David Feaster: Okay. That makes sense. And then last one for me, just expense control, you guys did a great job there. I suspect there was some benefit on the incentive accrual side. I’m just wondering if you could help us think about a good core expense run rate? And just, again, how you think about, again, you’ve got revenue headwinds and cost savings, but at the same time, trying to continue to invest in the franchise because we’re playing a long game here. Just curious how you think about additional investments, hires, and anything that you might have on the horizon?
David Morimoto: Yes. David, that’s really what it is, right? It’s a balancing game, right? We have loan opportunities, but we need to balance that with the availability of deposits. So we’re balancing that to help manage the revenue side. And then we’re — to the extent that we’re — we continue to see revenue headwinds were we will continue to manage expenses very prudently. And — but as you say, we need to continue to invest in key areas, and we continue to do that. So it is definitely a balancing game between revenue and expenses, but we’re highly focused on getting back to positive operating leverage.
David Feaster: Okay. That’s helpful. And do you think this kind of $40 million run rate is a good core expense run rate?
David Morimoto: Yes. I think $39 million to $40 million. And with our commitment to be nimble. So to the extent that operating environment remains difficult, we’ll need to manage expenses appropriately.
Arnold Martines: And David, this is Arnold. Let me just add that, as we’ve mentioned in previous quarters, we are very focused on harvesting more of the investment that we made in technology. So there is traction there. We are making progress in being able to automate and to focus on building out a more efficient back office system and processes.
David Feaster: Okay. That’s helpful. Thanks everybody.
Operator: Your next question is a follow-up from Andrew Liesch of Piper Sandler. Please go ahead.
Andrew Liesch: Hey, everyone. Thanks for taking the follow-up here. Just on the noninterest income side, down about 5% from prior quarter. I think some of those were outsized though. Some of those line items. But this around $10.5 million is the right place to be thinking about going forward?
David Morimoto: Yes. That the guidance there, Andrew, would have been $10 million to $11 million. So you’re spot on.
Andrew Liesch: Got it. Great. You’ve asked — you’ve covered everything else that I’ve wanted to ask. Thanks so much new.
Arnold Martines: Thank you, Andrew.
David Morimoto: Thank you, Andrew.
Operator: There are no further questions at this time. I will turn the call to Arnold Martines for closing remarks.
Arnold Martines: Thank you, Sarah, and thank you very much everyone else for participating in our earnings call for the second quarter of 2023. We look forward to future opportunities to update you on our progress.
Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect your lines.
