Scott Wylie: Yeah. Our view on that hasn’t changed. We’ve said that we’ve historically operated in kind of the mid-90s and that we’d like to get that down to a 100 by the end of this year. And then back in the mid-90s after that. Again, the quarter-to-quarter or month-to-month changes are hard to predict. And we don’t really manage to loan deposit ratio this month of X or Y or, but it’s clear in the organization that we’re focused on deposit gathering. We talked about some of the successes we’ve had there, some of the positive trends we saw in June in particular. We went back and looked at our historic Q2 deposit growth, and we typically lose about 2% of our deposits in Q2 over the past several years. And we were down 1% in Q2 of this year.
So, I think that we did well given the tightening monetary policy and the pressure –competitive pressure that we’re seeing and all that. So, I feel like we’re doing relatively well. Obviously, it doesn’t feel great to go backwards from Q1, but I don’t think there’s some underlying concern there or any reason to change what we said we were going to do and what we’ve been doing. I would expect that to pan out here over the remaining half of the year and get us back in line with our historic loan to deposit ratio.
Brady Gailey: Okay. Thanks for the color, guys.
Scott Wylie: Thanks for the questions, Brady.
Operator: One moment for the next question. And our next question will be coming from Matthew Clark of Piper Sandler. Your line is open.
Matthew Clark: Hey, good morning.
Julie Courkamp: Good morning.
Scott Wylie: Good morning, Matt.
Matthew Clark: First question’s just — or a couple of questions around the margin, just trying to drill into the drivers and more specifically the numbers. But can you give us the average margin in the month of June and what the spot rate was at the end of June on deposits, either interest-bearing or total?
Julie Courkamp: Sure. So the spot rate for deposits at the end of June was 2.81%. So you’ll see a little bit of an increase over what our spot rate was in March. Actually, our spot rate on loans ended quite a bit higher than March as well at 5.38%. So that’s moving nicely up as well. And we’re seeing new loans getting booked at just under 8%, so 7.8%. So I think the trend line there is pretty good, which gives you some indication of where our NIM might head. For June, spot NIM was right about 2.8%.
Matthew Clark: 2.8%, that’s the month of June, I assume?
Julie Courkamp: Yeah, the month of.
Matthew Clark: Okay. Got it. Thank you. Sounds good. And then you mentioned the additional cost saves, I think in the earnings release in the back half of the year, and supporting kind of that lower run rate. I guess, where those additional savings coming from and have you — have those decisions been made yet? Have you pulled the trigger, I guess?
Scott Wylie: Yeah. We’re not planning any further cost cuts here, just to be clear. What we have seen is our cost saves that we put in place in Q1 and in April are panning out as we had expected. And so that’s just producing results for the second half of the year that are in line with the guidance that Julie provided, which is we expect to operate in kind of the $18 million to $19 million operating expense range. There’s some volatility in all this stuff. And so I don’t know exactly where it will land, but you know to us within a $0.5 million of $18.5 million seems like the right range from the cuts we’ve already made. I think there’s a broader point here, I would just make quickly if I could, Matt, which is, we’ve really tried hard not to impact the valuation capability of the businesses here, we’ve postponed some things that we wanted to do sooner, and we’ve tried to drive efficiency into the things that we are doing.
