Damon DelMonte : Hey. Good morning, guys. Hope you are €“ both doing well today. So my first question was regarding the outlook for margin. Eric, hoping you could just provide a little bit more color around kind of how you see things shaping up. Obviously, I understand the puts and takes for margins have responded this quarter the way it did. So kind of just wondering how you think about it kind of bottoming over the next quarter or so? Or do you think it could reverse sooner than that?
Eric Lemke: I think kind of, Damon, how we sort of think about it is, we may, this month, in particular, see a little bit of near-term pressure on the margin just from some of the deposit costs that we sort of talked about, and from some of these deposit relationships that we brought in to fund our loan growth. But then if we can keep the Fed at 25 basis points or less and give our fixed rate portfolios a month or two after that to continue to catch up on rates, then I think we’re kind of looking at a margin that’s relatively stable past this month into the rest of the quarter. If you look at our equipment finance portfolio in general, we had a really solid fourth quarter at really good rates. Those are fixed rate loans, but the portfolio turns over fairly quickly.
We’ve seen as much as 40% attrition in that portfolio. So we see some rate pick up with that each month. So I think we’re kind of looking stable, plus or minus a few basis points for the next quarter. And then beyond that, we’ll see how the economic conditions kind of play out.
Damon DelMonte: Got it. Fair enough. Okay. That’s helpful. Thanks. And then with regards to the commentary about more cautious outlook for a recessionary environment. Can you give us a little guidance on the loan loss provision outlook. This quarter came in lower than it had three previous quarters. So just wondering if we should expect to go back to like maybe an average of what we saw during the first three quarters of 2022 or what are your thoughts on that?
Jeffrey Ludwig: I’ll take that one. Because as you know, Damon, that one is the hardest one I told on the income statement that is to predict. But as you mentioned, this was our lowest provision quarter of the year. We’ve been internally working really hard around asset quality around underwriting. We’ve probably tightened our credit box and pricing box up a little bit, which, over time, right, should help with loan losses, which then helps with the provision. I think we’re expecting probably a little more provision than what we had in the current quarter, but not dramatically more over the year. Now if things really turn around for the worst then that changes as well. But I think if the environment kind of stays like this, and we don’t go into a real deep recession, it’s sort of a mild recession with like lots of folks are talking about, I don’t think our provision should be much different than what we saw this year and could be better.
Damon DelMonte: Got it. Okay. That’s helpful. That’s all that I had. Thank you.
Jeffrey Ludwig: Yeah.
Operator: One moment for our next question. Our next question comes from Nathan Race with Piper Sandler. Your line is open.
Nathan Race: Yeah. Hi, guys. Good morning. Hope you are doing well.
Jeffrey Ludwig: Good morning.
