Andrew Liesch : And then, I guess, shifting back to the margin, it looks like maybe you’ll be operating off a smaller earning asset base here this quarter with that excess liquidity used to pay off the higher cost funding. But then you also have the $1 million of interest income from the swap. So do you think — if you just look at where the balance sheet is shaken out that net interest income should grow from here? Or do you think it’s going to stay pretty steady?
David Morimoto : Yes. The net interest income guide, so again, the net interest margin guide is 2.90% to 3%, net interest income guide is probably $50 million to $52 million a quarter, Andrew, which is an uptick from the first quarter.
Operator: [Operator Instructions] Our next question comes from David Feaster from Raymond James.
David Feaster : Just kind of curious about capital priorities. Obviously, growth is relatively muted at this point. You guys were bought back a little bit of stock. Curious how you think about capital deployment at this point?
David Morimoto : Yes, the capital plan hasn’t changed. So dividend payout ratio in the 40% to 50% range. We do have the share repurchase plan and we’ll continue to use that judiciously. As you know, the banking industry has been a little volatile. And so there are days where the overall banking sector is under some downward pressure and we see those as great buying opportunities for the company as the ultimate insider and we’ll continue to leverage that opportunity.
David Feaster : And then maybe just, broadly touching on credit. First on the consumer side. Curious where you think we are working through that book with realizing those losses? And then maybe more broadly, obviously, you’ve got a conservative credit culture. I’m curious, how you think about credit? What you watch closely? Obviously, there’s a hyper focus on CRE. Just kind of curious your thoughts on credit broadly outside of the consumer book as well and how you’re approaching credit management going forward?
Anna Hu : David, this is Anna. So with regard to the consumer side, particularly with the mainland book, we are continuing the runoff mode, but we are looking and watching closely at the economy and the market conditions as to when we would get back into the Mainland consumer lending. We continue to do Mainland — Hawaii consumer lending here in Hawaii and we have not stopped on that front. But the opportunities, I think in the current quarter and the forward-looking couple of quarters is really in the commercial real estate and the small business loans as Arnold mentioned.
David Feaster : Maybe touch on credit quality side though. Like I’m curious, what are some of the trends do you think we’ve worked through all the issues in the consumer portfolio? And then as you look at your — maybe stress the CRE book, is there anything that you’re seeing there? Or anything that you’re watching more closely just from the credit standpoint?
Anna Hu : Yes. From the credit quality standpoint, on the Mainland book, we’re optimistic as we believe that the charge-offs have stabilized in the Mainland portfolio and we’re optimistic that those numbers will start coming down. With respect to the commercial real estate book, we really are not seeing any issues there. Our office and retail remain low as a percentage of our total loan book and really not seeing any issues in there. Overall, credit quality continues to remain very strong in our loan book.
Operator: As of right now, we don’t have any questions. I’d like to hand back over to the management for their final remarks.
Arnold Martines: Thank you, Eli, and thank you to all of you for participating in our earnings call for the first quarter of 2024. We look forward to future opportunities to update you on our progress. Thanks very much.
Operator: Thank you, everyone, for attending today’s conference call. We hope you have a wonderful day. You may now all disconnect. Have a wonderful day.
