Brian Richardson: Our baseline – and this is Brian, our baseline kind of downside, down 200 scenario has NII drop in the low-single digit percentage range is what we would expect. However, the wildcard continues to be what happens on the deposit side as it relates to both customer behavior and competitive behavior of our peers. So that will kind of continue to play itself through. But there will be slight downward pressure in a down 200, say, scenario.
Tim Switzer: Okay, perfect. Thank you, guys.
Operator: Thank you. [Operator Instructions] Our next question comes from Frank Schiraldi of Piper Sandler. Your line is open.
Frank Schiraldi: Good morning.
Jeffrey Schweitzer: Good morning, Frank.
Frank Schiraldi: Just on the deposit side, just curious if you – wondering if you guys kind of remind us where given the increased seasonality where that moves to in 4Q and beyond? And do you think the next move, given the seasonality in the loan-to-deposit ratio would likely be back up a touch? Just what are your thoughts there?
Brian Richardson: Yes. Based on normal seasonality, public funds for us tends to peak out at the end of the third quarter. And then you see a slight wind down in the fourth quarter and first quarter and into the second quarter with the Q2 being 630 being the kind of low point normally for the year. So we would expect kind of that deposit to offset or compounded with our growth during the quarter to increase the loan-to-deposit ratio from where it was at 930 when you look forward to 1231 kind of back into that 105 type range.
Frank Schiraldi: Okay. And then just curious how you’re thinking about brokered at this point. I’m not sure – I think you said brokered fell in the quarter. But is that – where are those balances as a percentage of total? And what are your thoughts about where you want those to be? Is there a limitation as a percentage of total deposits? How do you think about brokered versus just customer CD?
Brian Richardson: Sure. So a $425 million is where we ended the quarter, our internal policy limits are 20% of total assets. So that would give us about $1.1 billion of incremental capacity on the brokered side. We use them opportunistically in the second quarter based on the public funds growth that we had in the third quarter. We did not, but we always kind of have that in the toolbox is something we will use to help manage liquidity in the like.
Frank Schiraldi: Okay. And then just curious if you could provide – last question, curious if you could provide a little more color on that $5.8 million loan that was sold at par after quarter end. Obviously, it seems like a pretty good sign to move at par. So any detail you can give on cycle loan, just a story behind that? Thanks.
Mike Keim: Yes. Frank, it’s Mike. That was a development loan in the city of Philadelphia. They actually ran into project delays with regard to electrical panels and the like, which is kind of common in the real estate space at this point in time. The value was above. Basically, the developer in that case was running out of money to continue to hold the property and finish up the development. So the fair value exceeded our carrying value we got out of par.
Frank Schiraldi: Okay. And so that was before any sort of mark. You didn’t take any – it’s par…
Mike Keim: The fair value exceeded our carrying value. There was no second quarter mark, no early third quarter mark, it’s just totally sold at par.
