Kelly Pecoraro: Yes. I think as we look out to Q1, we’re looking for the range to be in the low 2.50% range from a NIM perspective. Definitely challenges. We don’t have any guidance for any further out than that, but we continue to closely monitor and manage — try to manage that NIM.
Christopher O’Connell: Okay. Great. I’ll step out for now. Thank you.
Kelly Pecoraro: Thank you, Chris.
Jim Nesci: Thanks, Chris.
Operator: Thank you, Chris. We have our next question that comes from Laurie Hunsicker from Compass Point. Laurie, your line is now open.
Laurie Hunsicker: Yes. Hi, thanks, Jim and Kelly. Good morning. Just wanted to stay where Chris was thinking about margin here, you mentioned on the funding side, thinking about alternative, I assume you’re talking federal home loan bank. Can you take us through a little bit — I mean, obviously, we saw an increase there. Can you take us through a little bit of how you’re thinking about adding in that category? And just also from the standpoint that your mix is shifting and we’re seeing this challenge across the board, but as funding headwinds continue to weigh on deposits, just maybe help us think a little bit about that. And certainly, appreciate the guide that you gave for the first quarter margin. But thinking a little bit further out, just trying to put all of those pieces together.
Jim Nesci: Sure, Laurie. I’ll try my best to answer that. We’re looking at things other than just FHLB straight borrowings now. We’ve looked at swaps. Right now, the swap market has a positive spread to a straight up FHLB borrowing. Those are coming in the mid-3%-s for instance. We will look at corporate deposits from time to time, listing agencies that we can buy, what I’ll call, wholesale CDs. There’s a lot of different funding sources. And then, we’re exploring some of the digital avenues for opportunities where we may be able to find some wholesale funding at lower cost. But there’s a multitude of options that we are working through and we’re always focused on what’s our best source of funding and trying to get the mix correct obviously.
Laurie Hunsicker: Got it. Okay. And then, your brokered CDs, I had that at $5.7 million last quarter. Do you have a current number on that?
Kelly Pecoraro: That is up this quarter to $75 million.
Laurie Hunsicker: $75 million, okay. Great. And then, can you share with us where your spot margin is for the month of December?
Kelly Pecoraro: Laurie, we normally don’t share monthly guidance. However, we provided what we think the outlook is going to be for Q1.
Laurie Hunsicker: Okay. And then, on expenses, obviously, with CECL, that provision for letters of credit moves up. So, obviously, thinking about that, adding that back, we’re already over $13 million in a quarterly run rate for noninterest expenses. Can you help us think about how that’s going to look for 2023? And then, specifically, can you remind us in terms of the benefit plan expense, is that all fully baked for this quarter? Or is there anything still that’s going to come online on the expenses there?
Kelly Pecoraro: So, from the equity plan perspective, Q4 was shy by about $50,000, knowing that the management awards went out late in October. A full quarter, we’re looking at right around $590,000 in equity plan expense for what’s been issued to date. Relative to the overall range of what we’re looking at from an expense on — for an operating expense, we’re looking at the mid to high $13 million range, as we continue to look at avenues to optimize our business model and being laser-focused on managing those operating expenses.
Laurie Hunsicker: Okay. And was there anything outside non-recurring and noninterest expense? In other words, did you have embedded in there, I don’t know, CECL professional fee help? Or is there anything that potentially is coming out of that $12.9 million reported number outside of the provision recovery on letters of credit?
