Chris McComish: Some of them — well, they didn’t all start at the same time. So for example, an initiative we put in place earlier in this year was an enhanced in a more efficient way or our bankers in our branches and our business bankers to build treasury management capabilities with what we would define as business banking and small business customers. And that has resulted in significant numbers of new opportunities that — as Dave talked about, that were latent opportunities, our job was to make it easier for our teams to fulfill those opportunities and develop expertise. So, we added talent. We added an ability for information to move between our teams more effectively and ability to put the business on the books for the customer more efficiently.
And these are — we’re very pleased with the progress there. An announcement that we made just within the past 30 days is the introduction of an integrated payables product for our largest commercial banking customers. That puts us closer to par with the biggest banks that we compete against from a treasury management standpoint, and what we’re doing today there is having conversations with customers that will lead the business down the road. So, some of these things are phased in over time.
Manuel Navas: That color is great. Is there like a near-term loan-to-deposit target that this can kind of help move you towards given they are 103% now, just kind of — maybe that’s a different way to approach it.
Mark Kochvar: Yes. I think we are looking to reduce that over time. Right now, we don’t have specific goals for certain dates because we want that — to be quality improvement. But that’s also embedded in there as we’re able to do that is some opportunity back to the kind of the margin argument as we’re able to replace some of the borrowings and wholesale funding that we have with deposit growth there’s an opportunity to improve margin by adding deposits replacing some of those wholesale borrowings. So we think there’s a lot of value in being able to do that we don’t have specific loan deposit goals by time frames at this point.
Operator: Your next question comes from the line of Daniel Cardenas of Janney Montgomery Scott.
Daniel Cardenas: Just quickly, can you give me some color as to how much of your securities portfolio is scheduled to mature or reprice in Q4 and are expectations to put that to work in the loan portfolio, or are you going to reinvest them in securities?
Mark Kochvar: We’re around the securities — we have a relatively small securities portfolio. So we’re looking to maintain the size of that just to maintain a level of on-balance sheet liquidity that we’re comfortable with. So, we typically have anywhere from $25 million to $35 million rolling off between cash flow and maturities in any given quarter. So, we would look to reinvest that in securities book to maintain the balance at approximately where it is now.
Daniel Cardenas: All right. Great. Thanks. And then maybe if you could give me some additional color on the credit quality side. How does your watch list look, what are the trends this quarter? And what your level of classified assets look like compared to last quarter?
Dave Antolik: Yes. I mean as you can see, starting with the NPLs, we saw a reduction. The level of C&C and watch rate credits has remained relatively stable. And that’s what we see ultimately in the ACL remaining stable as a percentage of loans quarter-over-quarter. Any changes in terms of the risk rating stack would be reflected in the — ultimately in the ACL.
Daniel Cardenas: And then, in terms of the $30 million of new deposits that were won this past quarter, what kind of rate did it take to get those — on average did it take to get those new deposits in?
Mark Kochvar: Well, that $30 million was specifically for CDs. And so, our — those probably range between mid-4s to low-5s to secure those.
