Andrew Liesch: Hey, good morning, guys. And congratulations to you both. Craig on your retirement and Donavon to the CEO promotion. Great to see.
Craig Blunden: Thanks. Thank you.
Andrew Liesch: Of course, the commentary on the expense run rate, $7.2 million a quarter for this year. Is that going forward? Or could there be a step up, so the full year average of $7.2 million.
Donavon Ternes: Yes. I don’t believe there’s going to be a step up. That’s about what we believe our run rate is going to be. Although this quarter, it was a little bit better than that. But as Craig mentioned in his comments, we didn’t meet some of our bonus targets for the quarter. And as a result of that, there weren’t salary and benefit expenses related to those bonus accruals. So we came in at $6.9 million rather than the $7.2 million. And if we just contrast it to what occurred in the June quarter, June was elevated as well from bonus accruals as well as the vesting of restricted stock and stock options that carry some income statement ramifications upon vesting, which were all trued up in that quarter. So a significant decline from the June quarter, of course, because of unusual items. And this quarter is closer to a standard run rate except for the bonus accruals.
Andrew Liesch: Got it. All right, that’s helpful there. Thank you. And then the – just a commentary on the – what you have maturing on the loan side or with the recent paydowns and production in the pipeline, still safe to assume that the portfolio is going to hold relatively steady, just muted growth?
Donavon Ternes: It’s going to be muted growth. I think as we get down into our current fiscal year, we might populate with some growth because I think the environment has certainly stabilized from the March quarter, the June quarter, better environment than the March quarter. I think September quarter was a better environment than either of those two quarters. And if we continue to see that, we would be more interested in perhaps populating some loan growth. I think loan growth is out there. We’ve tightened our underwriting standards from where we were, and we’ve raised our interest rates on the loan products that we’re offering. And as a result of that, origination volume has come down. I’m hearing from our origination staff that we could do more if we chose to do so.
So I think it’s really a question of what we see the environment doing and primarily liquidity environment. It doesn’t make much sense, I suppose, to put a loan on with a 200 basis point spread or 175 basis point spread if we’re funding that growth at the margin. So that’s essentially how we view it. So it would be, I think, slow growth, but it’s not necessarily flat.
Andrew Liesch: Got it. All right, that’s very helpful. Thanks for taking the question.
Operator: Thank you. [Operator Instructions] And gentlemen, allowing a few moments, there are no further questions from the phones.
Craig Blunden: All right. Well, if there are no further questions, I appreciate everyone’s participation and look forward to speaking with you again next quarter. Thank you.
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