William Dezellem: Thank you. You had referenced some favorable developments on both the deposit front and on the loan front in the month of June, and I’m hoping that you will talk maybe to the dynamics that you saw specifically in June in a bit more detail, and carry that into July for us. And if you want to go beyond loans and deposits, that’s fine. If you want to isolate your comments to those two items, that’s also fine.
Scott Wylie: Sure. I think they’re similar things, but different. So maybe we could take it in pieces. For me, what we saw in deposits in Q2 is our usual Q2 runoff where people are paying taxes. And so we see, because we have larger depositors here, we do see larger withdrawals for tax payments in Q2. And as I said, we had about half of the impact in Q2 of this year than what we’ve seen historically. So we thought that was a nice positive for us. I have a theory, Bill, and it seems to be playing out. I talked about this, I think, in the last two calls that because of our type of client base, that we experienced the deposit beta that others are going to experience more quickly than others did. And so we had a go last September, October, and really kind of catch up our deposit rates for our clients to what the Fed had done more quickly than a lot of our regional paying peers had to do that have larger retail deposit bases with a lot smaller depositor, average depositors and whatnot.
So I think that the expectation for me six months ago was that that curve was going to level off for us and accelerate for the other guys. And I think that’s exactly what we’ve seen. And I think that that played out a little bit in Q2, and I think it played out a lot in June. So I’m hopeful that, this is just another indication that we’re going to be able to manage our liability cost increases, at least as well as our peers do, if not better, because we’ve had those hits earlier to our cost of funds. So that would be kind of my answer on the deposit side. Julie, is there anything you want to add to that?
Julie Courkamp: We also thought, I think this has been said, but just to put a finer point on this point, our DDAs increased in June, which was a nice indicator. And then our average deposit costs were flat in June compared to the prior month, May. So I think that there’s a couple of just indicators there that things might be flattening out and starting to hopefully trend in a more positive direction on the deposit side.
Scott Wylie: Yes.
William Dezellem: And then if I may interrupt before we go to loans, have you seen those same trends continue here in the first 28 days of July, either if you know the numbers quantitatively fine or even qualitatively?
Scott Wylie: So our Director of Finance is in the room here with us and we’re looking at him, he’s going, well, yes, a little bit.
Julie Courkamp: We think the deposit costs are flat. As we’ve been kind of seeing that trend continue through July. And I don’t think we’ve seen an increase in DDAs, but it’s not really declining either. So I think flat would be a good way to describe what we’re seeing in July.
William Dezellem: Great. Thank you both for that. Okay, onto the loan side.
