PFS
#Pipeline yield is about 360, Dave.
I guess the portfolio was around 408, if I remember correctly.
360, yes.
We build this ---+ it's not [Lego] necessarily, but I think we're spending a little time in systems to do certainly some more credit risk type events and we're certainly looking at stress testing as we move forward.
I think it's something that will be building up over a period.
We certainly don't see organically that $10 billion is there within two quarters or even a year, as we estimated.
So absent an acquisition of a material nature, we still have a little bit of time.
On the other hand, we are already building, we're also planning, we are adding maybe staff or reassigning staff to that area.
So I think it's something that is going to be a little bit more ---+ that's why we have to look at our operations to make sure we can maybe reduce some costs or utilize technologies a little bit better on the back end.
I guess that was just to note that the reason for the bump was really related to one specific credit.
There was a charge of about $1.1 million, $1.2 million on a loan that has been resolved at this point.
As of June 30th, Beacon has $2.4 billion under management.
When we did MDE, it was an additional ---+
It was $100 million higher.
I think it was $2.5 million.
$2.5 million.
So not really terrible in the way of runoff.
We had another small piece we did with Suffolk National Bank out on Long Island.
That's been holding up very well, considering it's a new market for us.
So we're pretty pleased with that.
Organic growth in that space is ---+ it's always challenging.
It is more of referral than it is just go out there and sell wealth.
Getting loans is a lot different business than that.
And I think we have a good strategy going forward to make sure the business and what we offer our clients has multipronged approaches to investment management, but also handholding and being able to pick up a phone and talk to somebody, versus some of the large firms.
I would expect it to stabilize.
It's really been a question of suitability of investment options and opportunities on the loan portfolio side instead.
I think it worked out to about 90 basis points blended all in on current production.
I think so.
I think it could probably work down ---+ if credit quality continues along the same glide path, could work down to middle to high 80s ultimately, which would translate, if you excluded the acquired book, to low 90s.
I can give you some pipeline information first.
Pennsylvania is about $53 million of the $1.1 billion, but growing from $35 million in Q1, so we're starting to pick up a little bit more in the Pennsylvania market.
That's just Pennsylvania.
We also had some activity in West New Jersey as a result of the Team acquisition, which is built into there as well.
The rate, as I said earlier, overall is about 360.
Expected pull-through on that $1.1 billion is probably about close to 60%, so maybe roughly $580 million is what we expect to close out of that $1.1 billion.
Well, certainly some smaller institutions that are suffering with deposit growth.
We did see a small competitor had a 10-month CD at 1.40%.
Some of our other competitors of similar size have money market rates of the same level; that is if they bring in a one-year relationship and do some other behaviors.
And they're advertising them pretty heavily.
So I think those are the two areas.
The CD play is going on a little bit more, as people are just trying to get some deposit balances as the loan volumes have started to pick up.
Again, we have been playing defense.
We actually will deal with it on a one-to-one basis if there's a need to be aggressive.
We've been pretty successful in the municipal market, and we also think that borrowing for four years, it makes a lot more sense than putting on a CD for 10 months at a higher rate.
Thank you.
Thank you very much for everybody being on the call.
As we move into the second half of 2015, and hopefully greater certainty regarding Fed action on interest rates, I'm confident in our ability to deliver solid financial results will continue.
We appreciate the support of our stockholders and our employees' dedication to their clients, customers and their communities.
And we thank you and look forward to speaking with you on our next call.
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