Operator: Your next question is from the line of Kevin Fitzsimmons with D.A. Davidson. Your line is open.
Kevin Fitzsimmons: Hey good morning guys. I was just wondering on the deposit cost headwinds, the level of competition the mix shift that we just were speaking about a minute ago. We’ve had a few banks site that they’ve observed that easing over the course of the quarter and specifically here in the last month of June and coming into July, is that consistent with what you’re seeing? Or you’re seeing some of those end abating or not necessarily? Is it just as fierce in terms of the pace that you’re dealing with?
Stephen Young: Kevin, this is Steve. Yes, that’s consistent with what we’re seeing. Certainly, it can change, but that’s really built into our guidance. Last quarter we guided between 45 and 50 for the quarter. This year we’re sort of the 30 to 35 range. And that’s consistent with what we’re seeing today and probably consistent with the industry. Certainly, anything else can happen that would move or change that. But right now, that’s sort of where we’re seeing it.
Kevin Fitzsimmons: Okay. All right. And Steve I apologize if who said, I missed it, but it was a very good quarter for corresponding capital markets. And as Will pointed out earlier on the swap side. Can — is there any — can you update us on what your outlook or how we should be thinking about noninterest income, if we’re looking at like a run rate in the second quarter of $77.2 million, how we should be thinking about that going forward?
Stephen Young: Sure, Kevin. You’re right. So the fee income was $77 million or the way we think about it, 69 basis points of assets, which was better than our guide of between 55 and 65 the biggest drivers you mentioned was correspondent. And really, it came down to our interest rate swap revenue. And if you think about the environment in the second quarter one of the things that happened was we had much lower 10-year treasury, and then we had some conversions on LIBOR that sort of drove some of the revenue. The way we’re thinking about that business for the back half of the year is sort of back at its first quarter levels because the 10-year treasury has now picked up to about 4%. So that sort of drives a little bit of that.
As we’re thinking about obviously, service charges came up a little bit too. We think that probably comes down a little bit in the rebound in the fourth quarter, like it usually does. But from here I think our guidance really hasn’t changed. I think it’s sort of that 55 to 65 basis points for the rest of the year. And then as we think about the get clarity on the fed rate hikes and maybe even potential cuts in 2024, we’d expect in 2024 that, that non-interest income to average assets would start moving up from more in that 60 to 70 basis points due to these interest-sensitive businesses like mortgage and correspondent, which tends to do a lot better during a period of stable to lower rates. So really no change. We had a really good quarter.
We’re not expecting quite those levels going forward for at least the next couple of quarters. But into 2024 we’d expect those to sort of rebound back just due to the fact that, that’s a little bit more stable.
Kevin Fitzsimmons: Okay. Great. And I think I know the answer to this, but I just want to ask, there’s been — you guys are cash flowing the available for sale securities. I would imagine at one point — at some point AOCI has been unwind for you, but we’ve had a few banks pull the trigger on chunkier bond restructuring transactions and just wondering if that’s something that’s on the table or on the radar for you guys given your strong capital that you could kind of accelerate that process or not? Thanks.