Steph Scouten: Yes, perfect. Great color, George. I appreciate it and congrats again on all the record results.
George Gleason: Thank you, Stephen. Well, I want to give a shout out to our Cindy Wolfe and Ottie Kerley, our Chief Deposit Officer and Drew Harper, who manages our wholesale funding that deposit team and all the guys that worked for Ottie and Drew and Cindy there, have done a really good job of making adjustments to what we thought our interest rate risk profile is. And we have had a really nice expansion in our net interest margin, core spread, net interest income and that just didn’t happen. They have been very strategic in the way they have managed that on the liability side as our asset guys have and the team deserves a lot of credit for how well they have managed that. Thank you, Stephen.
Operator: Thank you. Our next question comes from the line of Manan Gosalia of Morgan Stanley. Your line is open.
Manan Gosalia: Hey, good morning. Thanks for taking my questions.
George Gleason: Good morning, Manan.
Manan Gosalia: Good morning. So I just wanted to follow-up quickly on the last line of questioning. So I guess with the new cities that you are putting on and the fact that you are reducing the term of those cities, should a large chunk of the CDs come due for repricing towards the mid to end of 2023. Did I hear you right there?
George Gleason: Manan, I would say that they are more laddered out throughout €˜23 and into early €˜24. So it’s a pretty well-managed ladder. We have got CDs maturing everyday and we have kept a considerable focus on keeping that distributed fairly even so we can just manage that effectively instead of having big chunky pieces of it maturing here and there. So it’s very well diversified on a day-to-day basis throughout €˜23 and into €˜24.
Manan Gosalia: Got it. Perfect. And then maybe just a big picture question on repayments just given that the refi market takes out a larger portion of your loans, I guess just based on your conversations and given how close we are to peak Fed rates. How quickly do you think that the capital markets can open up and push sponsors to move to more permanent financing? And maybe you can just add and based on what €“ how you have seen this play out before I guess, what’s the best estimate in terms of how high repayments can go this year?
George Gleason: Well, again, we have said that we think our RESG repayments will be in the range that we achieved during 2021 and 2022. So that’s $6.22 billion to $5.65 billion is the likely number there. It could be a little more than that. It could be a little less than that. But we are thinking that, that is the range for repayments next year. And I would tell you that the capital markets are not closed. Transactions are getting done. Sponsors were just not as excited about the rates they are getting as they would have been on rates a year ago. One phenomenon that we have seen and I want Brandon to comment on this, but one phenomenon that we have seen in the past, Manan, in response to your question is, if sponsors tend to think that they are going to get a much better exit 6 months or 12 months down the road than they are today.
A lot of times, they will stay in our more expensive construction loan a little longer if they think they are going to exit today at a 7% long-term rate and they think it can get a 6%, if they wait now more months, they will tend to stay in our loan a little longer to get that better exit. Sometimes they do that, sometimes they are just ready to put the permanent bed and go on down the road. But Brandon, do you want to comment on refinance activity next year or this year in €˜23?
