Christopher O’Connell: Yes. And given the strong swap pipeline that you guys have up a little bit quarter-over-quarter, I think. Should we read into that as the banking service fees line, should say, at pretty strong levels going forward?
Susan Cullen: Like I said, we closed $132 million from $1.7 million. So I would expect to be — look, I can’t speak this morning, I’m sorry. I will continue to stay strong with that, yes.
Christopher O’Connell: Great — and then — just to circle back and confirm on the expenses, so backing out the $3.3 million from the CAREs, get to like 37.7% for this quarter. And then is there a little bit of an uptick in the next quarter from the new brand chat? Or should we think about it more as kind of a flattish quarter for next quarter?
John Buran: I think you can think of our base somewhere around 38%.
Christopher O’Connell: Okay. That’s helpful. And then last one for me, just a little bit of share repurchases. You guys are moving toward your TCE target. Do you think that — how are you balancing out moving toward that target and doing any share repurchases going forward? Do you have any appetite for that now or more in capital preservation mode?
Susan Cullen: So we’ll still opportunistically go into the market this quarter. We deploy our capital on our loan originations. They were up about $100 million from the previous quarter. So as we’ve always said, Chris, that our capital goals are to redeploy it into the company profitably, then return it to the shareholders via dividend and finally, the share repurchase, our philosophy has not changed on that.
Operator: Our next question comes from Manuel Navas with D.A. Davidson.
Manuel Navas: I just want to clarify on the near-term NIM. On a core basis, it was down 3 basis points this quarter and 8 basis points last quarter. So that’s roughly the range for this coming quarter. And just what would be the difference on the reported side, if we have a Fed rate hike?
Susan Cullen: So if the Fed raises rates, again, we believe the compression will be greater than what we saw last quarter. But that 3 to 8 basis points is probably a good range, everything else being equal.
Manuel Navas: Do your hedges have — Will they only help you in another hike? Like how should — comparison to this current…
Susan Cullen: They’ll help us even more than they have to date. So as interest rates go up, the hedges become more valuable.
Manuel Navas: Awesome. Okay. And you said that the rough duration on them is about 3 years?
Susan Cullen: About 3 years, yes.
John Buran: Some roll off in ’24, some begin to roll off in ’25, but the average is about 3 years.
Manuel Navas: I would hope you be opportunistic if you see Fed about to come back down to kind of delay some of those re-upping of the hedges?
John Buran: So I think we’ll have that opportunity because despite the fact that there’s a 3-year average, there is a roll-off taking place over time. So we’ll be assessing while we still want to remain in a very, very neutral range, and that’s part of the strategy overall. We will see opportunities going forward to either accelerate or decelerate that movement based upon what’s happening in the rate environment. But our intention is to operate an institution that is much more interest rate neutral going forward.
Manuel Navas: Very fair, very fair. On the funding side, I understand…
John Buran: I mean, by the way, let me just elaborate on that for a second because eventually what we want to be able to do is get that neutrality off of the balance sheet with fewer and fewer hedges. So for example, what we’re doing on the floating rate side, whether it is the back-to-back swap program, which is not a portfolio hedged or our emphasis on floating rate loans in general will start to move us in that direction.
