Ty Abston: Yes, Michael. So, the main part of that is just repricing the loan portfolio. We’re repricing significant portion of the portfolio each month. And as those loans repriced and we’re not having to move deposit rates as aggressively, we really haven’t moved those up in the last three months of any significance, then we’re just able to reprice the asset side faster than the loan, then the deposit side and liability side is repricing. So, that’s where we’re seeing the increase. We’re also with our excess liquidity, we’re able to buy bonds and increase the portfolio — the yield and the bond portfolio. So between the two, those that — we’ve had a net — been able to net increase our margin, and we’re modeling out being able to continue to do that, just by simply repricing the asset side faster than the liability side.
Michael Rose: Very helpful. And then just to put a finer point on everything you just said, Ty, do you guys actually think that you have a chance to grow NII year-over-year just given some of the challenges, most of which are conservative to your point, which I think is great, just given how low credit quality — how great credit quality is, but, I mean, do you actually think you can grow NII this year?
Ty Abston: I don’t — I’d have to look at that and think about that a little bit from NII standpoint. Our margin, yes. Our actual NII, I’m not sure. And that’s the piece that we’re still kind of getting a sense of based on where we see the balance sheet going for the year. But, again, we’re just — we’re letting some of that kind of happen organically, and we’re not forcing growth, but we’re certainly not passing on growth opportunities. We’re just — we’re kind of keeping ourselves pretty flexible with the environment that we’re in just as we see kind of how things kind of unfold. So, it’s — I don’t have a lot of clarity specifically on the balance sheet on where we’re growing this year, we’re more than likely going to see more contraction, which would obviously contract the NII. So…
Michael Rose: Certainly, kind of appreciate how challenging the environment is. So, thanks for the color. Maybe just one more for me. I know you guys, intra quarter, increased or announced a new buyback program. That’s a little bit bigger than the prior one. You haven’t been that active. I think maybe the earn back was a little bit higher. But can you just talk about the desire to buy back shares? And then, just separately, would you take a portion of your excess capital and look to do at least a partial balance sheet restructuring maybe to just improve the NIM and NII trajectory? Thanks.
Ty Abston: So, the buyback, yes, we — I mean, we are very interested in buying back shares once it hits our valuation metric, and our share price has been up this quarter versus last, so we bought back less shares. But whenever it gets down below that, it’s a priority for us to buy shares. And if it goes further below that, it’s a larger priority. So, we accelerate our interest as the price dip — drops below kind of our threshold. As far as restructuring the bond portfolio, I just don’t — I’m not really looking to do that because I don’t think — two things. One is we’re able to — we’re actually adding bonds to our portfolio, and I don’t know that everybody’s doing that. We don’t have a significant AOCI count, and that portfolio continues to — we continue to increase the yield of portfolio.
I just don’t know if that makes sense, because sure as we do that, then rates are down next year and some of those projections are out the window. So that’s not something I’m looking at. I think as long as we continue to reprice the loan portfolio, we continue to add additional new securities to bond portfolio at higher yields, and the fact that our AOCI is really a nominal amount of our total capital, then the plan is at this point just to continue like we’re doing and let time kind of cure a lot of that.
Michael Rose: All right, great. Thanks for taking all my questions. Appreciate it.
Ty Abston: Thanks, Michael.
Operator: Our next call is Graham Dick with Piper Sandler.
Graham Dick: Hey, good morning, guys.
Ty Abston: Good morning, Graham.
Shalene Jacobson: Good morning.
Graham Dick: Most of my stuff has been asked and answered, but I just wanted to follow back up on the new loan yield that was down a little bit this quarter. Is that more of a reflection of production mix, maybe being more weighted towards 1 to 4 family, or is our overall market rates starting to come in a little bit, I guess, this year so far?
Ty Abston: That’s going to be more related to production mix, Graham. We’re seeing some more in-house single family opportunities that we’re doing. And then, we’ve also had some really high-quality credits that we’ve booked in the 7% that probably average that down in the high 7%, mid- to high-7%. So that’s going to be just a question of the mix, probably for the quarter.
Graham Dick: Okay. Would you assume that it maybe starts to expand a little bit more, I guess through the balance of the year from here, assuming no major changes in the Fed path?
Ty Abston: Say that one more time, Graham. Sorry, I’m not sure I caught the question.
Graham Dick: Yeah, sorry. Do you think that we’ll be able to see that new loan yield maybe expand maybe back to where it was in 4Q over the next couple of quarters, or do you think it’ll kind of sit around this level?
Ty Abston: That’s hard to project. I would say it’s probably going to stay around this level, but that’s hard to project truly.
