Operator: Our next question comes from the line of Terry McEvoy with Stephens.
Timothy Crane: Hi, Terry.
Terry McEvoy: Hi, good morning. Maybe a question on expenses. Some other banks are facing some NII pressure and prospects of rising credit costs. Could you just talk about maybe expense management plans and your thoughts on expenses over the next two to four quarters?
David Alan Dykstra: Sure. I mean we’re always looking out for expenses. Our approach has generally been to grow the balance sheet and try to grow the revenues at a quicker pace than the expenses. And like we’ve talked, we’re pretty optimistic about balance sheet growth and pretty optimistic about maintaining the margin, which would translate into increased NII. So from that perspective, we’re very optimistic. On the expense side, this quarter had, as I said, a few increases, the seasonal marketing, the addition of expenses from the acquisitions and slightly elevated lending expenses due to the double-digit loan growth and increased mortgage production. So those were the primary reasons for the increase this quarter. But we are always looking at expenses.
We’re very focused on them right now to keep them in check and try to keep them less than the revenue growth going forward. But we don’t want to cut to the bone here and not take advantage of the growth opportunities in the marketplace. We’ve always done that. We’ve always taken advantage of the disruption, and we think we’re in a great position to do that again.
Terry McEvoy: Thanks, Dave. And then as a follow-up, it sounds like next week, we’re going to get updated regulation for banks over $100 billion of assets. What’s the risk of that kind of dribbles down into banks maybe $50 billion and above? And how are you thinking about any changes in regulation for a bank that’s, what, $54 billion, $55 billion of assets today?
David Alan Dykstra: Well, I guess we’ll watch with great interest what they come out with. But I think you’re right. I think most of it is focused at $100 billion. We’re really not there yet. I think most of the focus will be on interest rate risk and liquidity management at the supervisory level right now. And making sure that the risk management in place there, we think we do a great job at that. So we’re not that concerned about it. But we’ll watch with interest what they come up with. But we don’t have any plans of hitting $100 billion in the next year or so here. So I think we have some time to plan for it.
Terry McEvoy: Definitely. Thanks for taking my questions.
David Alan Dykstra: Thanks, Terry.
Operator: Our next question comes from the line of Ben Gerlinger with Hovde Group.
Ben Gerlinger: Hi. Good morning, guys.
Timothy Crane: Good morning.
Ben Gerlinger: I was curious if we could talk through deposit pricing just a little bit. I know we touched on it in a couple of different ways, but first, I wanted to confirm that the guidance of 3.6% to 3.7% on margin incorporates any sort of mix shift that might happen?
David Alan Dykstra: Yes.
