Randy Chesler: Yes, I think we’re very comfortable with it. We’ve got very strong capital, it’s an important part of the strategy. We think the margin compression over the longer term is a shorter term problem, that will right itself in ’24. So we’re very comfortable at the those levels.
Andrew Terrell: Okay. Thanks for taking the questions.
Operator: [Operator Instructions] Our next question comes from Brandon King with Truist. Your line is open.
Brandon King: Hey, good morning.
Randy Chesler: Good morning, Brandon.
Brandon King: So all the NIM commentary is helpful, but from an NII prospective and with this of maybe one or two more Fed rate hikes in back half of this year. When do you think NII could stabilize going forward and also maybe assuming next year Fed funds are stable?
Ron Copher: Yes, one of the things that I would point you to is the Fed. I think once it becomes clear that the Fed has done that’s when you’ll see our margin and NII stabilize. So, I think it’s really dependent on how far they go, is it one more hike, is it two? How long do they — is it an extended pause, higher for longer, these are all considerations that are going to have an impact on our margin in the half.
Brandon King: And do you think there is a quarter or two lag, after a pause to re-stabilization, or do you think it will be pretty immediate?
Ron Copher: We could see a little lag is there could be a quarter’s worth of lag in that, both before we start to see stabilization. So I think that’s fair way to think about it.
Brandon King: Okay, and then we’ve loan repricing average loan yields were up 10 basis points sequentially, and I know you have a lot of fixed rate and adjustable rate repricing coming online, but is that a good, kind of, 10 basis points for the quarter? Do you think is that a good trajectory as far as what you can see from a benefit from a loan yield repricing?
Ron Copher: Yes. Brandon it’s Ron, I think we’ll do better than the 10 basis points, weighed on that this quarter was the construction draws, we’re getting higher rates, but some of those loans were made first, second quarter last year. And so, there is still advancing. But yes, I expect better than 10 basis points.
Brandon King: Okay. And then just lastly, there was a decent uptick in service charges. I wonder if there’s anything one-time in nature, driving that just more context around it?
Randy Chesler: No, that’s a function of usage and seasonality. So no that’s typically what we see in this — starting in the second quarter. Little bit of a pickup.
Brandon King: And that’s a good base to golf going forward. Correct?
Randy Chesler: I think so, yes.
Brandon King: Okay, that’s all. Thanks for taking my questions.
Randy Chesler: You bet.
Operator: [Operator Instructions] Our next question comes from Kelly Motta with KBW. Your line is open.
Kelly Motta: Hi, good morning. Thanks so much for the questions. I apologize about beating a dead horse about deposits and margin. But if I could, I’m going to do it would it kind of, I appreciate all the color Ron about and Byron about the deposit betas. But when it comes to your commentary about deposit betas, I’m just wondering what that assumes as far as DDAs as a percentage of total deposits, obviously there’s been a lot of focus on that lately with run-offs across the industry?
Byron Pollan: Yes, I think we will continue to see a little bit of run-off in the non-interest bearing, as we said that pace is going to, we think materially slow, but I think we’ll maintain at concentration greater than 30% of non-interest bearing total deposits.
