HOPE
#I think the increase that you see that are related to anything related to the Hanjin bankruptcy, you're going to see in the downgrades to the increase in special mention categories.
So our classified category is not actually impacted yet.
So we have parked everything as special mention.
As <UNK> mentioned, we identified all those borrowers I think proactively in the third quarter.
We have, I would say, a number of credits there that we're looking at.
As far as other categories, other types of industries that make up the special mention, the increase is really spread out.
And the way I see the portfolio, they're not really one-offs.
They're just more proactive management of the portfolio.
And when I look at the loan amounts there, they're fairly well diversified.
You're talking about much smaller dollar amounts, and really across different industries.
And so I think this is more a proactive management of the portfolios rather than any type of credit concern that we're seeing there.
I'll have to get that to you.
I don't have that one in my head.
Yes.
There's a lot of pluses and minuses.
So you're correct in the numbers you're looking back at.
I tend to turn that around, and as I'm analyzing it look at it in terms of efficiency ratio.
If you back out the merger-related expense, we're at about a 48% run rate right now in these numbers.
I expect that ratio to go down in the fourth quarter, probably in the 46% to 47% range.
And as the cost cuts from the branches and so forth and post conversion, we should be getting to the kind of targets we talked about when we announced the deal of the mid to low 40%s next year.
As a run rate when we complete the cost cuts.
Probably about mid-year.
I'll start with the base case and I'll let <UNK> ---+ <UNK> likes to give the negative and positive cases.
The base case, I would just look at the current quarter without the sort of unusual activity of one large customer and the impact of the Hanjin classification.
The provision would have been less than half of what we reported.
And that, going forward it's going to be very much dependent, as you suggest, on the migration of individual credits.
I suspect <UNK>'s going to tell us it's kind of early ---+ the definition of special mention is we're watching it and we're not really anticipating a loss yet based on what you know.
You want to add any color to that, <UNK>.
That's bringing Wilshire onto our books.
Loans that were classified at Wilshire are now acquired classified loans.
Okay.
Thank you, Gary.
Once again, thank you all for joining us today and we look forward to speaking with you next quarter.
Thank you.
