Crispin Love: Thank you, BJ. I appreciate that. And then just one last one for me. Kind of dovetailing off your last point, but I’m just curious what your outlook is on loan and origination growth. In the past several quarters ago, you talked about kind of longer term trends of 15% origination growth. Do you think levels like that is still attainable right now or do you think growth like that needs to come down given the current environment?
William Losch: Do you mean balance sheet or origination Crispin?
Crispin Love: Origination, but also looking for both as well?
William Losch: Yes.
Huntley Garriott: Yes. So on the origination side we continue to add lenders last year and I think we have the franchise in place to do that. So we did $4 billion of total origination last year to think that we could grow that 15% in sort of a normal environment seems quite reasonable. I think we’re obviously being pretty conservative right now looking at the implications of a slowing economy, interest rates, construction costs largely M&A market, things like that. So we feel good right now, kind of, at where we are or up. But certainly the franchise is in place to do that sort of 15%. And as we look at just the overall size of the market, the overall trends in the silver tsunamis and the transition of ownership, as Chip talked about, it still feels like there’s just a ton of opportunity for us to continue to expand the lending franchise. We’re just going to do it really prudently as we kind of look and see what 2023 looks like.
Crispin Love: Thanks Huntley. Thanks for taking my questions.
Huntley Garriott: Yes.
Operator: Thank you. Our next question will come from Michael Perito of KBW. Your line is open.
Michael Perito: Hey, guys, good morning. Thanks for taking my questions. I wanted to start a kind of two bigger picture questions. One just on how are you guys thinking about, there has been some discussion on this call about expense with moderating positive operating leverage, NIM having some more pressure, but then hopefully stabilizing kind of taking it on to soar here. I mean, what’s the updated thoughts you guys have on kind of structurally what the targeted ROE should be for this business. I mean, you guys are now growing the balance sheet a bit more, maybe there’s a little less gain on sale. Maybe that weighs on a little near term. But just curious if there’s any kind of profitability thoughts you’re willing to provide, as you guys kind of look out over the next couple of years with what you know today in terms of what — what you think is reasonable, or should be targeted for the type of business you’re building?
Huntley Garriott: Yes. That’s a great question Mike. We talked about that a lot here. We’ve consistently grown our balance sheet north of 20% actually. I think over a sustained period of time, we still think that 15 plus percent balance sheet growth makes sense for us as a franchise as we look at sort of where we’re going. The simple math says a 15 plus percent ROE allows you to sell fund that and continue to grow without having to sort of tap into capital markets which is nice. It creates a lot of sort of flexibility for us on that path. As we look at our franchise a 15% ROE, I think is quite reasonable, especially as we start to turn the dial on the deposit side that we’ve been talking about and start layering and checking accounts which is a pretty capital efficient place to grow earnings by lowering our cost of funds.
So we’d love to think that we could turn that dial to be 20% ROE and 20% grower that’s sort of I think the optimistic case, but pretty reasonably think that a 15% ROE to support our growth is pretty reasonable. BJ if you have anything on that.
William Losch: No. I think that’s right. And kind of our arrow in the quiver so to speak is we were 50 if you normalize some of these onetime costs and the gains and all this we’re a 15% to 20% ROE business today with a deposit platform, that is market rate. And as Huntley mentioned this is our year of checking, and really getting focused on that. And so over the next several years, as we continue to grow our business and build out a small business bank we are anticipating that funding cost is going to be a tailwind to us as we continue to improve profitability.
Michael Perito: Got it, that’s helpful, but it’s fair to think that on a GAAP basis, there will be a process to build backups that’s 50% right. I mean, it over the next year or two, as some of those initiatives take hold and rate stabilize, etc. Is that fair?
William Losch: Yes. I think that’s fair, Mike.
