Leslie Lunak: I’m not that focused on what happens quarter-by-quarter because that’s extremely hard to predict. But we’re using the forward curve. So this has Fed funds peaking at 5% in the second quarter and dropping to 4.5% to 4.75% by the end of the year with an inverted treasury curve throughout the year. So that’s the forward curve that underlies those estimates. But as I said before, the wildcard is the deposit environment, as Raj expressed, we’re very confident that we can grow core deposits this year. Based on our geographic expansion, the growth of the Florida economy, the producers that we’re adding, our business people are very confident that we can grow core deposits given the environment that we think we believe is going to play out. So the Fed’s been on the brake harder, the environment will be more challenging than we think that, that margin prediction could come under pressure.
Timur Braziler: Okay. And maybe just asking you to look at the deposit crystal ball over time. But on the way down or once the Fed stops at least hiking, what’s the expectation for the deposit environment in your geography? I mean, I’m assuming it’s going to remain competitive, but could you actually see deposit pricing continue to increase if the loan demand is still there, or do you expect it to kind of tail-off at a similar pace to what it did on the way up?
Raj Singh: You’re asking about, not just in the next six or 12 months, but beyond that. And it’s very hard for me to say what the deposit environment will be like. But there is a lag. On the way up, there is some line on the way down as well. And — but it’s really hard for me to predict what will happen when the Fed starts to pull back. I don’t know what the loan demand would be like. I don’t know what the economy will be like. Will we be in a recession or not? It is, I would say, the best €“ it will be hard actually for you to even go back at that last cycle and try and look at that €“ but last cycle was really weird. But we’re not going to have a effect going to zero overnight kind of a situation. It’s going to be a slow, slow drop, a very gentle decline is what I think will happen with effect. But it is very hard for me to say what will happen a year out.
Leslie Lunak: Yeah. I do think the more rate-sensitive part of the deposit portfolio will respond very quickly, either way on the way up or the way down. But with the more core portions of the deposit portfolio, I think you see a lag on the way up, but you also see a lag on the way down. And it is very difficult to predict. I wish I had that crystal ball more for you.
Raj Singh: And remember, it’s even more complex for us, because a lot of our deposit business is in one way, shape or another tied to the €“ the real estate business, right, the refi business, which is dead right now, or even the purchase business, which is not doing that well. So, we could have a mini refi boom before you know it. I mean, if the tenure is floating with 3.35, that could happen and that could actually help that will help the warehouse business, but that will help the deposit business as well. It’s a lot of pain that we felt this year was from the title insurance space.
Leslie Lunak: Yeah.
Raj Singh: And that industry is a deep recession, so to say, if you talk to anyone in that industry. But that could come back. That’s very risk sensitive. And that doesn’t have to move too much. It’s just the long-term rates keep doing what they’re doing. You could have a significant pickup in activity. We’re not counting on that, but we’re very consistent of that sort of coil spring, if you were to say.
