David Becker: I will pinpoint that one for you, Nate. Our revenue last year was around $900,000, so we’re going to push it up between that $2.5 million to $3 million mark this year.
Nathan Race: And that’s including both fee income and interest income.
David Becker: Yes.
Nathan Race: I believe that’s all I had. Thank you. I’m sorry, Ken. Just lastly on the tax rate going forward.
Ken Lovik: Depends on who becomes President. No, I think, our effective tax rate this quarter was 7.5%. It is probably, that’s probably not a bad number for the next few quarters. Obviously, as income continues to grow and as we get into next year as well, if you take a fourth quarter EPS number and just run rate that for next year, that number’s going to migrate probably closer to 10% to 12%, but I think in the near term here, kind of 7.5% to 8% is probably an okay number.
Operator: Next question is from John Rodis at Janney. Please go ahead.
John Rodis : Good afternoon, guys. Actually Ken, I was going to ask you on the tax rate, but — I’m just curious on the loan growth, 5% to 10%, that’s a pretty wide range last quarter you said 5% to 6%. Just curious, why such a wide range?
Ken Lovik : Some of it is — in this environment too, I think what we’ve seen and this probably doesn’t surprise anyone, is that we probably had to slow down some, I mean, we had slow prepayment speeds in the model to begin with, but they’ve probably even slowed down further this year. We’re probably retaining balances at a higher rate than we would’ve originally forecast. And then just as we’ve talked about with, with SBA having a very strong year, our construction team continues to do well. We’ve had a few deals in our construction space that were scheduled to pay down here in the first quarter or early second quarter. But we’ve kind of converted them to a mini perm and we’ve put them into the investor CRE bucket and we’ll be holding those for longer. Those are just some of the dynamics that our are impacting that estimate of growth, overall growth for the year.
David Becker : The other side is too, John, we’re out there, we’re seeing larger deals on the, the construction opportunities particularly in the warehousing space as more and more stuff is coming back to the US and being built locally and stored locally, shipped locally. Warehouse transactions are huge just here in the state of Indiana, in the last 48 hours, they’ve announced like $4 million in warehouse space needs and companies coming into the state of Indiana. And those are big chunks that are kind of choppy. So, we could pick up some of that business and which would be great for us. And there’s just a lot of activity. Our CRE guys are pretty bullish on what’s out there in the marketplace right now.
John Rodis : Thanks, David. Ken, just back to the tax rate. So, you said near term, so it sounds like the next couple of quarters you said 7.5 to 8% and then, then maybe going to sort of that 10% to 12% range?
Ken Lovik : I would probably walk it up in your model, again, as we continue to build net income quarter over quarter. You can probably walk it up from 7.5% to 8% through this year. And if you’re starting to work on a 25 or have a 25 number, it’s probably maybe somewhere in the 8% to 10% range. There may maybe even, it’s probably maybe even higher, maybe 10% to 12% there.
John Rodis : And then Ken, just one final question. Just if you look at the level of fee income to total revenue for the quarter’s 27%, 28%, do you think you can grow that if FBA continues to be strong, but the margins going up to? Do you sort of think you stay in that, stay in that high 25% to approaching 30%, I guess, is that sort of the right way to think about it?
Ken Lovik : I think so. I mean, I think eventually, we’ll probably — if we assume for this year with no rate cuts and we’re growing NII because we’re repositioning the loan book and making more on loan yield than deposit costs are going up. That’s good. I mean, when we start getting some real rate cuts, that might change a little bit, because NII growth will accelerate. But I think you’re looking at it. I think that’s the right way to look at it, John.
Operator: At this time, Mr. Becker, we have no other questions registered. Please proceed.
David Becker : All right. Thank you, Sylvie. Thanks everybody for joining us on today’s call. Obviously, there’s a lot of craziness out here in the market at the current time. A lot of the issues about the path inflation is going to take, and based on that, what the Fed might do on rate cuts, we’re optimistic about our outlook regardless of kind of what happens in that space. The strong performances we just discussed about our commercial and consumer lending teams, including all the growth we’ve experienced in small business and construction can drive even greater revenue growth for us, though in a stabilized deposit cost, and it paints a real favorable earnings picture for us going forward. As fellow shareholders, we remain committed to driving improved profitability and enhancing shareholder value. And we thank you for your support, your time today, and wish you a good afternoon. Thanks everybody.
Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time we do ask that you please disconnect your lines.
