Raj Singh: It’s a one-off situation. Is it — the when you audited financials come into question, it’s not about the industry. It’s about just that one situation.
Will Jones: Got it. Understood. Thanks. And then just thinking holistically, you have mid- to high single-digit expense growth year-over-year. I appreciate the guidance. So, you think that the margins still cause a little expansion from here? Just putting the two together, Raj, do you feel like you could still grow revenues over the mid to high single-digit expense guidance and still maintain some of your positive operating leverage as you move to 2023?
Raj Singh: Yes. Yes. Over time, I absolutely agree that that’s what we’re shooting for, and that’s what we will get to. It may not be that literally every quarter. And it is a tough environment to try and achieve that in. But remember, we’re making investments not for the next six months or for the next even 12 months. Some of these investments we’re making are multiyear investments with multiyear payoffs. We had a lot of discussion this time around during the budgeting season as to — this is a year of slowdown, possibly a recession. The curve is inverted. Should be pulled back on investments? And you really cannot take a very short-term view of investing. You have to take a longer term view. So, the things that we put into motion, we’re not going to pull back because the next couple of quarters might be a difficult banking environment or there may be a recession in the second half of the year.
You’re hearing me talk about — we launched a plant the last year. We’re launching something in Dallas this year, possibly new markets next. These are all long-term investments, so are some of the technology investments. So, you can’t yoyo your investing sentiment quarter-by-quarter or even year-by-year. You really have to stay the course. We have — from an expense to asset ratio, we’re one of the — not just better, one of the best banks in the country. I sometimes argue that we’re not investing enough, which is why our ratios are as low as they are. So investing on a steady pace is important. Revenue, unfortunately, it does get a little bit €“ it’s more tied to the environment that we’re in, and this is a tough year, but next year will probably not be.
So but over a period of time, which you just said is our expectation revenue will grow more than expenses? Absolutely. Otherwise, why do it.
Leslie Lunak: And I will say currently, our forecast is for a modest amount, not a lot.
Raj Singh: Yes.
Leslie Lunak: But a modest amount of margin expansion next year. Obviously, as Raj alluded to earlier, the hardest part about that to predict is the deposit environment.
Raj Singh: Yes.
Will Jones: Right. Got understood. Great color, Raj. We appreciate that. And that’s all the questions I had. So, thank you.
Operator: Please standby for our next question. Our next question comes from Timur Braziler with Wells Fargo. Your line is now open.
Timur Braziler: Hi, good morning.
Raj Singh: Good morning.
Leslie Lunak: Good morning.
Timur Braziler: Maybe circling back to that last comment from you, Leslie, on margin expansion next year. I guess what’s the rate environment or rate outlook that you’re using that guidance? And then just looking at the deposit spot rates ending the year versus the average, it seems like there’s going to be a headwind in the first quarter.
Leslie Lunak: Yes. Yes.
Timur Braziler: Is that kind of back-end loaded that comment, or do you think there’s enough happening on the asset side to offset some of the funding
