So we’ve been pretty public. When Rob started, we had about $200 million what we identified as legacy problem credits that we needed to work down. That’s now down to $60 million. So we reduced that by $40 million this quarter. $20 million of that was through sales or payoff. We had about $10 million restructured and upgraded, and then we charged down $10 million, which is part of how you get the $17.9 million reduction in non-accrual. So sitting down at $63 million of non-accrual off of highs of mid-90s earlier this year. Feel like we’re making material progress on the credits that were most concerning for us.
Zachary Westerlind: Understood and appreciate that. And then just on the, on the shared national credits. Apologies if I missed this, what percentage of the loan portfolio is our snicks? And then of that, what amount are you guys the lead underwriter on?
Matt Scurlock: Yeah. Great question. 23% of the total loans, we lead 30% of that, Zach. It’s not all syndicated credits or SNCs. So there’s certain criteria that classify as syndicated credit as SNC, north of $100 million, three or more banks. We lead a large portion of syndicated credits across the middle market, so we were the ninth ranked middle market book runner through the first two quarters of this year, which means we originated and distributed more middle market credit than all, but eight banks in the country. So we noted in the comments that across syndications that are not SNCs for the lead on north of two-thirds of those relationships, which is a critical part of our strategy and a key driver of why we’re driving increased fee income, which obviously improves return on equity or return on allocated balance sheet.
Zachary Westerlind: Got it. Thanks for that. That’s very helpful. Sorry.
Matt Scurlock: [Technical Difficulty] helpful. We’ve said since Rob got here that our approach to any sort of participation in our credit facility, whether it was a SNC or otherwise, was based on the same client selection underwriting principles that we use, when it’s a bilat or we leave and that oftentimes if there was a target client, where we know the management team and if it fit with the strategy, we would be willing to move into a credit facility with the desire to move left or desire to capture more of the wallet. You’re now seeing us going back to Matt’s question, you’re now seeing us start to rotate out of some of those relationships, and we don’t see a path to being more relevant to that client. So just I think it’s important to note this is all entirely consistent with the messages that we’ve been trying to communicate for the last couple of years.
Zachary Westerlind: Got it. Appreciate that. And then if I could just sneak one more quick one in. The office portfolio, are you able to share what the reserve is on that?
Matt Scurlock: No, we generally don’t disclose. I mean we have $460 million of office and we’ve got $4.2 billion of cash, 2% of total loans. So generally we don’t describe the asset class or property type specific reserve.
Zachary Westerlind: Understood. Thanks for taking my questions.
Matt Scurlock: You got it.
Operator: And our next question is from Brady Gailey of KBW. Please go ahead.
Brady Gailey: Hey, thanks. Good morning, guys.
Matt Scurlock: Good morning.
Brady Gailey: I think one of the most difficult things to — I think one of the most difficult things to forecast is just this investment banking line. I mean it’s been so strong recently. I mean, $29 million this quarter, that’s up from only $8 million a year ago. And I know it’s volatile. I know it’s tough to forecast. But I mean, over time, should the trend even off this 3Q base still be to drift higher? Or do you think you’re at a level, like I think you guys targeted about 10% of revenue, which I think you’re almost there. Is this kind of the level that we should think of as a kind of good run rate for the next couple of years from here?
