David Long: Great. Thanks, Thomas. And then thinking about the borrowings, obviously, up year-over-year loan growth, it sounds like, or loan demand still seems like it’s prevalent. If you do have a flat environment, how are you going to fund that? Will your use of FHLB increase? And where do you see overall the borrowings as a percentage as you move through the year this year?
Mark Secor: Yes, it’s twofold. The cash flows from investment portfolio flowing into higher yielding assets into the loan portfolio. We won funding source to help keep borrowings steady through loan volume growth. The other is, we are trying — we have been successful and continue to look at retail CD opportunities to be able to use CDs to fund the growth and to help maintain the borrowing. Our goal would be to try to keep the borrowings fairly stable if we can succeed in getting those deposit flows.
David Long: Got it. Thanks Mark. And then just as a follow-up, when you talk about the cash flows, do you have a contractual number of cash flows that you — that you’re expected to see in 2023?
Mark Secor: From the investment portfolio, we — right now, it looks like it’s about $130 million to $150 million and that range has slowed due to prepayment speeds than what we originally had worth seeing last year into the first part of this year. So that would be the cash flows. Additionally, as discussed, we’ve got $840 million of loans that will reprice payment and so forth. That includes the investment portfolio that can reprice into higher yielding assets.
David Long: Got it. Thank you very much. Appreciate it.
Operator: And our next question today comes from Nathan Race with Piper Sander. Please go ahead.
Nathan Race: Yes. Hi, everyone. Good morning, and appreciate taking the questions. I just want to echo David’s comments and congratulating Craig on your upcoming retirement and Thomas, as well on the promotion of CEO. I guess first question, just as we kind of zoom out on the margin outlook perhaps into the back half of this year, just given the liability sense of nature of the balance sheet, if we were to get one or two Fed rate cuts, do you think that would drive some margin expansion under that scenario, or how you guys kind of think about the margin trajectory with perhaps more
Craig Dwight: Yes, Nate. Thanks for the question. Yes, I think the nature of the balance sheet and what we’re modeling with the lag of repricing on the asset size versus the loan portfolio, that would continue to improve and then the immediate repricing of short term borrowings. And we would look to be as aggressive bringing rates down as we — as the market would allow as they — as we’ve seen an increase here on the deposit side, especially the more rate sensitive deposits. So yes.
Nathan Race: Okay. Great. And is the kind of loan growth environment or the loan growth environment were to soften to some degree, what potential is there to maybe unwind some of the higher cost borrowings that you guys have brought on balance sheet? Just to maybe kind of reduce the overall liability sensitive nature of the balance sheet. Again assuming kind of overall loan growth kind of slows to some degree in 2023?
Craig Dwight: Yes, I think we’re going to see — the loan growth projection will probably require some funding. And like I said, I think we would like to see that funding come from the retail side of CDs. But if we had opportunities, we would definitely be replacing those short term liabilities or short term borrowings.
