Operator: Our next question goes to Ben Gerlinger from Citi.
Ben Gerlinger: Slide 12 and 13, the debt service coverage ratios were really helpful. We noticed a modest migration [Indiscernible] [we expect]. Is it fair to say that all of those now include 2023 annuals or are we still waiting on a little bit? I’m just trying to look for the most up to date type ratio there.
Mark Saeger: On a large portion of our portfolio, we do have updated current rent roll information. I don’t believe 100% of them though yet clearly include 2023 numbers. And we think that in all asset classes other than office, we’ve seen strength in NOI growth.
Ben Gerlinger: And then, I noticed the multifamily down here in the Southeast, Florida, Alabama, came down decent amount quarter-over-quarter. Any commentary on that?
Ira Robbins: Ben, we’ll go back and take a look at the number. You mean the debt service coverage came down?
Ben Gerlinger: Yes. It went from basically…
Ira Robbins: It also happens to be the same number — no, I’ll go back and take a look at it, because it happens to be the same number as the row above. And so I’ll take a look at it and get back to everyone.
Ben Gerlinger: And then lastly, I know it’s been a long call and I apologize if you’re going to repeat yourself. But did you guys give a monthly or an exit spot rate on deposit cost?
Mike Hagedorn: We did not give a spot rate. You can see in the IP that the total deposit cost went from 3.13% to 3.16%, so they’re up 3 basis points.
Ira Robbins: A lot of the deposit costs changes.
Operator: Our next question comes from Matthew Breese from Stephens Inc.
Matthew Breese: I had just two quick follow ups. The first one was just on the taxi medallion charge-off. What happened there, was that part of the credit review? It just seems like a fairly big charge given how far away we are from the kind of the height of the taxi medallion days, and what’s the remaining balance on that portfolio?
Mark Saeger: The remaining balance we have $52 million left in portfolio, that’s fully reserved down to current market prices. For the charge off that we experienced this quarter that was also fully reserved for, it was one relationship of a customer who had been paying. We were in a long term negotiation and kind of hit a standstill. Subsequent to the charge off, we have entered into a forbearance agreement and that loan has continued to pay.
Matthew Breese: And then just in light of a slower loan growth outlook, could you just stack order for us capital deployment priorities? And I’m really curious if share repurchases become part of the plan here even for a little bit? The other thing is understanding, Ira, your comments on M&A. Would FDIC assisted deals be something you look at should they arise? That’s all I had.
Ira Robbins: Look, I think from a capital deployment perspective, allocating capital to grow in the CRE book is probably not going to happen here. There is ample opportunity internally just to serve our current CRE clients. So I think that’s probably where more of the focus would end up being. But once again, we are seeing strong C&I growth than we have for a couple of years now. So allocating capital to those specific segments seems to be a much better return to us today. From M&A perspective, I think once again, if it’s something that’s strategic and makes sense, we will look at it. But once again, the guardrails around intangible book value are some that’s significant to me.
Operator: I am showing no further questions at this time. I will now turn it over to Ira Robbins for closing remarks.
Ira Robbins: Thanks. I just want to thank everyone for taking the time to listen to us today, and I look forward to speaking to you next quarter. Have a nice day.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
