Ron Nicolas: No, I think that’s good, Steve. I was just going to confirm that the impact last quarter was that at 4 basis points on that nonaccrual. So we didn’t get some lift from that item alone but that’s — I agree with what you just stated.
Andrew Terrell: Last but not a question. But Steve, I got a LinkedIn notification this morning, reminding me to congratulate you on 24 years at Pacific Premier. I’m not sure what exactly the bank looks like in 2000, but I know there’s been a lot of progress made since then. So congratulations.
Steve Gardner: Thank you, it’s a team effort.
Operator: [Operator Instructions] The next question is a follow-up from Gary Tenner with D.A. Davidson.
Gary Tenner: I just had a quick question on credit. In your slide deck where you have the ACL kind of waterfall, you talked about adding $20 million related to the economic broadcasts and other updates. If my math is right that your ACL or the allowance on the unfunded — for unfunded commitments then came down, again, around, if my math is correct. So I’m curious about kind of the dynamics there of increasing the ACL on the funded piece and maybe bringing it down the unfunded unless it was just a function of commitment levels?
Ron Nicolas: You nailed it, Gary, there at the end with your last comment. The unfunded did come down, I think, $4 million or $5 million and that was directly a function of lower commitment levels. We saw, again, with $355 million of new draws, it effectively shifted that $355 million from the unfunded bucket, if you will, to the funded bucket. So that was, if you will, the kind of the shift between those two elements of the ACL.
Gary Tenner: So some of those were seasonal kind of just temporarily over year end, you might just see that swing back in the other direction?
Steve Gardner: I mean on the funding side, yes, that’s a possibility.
Operator: The next question is from Adam Butler with Piper Sandler.
Adam Butler: This is Adam on for Matthew Clark. I’m not sure if this was touched on, but in terms of the origination rates on new loans this quarter. Is there a reason why there was a step down?
Steve Gardner: Some of it was the mix. We did, for various existing clients, some multifamily and that had an impact on the yield.
Adam Butler: And then it was nice to see capital increased to TCE quarter-over-quarter. In terms of our outside supporting organic growth and loan growth, if that doesn’t shape out your expectations. Do you have any excess capital deployment initiatives outside of that?
Steve Gardner: No, not specific. We obviously pay a very healthy dividend. And although we have a stock buyback plan in place, we haven’t exercised it for a couple of years and really owing to the uncertain environment. Like everything, that changes over time. We’ll see how things play out. But right now, we continue to retain higher levels of capital, given the environment, but where we see opportunities such as the securities repositioning transaction, in large measure, given our high levels of capital, we were able to do a rather significant transaction there that over the long term will benefit shareholders, and that’s going to continue to be our approach here for the foreseeable future.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Steven Gardner for any closing remarks.
Steve Gardner: Thanks again, Gary. And thank you all for joining us today. Have a nice afternoon.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
