Mark McCollom: Yes. So on the full quarter average, we went from 3.53% in the first quarter to 3.40% in the second quarter. As I noted earlier, we saw a 20 basis point increase in our cost of deposits in the month of April. Some of that was really just kind of full quarter impact of some of the broker deposits that we put on in the first quarter. So then we saw in the months of May and June, we saw that cost of deposits increased only 12 basis points and 8 basis points. So our progression on margin then was that we ended the month of June at 3.40%, which was the average for the quarter as well. So we did not finish the month of June lower than the average for the quarter.
Matthew Breese: Understood. Okay. And then maybe – maybe thinking about incremental loan yields today in the low to mid-7% range. There’s one more Fed hike it appears to be. Beyond that last Fed hike, how should we be thinking about the quarterly increase in loan yields in a pause scenario versus what we’ve seen over the past handful of quarters?
Mark McCollom: Yes. Can you just repeat that again? I just want to make sure I got it right.
Matthew Breese: Yes. So once the Fed is done in the ensuing quarters, how should we be thinking about the ramp in average loan yields? To what extent will they continue to go higher? What’s the mix?
Mark McCollom: Yes. We have – as we look to loans that mature and come off. I mean, we are still seeing – while that’s starting to narrow a little bit, we still see new loans reprice higher for the past several quarters on both the consumer side and the commercial side.
Matthew Breese: Okay. I think going back to the flat NIM end of June at 3.40%. Just thinking about the NII guide for the year, it implies that there’s a ramp down in quarterly NII towards, call it, $200 million to $205 million. Where do you see that bottoming? When do you see that bottoming? And do you think you can hold $200 million in NII per quarter through the end of the year, maybe even in the beginning of 2024?
Mark McCollom: Yes. Really, I feel like such a broken record on this, Matt. It really comes back to where that non-interest bearing percentage ultimately ends up. And so we feel comfortable with the guide that we’re giving for the balance of the year. We’re going to be tracking that really closely here over the third quarter and then be able to kind of revise again for the final quarter of the year, and then we’re going to track the fourth quarter really closely to be able to give our guidance for 2024. But it appears from the runoff, which was over $1.3 billion – $1.2 billion in non-interest bearing declines in the first half of the year, it appears that, that’s starting to slow, but does that slow to a nominal number by the end of the year or there’s going to be some trickle into next year remains to be seen.
The other factor in your question is, does the Fed truly pause after one or two more rate increases and then how long is the pause until we start to see the rate declines.
Matthew Breese: Okay. Switching to commercial swap fees, very strong this quarter, as strong as we’ve seen in some time. One, how sustainable is that? And two, what caused the ramp in commercial swap fees, just curious what was behind it?
