Jeff Rulis: Okay. And then on the — back to the premium finance sales, kind of the testing the plumbing. I imagine some of that is just kind of mix management. But was there a credit portion to that? I mean, now that it sounds as if you’re going to slow some of those sales despite a little pickup near-term in non-performers or non-accruals, anything else on the premium finance that you might — that’s got a credit tinge to it that you want to kind of — like you said, you’re always looking at exiting riskier portfolios. Is there some concern in that book, I suppose?
David Dykstra: No. We didn’t — that sale really wasn’t at all for credit. It was all a liquidity play and testing that for liquidity reasons. We — as Rich said, we really think those portfolios are low cost portfolio, so we don’t worry about them from that perspective. And even on the life side, like Rich talked about, I mean you’ll notice that the $10 million that was non-performing, it’s still accruing. We generally — we’ll allow some of these to go past due. But if for some reason, we are no longer 100% collateralized and we’ll unwind the policy. So we just don’t feel like and you can see historical loss rates of 0 basis points over the history of that portfolio would indicate that, that’s how we manage that portfolio. On the P&C side, we’re not worried about the economics over the credit side of the equation. So the sale had nothing to do with credit. It had everything to do with liquidity.
Jeff Rulis: Okay. Appreciate the clarification. Yeah. It sounds pretty short duration stuff, anyway. I guess one last one on the — just back on the margin. Sorry to kind of beat up on this, but the — it sound like pretty back-end loaded loan growth in the quarter, talking about deposit pricing moderating. I guess is the — in the short term, that kind of margin stability, is that conservatism kind of expectation of maybe more hedging headwinds or just being, again, conservative overall? Because it sounds fairly positive given those factors as you lead into the fourth quarter.
Tim Crane: Yeah. I would think I would say it’s fairly balanced. I mean we still have a CD book that reprices upward. I mean there will be movement in deposit costs. We just also believe that there’s continued asset repricing, particularly in the two premium finance portfolios, which will continue to offset that. So I think it’s a pretty balanced look. We’re working hard to move the margin up as much as we can, but it’s pretty balanced at this point.
David Dykstra: I mean the hedging cost, cost us 18 basis points in the quarter, but it’s good risk management for a down rate scenario. But I’m not sure I’d use the word conservatism. We try to be realistic, and we just think we have a balanced book right now. So we think the margin will stay relatively stable. You could have a lot more deposit growth than you thought and maybe that puts some pressure on the margin, but that’s okay because you bring in good deposits that adds to the franchise and allows you to fund good loan growth. But — so the timing may go said, it goes up a couple of basis points or down a couple of basis points, but we think it will be in a relatively tight band going forward, just because of the structure and the repricing nature of both the sides of the balance sheet. That’s all.
Jeff Rulis: Maybe just the last one then. Just the ideal environment that — for the rate environment. If you think about margin a little further out, I mean, maybe that’s the point of the hedges to keep it somewhat stable. But I guess if we spoke to it specifically, if the Fed does nothing, if we hike or we get cuts over time? And I guess, what would be the — if we look at the balance of ’24, the way you’re positioned, what from a Fed standpoint is ideal?
Tim Crane: Well, as we talked about, we’re much more neutral than we had been. And you can see that on, I think it’s Table 12 — Table 8, sorry. We still are asset sensitive. We benefit a little bit if rates continue to stay high or move up. Who knows, we may get something in December or January here if the political kind of issues quiet down. But we’re pretty square at this point. And so we’re going to grow net interest income primarily through growth at this point, and that’s what we’re focused on doing.
Jeff Rulis: Appreciate it. Thanks.
Tim Crane: Yep. I guess the other thing I would add is, obviously, not only is the hedging program helpful, but if rates turn down, the mortgage business will pick up relatively quickly. We think there’s just a lot of refinance opportunity even with a moderate move there. So again, we like the diversity of our businesses as an element in helping to kind of stabilize the performance going forward.
Operator: Thank you. Our next question comes from the line of Brody Preston of UBS.
Brody Preston: Hi, good morning, everyone. How are you?
Tim Crane: Good morning, Brody. We’re good.
Brody Preston: Hey, I just want to ask a couple of quick questions on the composition of the loan portfolio. Do you happen to have what the percent of the portfolio is that are shared national credits? And of that, what you happen to be to lead on?
Richard Murphy: Yeah. So total SNCs in our portfolio are just over $1 billion. We’re the lead on about 6% of that.
Brody Preston: Okay.
Richard Murphy: I would also kind of point out that of our SNC portfolio, much of that is really tied to the businesses that we’re in. Franchise Finance has a significant number of SNCs, where other banks are buying into our credits, we’re buying into their credits. Similarly like in the insurance space, similar things. So we’re generally not a player in just buying into other people’s deals. It really is — our approach to this is just to facilitate the growth of individual business lines and making sure that we see how other banks are managing those credits. And so it’s — we believe it’s a sound approach, but it also gives us some intel into how other competitors are working in that market.
Brody Preston: Got it. And on the office portfolio, do you happen to have what the reserve and the reserve level and the average loan to value is?
Richard Murphy: We don’t disclose loan to value. We think that is a little bit of a misleading number, because whether it’s a loan to value add based on time of origination or people are getting loans reappraised, we think it’s a little bit of a misrepresentative number. I would say that our general loan policy were typically going to be sub-70% at time of origination.
