Sam Sidhu: Sure. So, I think we, laid that out, pretty clearly in our outlook and our guidance and, while we see, we’re seeing sort of strength in our customer base, we’re also seeing an opportunity for very strong loan pipelines that we aren’t necessarily capitalizing on, because we think it’s very important that customers banks specifically to focus on capital and profitability. In terms of our guidance, you could have seen us, grow by an extra dollar of EPS and an extra 15 basis points, 20 basis points of NIM. If we brought in, as Carla mentioned, the higher margin loan growth on top of our incremental marginal cost of deposits, but we thought it would be much more prudent for us to slow that growth, focus on profitability, build capital, support the stock, and reduce our share count from an EPS perspective.
And to your question about the macroeconomic environment it’s €“ there’s a lot of uncertainty that I think that we all are seen. We are hopeful that the market is right, that the market has turned a little bit in the past 30 days to 60 days in terms of looking at the data. And we’re hopeful that there’s an opportunity that there’s an €“ that there can be a soft landing, however, we’re not necessarily, planning on it, but we are hoping for it.
Unidentified Analyst: Great. Thanks for taking all my questions.
Operator: Your next question comes from a line of Bill Dezellem from Tieton Capital Management. Your line is open.
Bill Dezellem: Thank you. I’d like to start with PPP loans if we could. Would you please discuss the $11 million charge-off and the opportunity to recover that, given that we think the PPP loans or government guaranteed. So, can you walk through the dynamics of all that please?
Carla Leibold: Sure, Bill. I’d be happy to do that. Just to begin, just wanted to level set. So, we had $10.5 billion of PPP loans in total of which $9 billion has been repaid, forgiven or guaranteed by the SBA. In the fourth quarter, there was a discreet population of $11 million of loans that really came from two PPP loan servicers that we worked with. The first we had disclosed a settlement with one of them in October, and we had $7.5 million that we were expected to cover any potential losses for one reason or another whether there would not be an SBA guarantee. And in the fourth quarter we did have roughly $8 million, so that was largely neutral. For the remaining $3 million, we still have contractual indemnities with our PPP partner that would allow us to recover any losses to the extent that the borrower did not pay those underlying loans. So, we think this is largely behind us, but thought it was prudent to take the charge-off in the fourth quarter
Sam Sidhu: Just to point on that, Bill just to, we’re either have had already had associated revenue against the charge-off, or we have contractual indemnification, but we are being conservative and prudently, adding the adding to provision.
Bill Dezellem: Understood
Carla Leibold: For the life-to-date program we made over $8 from the PPP program, increasing our risk weighted ratios, capital ratios by roughly 180 basis points.
Bill Dezellem: Right. Thank you. And so just to be the $11 million charge-off and the $7.5 million recovery, those two are actually related to each other and as opposed to being the independent.
Carla Leibold: That’s right, Bill. They are related to each other, but from an accounting perspective, they’re not netted in the same financial statement line item. So, you’ll see the $8 million in provision expense and within non-interest income, you’ll see a $7.5 million gain on settlement.
Bill Dezellem: Thank you. That’s really helpful. And then shifting to the CBIT, where are you at with adding additional verticals beyond the crypto industry?
