Mike Archer: Hey Dam, it’s Mike. Yes, I think if we anticipate some further loan growth there, like we said in our commentary, probably low single-digits for next quarter. I mean, I do think just in terms of the ACL, we’ll continue to hold around mid-80s where we are right now. To that end, probably pretty low provisions. Certainly, if we have net charge-offs, again nothing expected or anticipated of size at this point certainly. But if we were, will account for that accordingly, but really feel pretty strong about where we are right now at this level.
Damon DelMonte: Great. Thanks for that. Then I think you guys noted that, you increased your BTFP drawdown before the end of the quarter. Just wondering is that being used for actual funding purposes or did you guys use that as like kind of an ARB opportunity, where you took the funds and put it in cash and are able to kind of clip a small spread?
Mike Archer: No. We didn’t really use it for that in that regard to drive any incremental, call it, NII expansion. It was more from just optimization of margin truly. We were able to get into that before some of the program dynamics change. At this point, we have $225 million locked in for a year and three different tranches at 4.76%. Honestly from an interest rate risk position and some of those other considerations, it’s just really favorable given our any risk to rising rates, it proves beneficial, rates come down, we can prepay. Again, we just saw the opportunity and thought it made sense to really bolster that.
Damon DelMonte: Got it. Just lastly, your commentary on expenses ticking higher to your prior guidance. Could you just remind us, was the prior guidance like $28 million to $28.5 million per quarter?
Mike Archer: Yes, that’s right Damon. Just to provide some additional clarity, I think in the second quarter we could see closer to the $20 million, somewhere in that mid-range there. I think after that in this back half of the year probably on the lower end again plus or minus, but some of the seasonality items that flush through in the second quarter, but that is certainly a good range still.
Simon Griffiths: If I can just add Damon, we continue to balance the short-term with the longer-term and that’s getting that balance right, I think as Mike said, pushes us probably up a little bit in the next quarter. We’ve got, as we mentioned some great investments on the technology side and continue to invest in the long-term health and health of the franchise.
Operator: The next question comes from Matthew Breese from Stephens Inc. Please go ahead.
Matthew Breese: Good afternoon, everybody. I was hoping you could help me out with kind of the month-over-month trends in deposit costs and the margin and whether or not there are early signs of stability in those items?
Mike Archer: Great question, Matt. We are pleased to see in more recent months that we’re starting to see a level of maybe stabilized is or isn’t the right word, but certainly the increase in deposit costs and funding costs on a month-to-month basis is slowing. I think in part it’s starting to look like it’s more inline with what we’re seeing on the earning asset yield and that kind of speaks to the $230 million if you will kind of staying relatively flat in the near-term till we kind of start to see the seasonal inflows as well as the benefit from the derivative.
Matthew Breese: Got it. On the deposit mix front, it felt like reading between the lines a little bit of frustration or capitulation just in the continued mix shift of non-interest bearing into interest bearing. If you have to look ahead and say, here’s how I think we shake out a year from now in terms of deposit mix and then deposit growth. I would love to get your thoughts on those two items.
Simon Griffiths: It is a great question. And obviously I think a lot of it depends on the rate environment, and how the fed moves. But I think generally, we’ve seen, as Mike indicated sort of maturity on a customer base around sort of moving into from low no cost into higher cost. We start to see the CD, certainly front book stabilizing in terms of volumes and I think that sort of consistent sort of trend is likely to continue. But obviously that’s going to depend a lot on the fed and the customer, I’d say as a team, we’re certainly have a strong playbook around that potential downward rate environment and we’ll look to manage that very effectively with our customers, with a focus on customer relationships and continuing to drive value.
And that’s one of the things I think the team’s done extremely well as well is as we’ve brought in new customers into the CD portfolio, we’ve certainly looked to build those relationships, deepen those relationships. And we mentioned in the call the earnings call at the beginning the addition of Garrett to the team. And I think that’s another tremendous opportunity for us in the communities we serve in Maine, to take those relationships, deepen them and leverage the capabilities we have, both digital, the new platform and wealth and then the new leader that that we mentioned. So, I think those are things that can be certainly leveraged going on a go forward basis.
