David Feaster: No, absolutely. And maybe just kind of taking this into context with kind of the loan growth and the improved pricing side, I guess, how do you think about rate sensitivity and maybe the NIM trajectory as we look forward, just — as we talk about a discipline on the deposit side, beta are accelerating, but more rational market and then, assets continue to reprice higher. I’m just curious how you think about your ability to defend the margin and maybe the NIM trajectory as we go out throughout the year and over the course of the year, yeah.
David Morimoto: Yeah. Hey, David. It’s David again. Yeah. We did achieve 3 basis points of core sequential quarter NIM expansion. Obviously, the velocity of the NIM expansion has been slowing as we’ve been seeing throughout the industry. The guidance for net interest margin right now is 310 to 320, so it’s kind of guiding to a flattish NIM going forward.
David Feaster: Okay. That makes sense. And then, just wanted to get your updated thoughts on the Swell banking and the service initiative and where we are there. Your thoughts on expansion at this point and whether Elevate sale impacts that partnership at all?
Arnold Martines: Sure. Good question, David. Swell is currently an pilot testing. It’s — like, it’s an invitation only, so the app is available, it’s operating, but we’re only inviting customers from the Swell waitlist to join. And it’s in beta testing. There’s about a hundred customers that are currently on the platform. And we’re actually preparing to do a little bit of a wider launch in the first half of 2023. We’re going to do a lot of test marketing, and customer acquisition beginning in the first half of this year. But it €“ we — as we’ve talked about over the last several quarters, we’ve really — we’ve slowed down the rollout of Swell as a result of what we’ve been seeing in the broader FinTech market. Obviously, there’s been a lot of turmoil in the market.
The operating environment is not the greatest for launching new FinTech initiatives. So, we’ve decided to slowdown and we’re observing what’s happening in the FinTech marketplace. The Swell strategy has pivoted slightly, rather than just broad customer acquisition. We’re now focused on looking for profitable customers. So, rather than millions of unprofitable customers, we’re looking for a smaller amount, a hundred thousand or profitable customers. And we think that’s a better business model than what we’ve been seeing more broadly in the FinTech space.
David Feaster: Yeah. I think that makes complete sense. But does the sale of Elevate impact that partnership at all, or is it kind of a non-event?
Arnold Martines: Yeah. Sorry. I forgot about that part of, Dave. So, as you know, Elevate is looking to be sold to Park Cities Asset Management. Park Cities Asset Management is the private equity money behind Swell. So, Park Cities has a long history of working with Elevate prior to the Swell initiative. And then Park Cities was the largest outside money that invested in the Series A round of Swell. So, Park Cities is a very familiar entity to Elevate, Swell, and CPB. So, it does not affect the plans for Swell going forward.
David Feaster: Okay. Terrific. Thanks everybody.
Arnold Martines: Thanks David.
