Mark Hardwick: Yes. We’re not making any real €“ any, I guess, meaningful change. We continue to look at protections in the bond portfolio against future falling interest rates, but more of the liquidity to fund loans. There’s not a lot of flexibility to make adjustments. If we didn’t need that liquidity, you could probably move in and out of some sectors and make some changes. But we feel like we have a model that works in both interest rate environments. And as we’ve assessed things like macro hedges, et cetera, the cost just seems prohibitive to us.
Daniel Tamayo: Understood. Yes. And then I guess just switching gears here to reserves. Obviously you’ve been having a provision of zero here for quite a while now. Just interested in your thoughts on when you think you may have to start providing for loan growth or maybe where that reserve ratio stabilizes here?
Michele Kawiecki: Yeah. We don’t expect to have to take provision in the near-term. We are modeling a mild recession in our CECL models currently. But each quarter will continue to evaluate coverage with our loan growth, and particularly if we see any credit events occurred during the quarter, but no plans in the near-term.
Daniel Tamayo: Okay. Thanks, Michele. I’ll step back. Thanks for answering my question.
Mark Hardwick: Thanks, Daniel.
Operator: Thank you. One moment while we prepare for the next question. The next question is coming from Terry McEvoy of Stephens. Your line is open.
Terry McEvoy: Hi. Thanks. Good morning, everyone.
Mark Hardwick: Good morning, Terry.
Terry McEvoy: Hi. Maybe just start with your outlook for expenses as you think about overall wage inflation and then the uptick in FDIC costs as well.
Michele Kawiecki: Yes, I’d be happy to. Using the Q4 stated expense level as a base, we would expect probably mid-single digit growth and expenses, say 5% or 6%. I think that would accurately capture the inflation that we’re all experiencing and also some investments in technology and people as well as that FDIC increase that you mentioned.
Terry McEvoy: Okay. And any comments on banker or customer attention at level?
Mike Stewart: Mike Stewart here. I’d say overall it’s been pretty stable. Banker stability, there’s been some moving in, some moving out. Banking stability, we’re starting to see new business activities in some of the portfolios. So I call it overall pretty stable meaning, or I’ll interpret it, Mike Stewart’s way, which is kind of where I would expect to be less than two quarters posting integration with an outlook that I think we’re in a good position to take advantage of.
Terry McEvoy: Maybe one more, if I could squeeze it in. Mark, your comment in the press release caught my eye that the earnings power is pretty easy to digest when you look at the quarterly results. And as a former CFO, I can ask you the question, what exactly really stands out to you as being that kind of source of power. There’s a lot of things that go into earnings power, and we’d love to just get your view as we kind of think about 2023?
