Good morning, and welcome to the East West Bancorp Second Quarter 2016 Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ms. Irene Oh, EVP and CFO of East West Bancorp. Please go ahead.

Good morning, and thank you for joining us to review the financial results of the East West Bancorp for the second quarter of 2016. Also participating will be Dominic Ng, our Chairman and Chief Executive Officer. We would like to caution you that during the course of the call, management may make projections or other forward-looking statements regarding events or future financial performance of the company within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may differ materially from the actual results due to a number of risks and uncertainties. For a more detailed description of risk factors that could affect the company’s operating results, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2015. Today’s call is also being recorded and will be available in replay format at eastwestbank.com. I will now turn the call over to Dominic.

Thank you, Irene. Good morning and thank you for joining us for our earnings call. Yesterday afternoon, we were pleased to report our financial results for the second quarter of 2016. Net income for the second quarter of 2016 totaled $103.3 million, or $0.71 per diluted share, a decrease of $4.2 million in net income, or 4% from the first quarter of 2016, and an increase of $4.5 million in net income, or 5% from the prior year quarter. The lower net income in the second quarter of 2016 compared to the prior quarter was largely due to an increase in provision for credit losses as a result of stronger loan growth and higher tax rate. For the second quarter of 2016, East West achieved a return on average assets of 1.27% and a return on average equity of 12.71%. Additionally, we’re pleased to state that tangible book value increased 3% quarter-to-date and 12% from a year ago. At East West, we’re committed to creating long-term value to our stockholders. We believe that our competitive advantage as the bridge between the East and the West together with strong financial return metrics and growth in tangible book value quarter-after-quarter, year-after-year enable us to provide a differentiated value proposition for our stockholders. Overall, we deliver a strong second quarter earnings performance. We increased total revenue 2% quarter-over-quarter to $297.8 million, while keeping our expenses in check with an efficiency ratio of 44.6%. In addition, despite an ongoing challenging industry environment, we’re able to maintain a stable net interest margin of 3.31%. Heading into the second-half of 2016, our focus will remain on growing our business profitably and prudently, in conjunction with our efforts to advance our risk management infrastructure and technology, while being mindful of expense control. Total loans receivable as of…

Thank you very much, Dominic. I’ll spend a few minutes to go over the income statement items for the second quarter of 2016. Starting with net interest income, net interest income of $253.6 million for the second quarter of 2016 was $1.4 million, or 1% higher than the first quarter of 2016, and $26.1 million, or 11% higher than the second quarter of 2015. Net interest margin for the second quarter of 2016 was 3.31%, 1 basis point lower than the prior quarter. The deposit cost of 29 basis points for the second quarter of 2016 was 1 basis point higher than the first quarter of 2016, and the same as the second quarter of 2015. Cost of deposits was 35 basis points for the second quarter of 2016 compared to the 34 basis points and 43 basis points for the first quarter of 2016 and second quarter of 2015, respectively. In the second quarter of 2016, we had total accretion income of $13.3 million, of which approximately $4 million was due to accretion income recorded as a result of a large recovery of one loan. And our guidance for the remember – remainder of 2016, we’re assuming a more normalized accretion income of $8 million to $10 million per quarter. The average loan portfolio balance for the second quarter of 2016 was $23.9 billion compared to $23.8 billion and $21.9 billion for the first quarter of 2016 and second quarter of 2015, respectively. Loan yield of 4.28% for the second quarter of 2016 was the same as the prior quarter of 1 basis point lower from the prior year quarter. Moving on to non-interest income and expense. For the second quarter of 2016, non-interest income was $44.3 million, an increase of $3.8 million, or 9% from $40.5 million for…

Thank you, Irene. Well, in summary, we remained focused on growing our balance sheet and business profitably and prudently, while taking the appropriate risk management measures. We’re also pleased that while we are progressing well with our risk management and controls, we have also been able to make good strides in our efforts to contain expenses. So now, I would like to open the call to questions.

We will now begin the question-and-answer session [Operator Instructions]. And our first question comes from Jared Shaw of Wells Fargo Securities. Please go ahead.

Hi, good morning.

Good morning, Jared.

If I could – when you’re looking at the investment related kind of BSA/AML system, thanks for the color on the trends in the consulting side. Are there any – is there any shifts to higher headcount or higher compensation cost as you’re building out the system, or will it truly just really be more of a – an operating system that you’ll be able to handle with the current personnel?

Well, clearly the – in terms of headcount, and so what we used to had, it was definitely higher, because with the additional much more sophisticated system that we have and we have to hire the appropriate personnel to have the experience and the technical expertise to support that, not only at the implementation stage, but going forward in the future, we need to continue to have more senior level executive to help manage the program going forward. However, as of today I would expect that besides consulting expenses, we also have temporary employees that we bring in just to help out on the remediation program. So those type of expenses will turn off by 2017 and, in fact, most of them hopefully would not be there in 2018 and forward.

Okay. So when we look out at 2017 and forward, there should be a significant net savings from that run rate of – on the consulting side?

That’s correct, we do expect that. And just maybe to elaborate on what Dominic said, I think from where we started with the BSA team, we have definitely at this point in time increase the staffing and the costs have gone on But it’s in the run rate and the compensation right now.

Okay. And then shifting a little bit to the reduced loan growth guidance, are you – what’s really driving that? Is that more of a – on what you’re seeing from a competitive standpoint from the yields, or is that that you’re reluctant to get closer to that 300% concentration, while you’re going through this investment of the BSA? And I guess what’s the biggest driver of the lower outlook on loan growth?

Well, there’s a few different things. One is that, if you looked at the current rate, we – particularly on the commercial real estate side, first of all, I think we’ve done really well just for the last six months that we have quickly participate out and sold commercial real estate loans. And that the idea is not necessarily that, because even at the time the last six months, we never once really sort of like reach beyond the 300% concentration threshold set up by the head of IEC. But we wanted to always act ahead of schedule. So we’re using the last six months to quickly test out ability. That is that if we do need to sell down loans, can we do that? And we were quickly able to participate out a bunch of loans to other banks. And so that have proven our secondary market channel is working very well. So and then by doing that, we’re now down to 265%, so we definitely have a lot of cushion. If we wanted to make loans, we will, but we’re not going to go out there just to grow loan by doing some very low rate and depress our margin and then hurt our profitability. So it’s just a matter of like trying to balance profitability to growth. And we have pretty healthy growth for many years. East West has always been a growth organization. We have always been consistently for many, many years growing our earning per share and loan and deposit and so forth. So we’re not worried about the growth, but we wanted to make sure that we continue to have some pretty strong discipline in the margin. So recognizing what the Brexit and the rate coming down like this, we’re just being prudent. And…

Great. Thank you very much.

Our next question comes from Jennifer Demba of SunTrust. Please go ahead.

Good morning. Just wondering if you can give us an update on your energy loan portfolio and what you’ve seen in terms of growth, if any in that bucket? And overall, what you’re seeing in Texas and what that market is providing you in terms of growth opportunities outside of energy?

Well, we are moving along prudently. So, in fact, as of March 31, and end of the first quarter, we had $53 million outstanding balance and then $65 million commitment. And then at the end of the second quarter, it went up to $103 million in outstanding and $132 million in total commitment. So the team is continuing to make strides. And I expect that in the third quarter, we’re going to see another bump again. So in terms of – since I mean, we started with zero, so the growth rate is very high. But then relatively speaking the number is not that big and we intentionally asked the team not to jump too fast, because while we enter the market at a very opportunistic time, November of last year, and our expectation were and that if we came in such a very depress environment, chances are the downside risk is very low and the upside potential is very high. And so, as of today, it turnaround exactly what we expected. And but still we didn’t wanted to go in, jump in too quickly, because we want to make sure that we can also organize and then not only that the team to understand the business quickly go out there and do what they need to do to capitalize on the opportunity. But in addition to that, we want to make sure that the rest of the organization that have anything to do with lending. So to understand and appreciate that business, and that do take a look at more time. And so, from that standpoint, if we wanted to grow that business by like another $100 million, $200 million, it’s actually very easy to do. But we chose to do it slowly and prudently. So that to make sure that we get it right, and then also to establish our name appropriately in the market.

Thank you very much.

Our next question comes from Dave Rochester of Deutsche Bank. Please go ahead.

Hey, good morning, guys.

Good morning, Dave.

A quick question on the expense side. Do you have any additional insight into the total expense trend heading into 2017? And do you think it could be possible to keep overall expenses flat with 2016 ex that tax credit amortization start?

Yes, I think so. At this point, certainly, with every quarter and moving forward on our BSA/AML remediation efforts, we have a little bit more clarity, and that’s also why we’re able to kind of reduce our expense guidance for the second-half of 2016, as well. And I think at this point, I’d say although as every quarter progresses as you know, we’ll come out with our guidance for 2017 in January of next year. But I do think we have more clarity. And if you look at the run rate, certainly, extra $62 million were actual and estimating for that tax credit amortization. I do think we could be in line.

Great. And then just switching to a loan growth guide, you made a comment about rates playing a role in your decision to grow. Are you anticipating this will be more of a temporary slowdown, where you ultimately end up raising that growth rate against at the end of 2017, or given what you’re seeing that you think this will be more of a permanent adjustment?

Well, this is really depending on the overall economy. We have – there were a lot of the news out there, like this, Brexit it’s something that this is quite unusual for 2016. And quite frankly, if you look at just whatever happened for the last few weeks, it looks like always much to do about nothing. But I think from my perspective, I would expect that likely not be that easy in euro. And so it maybe just a – I mean, it look like a temporary setback for few days and that the market rebound. But I do feel that those slowly gradually, there will be some ripple effect and then Europe and also in the global market. Now, I do wanted to point out though that from an East West perspective, as a financial institution, we are substantially in better shape than many other banks, because our sort of like the European exposure is almost done. We mainly focusing on U.S. and China. And so, therefore, there’s not going to be any sort of like very direct impact to us. But on the other hand, it will have an indirect impact in the overall economy and it will therefore affect interest rate and also the sentiments of many businesses throughout the country. And with that we just have a little bit more cautious and prudent mindset in terms of how to deal with that. And then who knows what’s going to happen in 2017 and after the presidential election. So a lot of things are happening, so we don’t know what’s going on. And so at this point that’s what we take the position. But on the other hand, the minute the market come back strong and people, I mean, let’s say business sentiment coming stronger and then focused on utilizing out just when focused on utilizing our line of credit more in a normal manner, we would immediately pickup substantially in terms of loan growth. I mean that along that we will have many more deals closing. And so I think that right now just looking at the amount of slowdown utilization with a huge difference in terms of growth.

Okay. So this in a situation at all the regulators have either remotely made a suggestion that you should slow growth rate?

No, no, not at all. I mean, again, our BSA issue have nothing to do with the loan growth. In fact…

Yes.

It’s really us trying to be prudent. And then the other thing is that, I mean, I can easily make that 10% or 12% loan growth. If I just going out there and doing more where there’s like loan to pricing on our CRE, our multi-family or single-family mortgage, we just lower the rate, and I can easily do 10% to 15% loan growth. So, I mean, that’s – growing is not – it’s not hard. But growing was – I mean, intentional diversification and growing with new sectors such as what we have been doing if you look at the last five years of East West Bank, we have been able to continue to develop business in new sectors that we were not in before using our strategy of being to bridge between the East and West. We’ve done really well in the entertainment business. We’ve done really well in the private equity, I think, particularly in the capital call line. We’ve done really well in cross-border transaction, and high tech, clean tech, life science, and now energy. Now and then I look at this quarter interesting enough. I’ve been talking about entertainment, high-tech and so forth in the past few quarters. And those two names were missed in this quarter, because while they were slowing down a little bit not that they were slowing down there, deals are now getting close. And then we turn off all deals that that got pay off, because in certain movies finish and then we got pay off. But then we turnaround and then this quarter that the one picking up the slack or the energy, or the specialty financing, or the life science, and the asset-based lending. So we have enough sectors that will continue to grow more and more of…

Okay. That was a lot of great color there, I would really appreciate that. Just one last one, if I could real quick on fee income. You had nice uptick there as the asset gains from various gains. Are you thinking you can continue to grow the fees from here, or is this, at least, a good run rate in the back-half of the year?

Yes, I think on the fee income, it does vary depending on the number of transactions and quite honestly the size as well. If you look at the individual line items LC, FX, both of those increased ever so slightly. So they were down a little bit in the first quarter. But I think, between $34 million, $35 million in the first quarter and where we were for the second quarter today $39 million, I think, it’s achievable.

All right, great. Thanks, guys. I appreciate it.

Our next question comes from Ebrahim Poonawala of Bank of America Merrill Lynch. Please go ahead.

Good morning.

Good morning, Ebrahim.

So a couple of my questions were asked. But on – moving to sort of on capital my understanding is that until you resolve BSA, I mean, you are unlikely to be doing any buybacks for M&A. Does that restrict your ability even in terms of increasing the dividend? And if growth is slowing and given your profitability, could you see the dividend be out going much about 30%?

So maybe I’ll just clarify. With the written agreement, we are essentially prohibited for any expansionary activity. Expansionary activity includes acquisitions and also de nova branching. We really don’t have any limitations from a capital perspective. We have strong earnings and I think there’s a fair amount clarity in our earnings as well along with our capital ratio. So the dividend, buyback, that’s really a function of where we see the growth and where we see opportunities. Certainly, I think with the dividend payout ratio, that’s something we internally and with the Board have discussions. Can we – we deploy those funds better and create better return for our shareholders, as we deploy that or in a buyback. So that’s something that we we evaluate on a – and discuss it with the Board. And we make that decision on an annual basis. Does that help you, Ebrahim?

Yes, that’s helpful. And I guess, I’m sorry if I missed it. But have you disclosed in terms of where the China Hong Kong loan and deposit balances were at the end of the quarter?

For China and Hong Kong, the loan balances were about the same as of the end of the first quarter $1 billion or so. Deposits also, I don’t think in total, they change that much.

Understood. Got it. And one thing….

…about $1.2 billion or so.

Understood. And is Dominic’s comments at all sort of competition and what’s happening in terms of as a resulting sort of slower growth in CRE and the other areas also sort of translate to what you’re seeing in terms of the China business term?

In China, it’s interesting. I think that, China is actually slowing. China is also going through a direction that they wanted to make sure that they have healthier GDP growth, so they are slowing down the growth and making sure that they are growing in a direction that would have a long-term sustainable benefit. So from that standpoint and then going through a very aggressive reform. So as you can – as I talked about in the past, they have for years been carrying the country with double-digit growth in the heavy industries, let’s say and the manufacturings and then the heavy commodity business, whether it’s the steel and a coal mining and a steel manufacturing and also a lot of those, let’s say, are making garments and toys and electronics products and so forth. That was the bread-and-butter business, export driven business for a few decades. And as the country continue to grow in the new direction and trying to go from an emerging country to a developed country, and they’re going to need to have stronger domestic consumption and also service industry has to be a primary driver. So we and witness now in China is that, the business are completely changing direction. The high growth business are the one in social media in the service-oriented business and in domestic consumption type of areas. And then the business that are going through a hard time and then really going in a negative direction in terms of growth rate are the one in these heavy manufacturing and export driven business. So from that standpoint, we at East West Bank and also are transitioning. And years ago, we had a lot more business that are exporting to United States. So the trade finance that we were involved with were in…

Understood. Thanks a lot for that clarification.

Our next question comes from Joe Morford of RBC Capital Markets. Please go ahead.

Thanks. Good morning, everyone.

Good morning, Joe.

I guess just – I understand it’s a lower margin guidance. Are there things you can do to help, defend the margin be it mix changes or running off more higher cost funding, or do you see it more of just an issue of not exacerbating it by booking lower price credits?

No, I think you listed out all the options of what we could do to defend the margin. And those are exactly all things that we’re working on, right, as far as trying to keep the pricing up, running off some higher cost deposits with our kind of a loan to deposit ratio and the liquidity, we’re comfortable doing that. And then also on the security side, it does help a little bit, but not that much candidly, given where rates are, our duration is pretty well. So that is something that we would be okay extending that a little bit as well. So all of those will help incrementally, and all things that we are looking at and actively seeing what we could do to improve that.

All right, okay, I understand. The other question is just on the expenses, given the expectations that consultant cost will be coming down in the second-half. What’s driving the increase in the overall run rate to that $155 million level other than obviously the tax credit investment amortization stuff?

Sure. So ex the tax credit, basically what we’re looking at is $138 million a quarter. The consulting we do expect to go down, consulting in general and then also specifically consulting for BSA. We do still expect the comp and employee benefit will continue to increase for the remainder of this year. Some of that because of what we talked about as far as pulling in the full kind of run rate of additional hires for BSA. Additionally, we are assuming as well higher FDIC assessments with the surcharge for banks over $10 billion. So those are probably the larger components. Other things, here and there if you look at second quarter, some are a little higher, some are a little bit lower, but relatively speaking that out.

Okay. That’s helpful. Thanks, Irene.

Our next question comes from Aaron Deer of Sandler O’Neill and Partners. Please go ahead.

Hi, good morning, everyone. Just wanted to follow-up on the – what’s going on with the loan portfolio there. But, Dominic, you’d mentioned that you guys have been doing some sales on the – or participation out of the some of the commercial real estate production. I wondered if given the strength that you’ve had in C&I if you’ve been doing any of that on the C&I side, or conversely if you have been doing any participations yourself where you’re not the lead bank and start to contribute at all for the growth?

Yes, in fact, we actually just in the second quarter, we participate out $20 million entertainment loans. Again, this is to test the market and want to make sure that, because the size of the entertainment growth are getting larger. And in addition to that, we are now having an opportunity to be the syndicators, and as well may get more and more established in the field. And so we think that there will be plenty of opportunity particularly in the future if there’s any kind of like potential acquisitions or deals from China to the United States. We feel we’re confidently, do we have the capability to be syndicators. And we’vce got to make sure that we have the network set up properly. So we’ve done one about selling $20 million to another bank. And then we’ll continue – you would expect that we would do more of that going forward just because the fact that that will be to make a direction that we’ll be going. And in addition to entertainment field, I think private equity capital call line and make some of the high-tech area, we’re going to see larger deals coming to us. And, but with our discipline about staying focused and not trying to stretch ourselves in that too big of exposure per individual borrower, we most likely will find participants to support us.

Okay. And then the residential book also was a big contributor to the growth. I’m wondering, is that still predominantly in the kind of non-QM products? And also curious how much of that has been driven today by foreign purchasers versus say what it was a year or two ago?

Well, it’s a combination. We started also the Fannie Mae product. So, I mean, it’s – we always going to have a – the lion shares of what I call our portfolio products for our retail customers. And in addition to Chinese investors that coming to this country buying homes. And so we have a combination of that and our traditional core retail customers, and then with our additional solo like Fannie Mae products, so those are the combination of residential mortgage that we’re making right now.

Okay. And any change in the mix of customers in terms of foreign versus domestic, that is kind of the trends have changed and restrictions on capital flows?

No, it’s really not that. We never really was that sort of like active in terms of like every single one of these foreign investors in the homes come to East West for loan, that’s actually not quite a contrary, that’s not the case, because most of these foreign buyers pay, I mean, cash to buy their home. And so now most of the – now, we do have plentiful of what I call Chinese investors that have made a decision that move the family here to establish their household in United States whether it’s in California, or New York, or Texas, et cetera, or like up in Seattle. And we do have – I would say the lion share on that kind of business. But these are customers that I’m not like a one-time deal with us. They actually made a commitment to make a home purchase here. Now, the husband often times feel traveling back and forth, doing business between sort of U.S. and China, or maybe doing most of the business in China, but their family moved to United States. So we do a lot of that type of mortgages for these type of household. But then in terms of folks that are coming out here like a – on a tour bus and then a whole – like a whole bus of folks buying properties in San Bernardino and then Las Vegas and things like that or Florida. We haven’t been actually been fortunate to do any business like that. I mean, most of those folks are buying homes with cash.

Sure, sure. I understand. Okay, great. Thanks for taking my questions.

Our next question comes from Matthew Clark of Piper Jaffray. Please go ahead.

Hey, thanks. Just a couple of quick ones. SBA gains, any expectation for those gains to step up here in the second-half?

I’m sorry. I didn’t quite hear your question of what gains?

Your SBA gain, just wondering, I know it’s – a lot of the…

Oh, SBA?

I know a lot of the gain on sale this quarter came from portfolio loan sales. Just curious what you might be seen in SBA in the second-half?

Yes, SBA, during the second quarter, I believe we sold about $21 million of SBA loans, that contributed largely to the gain of $2 million or so. Overall, I would say that what we have been seeing and we’ve been hearing is that for the secondary market for SBA, these are the 7A loans. And the gains are in general coming down, let’s say, even last year we’re talking about a double-digit gain, and now we’re seeing lower level. So I don’t think as a percentage of loan origination, you’re going to see an increase in that. Certainly, we’re encouraging the team to increase originations of those, and I think that there’s some more opportunities there for us, but I don’t think that the gain percentage is going to increase that much.

Okay. And then do you have the trade finance balance in terms of loans outstanding at the end of the quarter?

I don’t know if I have that right off the top of my head in – we could give you that at the end of the call. I think overall, although it was down a little bit from where it was in the first quarter.

Okay. Thank you.

Our next question comes from Chris McGratty of KBW. Please go ahead.

Hi, good morning. Thanks for taking the question.

Hi, good morning.

I may – good morning. I may have missed in the prepared remarks. The security yields went up additional amount this quarter. I’m wondering if there’s anything unusual maybe this quarter, or maybe in the first that we should be considering for the back-half?

Yes, nothing that is usual. Overall, to look at point-to-point, the duration actually decreased from March 31, at $630 of the portfolio. But the yield – there was also a mix of – we had during the quarter of the first quarter much more liquidity, which we knew some of that would exit during the year. So that impacted the yield more so.

Okay. So the $155 million is – that’s a good number for perspective, okay.

Yes, that’s right.

How should we be thinking given where rates are, the overall size of the portfolio? Are you putting, I know in your prepared remarks, you said you maybe extending a little bit. But should the size of the book kind of maintain or we’d fund loan growth of liquidity?

We really – I think as the size of the loan book, I don’t think, we’re expecting it to change substantially. I think as we continue to grow the balance sheet and we look at the mix as far as the earning assets, loans versus a security and then also obviously from a funding perspective and try to balance that out, maintain that profitability as well. A lot of excess kind of liquidity that we have is what we deploy in the securities book and by securities, I mean, available for sale or repose on short-term as well. But that overall mix shouldn’t change that much.

Great.

First quarter was a little unusual given the high volume of kind of deposits that we ever had.

Okay, that helps. Maybe one more if I could on the reserves. We’re approaching 1%, obviously your credit numbers look really a little bit strong. How should we be thinking about ultimately a trough in that ratio as we head out to the back-half?

Yes. So the allowance ratio, certainly, it is a mathematical equation. We are given that generally speaking credit trends are positive, it has continued to kind of creep downward. We would realistically like to keep it above one. But certainly, it’s a function of what happens to the overall kind of loss rates, the migration, et cetera.

Great. Thanks a lot.

[Operator Instructions] Our next question comes from John Moran of Macquarie. Please go ahead.

Hey, thanks. I just hear you on the caution around CRE. I think in your prepared remarks you said BC call lines in life sciences were good pockets of growth in C&I for you this quarter. I think some of the competitors that you guys have in that space sort of been a little more cautious saying that there’s some froth there. I’m wondering if you’re pulling back there too, or do you sort of continue to see an opportunity to take share and good risk-adjusted returns there?

Well, in terms of the private equity capital call line, we have been having some pretty healthy growth. And at this stage right now, again, we’re not going to be expecting some extraordinary high growth in that area. And because mainly from a – as a internal discipline point of view, because we really would not allow any particular sector within the overall low portfolio to just suddenly charge up and go in a substantially higher rate than direct simply, because we don’t wanted to create a dramatic imbalance. So our position has always been that we will continue to make impact in the market. And then to remind is that, we have a very unique value proposition, many of the banks out there whether if you look at from a private equity capital call line from a –what was entertainment and more – a lot of the other business sectors they’re in, they’re coming from a more generic angle. And we on the other hand, we pride ourselves the bridge between the East and West. And we always have a unique value proposition. Our knowledge about the Greater China region, the business that are coming from China. In fact, instead of decreasing as everybody talked about that China is slowing down economy and slowing down GDP and so forth. But actually have increased more dramatic than ever had before. They have more money coming from Greater China region to United States and they’re investing in many different sectors. So we naturally have the advantage of being one of the first to greet these potential investors and to get into various kind of business. So with that in mind, I think that with our unique value proposition, we have a little bit different kind of angle. What we win business is not like a traditional way in going out there and then lower the pricing or world’s tradition way and China do it a little bit more aggressive. But actually, we provide unique value proposition that the other banks were not able to offer. And with that and then we’re able to win some business. So we’re going to grow in that direction. And so whatever we can get, I mean, and that kind of like as general direction is, what we end up going. And then with a discipline of making sure we don’t get out of control, because as I said earlier about the energy and that’s kind of like with no burden from the stress energy credit and to go out there in the Texas market with the capital and with the balance sheet to be supported, we could have grown substantially a bigger portfolio today than I look hundred some odd million commitment as of today. But we try to do it prudently. And so we’re going to be following the same kind of pattern with all of the areas that we are being – we’ll be working on.

Great. Thanks very much. The rest of mine are – has been answered.

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Dominic Ng for any closing remarks.

Well, thank you all again for joining our call. And I and Irene are looking forward to talking to you again in October. Bye.