And I think that’s the way the analysts and the investors will see it in that if you don’t have enough cash flow to service your loan, you’re going to have to take appropriate action and classify and risk rate the loan appropriately. If you’ve got cash flowing loans, but it’s just going to take longer to repay or you’ve got a higher LTV. I think we’re going to have some flexibility in being able to work with the borrowers to a good outcome.
Matthew Breese: Great. I appreciate it. I’ll leave it there.
Operator: Your next question comes from Brody Preston with UBS.
Brody Preston: I did want to follow up, maybe just on the office line of questioning. So we saw another bank that just reported they sold their medical office portfolio, and it was only like a 2.5% mark. I think maybe it was a bit noncore for them. But I guess could you maybe speak to the puts and takes between maybe keeping even medical office around? Is that a core kind of product for you? Do you have deposits tied to those borrowers? Is that something where as you just evaluate your overall office exposure, even if it’s something like medical office, you might look to kind of exit it now as opposed to waiting later down the road?
John Ciulla: Yes. Specifically to medical office, I don’t think so. It’s such a different animal. Right now, it’s still really strong. Vacancies are low, rates have held. And so our portfolio is not particularly big. And right now, it’s a profitable business and oftentimes. And most of the time, we have ancillary revenue either coming from deposit liquidity or fees or other cash management products. So I don’t think that’s in our strategic wheelhouse right now. And I don’t think we feel from a credit perspective, it’s something we need to do.
Brody Preston: Got it. Okay. I did want to just ask on the available-for-sale portfolio. And I’m sorry if I missed it in the deck, but do you happen to have what the effective duration of that portfolio is? And then could you tell me what the assumed conditional prepayment rate you’re using in the duration calculus?
Glenn MacInnes: Sure. So the duration is 3.8 years, and the CPR, we’re using it in the high single digits.
Brody Preston: Got it. Okay. And then I just want to ask just the credit seems to be holding up really well, but it seems like last quarter across the industry, there was a couple of one-offs this quarter across the industry. There’s a couple more one-offs. And there’s some kind of indication that maybe especially in middle market, maybe you’re starting to see some pressure on borrower balance sheets. How are your conversations with borrowers, particularly in middle market evolving today? And how are they handling higher interest rates? And what are some of the key areas of pressure that they’re identifying?
John Ciulla: Yes. Again, I’ll try and be brief but give you some insights. I think you’re right. I think everybody is surprised that credit held on so strongly. And you look at our metrics, we’re not seeing correlated risk across portfolios. We’re being proactive and obviously, in office, just given the secular dynamics there. I think from a risk rating perspective, if you look across the industry, that was kind of stable, I think, probably now the bias is to the downside. So although, as you said, it’s really only resulted in kind of one-offs from a loss perspective. I think most folks in the industry expect there to be a little more bumpy as we go forward in the next several quarters. And it probably is, to your point, the cumulative impact of debt service, higher interest rates, higher input costs, inflationary pressures on wage and other input costs into businesses.
