Manuel Navas: Would you say that deposit growth — you kind of hinted at it. Could you say that deposit growth would be a wildcard that could improve your margin outlook?
Jeff Jackson: Absolutely. It could. Yes. Once again, it depends on the loan production we have and loan growth but yes. So that — as you saw this quarter, we paid down some of our FHLB borrowings because of it. So that could continue.
Manuel Navas: And the loan growth that you’re getting and the pipeline is nice and strong. How sensitive are you to kind of macro conditions there? Or do you feel like you’re just gaining market share and still being selective anyways?
Jeff Jackson: I feel like we’re gaining market share, but we’re still maintaining our conservative credit standards. We have not changed any credit standards. We have always been conservative related to that. And so for us, it’s really about hiring. We’ve got a lot of new people, new commercial lenders that are bringing in their solid credit customers. And so that’s what we are seeing. And then plus with the expansion of our new markets, that’s where we are getting the growth. We have not changed any credit standards. We are still being obviously, extremely careful as it relates to hospitality, and then office. And so, a lot of it is coming through C&I new relationships.
Operator: The next question comes from Russell Gunther of Stephens. Please go ahead.
Russell Gunther: Good afternoon guys. I wanted to follow-up on the expense conversation, Dan. I appreciate the puts and takes. It sounds like we end the year in a pretty similar place from a quarterly perspective, as we finished this quarter, thinking about the one-time credit, bringing in the cost saves from the mortgage rationalization. And then I think I heard you guys mention continued investment, but also some further rationalization. So I think we have talked about a core growth rate on expenses in the low single-digits in the past. I mean, is that the right way to think about it going forward as you balance efficiencies and further investment?
Dan Weiss: Russell, what I would say is, I think low to mid-single-digits is the right way to think about it. I mean, we are going to continue to invest. And if that investment results in a slightly heavier expense but results in a better return on equity or ROI, then we would probably do that all day. But more specifically, if we kind of zero in a little bit more in on fourth quarter and think about where we landed here in the third quarter at $97.3 million, if I were to kind of use that as the jumping off point for fourth quarter, I would add back the $800,000 kind of one-time credit that ran through other operating expenses. A number of puts and takes as you mentioned there in the salaries line item, we do have the midyear merit increases for the hourly folks that haven’t yet fully been baked in for the full third quarter.
Those go into effect in August. So we will have some uptick there just naturally. But as I mentioned in the prepared remarks, we do have some offsets there. So generally speaking, would expect salaries to be pretty flat. But then, we do — and as I mentioned the kind of we are investing in a whole — entirely new ATM fleet. We put 50 into service in the third quarter and we have got 33 more that we are putting in to place here in the fourth quarter. So would anticipate kind of that software and equipment expense be up maybe around $400,000 as if you are using — if you’re building off of third quarter. So call it $400,000 there. And then adding back the $800,000 credit, I would think of that as adding $1.2 million or so to the third quarter run rate.
Russell Gunther: Okay. I guess, just a follow-up to that would be, should I be thinking about expense savings from the mortgage vertical is hitting that fourth quarter? Is that more of a ’24 impact?
Dan Weiss: Yes. That’s fourth quarter.
Jeff Jackson: Yes.
