I know that’s something that’s to Jeff as he succeeds as well too as is that we have that put in place. So, the context that he has, the context that I have, the work that we have done over time with regard to the markets and lenders, I don’t think we want to slow that down. Would like to continue to move that forward. But we don’t show a big expense number in any quarter or two. We want to make sure that we are getting the positive operating leverage from the teams that we are hiring, the people that we hiring and things like that. So, that’s kind of the way I guess I would answer at this point is that our strategy to get that up a single digit loan growth, we really don’t want to abandon it. Obviously, if we hit a real severe recession, then you really start to get more focused on cost control, but at this point, slight recession or soft landing, maybe no recession.
We just think power right through it because we’ve got some good momentum going. Also the first quarter, second quarter of the year is the time to hire lenders because they are all kind of getting their bonuses and they are all pre-agents at that point in time. The back-half of the year is a little tougher people because then you’ve got a — obviously you got to cover some out of pocket numbers to get people to move.
Manuel Navas: Thank you. I really appreciate that color. Thank you.
Todd Clossin: Sure.
Operator: The next question comes from Daniel Cardenas with Janney. Please go ahead.
Daniel Cardenas: Good morning, guys.
Todd Clossin: Good morning.
Daniel Cardenas: As we continue to talk about loan growth here, are there are any categories that maybe you are approaching more cautiously now than say versus a year ago?
Todd Clossin: Well, I would say that it goes back even more than a year ago. At the start of the pandemic, obviously we got very cautious on hospitality and office. The hospitality portfolio has come through in a really great shape. No issues that we see in the office portfolio either. But, that’s the one everybody is watching for the next couple of years is really what happens to the office portfolio. So, we are not doing much in the way of office. It would have to be really low on the value with strong guarantors with a lot of liquidity. So, not a lot of office at all at this point in time, not a lot of hospitality either, still being very cautious on that. Those would be the two areas that I would mention. We have seen a lot of really good C&I business.
Lot of the lenders that we brought on in our legacy markets have really started to bring us some nice C&I business. Commercial real estate is still a big part of who we are. But, it’s nice to see that the C&I business as well. But outside of the two real estate categories, office and hospitality, I would say the other areas we are continuing to lend in. So, we don’t do much in energy as you know. We are less than 1% energy. So, that’s not a factor for us. But, other businesses seem to be pretty good.
Daniel Cardenas: Okay, excellent. And then, maybe some color on the quarterly run rate on fee income for ’23?
Todd Clossin: I’ll let Dan jump in here as we are obviously we are impacted by the lower residential mortgage production than what we had in the past and obviously put more on our books. We have benefited to some degree higher securities revenue. Lot of that’s coming from the CD book. Putting fixed annuities out there and getting the commissions off of that. So, that’s I think part of the reason why securities are up so much. And then, we are seeing more business activity occurring and even consumer activity which is driving more service charges on the consumer side. Dan, any comments you would make on fee income?
