Nathan Race: Just wanted to zoom-out on the margin outlook. We contemplate maybe a couple of Fed rate hikes in the back half of this year. Do you guys believe that just the higher pricing that you’re seeing on new loan production today can offset just some of the variable rate loans repricing lower? Within that context, obviously, you’ll have some index deposits that will also reprice lower. So, I guess I’m just kind of curious how you guys are thinking about, kind of protecting margin if we do get some Fed cuts later this year?
Todd Gipple: Sure. Nate, actually, as I think you know well, the right side of our balance sheet is a bit more of a challenge for us with the ratio of commercial deposits to retail deposits. And that’s really been our struggle in terms of margin and holding on the margin. That does give us a very good outlook if the Fed was to cut rates later in the year. If they were to do that, I think we’d likely outperform many in terms of our ability to bring cost of funding down quite quickly. We would be able to take those rate-sensitive liabilities down pretty sharply. They have performed that bucket that we would call like our 100 beta bucket of deposits. So far, it’s been 91% over the cycle. And so, we think it would perform well in rates down and give us some relief on cost of funds quite quickly.
Nathan Race: Okay. Great. And then just one clarifying question to Larry’s point earlier, on just the reserve. Larry, were you describing a kind of a stable reserve on an absolute dollar basis or stable in terms of just as a percentage of loans?
Larry Helling: Yes, thanks for that clarification. Yes, probably stable as a percentage of loans. We’re in a we’re still pretty high particularly given 11 basis points of NPAs, but that we’d like to hold in that low 140s range for now, possibly build it if we see economic headwinds, but certainly hold it there so that we’ve got some powder in our reserve if we do see some degradation later in the year.
Nathan Race: Got you. And then just maybe lastly, just in terms of the M&A outlook, are you guys still kind of less interested in opportunities these days, just given the macro environment and interest rate fair value marks and so forth, how are you guys kind of thinking about and seeing kind of the flow of those opportunities develop these days.
Larry Helling: Yes. Nate, good question again. Certainly, it kind of goes in-line with stock buyback questions earlier in the call. Our focus is on building capital right now. And the M&A environment is given all the uncertainty going on, certainly less likely. So, long-term, certainly, we’d be open to things, but in the near term, certainly, we don’t see anything and our focus is on build on a balance sheet that will stand the test of time here if we do see economic uncertainty.
Nathan Race: Okay. Great. I appreciate you guys taking the questions and all the color.
Larry Helling: Thanks, Nate.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Larry Helling for any closing remarks.
Larry Helling: Thank you, operator. I’d like to thank all of you for joining us on our call today. We hope everyone remains healthy and safe during the new year. Have a great day. I look forward to speaking with you all again soon.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.