So presuming no real downturn in the economy that makes us get more about the sector,, I would expect to see CRE, healthcare, the capital market side of equipment finance more flattish for the year. They’ve been growing at a pretty nice clip for the last several years when liquidity was cheap, and it’s just not cheap anymore. So, even though the yields of those businesses tend to be very good, if we have to raise liquidity at an unattractive price, then we’re dampening NIM as the rate environment goes up and then it stabilizes. So, our driver for slower growth isn’t a lack of capacity to grow, Michael. It’s really all around making sure that the profitability and the earnings efficiency and the NIM itself is insulated while we go through a period of volatility.
And we may be overcautious. And to the extent that we’re able to gather deposits at a better clip than we’re guiding to, then we probably grow loans at a faster clip that we’re guiding to. But it’s just impossible at this juncture with all the different opinions about which direction the economy is going to go to guide to anything other than what we think is a reasonable level, and that’s what we put in the numbers for €˜23. But if — wherewithal the economy allows us to grow deposits quicker than the balance sheet may grow a little quicker than we’ve anticipated.
Michael Rose: Maybe just one quick follow-up. It looks like you guys benefited from some storm-related gains this quarter on the expenses. Do you have a sense for what the dollar impact of that was? Thanks.
Mike Achary: Yes, Michael. So, for this quarter, that was right around $3 million, and that was related to Hurricane Laura. And as a reminder, it seems like these days, we pretty much have those kinds of recoveries almost every year. Now, we had one last year in the fourth quarter related to Hurricane Michael, and we’re likely to have another one at the end of this year related to Hurricane Ida. So hopefully, that’s helpful.
John Hairston: Not part of the core business model we intend to have, but it does tend to happen frequently.
Operator: The next question comes from the line of Catherine Mealor with KBW.
Catherine Mealor: Well, I want to circle back to the guidance chart. And I thought it was interesting in that your ranges for fees and expenses are pretty tight ranges. But then the PPNR range is a little bit wider, which would — has given you a little bit more of a room for what the spread — if you kind of back into that, what the spread could be on the low end of the guide and on the high end of the guide. And so, the only way to get kind of to the low end of that guide would be if your — if the margin maybe increases a little bit in the first half of the year and then falls from maybe current levels. And so just kind of curious how you’re thinking about that and what kind of assumptions you were thinking about in your margin as you kind of — as you came up with that range?
And is it more of a margin piece, or is it more of a balance sheet size piece that’s driving the bottom end of that PPNR range? I’m having a really hard time even getting to a scenario where you’d have 13% PPNR growth with the other things you lay out?
