Jim Eccher: Yes, David, good question. I mean, we tend to try to take the long view. If we find an end market team, we’re going to make that investment because we are obviously making it for the long haul. But you’re right. I mean, loan demand today is certainly pretty tepid. We are seeing some demand in a couple of verticals. But we expect the balance of this year to be pretty muted as far as funding a lot of new business. But we will continue to actively look for new talent.
David Long: And when you’re looking for talent, what are the qualities specifically you’re looking for? Do you prefer bankers with a large bank passed or community bank pass, what is the best situation for you guys in that regard?
Jim Eccher: Yes. So, where we’re seeing significant growth is still from our Chicago market. And so, just by way of metrics, you’re talking about lenders from probably larger banks that are looking for a bank that has the technology and the ability to get deals done. And quite frankly, we’re looking for a different experience than a larger bank. So, that’s typically where we’ve seen the opportunities to hire.
David Long: Got it. And is — are your expectations on hiring? Is that built into your discussions on expense outlook, Brad?
Brad Adams: It is, yes.
Operator: Our next question is coming from Brian Martin with Janney Montgomery.
Brian Martin: Just one question on the clarification on that office, either Jim or Brad. Just the total office exposure in dollars is how much and just the split between Chicago and other, just to make sure I’m clear on what that was?
Jim Eccher: Yes. We’ve got about $60 million in office exposure in Chicago. So obviously, not very much. Our total office exposure is about $250 million. And of that $60 million, we’ve got about 10% of it reserved in Chicago.
Brian Martin: Got you. Okay. All right. So, the other piece is the suburbs. Okay. And then, Brad, your comments about the margin, as far as in terms of additional security sales, I guess, can you give any color on how much you expect further to do on that or just timing or just kind of your outlook there?
Brad Adams: Kind of feels like what we’ve done for the last two or three quarters. It’s been slow and steady. I was completely flummoxed and mystified by the whole — by the shape of the consensus market curve on Fed funds last quarter, and I thought everybody was nuts. And now, I think people are getting a bit carried away on the higher for longer thing. I’d like to believe that rate step down gradually, but I’ve yet to see that animal in real life. So, we’ll see. Our goal is to just return the securities portfolio to what it’s supposed to be, which is kind of more like a 10% variable securities type position before the rug pull. I don’t pretend to know when that is. But typically, a securities portfolio for us is the warehouse for duration, and we’ll get back there, hopefully before the rug pull, but hopefully not too much before the rug pull. So we’ll see.
Brian Martin: Okay. And what percent is variable today on that, Brad?
Brad Adams: Over — just over 20%. It peaked out around 35% when nobody thought inflation was a real thing. We were buying the stuff hand over fist.
Brian Martin: Yes. Got you. Okay. And then just on your comments on the loan growth being a little bit softer. Jim, you said there were some verticals that were doing better. Maybe just a little comment on that. And then, just what was kind of the payoffs versus production in the quarter? Kind of how did that shake out?
