Leslie Lunak: We spend a lot of time trying to analyze that, but I don’t — I still don’t think we know the answer to the question.
Alex Lau: Fair enough. And on the net interest margin guidance for expansion in 2023, any color in terms of the trajectory? Do you expect expansion every quarter, or at some point, do you expect a reversal of that, but still end the year higher?
Leslie Lunak: I think it’s — that’s very difficult to predict. There’s just too many external factors, particularly with respect to funding that are going to impact what happens quarter-by-quarter. I think, looking at the year as a whole, we can get a little bit better idea, but I’m reluctant to try to pinpoint what the NIM is going to be quarter-by-quarter.
Alex Lau: Got it. And just one last question on the other fee income line of $7 million. It was a little bit elevated this quarter compared to the rest of the year. Can you touch on what drove this? And if there’s anything one-time in nature there? Thanks.
Leslie Lunak: It’s just really a cats and dogs, Alex. There’s no one thing. There’s a lot of puts and takes in there. One of the things that’s been kind of volatile over the last year or so has been BOLI revenue. I don’t really know how to predict that, but it’s no one thing. There’s just a lot of puts and takes in that line item. So I don’t think there’s anything that I would necessarily regard as either something to call out specifically. I do think in terms of the core items that are in non-interest income, we’ll see a steady increase, but all the little puts and takes can be episodic and volatile. I don’t think there’s anything material enough to call out in there.
Alex Lau: Okay. Thanks for taking my question.
Operator: Please standby for our next question. Our next question comes from Stephen Scouten with Piper Sandler. Your line is now open.
Stephen Scouten: Thank you. Good morning everyone. Appreciate the time. The NIM guidance for next year is pretty encouraging relative to what we’re seeing for most of the industry for the potential pace of expansion. Can you tell me, I guess, one, is that from the 2.81% fourth quarter level, or is that more from the 2.68% full year level?
Leslie Lunak: I mean, I was really, when I gave you the guidance, was referring to the full year level. I’m taking a look right now if I can find it just to see. I would expect it to expand from the 2.68% full year. I would also expect it to expand from the 2.81%.
Stephen Scouten: Okay.
Leslie Lunak: Having said those, with caveat, again, it’s going to be a very challenging deposit environment. And if that doesn’t play out the way we’re forecasting, that you have to put some pressure on that.
Stephen Scouten: Yes. Sure.
Raj Singh : And we’re not expecting as much of a pressure as we did this year. So it’s
Leslie Lunak: No, no. It will be very modest.
Raj Singh : Yes, modest.
Stephen Scouten: Understood. Understood. I’d still say that’s encouraging, and it probably plays to an earlier point, maybe that, Raj, you said you feel like you’re getting paid for your growth, getting paid for the risk you’re taking. So can you talk to maybe what you’re seeing on new loan yields? Because I’m presuming you’re seeing some good expansion there even in light of the funding pressures.
Leslie Lunak: I think new commercial loans for the quarter, so higher at the end than at the beginning, but for the quarter, new commercial loans came on in the mid-6s on average. That’s C&I and CRE and everything we did in the commercial space averaged together for the quarter.
