Aparna Ramesh: That’s right. That’s right. And we continue to anchor our expectations as a metric of somewhere between 90 to 100 basis points, maybe ticks up between 95 to 105 basis points because of the diversification of our revenue streams as well as some of the opportunistic issuances that we’ve done. That does not factor in any fluctuations from these types of hedging. That actually has the effect of really normalizing us or bringing us back to the mean. So the 120 basis points, those continue to be the same reasons that we talked to you about before. Strong diversification from our revenue streams, compositional shift towards higher earning assets as well as the continued payoff of those opportunistic issuances that we’ve done, that’s brought down our overall cost of funds as the nominal rate environment that means to reprice upwards.
Unidentified Analyst: Okay, thanks. Last question is about the dividend. Obviously, that’s a decision for early next year. But just looking at the numbers, so your current dividend of $4.40 is something like 30% of your current operating earnings run rate. My impression is your dividend payout target is about 40%. Even at 40%, if you’re near or maintain your current ROE that leaves growth in capital of something like 10%, 11%, which I would think it will be a challenge to use, and you’re sitting there with $700 million in excess capital. It seems like there’s a lot of excess capital on the books and being generated. How do I think about the dividend in this discussion?
Brad Nordholm: Yes. First, Gary, I don’t think I’ve ever mentioned 40%. I think we have mentioned mid-30s a number of times. And in some of these above expected return years that maybe has diluted it down into the low 30s or as you know now, 30%. You won’t be surprised to hear that we will evaluate the actual dividend when we get our 2023 numbers kind of at year-end. I, for one, am very hopeful that we can continue to execute on our strategic plan, and that means putting stronger growth on segments of business that will consume capital. And so I’m pleased that we have this cushion. It gives us credibility with our regulators. It also gives us a lot of leeway in being opportunistic to grow faster in some of these segments if the market opportunity presents itself.
That’s more contrast to a lot of commercial banks today, I’d now. So we’re in a great position. We’ll evaluate the dividend at year-end. We will take into consideration. Our Board will – all the things that we have in the past, growth rates, capital consumption and probably a gravitation towards that mid-30s target again. But we still have half the year left to go.
Unidentified Analyst: Okay, thank you.
Operator: Thank you. And our next question today comes from Brendan McCarthy with Sidoti. Please go ahead.
Brendan McCarthy: Great, good morning. And thank you for taking for taking my questions. I’m wondering if you can expand on the loan servicing growth in business volume and what the spread looks like on that business? It looks like the total widening in NES to 120 basis points was primarily driven by Farm & Ranch. I was just wondering if you could provide some insight on the spread on the loan servicing business volume.
Brad Nordholm: Yes. The loan servicing spread and it’s really fee income is very similar to what you see in other loan servicing operations for different types of loan assets and other sectors, commercial loans, for example, commercial mortgage loans. And so we’re talking – think of it in the teens basis point range. It’s important to – and as I said earlier, it’s not something that has a huge impact on top line or bottom line revenue today, but it is strategic. Doing our loan servicing, we have access to payment data on those loans almost instantaneously versus a 2- to 3-week delay with third-party servicers is an example. That gives us the ability to make more immediate decisions if there are and identify any potential issues.
