So we hear it’s funny. What we hear mostly from our clients is the same thing, it’s about they feel good about demand. They feel good about their customers’ confidence, they’re still having trouble finding people to either work in their plants or to work on their counter of their service company but no doubt that higher costs, input costs and higher interest rates put more pressure on them, but we’re not seeing much capitulation, Brody. And as I said, if you look across all of our different sectors and our geographies which we do all the time to look for any sort of correlated performance behaviors or risk we’re not really seeing anything right now. And our charge-offs this quarter at 16 basis points are actually 3 basis points below our 5-year average charge-off rate pre pandemic and 60% of those were on proactive office sales.
So it certainly hasn’t shown yet through a lot of the statistics.
Brody Preston: Got it. Okay. And then one last one for me. And again, I apologize if I missed it. I was hopping from another call. Just on the fee income, I know it’s not a huge driver revenue at this point. But I guess, Glenn, what would cause you to kind of be at the high end or the low end of the guidance. And I think the last time we talked, we had spoken maybe about commercial swap activity picking up a little bit in the back half of the year. Do you still feel like that’s a possibility?
Glenn MacInnes: Yes. I mean we do see some modest increase in activity. We’re forecasting some modest increase in the second back half of the year. But that’s all within our guide range as well.
Operator: Your next question comes from Mark Fitzgibbon with Piper Sandler.
Mark Fitzgibbon: John, I heard your comments on credit, and I know this is relatively small dollars, but you had about a $23 million uptick in commercial nonmortgage, nonaccruals this quarter. And it looked like 30 to 89-day delinquencies in that bucket also went up. Is there anything unique to that bucket or any particular industry that’s being challenged?
John Ciulla: No. The delinquencies are mostly administrative. I would say that the two, one was a nonoffice Cre and one was a C&I loan. We had a couple of credits that led to that. They were really kind of one-off I was talking with Jason Soto, chief Credit Officer, who said, you try and look for dynamics there, and it really was more idiosyncratic management missteps. So it happens inflows and outflows, and we work at it proactively. But I again, I haven’t seen anything there that leads that there’s a parade of issues behind either of those credits.
Mark Fitzgibbon: Okay. Given what you see today on credit and for loan growth, how are you — how should we be thinking about provisioning levels for the back half of the year?
John Ciulla: Yes. I mean, Glenn can talk from a technical CECL perspective. We — I think we’re pretty conservative. We’ve got a good — we’re a top decile among our peer group coverage ratio right now,CECL coverage. We’re thoughtful about the uncertainties in the macro market. A lot of it is driven by the inputs of risk rating dynamics and the more you proactively deal with troubled credits, obviously, that helps you in terms of what you have to post going forward. My personal view is I’d like to keep a robust coverage ratio, but it’s all going to be dependent upon how credit performs, what the risk migration is like and how proactive we are on being able to resolve remedy, get payoffs or sell criticized and classified assets, Mark. So I would say kind of it stayed of course, look at what we’ve been doing, think about movements in the portfolio and it’s probably similar levels to what you’ve seen in the last few quarters.
Mark Fitzgibbon: Okay. And then lastly, should we expect merger charges from Sterling to wrap up in the third quarter, post systems conversion? Will they be done and behind at that point?
