Nathan Race: Just want to kind of zoom out on the margin outlook, maybe kind of thinking about 2Q and the back half dynamics. Eric, I appreciate your comments earlier in terms of just trying to get the balance sheet to more neutral position. And I guess I’m trying to understand, with the termination of the swaps that you guys executed in the quarter, how does that kind of play out from just an earning asset yield expansion perspective going forward? And I guess also within that context, how are you guys kind of thinking about kind of what inning you’re in, in terms of additional upward pressure on deposit costs?
Jeffrey Ludwig: Yeah. I’ll touch on some of that, and then Eric can follow up. On the interest rate swaps, these are forward starting, so they’re not impacting the financial statements right now. They would have gone into play as we move through this year, and with our sort of more neutral view where we want to be and the fact that we’re going to sort of roll GreenSky off, there’s funding that we may not need as we go into 2024. So those are sort of the decisions we made around that and when the five-year rate got into the like 430s and 440s, the value there was just too good to pass up. So between all of those, we made the decision to move off of the forward starting swaps. On the deposit side, I think the way we viewed this year from the very beginning was, we needed to get ahead of the deposit costs.
We have a higher loan-to-deposit ratio. We can’t afford to let deposits just roll off our balance sheet, so we were very proactive starting in the first quarter of this year to be, one; get in front of our commercial clients begin to run some specials on the retail side and began to give rate to customers earlier in the cycle. So I would say, we’re deeper in the game than others. If we want to do the baseball analogy, I don’t know, maybe we’re in the later innings. But depending on where the Fed goes from here, I mean, if they do 25 for the next couple of meetings, we can — I think we have the ability to now lag some without losing deposits at this point. But it’s a pretty fluid situation. We meet — our teams are meeting every week. I’m involved every other week, talking about deposits, and that market is pretty dynamic right now with competition, doing lots of different things.
But I think what we did early in the year is going to sort of help us a little more as we get into €˜23 around how much more the interest expense needs to increase. Eric, anything else?
Eric Lemke: No. I think the other thing I would say is, Jeff talked about leveraging technology earlier in the call, and we’ve really been focused on technology and how it applies to our retail team. If you look at our — we increased retail deposits by just short of 7% over the past year and by focusing on that sales culture and the technology, we think that can continue. And so we’re hoping to continue to increase in that area in 2023, which will allow us to pull back on some of those other funding that we’ve put on the books as well.
Nathan Race: Got it. Under the scenario where the Fed maybe cuts rates a couple of times in the back half of this year as implied by the forward curve currently. I’d imagine that would be supportive of some margin expansion depending on loan growth dynamics as maybe you can kind of unwind some of the wholesale overnight borrowings that have been added to the balance sheet recently. Is that a fair scenario in terms of expecting some expansion just given some of the lagging earning asset repricing that we discussed earlier?
