In terms of longer-term margin guidance, we talked about the 3 basis point to 5 basis point increase expected here in the first quarter that would be a function of expectations around the Fed raising 25 basis points in their next meeting, which is late January or early February. If they do another 25, as you indicated, to get to that 5% Fed funds target, I think you’ll find that the continued pressure on the deposit pricing will certainly mitigate really any meaningful increases of asset repricing going forward. So I think you’ll see the margin. Our expectations would be that would kind of get stabilized around that high $3.80, $3.90 range, if that forward curve plays out as you indicated.
Steve Moss: Okay. And maybe just on the deposit pricing side. I’ve assuming that you probably think of — if we’re holding here and deposit pricing continues over the course of the year, kind of where do you — do you think like high $3.80 for margin is sustainable for the second half of ’23 or something below that?
Mark Ruggiero: I think if we can, given the value of our deposit franchise and I think our proven ability to manage those costs efficiently, that is — the goal is that we’d be able to maintain a margin in that high $3.80 range despite continuing to price up deposits where needed.
Steve Moss: Okay. That’s helpful. And then curious here with the CEO change kind of what is your internal thought process on M&A activity going forward here? And any color you can give around the discussion level in the market these days?
Chris Oddleifson: So here very much still interested in M&A opportunities, and I am CEO for the other what, 10 days. So if I get a call, I will certainly respond to that. And one of the first orders of business with Jeff will be sort of outlined to him sort of our incredible past history here, our success, why we’ve been successful. And I have a high degree of confidence that he’s going to be receptive as well. In terms of what’s going on in the marketplace, I mean it’s one of these things that you have your list — you have a list, you have all the candidates and every once in a while, somebody raises their hand and says, okay, I want to talk. And it’s — given the number of banks that are — have dwindled, I — sort of more of a random event these days than any sort of continuous flow. But I will make the very bold prediction that over time, it will continue.
Steve Moss: All right. Thank you very much.
Operator: Our next question comes from Laurie Hunsicker with Compass Point. Please go ahead with your question.
Laurie Hunsicker: Yeah. Hi. Thanks. Good morning.
Chris Oddleifson: Good morning.
Laurie Hunsicker: Just hoping we could start over with credit. Can you just remind us, the C&I loan that’s in non-performers? What is the actual net number now, net of that $14 million reserve? And then within your loan loss provisioning this quarter, did you take anything? In other words, the $5.5 million, did you take anything specific to that loan?
Mark Ruggiero: Yeah. So it’s about a $23 million outstanding balance. So our exposure on the books, you could say, is about $9 million, given the specific reserve we’ve allocated. So that primarily was the driver of the $5.5 million provision, Laurie, is that one credit. We allocated money through our pooled approach in the third quarter, specific to that loan. So the $5.5 million provision recorded in the fourth quarter was to get the total allocation up to the $14 million I referenced.
Laurie Hunsicker: Got it. Okay. So just to make sure that I’m hearing that right, Mark. So the $5.5 million that you provided this quarter, that was entirely related to the C&I loan.
