James Marischen: Yeah. So I would maybe start with the outlook. I think we feel good about that portfolio. We have very, very loan to cost. We talked a little bit about some of the loan to values on the prepared remarks in the call. You’ll see in some of the detail in the 10-Q, there was probably a $5 million or $6 million specific reserve on one credit. We feel that totally addresses that particular credit in terms of reserve. And that’s really what drove a lot of the underlying build that you’re talking about within CRE.
Brennan Hawken: Okay. Thanks for that. And I guess, when we sit there and think about all the green shoots narrative. It’s been a little hard to keep track of because it seems like there was a lot of optimism around the green shoots that started about May. Here in the past month or so, we’ve heard it come off. And so — or maybe moderate a bit and pull back, are you seeing that are the higher rates on the long end of the curve, constraining maybe some of that optimism on the margin, how would you characterize the recent development in the dialogues and how that’s impacting the outlook?
Ron Kruszewski: I think — look, I think you’re now going to hear things like term premium and it won’t be just a short-term rate, what’s the 10-year doing? I mean the overall interest rate environment clearly has an impact on activity and on confidence. And frankly, many of the pundits will disagree on whether short-term rates are going to 6% or go to 4%. And all of that uncertainty just mutes activity. I know it as a participant in the marketplace and our own M&A activity. We haven’t — we did a deal a year to two to three deals a year for almost 19 years and we haven’t done one in two. So I think it’s all of that together. If you remember, when you’re talking about green shoots, there was a time when the forward curve predicted that the first cut in the short-term rates would be this December.
That wasn’t that long ago. And that certainly has moved out. So I don’t want to try to predict when the markets will turn. But I do want to say is that we’ve built a great franchise and we’re maintaining it, and we believe that we will get our fair share of business when the markets improve. I’m just not going to venture a guess as to when.
Brennan Hawken: No, I totally appreciate that, Ron, and venturing a guess in this environment has been super challenging. I’m actually not asking for a guess on the forward. What I’m asking for is what’s been happening since maybe early September, in the past roughly a month, have you noticed any changes in the dialogue and engagement or not really?
Ron Kruszewski: Not really. Like I said, we did price an IPO last night that, that used to be a lot more commonplace. So — but that’s just — that was maybe even idiosyncratic in itself. So not really. I think the environment has stayed pretty consistent.
Brennan Hawken: Okay. Great. Thanks for the color.
Operator: We now turn the floor to Ron Kruszewski for closing remarks.
Ron Kruszewski: Thank you, operator. Everyone, I look forward to bringing everyone up to date on our year-end results in January. And I do look forward to not waking up to Groundhog Day. So with that, have a great day. Thank you.
Operator: Thank you. This does conclude today’s teleconference. We thank you for your participation. You may disconnect your lines at this time.
