Marty Grunst: And Brandon, if you look through to the state level GDP and state level employment for our footprint that still remains very strong. There’s no downturn there at all.
Brandon King: Okay. And within that and the tailwind from the competitive environment with these opportunities that you’re getting are you able to get kind of higher loan spreads or better economics on some of these deals you’re getting today?
Stacy Kymes: There’s no doubt. I alluded to that in my prepared comments that we are seeing particularly on the higher end of the corporate space, deals are pricing upward whether it’s from fewer participants in the market, are those beginning to price for higher capital requirements on the higher end of the banking segment, we are seeing that a 25 to 50 basis point increase in loan spreads, I think that that will take some time to work through the portfolio effect. But clearly, that’s an opportunity as we move forward.
Brandon King: Okay. And then just lastly for me. Is there any way you can provide kind of a spot cost of deposits at the end of the quarter?
Marty Grunst: Yeah. There’s not really a way to do that in particular. New production — if you look at our CD rates that we’re offering, we’ve got rates in the upper 4s and 5s as new production for that varies by market but that’s probably what we’ve got for you.
Brandon King: Okay. Thanks for taking my questions.
Marty Grunst: Thank you.
Operator: Our next question comes from Matt Olney with Stephens. Please proceed with your question.
Matt Olney: Thanks. Good morning. Just a few follow-ups here from some previous questions. On the customer hedging activity, obviously a good quarter in 2Q. It sounds like this is mostly from energy customers. Would love to appreciate, if you think there’s some good follow-through there potential for the back half of the year?
Stacy Kymes: Yeah. I think the hedging activity there I mean, it was a record really in the second quarter, but it’s been strong for us both on the energy side and the interest rate derivative side, both experienced really strong second quarter. I think the shape of the yield curve is going to help on the interest rate derivatives side. I mean, it’s odd that you can go out and hedge out three years at a cheaper rate than the spy rate, but that is the case today. And so that’s helping a little bit on the interest rate derivative side. And as we talked about with natural gas future prices and frankly oil prices, the market is in a good place to hedge to swap future prices and do it in a way that’s conducive to our customers. So whether it’s the same level as the second quarter, it’s hard to forecast that in a highly volatile segment. But I think that there is good momentum to be able to still have that be a very strong segment for us.
Matt Olney: Okay. Appreciate that Stacy. And then in the press release there was a mention of the $8.1 million gain from merchant services. Just remind me what line item this flows through.
Marty Grunst: Yeah that flows through the other gains and losses kind of right below the fee income.
Matt Olney: Okay. I see it. Perfect. And then, on the trading securities, Marty I heard your comment that the end-of-period balance could be a better starting point for 3Q than the average. I guess from a balance sheet standpoint on the other side of the balance sheet, remind me of how that’s typically funded?
Marty Grunst: Yes. So we can use either FHLB or repo either one whatever is cheaper. And so, it’s just the short-term wholesale.
