Secondly, the treasury services area competes extremely well with both our size and very large organizations, and we continue to add treasury service and treasury sales professionals to that team, added one yesterday, in fact, to focus purely on our payment cards. And so as a result, I would expect to see more operating accounts come in. And in the areas of our franchise that experienced disruption and as integrations occur, I think we’ll be pretty busy trying to move folks into the book that actually help us with some of the offset to the outflow. One item that may be too far in the weeds for this call, but our incentive plans are engineered to be quite flexible. And obviously, one year ago, deployment of liquidity was very important and to that gathering, liquidity is obviously very important.
And so we’ll see a fairly significant shift — or already have shifted to deposit campaigns driving compensation for our bankers, which I’m sure will yield a very good result, it usually does. And so, the capacity of the Company to gather deposits and loans is greater than the guidance that we’re giving, but it’s primarily driven — the guidance is driven around the expectation that the quality of what’s in the book is going to be more valuable overall than just sheer growth. And so, our focus for €˜23 and maybe for €˜24, we’ll see how the economic outlook looks at the time, is really on stability and earnings, good credit outcomes, very effective and efficient sales staff and maintaining very strong profitability compared to peer as we go through the cycle.
And the CSOs somewhat overlay the same time period for what people think the recessive period may be. And so, that’s pretty much where we’d expect to earn as we get through that period. That may be more than you asked for, but I wanted to make sure we completely answer.
Kevin Fitzsimmons: No. very helpful. Yes. Very helpful, John. One quick follow-up to what Brad had asked about before, that the impact to the margin when rates start going down. But you guided in here on the margin that the margin peaks when the Fed is done or after the Fed is done. But if we don’t have a pivot right away to cutting rates, when we’re just stable like that, can you and would you expect to be able to keep the margin stable, or is it more likely that we have some grinding lower, just given the lag of funded costs going higher?
Mike Achary: Yes. Kevin, this is Mike again. Certainly, our intention and the way we look at managing the balance sheet and the Company would be in that environment to maintain a stable NIM. Now, stable NIM could mean that we could have a quarter where it could be up 1 basis point or 2 or down 1 basis point or 2. And so, other than things like loan growth and what we’re able to do in terms of expanding customer relationships, probably the biggest determinant of really what happens when the Fed stops is what happens to our deposit balances, namely DDAs. And so, again, you can appreciate the focus that we have on that component of our customer relationships and a desire to continue to build on that.
Operator: The next question comes from the line of Jennifer Demba with Truist Securities.
Jennifer Demba: Just curious as to you made some comments in your forward guidance on loan loss reserve and provisioning and net charge-offs. I’m wondering, John, how you’re feeling about the loan portfolio right now? And what pockets you feel are most vulnerable in a higher rate environment? And some companies have pointed out they’re worried about office down the road. I’m curious how you guys would characterize your office exposure at this point.
John Hairston: Thanks. Great question, Jennifer. I’m going to let Chris take the first whack at that one and then I’ll follow up.
