Randy Rapp: Yeah. Hey, Michael. This is Randy, happy to take that. I think, Michael, in general, we are starting to see some slowdown in the economy and that impact some of the borrowers, where you’ve seen our movement here lately is probably more related, it’s more kind of one-off, not systemic to any one factor in the CRE book and you are starting to see the impact of higher interest rates on some of those portfolios. And it’s interesting is that when you look across sort of multi-family industrial, you’re seeing the absorption rates and the rental rates pretty much as underwritten, but you’re seeing expenses higher than anticipated and that can be everything from operating cost to insurance cost, and then finally to interest expense. So that is definitely putting some pressure on the margins, on some of the CRE book, but, you know — so in summary, clients being more cautious, but not really seeing any systemic issues within the portfolio.
Mike Maddox: Michael, I would just add, we are trying to be conservative and we are trying to be proactive and we’re not seeing anything systemic in our portfolio. When I’m talking to customers, especially on the C&I side, it’s really interesting, they talk a lot about how demand for their products in a lot of industries is slowing, but there still have tremendous pricing power. So their margins are still fairly high and that’s covering up a slowing in demand. So right now, a lot of our customers still are doing pretty well.
Michael Rose: Okay. Great. Maybe just tangentially related to that is, we kind of think about slowing loan growth into the next couple of quarters, it sounds like some of that’s obviously customer-driven, some of that’s probably credit-driven, decision making. As we think about next year, I know it’s early, but is kind of a low to mid-single digit growth rate more what you’re expecting versus kind of the high-single digit growth rate you’re expecting this year. Thanks.
Mike Maddox: I think that’s fair, Michael. We’re going to continue to be prudent and conservative and be fairly selective as it relates to credit. And so as we look to next year, assuming the economy continues to kind of move in the direction that it is, I think a mid-single digit number is fair.
Michael Rose: Great. I appreciate you guys taking my questions.
Mike Maddox: Thank you.
Operator: Our next question will come from Andrew Liesch with Piper Sandler. You may now go ahead.
Andrew Liesch: Hey, everyone. Good morning.
Mike Maddox: Good morning, Andrew.
Andrew Liesch: Just on the — on the expense base, really good job here controlling costs and it sounds like you got the conversion here on the Canyon deal coming up this quarter, I guess what’s the — a good expense run rate to look at here for the fourth quarter and then going into the early part of next year?
Ben Clouse: Hey. Good morning, Andrew. It’s Ben. We left our guidance unchanged, so we believe our expense rate, non-interest expenses will be $34 million to $35 million in Q4, folding in Canyon will push that toward the upper end of that range, especially if you include the CDI amortization. In regard to next year, I don’t think we see a significant change in the expense base. We’re obviously in the midst of our planning for that right now and we will really be focused on continuing to optimize our footprint, as you heard Mike talk about.
Mike Maddox: Andrew, I continue to believe we have a great operating leverage opportunity as we continue to grow, and we’ve made a lot of investments over the last 24 months and we can continue to grow the company without a lot more additions to our expense base and we are in the midst of looking at contracts that we have and other things to try to drive efficiency. Ben is hiring a procurement person to help us drive efficiency through the organization and we’re really committed to keeping our headcount levels stable. So just in this environment, we have to continue to operate more efficiently and continue to drive our efficiency ratio down closer to 50% and get our non-interest expense to average asset ratio down well below 2%
