Jeff Rulis: I appreciate the deck and sort of the outlook slides, those are helpful. So I think you framed it up well. I just wanted to kind of get into the mind of your deposit customers that sort of sophisticated bunch that sensitive to rate. Just want to see if fourth quarter and in the first quarter as you have approached them and had those conversations. Do you feel like they’ve received the catch up rate that they need and maybe aligns with your thought that kind of troughing margin beyond Q1 and then kind of stabilizing, if that’s a piece of it? In other words, are customers now, you feel like that’s satisfied, you’d gone through the round of a vast delivering a little bit better rate?
Jerry Baack: I’ll let — Nick’s going to handle that one.
Nick Place: I think the deposit customers that we’ve — our core deposit customer, we’ve got great relationships with them. I think what we continue to be pleased by is that that relationship that we have is giving us the opportunity to keep those deposits. So while we have seen some increase betas on some of those sophisticated clients as treasuries and other high yield savings accounts are attracted to them, we do have the goodwill and relationship with the client where we get the calls where we at least have the ability to try to retain and potentially reprice that deposit up. I think the other thing to note is given some of our niche deposit markets that we’ve been in, those industries have seen just overall industry declines and balances.
So like some examples of that would be some 10/31 clients that we have that that industry and that has slowed, title company balances are down as interest rates are higher and mortgage refinances have slowed. So some of it is just structural in nature due to some of their businesses. And then just on the new business side of things, I mean, Joe touched on this briefly. I mean, we do feel good about and we have shown historically a really strong ability to grow core deposits that has not changed. And our attention to that has really only increased in recent months. So I feel good about our ability to continue to bring on core deposit customers that will have betas that are much lower than sort of borrowings and other wholesale funding. So we feel good about our ability to do that.
So maybe that’s just an insight on the customer. I mean Joe, I don’t know if you have anything else on the margin?
Jerry Baack: No, I think you nailed it. I think that’s — as Nick said in his prepared remarks, too. I mean, I think it’s not linear either, like a loan pipeline, right where you have a real precise time period of which that lands. But I think to reiterate Nick’s point that we look out on ’23 and we see the relationship opportunities that are in our deposit pipeline, we feel like we have good visibility to those landing and it’s certainly less precise and it’s chunky when it hits and it takes time to bring over. But I think if you continue to get in front of those relationships keep that momentum, there’s a huge opportunity in this market as we’ve talked about in prior quarters and certainly since we went public. I mean, there’s been material disruption here and I think we continue to get in front of some really high quality relationships and we certainly are confident in our ability to out serve relative to our customer or to our competitors.
And so obviously that continue that momentum, it takes time but we feel good about it.
Jeff Rulis: Just to pivot a little bit to the expense side. How expectations for that to slow? My guess is a bit of that’s a function of incentive comp with slower growth, but also the intended kind of gear back hiring. Is that sort of tabled or take a pause on that end?
