Chris McGratty: Okay. But as you get into the fourth quarter and then during next year, if everything else is considered with the balance sheet and your PPNR should grow again in 2024?
Ken Vecchione: Yeah.
Chris McGratty: Okay.
Ken Vecchione: Right.
Chris McGratty: Okay.
Ken Vecchione: Saying it should grow in Q4 and then it will continue on from there.
Chris McGratty: All right. Thanks, Ken.
Ken Vecchione: Okay. Thank you.
Operator: Thank you. The next question will be from the line of David Chiaverini with Wedbush. Your line is now open.
Ken Vecchione: Hello, David.
David Chiaverini: Hi. Thanks. I wanted to — hi. So I wanted to follow-up on the expense question. So you mentioned about optimizing work streams through the bank. Could you elaborate on that, are we talking kind of trimming on the edges or are you contemplating exiting any businesses?
Ken Vecchione: So we are talking about trimming on the edges here predominantly. And some of the expense savings that we are going to find throughout the company will be repositioned into risk control, risk management infrastructure. I think you have to keep in mind that the regulators have clearly signaled this that they are going to have a higher standard or supervisory review for banks under $250 billion, but above $100 billion, but I think they are going to drop back below $100 billion. And as we continue to grow, we need to be prepared for that and we have been preparing all along, but some of that expense savings we are going to take and we are going to reinvest in the risk control infrastructure that we are going to need to cross $100 billion.
We would rather do it early on and have a steady growth of expenses related to that rather than to wait and try to put it in just before you get to $100 billion. So David, so we are going to see some of the work stream repositioning in terms of lower cost of sale that vendor management eliminating growth in FTE that we don’t need. That’s like cutting air. That will help us a little bit. And then looking at vendor management, using technology, a lot of those cost savings will be repositioned into the risk management side, so we can continue to grow unabated as the rules change for the $100 billion and above and the $100 billion and below banks.
David Chiaverini: Thanks for that. And then a follow-up on credit quality related to the increase in special mention loans. What does it take or what do you have to see for you to designate a loan as special mention? Does the borrower have to triple covenant for that to happen and what actions do you take with a borrower after it goes on special mention?
Tim Bruckner: Let me take this one. Thank you. Tim Bruckner and this is something that worth. I am pretty proud of. Dale mentioned throughout the initial discussion comments, there’s a few things that are just foundational to our credit process. First, in all areas, we assess risk is covered and uncovered, okay? So we really minimize tail risk by that. Covered means you have gotten out always by collateral. Early identification and elevation are key and then time is of the assets and solving problems. We manage tail risk by managing our uncovered exposure by getting to that early. To do that, we have to be pretty mechanical in our process. So to answer your question directly, in all cases, special mention loans are current and paying as agreed.
