Bob Franklin: Certainly. So, in the fourth quarter, we have well over $100 million of security — of cash flows coming off the securities portfolio. If you take that forward 15 months, you’re talking about probably $300 million of securities — of cash flows coming off the securities portfolio. But — and then every day we talk about the puts and takes as it relates to how we manage the balance sheet and what do we do with that cash. We feel comfortable with our current level of loan to deposit, and we want to take part in the repricing opportunities out there. So, currently we’re leaning towards reinvestment of those cash flows, but it does afford us a high level of flexibility going forward. So, we are able to call audibles around that depending on how the broader funding base gets.
Eric Spector: Got it. That’s helpful color. Thanks again for taking the questions, and I’ll step back.
Bob Franklin: Thanks, Eric.
Operator: Thank you. One moment for questions. Our next question comes from Will Jones with KBW. You may proceed.
Will Jones: Hey, great. Good morning, guys.
Bob Franklin: Good morning, Will.
Will Jones: So I just wanted to start on loan growth, I know we’ve kind of been talking about this low to mid single-digit range for the full year. And if you look at the first half, there is a little stronger, but we saw little more softness this quarter. And I guess the theme maybe that we continue to see a little bit softness as we enter the fourth quarter. So, round trip, we may wind up still in that mid to low single-digit range for the year. I guess, A, is that kind of how you’re thinking about the near-term and in the fourth quarter kind of growth outlook?
Bob Franklin: Yeah, I’ll let Ray give a little more color, but for the most part, loan growth is going to be fairly muted through the end of the year and as we kind of watch the market and see what, what’s available to us. We’ve increased our underwritings quite a bit. So it’s cleared the deck a bit on what can actually — clear the hurdles to get on the books. So, it’s going to be slower than it was in the first part of the year. But — Ray, you might — you can add what you want.
Ray Vitulli: So, Will, the — so, a couple of things that how we got to that, where you saw the little negative growth for the quarter. When you look at the waterfall, the posture that we started last year around managing credit and liquidity and if you — if it’s a function of our loan originations, those were second quarter about $550 million in new loans in this quarter, around $350 million, so that’s definitely one component of probably where we’re headed. The other thing is our pay-offs where we’ve normally experienced something like $250 million a quarter, that continues to actually to around $275 million in the third quarter. So combination of lower originations plus, not a return to the pay-off levels, but at least a little little increase in the payout, which think is probably healthy. That’s contributing to probably what we’re Bob was talking about that muted probably low-single digits.
Bob Franklin: And Will, I would just add, as you think about our approach to this and I know others have different views on it, but we really feel strongly about our core deposit funding. And so right now the knife fight that we’re going through on deposits for — with some pretty high rates out there, and a lot of those higher rates don’t even pertain to what core funding really is. So, we haven’t chased that to try to increase the loan volume. We like our position from loan to deposits, we’ll probably even pull it down a bit. This is a good time to really focus on strength of the balance sheet, but we feel like we’ve been able to keep the non-core funding to a percentage that we feel comfortable with, and we’d rather not increase loan volume by going out and borrowing more money at tighter margins.
So, we’re sort of staying within the boundaries of what we feel like as a way to grow the bank. We think that the true value in our organization is around our core funding profile, and we won’t — don’t really want to disturb that.
