Anthony Cosentino: Yes. I think that you’re spot on there. And what we’ve seen is, I think the market has stabilized, if you can call it stabilization. I’d call it that 4.5% to 5.25% range that’s where marginal retail funding is. And I think most community banks can kind of survive there. We’re seeing loan pricing in the high-6s to low-7s, and that seems to be okay with our clients. I think our 3.16% margin is going to stay roughly in that range, I would think. I think we’ll start to get some slight improvement as we get into 2024. We were very aggressive on being short-term on our funding, so we’re going to have a lot roll-off. And if we do get rate declines and if the market cooperates, I think we’ll start to take some funding costs off the table as we enter, call it, 2Q of 2024.
Mark Klein: Being a little more liability-sensitive.
Anthony Cosentino: Yes. Yes.
Brian Martin: Yes. But so really, this quarter, it could be a trough, Tony, as far as where the margin is and it’s flat to up from here? Is that kind of what you’re saying, you think there’s a little bit more pressure near term and then…
Anthony Cosentino: Yes. I do think Q3 will have some – still have some downward pressure just because as you’ve seen probably in all your banks that the rapid acceleration of funding costs is just – it’s just not really stopping. And there’s a lot of competition out there, which I tell there’s – which tells me on the funding side, there’s real liquidity strain, which is why, as Mark talked about, we’ve seen some of our competitors pull back on the asset side because they just can’t find the funding.
Brian Martin: Got you. Okay. That’s helpful. And maybe just the last one. Just on the – the expenses have been really strong management-wise. Just understanding what – how that looks for the back half of the year, just kind of the run rate we’re at today, absent the swings in mortgage volume, up or down, I guess, what – is this a pretty good level? Are there more things and more initiatives you guys are undertaking? Or is this a pretty good level?
Anthony Cosentino: Yes. I think the $10.3 million to $10.5 million, as we’ve talked about, is kind of what we consider to be our core level of expense range. I do think there’s probably some bias to the downside from that just because we continue to be, I think, very cognizant on the front line. We’ve had pretty detailed instructive lessons with our teams about let’s understand what we’re doing and what we’re getting to. We’re on the back half of kind of our technological investments that we put in place. I don’t think that’s going to be a headwind going forward. So it is going to be a bit of a volume game. I think we’ve rationalized some head count resources, as we’ve talked about. We’ve consolidated some positions. We’ve done some other things.
We’ve got management all in place that we think. So I don’t – I really don’t think other than producers, that’s going to be our only kind of FTE increases going forward. So long answer to what I think is this is kind of our core level with a slight bias downward going forward, absent volume constraints.
Brian Martin: Got you. No, that’s helpful. And one other thing you mentioned, the SBA business. I guess it sounds as though you expect the momentum there given the current market conditions to continue to be pretty healthy. Is that – I don’t know how the – I think you talked about the pipeline, maybe I missed it but just understanding, is that similar – whatever the level of kind of earnings this quarter was. Is that kind of how to think about that going forward? Or is that – anything ramping up from here? Or is it pretty consistent?
