“And our expectation as we go into 2024 is that that normalization will continue. Delinquencies will continue to kind of move up and nonperforming assets will continue to move up.”

In context

“ndustry, I think there is some tightening that's going out there. Certainly, from a competitive standpoint, we are seeing that to some extent. But we feel like we're in pretty good shape. If you end up looking at our situation, as Andy said, probably the area that we're monitoring the most is commercial real estate office space specifically. We have a reserve that's about 10% of the overall balance there. We have been increasing that, and we're likely to continue to increase that because that's going to be a pressure point. But we're starting from -- if you think about the overall portfolio, we're starting at fairly low points. Our non-accrual loans is only 35 basis points of total loans. Our allowance is strong at 208. Delinquencies are still at relatively low levels although increasing. And our expectation as we go into 2024 is that that normalization will continue. Delinquencies will continue to kind of move up and nonperforming assets will continue to move up. But I think we're in a really good position in terms of the allowance coverage that we have, and we feel pretty good about that. Gerard Cassidy: Very good. Good to hear your voice, Terry. Just to follow up on what you were saying from a competitive standpoint, do you sense -- the extreme, of course, was '05, '06 when all of the crazy lending is being done by some banks, but also the nonbanks. When you guys look at the nonbank competitors, are there rogue players out there that are just doing crazy things so that the second derivative impacts the banks, not because any of the banks, yourself included, made a poor underwriting decision, but it was the competitors that really did something foolish and now the banks are suffering a bit? Or again, not like '06, I'm not suggesting we're there,”