And so as we think about the commercial loan yields are much higher than that. And so as we think about moderating the loan growth in the back half of the quarter, most of that’s going to be in residential we’ll start seeing that new loan yield probably be over 7 is probably where we’re thinking. I think we’re in the high 6s, give or take, in the second quarter. But as we kind of move residential down, which is a lower yielding where we think a safer asset, it really it will move back towards that 7% is kind of what we’re thinking.
David Bishop: Got it. And then one follow-up question. The guidance in terms of loan yield expectations here was 5 50 to 5 75? Thanks.
Stephen Young: Yes. That would be — just to be clear, that would be in the fourth quarter, and we would expect it to move kind of in between here and there in the third quarter. So — and that’s all part of the margin guidance. But yes, we would expect the loan yield to sort of to be roughly in that range by the end of the year.
David Bishop: Great. Thank you.
Operator: There are no further questions at this time. I will now turn the call back over to Mr. John Corbett.
John Corbett: All right. Thanks everybody for joining us this morning. We know it was a busy morning with a lot of earnings calls going on. If we can provide any other clarity for you, don’t hesitate to give us a ring. I hope you have a great day.
Operator: Ladies and gentlemen, thank you for participating. This concludes today’s conference call. You may now disconnect.
