William Harrod: Yes, this is Bill. We’ve been monitoring the office portfolio, very diligently over the last year or so, making sure we’re out ahead of lease expiries, et cetera. So we’ve established additional operating on that. We feel pretty good about where we’re at today, but with some of the change in the landscape, we’re being very, very mindful of getting ahead of the risk. A lot of our office portfolio is more suburban in nature as opposed to city center, business center type office properties, a lot of it is medical, so that will have less of an impact as folks reduce office space. But we are watching it very closely and getting through it. The retail side, on the real estate, we’ve really kept our portfolio into more grocery anchored or grocery near anchored centers, with smaller bays allowing for the have to go-to type of operations that have performed very well.
They haven’t added a lot to that book over the last couple years, just really sticking to the name and really the same thing on office. Since COVID really put a damp down on that.
Terry McEvoy: Great, thanks for taking my questions. I appreciate it.
William Harrod: Sure.
Operator: Thank you, Terry. We have our next question comes from Chris McGratty from KBW. Chris, your line is now open.
Christopher McGratty: Hey, good morning. Hey Jamie, I wanted to start with the margin comments digging a little bit more. You talked about peak margins, which is pretty consistent with what most banks are saying. You’re coming from a higher point. The 410 to 420 that you kind of reference where you would settle like, I guess number one when maybe I missed it, when would that be? And then can you remind us what your deposit beta assumptions and any steps you might be doing to lock in the higher rate with some derivatives?
James Anderson: Yes, good. I won the pool on you asking about deposit beta, so but yes, I’ll send it over. So yes, so we think that that 410 to 420 margin is in the back half of the year, really in the fourth quarter of 2023. And again, I would tell you that that is, maybe a little bit different from maybe 90 to 120 days ago, I would’ve said our margin was maybe going to stabilize in the back half of 2023 and a little bit lower than that, maybe in that 390 to 400 range. So it’s a little bit higher than what we had originally anticipated in that 410 to 420. And then in terms of the deposit beta, we are still modeling in that, in the low 30s, so call it 30% to 33% deposit beta for the, again for the overall cycle. And when kind of look at what we have realized at this point, depending on if you’re looking at the fourth quarter, you’re looking at just maybe December, you’re talking in that 10% to 15% type range.
So there’s obviously still more to come and then, but again, we look like right now, and then, there’s a lot of variables involved in this obviously, but stabilizing somewhere in that 410 to 420 range.
Christopher McGratty: Okay. And if I could, anything you’re doing to kind of preserve this if now the futures market’s calling for potential cuts?
