It’s in a normal scenario where we do get those footings and we start buying bonds in the middle of the year and we’re getting about a 80 basis point premium over Fed funds, I think you’d see an incremental impact to earnings per share of another $0.15. So we’ve got an enormous amount of latitude in our earnings projection. So when we modeled it out, there’s a lot of ways we can get to that [indiscernible]. So we have a little less origination. Of course, it’s a very ambiguous environment right now and we’ve looked at a lot of scenarios but we feel very comfortable on a preliminary basis issuing this guidance.
Michael Perito: Got it. That’s helpful. And then just lastly for me and I’ll let someone else jump in. Just on the credit side, Damian or Mark, whoever is on, just curious, really, the multifamily bridge product. Any updates on kind of the performance there? I know we’ve [indiscernible] that portfolio quite a bit over the last 9 months in terms of its makeup, geographic entities, et cetera. But just curious, any updates on your end in terms of the performance of that book? Or are you guys kind of altering any of the underwriting and just as we kind of get deeper into this kind of commercial real estate organic, I guess, we can call it. Just any update there would be great.
Damian Kozlowski: No, we’ve — the market is definitely shrunk for these type of deals. There’s no doubt that the market is smaller. But we’ve been very, very careful. We’ve had a kind of an amazing event, the way we positioned our balance sheet and we’ve taken advantage of it. So myself and Mark Conley, who you just mentioned, who is our Chief Credit Officer, we sat down with very commercial people lead our businesses and said, listen, this is not the year to stretch in any way. We need to narrow our credit underwriting. So it hasn’t changed that much but we made sure that we didn’t push at all. And that’s why you’ve seen maybe a little bit less than trend growth in some of the roll-off on the SBLOC portfolio, where we would have matched other companies’ price cuts.
So we’re very comfortable with that. We want to be set up for 2024 and 2025. We’ve got a lot of flexibility. We haven’t seen deterioration at all in the multifamily. But once again, we’re not underwriting where there was problems in the market. We don’t have subordinate debt and deals. We have reserves. We have interest rate caps in our floating rate loans and our cap rates are more like 8% and some people have gone down to 6%. We don’t do any of that stuff. And so we haven’t seen any credit deterioration.
Michael Perito: Excellent. Thank you guys for taking my questions. Have a good day [ph].
Operator: Our next question comes from the line of Frank Schiraldi of Piper Sandler. Please go ahead.
Frank Schiraldi: Just on the 12% fee income growth year-over-year and that is that a reasonable kind of translation rate going forward on 17% GDV growth. Because just curious as you renew partnerships and sign new ones, if there’s any change to the economics there between what you guys get in terms of fees and deposit benefit? And if you’re seeing tighter spreads or better pricing as you renew and again signed new ones?
Damian Kozlowski: No, we’re not getting any pricing pressure for our larger programs. So when we do negotiate because of the incremental expense differential between an older and newer program, we do give large volume discounts but that kind of falls more to the bottom line for us. That is a good relationship [indiscernible]. I think that’s — I know what’s coming in, there’s several large new programs coming on. So they will be higher fee in the beginning for the first couple of years as they grow volume. But the thing to note is that we have 12% in there as kind of the base of GDV of that lease that range, 17%, it might be more than 17% growth next year. But we’re expecting 2% or 3% this year from more of the credit sponsorship fees.
