Jeffrey Rulis: And maybe a credit-related question just on some curious second guessing on multifamily loans of late, just in the kind of listening to some other calls, I — at 37% of the portfolio, maybe just a question on kind of the long-term viability of that sector, which has been very historically very clean. Just want to kind of kind of revisit from your end, how you feel about your comfort level with the multifamily segment in general.
Jerry Baack: Well, great question. And like you said, there has been a lot of press out there on the just overall national multifamily market recently. We feel good about the portfolio. We feel good about the Twin Cities market. We’ve talked to you about this before, but the market in the Twin Cities has always been, has never really been a bloom bust market, been much more stable characteristics in terms of rent growth and with occupancy levels. There was a recent report just nationally on multifamily that we’re trying to cage overbuilt market by looking at the number of units under construction, relative to the total inventory in the market. The twin cities came in at 5%, which was lower than the national average. So I think it tells you that there’s just, you know, it’s not being overbuilt.
Also with some of the pressures on the single family market with the lack of inventory on the market and interest rate environment floating up. That votes well for the multifamily market as well in terms of the need for housing. With that said, with our covenant testing and interest rates floating up, we have seen some compression in debt service coverage ratios of projects. We expect that will be somewhat short term and then over the long-term that will come back to a more normalized ratio. And I guess the last thing I want to add is just that, affordable housing units represent a significant portion of our market and the Twin Cities like everywhere is lacking in affordable units. So I think that that is another just data point that reflects stabilization in the portfolio.
Jeffrey Rulis: And if I could, Jeff, just overall outside of multi-family, just with that credit in general, your thoughts, your watch list balances down a bit substandard up a bit. Employed NPAs and net charge-offs continue to be pretty great. But overall, kind of body language on credit?
Jeff Shellberg: No, just no, feel good. We’re probably more dialed in to the portfolio between covenant testing, between looking at repricing of loans. I think that that’s probably the — a lot of banks are looking at that the same way as one of the bigger risk factors out there. As I mentioned in the deck shows this, we have a lot of fixed rate product because of our commercial real estate focus. So that helps from a repricing standpoint. But we’re just continuing to dive in wherever we can in order to try to identify potential risk factors that would impact the portfolio. But right now we’re not seeing too much.
Jeffrey Rulis: Great. I appreciate it. I’ll step back.
Operator: This concludes our question-and-answer session. I would like to turn the call back over to Jerry Baack for any closing remarks.
Jerry Baack: Thanks for joining the call today. We at BWB remain optimistic about the future and we are seeing encouraging trends and continue to push our strong culture, our brand, our network and events. We have some of the best clients, I think in the nation and, and are obviously our employees too. So thanks for your time today and we’ll talk to you next quarter. Bye.
Operator: This concludes the presentation. Thank you for attending today’s conference. You may now disconnect.
