Rob Anderson: I don’t think you’re going to see it go down, Feddie. I think it might slow on the earning assets. The growth will slow a little bit. Like I said, we had some of the pub fund money run off in early April. But we quickly got client money in to replace that probably at a 80 basis point spread improvement. So if you think about that over $100 million, $125 million on a big balance sheet, it takes a lot to move the numbers there, but it’s the little things that really matter. But I think the overall average earning assets will continue to grow, but maybe at a little bit slower pace.
Feddie Strickland: And then just — Rob, did I hear correctly, I think you were talking to Michael about 5 to 10 basis points. Was that downward movement on the cost of funds from everything you’re doing, or just trying to get clarity on what exactly that discussion was going on…
Rob Anderson: I think if you look at Page 7 and just the general trend on our cost of funds or in cost of deposits, what I think is going to happen and what we’re modeling with the changes is that you’re going to see that deposit cost start to plateau. Every quarter, it’s been going up approximately in the last few around 20 basis points. If we can hold that at 2.75% and then on the following page the loans continue to go up, grind higher about 20 basis points, then that will impact the NIM positively an additional 5 basis points. We’re saying 5 to 10 on the range. So I think it’s not necessarily deposit costs going down but plateauing and hopefully leveling off.
Feddie Strickland: So you’re talking about the actual potential upside of the margin, that makes sense…
Rob Anderson: Yes.
Feddie Strickland: And then just lastly, I know it’s not a huge contributor today, but I know maybe in the future, particularly after we get rate cuts, SBA could present a potential opportunity. I was wondering if you could talk a little bit in more detail about just what you’re seeing there, both in terms of credit and in terms of potential future volume and where we could maybe see that go if we get a little bit more favorable environment down the road?
Luis de la Aguilera: We’re putting a lot of emphasis on our SBA activities and actually have the largest pipeline that we’ve ever had in the first quarter. As a matter of fact, if we close what we have in the first quarter, we beat what we did in the entire year last year. So we have contributions from all our lenders. And I believe that we will see, in the second quarter, really strong activity, looking to close what we have and we are very focused on it. And I think that’s going to be the plan for the rest of the year. Our typical SBA 7(a), they’re capped at about $5 million. I think ours is about $2 million on average. But we also launched last year a program with a digital partner to source a small ticket SBA. It was launched in September. Our banking centers are very active with it. So that’s also going to be contributing. So the entire Bank is really, really focused on the opportunity for 7(a).
Feddie Strickland: And just one more for me. Just curious on the deposit front. Are you seeing anything incrementally different from competitors, has the market gotten a little bit less competitive for deposits or is it still pretty intense competition?
Luis de la Aguilera: I would say, it’s pretty sporty. Our banking centers report on a daily basis what’s happening as far as the competition. And also on the loan side, we’re seeing deals with 6 handles where our average coupon is in the 8s. There’s a lot of business that we turned down. We’re being very disciplined on our lending. Our team understands it. We source relationship, not transactional deals. But it’s serving us well and we’re going to keep that discipline. But the market here in South Florida is very competitive. It’s very competitive on loans and deposits, that hasn’t changed.
Operator: The next question comes from Ross Haberman with RLH Investments. Ross, your line may be muted. All right. This concludes our question-and-answer session. I would like to turn the conference back over to Luis de la Aguilera for any closing remarks.
Luis de la Aguilera: Thank you. So on behalf of the U.S. Century team, I would like to thank you all for your attendance. And look forward to meet again in our next earnings call in July. Have a great day.
Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
