Jane Funk: I think our net interest margin, there are so many variables. It’s hard to necessarily provide some future guidance or forecast. But depending on our success with deposit efforts, if the Fed — we can certainly handle like 25-basis point increments of Fed rate changes as opposed to 75 basis points. So there’s just a lot of variables that will go into net interest margin these next few quarters as hopefully, the Fed slows down or pauses on their rate increases.
Brendan Nosal: Yes, yes. Of course, I know that it’s certainly not an easy thing to conceptualize. Okay. Maybe on the — moving to the expense side of things. Just kind of wondering what leverage you have, if any, at this point to come at the impact of margin impression? And then any thoughts on kind of the pace of expense growth as you move forward?
Jane Funk: Yes, I would expect expense growth to be very modest. I mean, certainly, we’re very cognizant of our noninterest expenses. We’ve always been very efficient. Our efficiency ratio has always been one of the best in the industry. So to that extent, there’s not a lot of places to necessarily trim expenses. But certainly, we are monitoring closely any additional expenses, looking at the purpose, the benefits, the investments that those relate to. Our biggest — like I mentioned, our biggest increase in 2022 related to the addition of bankers. And so we will see the benefit of those costs as they have a little bit more time to season with West Bank.
Brendan Nosal: Okay. All right. That’s helpful color. Maybe turning to credit quality. Obviously, the book remains impeccably clean. No — not a single number I can look at that suggests that anything could go wrong anytime soon. But just kind of curious what you’re hearing anecdotally, whether there’s any number or conversation you can look at and say, hey, this indicates we might be heading for a turn?
David Nelson: The portfolio that we have has stood a pretty good test of time in regard to what they do. The issues with our C&I customers have then that they have had a lot of liquidity and have had a lot of success the last few years, and that stayed that way from what we can tell in 2022 regarding the information we’ve received so far. So I don’t see an issue there. Multifamily has been strong in regard to strong rents, have increased, and in fact, are probably increasing their NOIs as we go. Office and medical stayed very strong, and warehouses are very strong. So we are vigilant to continue to review quarterly financials, monthly financials, but I don’t have anything today that says this is going the wrong direction.
Brendan Nosal: Got it. Perfect, perfect. And then on the allowance, so kind of a — bit of a bleed down in the reserve to loan ratio this quarter. And do you feel like we’re nearing a point where you want to kind of hold the line at that 93-basis point level?
Jane Funk: Well, we — yes, I mean, that was pre-pandemic, we were in the low 90s. So that was kind of a benchmark, I think for us for normal operating procedures. We will be adopting CECL effective 1/1. So that’s going to, I guess throw a whole another layer of complexity into the provision and the allowance for ’23.
Brendan Nosal: Yes, yes. Of course, of course. Okay. And then maybe one final question from me before I step back. Just hoping you can kind of lay out your capital priorities as you turn the calendar to New Year. Certainly, I can see TCE and tangible book value start to move back up. But just kind of curious how you’re thinking about that this year.
