Mark G. Sander: So we have special pricing and about 15%, 16% of our non-time deposit customers right now. So client by client, we’re negotiating. We have given our teams tools to price as they need to, to stay market competitive and retain deposits. And as Brendon mentioned, we have a number of promotional specials in every line of business to raise closets from money markets to CDs to new checking account promotion.
Jon Arfstrom: Okay. Brendon, you talked about $1.1 billion in cash flows on the securities portfolio over the next 12 months. What kind of a lift do you think you’re going to get on those repurchases — on the new purchases and give us an idea of what you’re interested in buying and kind of the duration on that?
Brendon B. Falconer: A lot of the cash flow is actually built reinvested right into the loan book. So the lift is material. I think about the runoff the yield moving into new loan yields that are north of 6% today. So a meaningful uplift on those cash flows as we think about NII going forward.
Jon Arfstrom: Okay. And then Jim, you’ll love this one, but do you feel you’re done with First Midwest, both sides of the merger, things are tracking well, and any appetite whatsoever to be back in the M&A market? Thanks.
James C. Ryan III: From a systems perspective, there’s not a — the project officially concluded. I think the reality though is we’re continuing to look at ways to get better at what we do both in the back office and the front office. And then we’re spending an awful lot of time on culture. Leadership team spent the last year really building a strong culture together. And now we’re continuing to find ways to drive it deeper and deeper in our organization. So that work is going to take years, Jon, to continue to complete. But I feel really good about where we stand. In fact, we joke with ourselves I’m not sure we could have painted a better picture of how we come together as two organizations, two large organizations coming together.
And so we feel really good about that. Obviously, the results, we feel great about the results given all that went on this year and so that couldn’t actually feel any better. With respect to the next opportunities that come along, we’ll continue to have active conversations and dialogues. But I can tell you, it’s not top of mind for us to think about wanting to do something right now. But nonetheless, these are long-term relationship building activities we’re going to continue to engage in and those will be important to our future. At the same time, we have an obligation to our shareholders to make sure whatever we do is really disciplined and shareholder friendly. So we’re going to stay focused on organic growth and building out our teams with new talent.
And then if the right partner comes along and it’s the right fit and timing for us, we’ll take a look at it. But there’s a lot of ifs in there before we think about doing our next partnership.
Jon Arfstrom: Okay, thank you.
James C. Ryan III: Thanks Jon, good to hear from you.
Operator: Our next question is a follow-up from Scott Siefers with Piper Sandler. Please go ahead, Scott.
Scott Siefers: Hey guys, thanks for taking the follow-up. I just wanted to go back to the expenses, just so I am kind of crystal clear on it. So the $900 million launching point, that’s a core number. But the $939 million expectation includes — it looks like about $9 million of items that are not included in the starting point from the $14 million of tax credit amortization and the $5 million of property optimization. So would a more kind of apples-to-apples expectation to be $930 million for 2023, in other words, if you were to hit this guide, would you call the adjusted 2023 expenses, $930 million?
