Manuel Navas: Hey, good morning. Could you add any color on what you are thinking — I know it’s early stages for kind of rethinking the branch network in the back-half of the year. Is that more kind of fund investment? Have it dropped to the bottom line? Modernize the network? Just kind of expand on any early thoughts and early goals there. Obviously, it’s not — not set in stone yet.
Todd Clossin: Sure. We’ve last couple of years — number of years actually, we have been what I would say rationalizing the branch network or optimizing it. We build a branch here or there every once in a while. But, we have been optimizing 10 to 15 branches or so a year. And using those excess, I guess, I would say reduction of expenses to fund all the above. So, some of the technology spend, Dan mentioned the ATM network we are upgrading. So, some of the money is going towards that. Also, the new lenders that we have hired and that we anticipate hiring, the LPOs, so we have been able to redeploy those savings into those areas and really drive I guess a significant amount of current and future positive operating leverage from those investments.
We are going to continue to do that. Looking at the whole branch distribution system, obviously, we have got a big advantage in our legacy market. So, don’t want to give that up. So, those branches and some of our world markets are important to us. Customers are important to us. Deposits are important to us. But at the same time, we want to make sure that that we are balancing out the right way, so that we could invest when we need to invest. And, still keep the efficiency ratio where we want it to be. And to keep as Dan mentioned kind of the quarterly run rate and expenses at least for the next couple of quarters in the mid 90 range. So, that’s kind of the balance that we are doing. But, don’t know how much longer we will continue to do, 10 to 15 branches a year but again that’s somewhat dependent on M&A as well too and buy other banks that have a branch network that could be rationalized too.
Manuel Navas: That’s helpful. So, it’s kind of already in the run rate that type of savings and investment at the same time? That’s the way to think about it?
Todd Clossin: Yes.
Manuel Navas: Okay. If the economy slows down a bit and you have a little bit slower than high single digit kind of near-term loan growth, would that impact kind of your hiring plans? Or, any of these somewhat like expense initiatives?
Dan Weiss: Well, I would say if we see deposit cost increase quicker than we are anticipating, then I think we’ve got some expense things that we talked about that we could do to try to still come through at the same net income we would like to come through with. So, we have been kicking around some ideas on the expense that are not baked into the run rate. We are not really ready to talk about it. They are not people related. But there are some things that we could do if the economy slowed, if we entered a more severe recession and everybody thinks we might, or if I think loan growth slows down though, the plan would not be to abandon our strategy to build capacity for loan growth. I mean we have been doing that for awhile, really building that for awhile.
