Operator: Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc. Second Quarter 2026 Earnings Call. On the call today are James L. Eccher, the company's Chairman, President and CEO and Bradley S. Adams, the company's COO and CFO; Darin Campbell, the company's head of National Specialty Lending; and Gary Collins, the vice chairman of our board. I will start with a reminder that Old Second's comments today will contain forward-looking statements about the company's business, strategies and prospects, which are based on management's existing expectations in the current economic environment. These statements are not a guarantee of future performance and results may differ materially from those projected. Management would ask you to refer to the company's SEC filings for a full discussion of the company's risk factors. The company does not undertake any duty to update such forward-looking statements. On today's call, we will also be discussing certain non GAAP financial measures. These non GAAP measures are described and reconciled to their GAAP counterparts in our earnings release, which is available on our website at oldsecond.com on the home page and under the investor relations tab. Now I will turn it over to James L. Eccher.
James L. Eccher: Okay. Good morning, and thank you for joining us. As customary, I have several prepared opening remarks, give my overview of the quarter, and turn it over to Brad for additional details. I will then conclude with certain summary comments and thoughts about the future before we open it up to Q&A. From a GAAP perspective, net income was $28.2 million or $0.54 per diluted share in the second quarter, and return on assets was 1.65%. Second quarter 2026 return on average tangible common equity was 15.58%, and the tax equivalent efficiency ratio was 51.72%. Excluding all adjusting items, which include MSR valuation adjustments, and costs related to the 2025 acquisition of Bancorp Financial, and its wholly owned subsidiary, Evergreen Bank Group, Net income for the quarter was $28.7 million or $0.55 per diluted share. Second quarter earnings were impacted by $9.2 million of net loan charge offs, which primarily included 2 credits that we discussed at length. On last quarter's earnings call. A commercial and industrial charge off of $3 million in the warehousing and distribution business that has seen its cash flow position erode over the last year. A commercial real estate investor charge-off of 2.8 million that was an office property located in a western suburb of Chicago This was an acquired credit. It was restructured into an AP note in 2023 due to challenges facing the office market. At the time of the restructure, the B note was fully secured by the value of the underlying collateral but has recently experienced a decline in value And based on an updated valuation, the B notes collectability is now in doubt. and was charged off. The B Note was previously fully allocated for prior quarters and a portion of the note was accounted for in purchase accounting adjustments as a result of the acquisition of Evergreen Bank Group. The property continues to produce cash flow adequately to support the A Note at this time. Net charge offs related to the Power Sport business totaled $2.8 million which is a $1.1 million reduction from the prior quarter as seasonality related to this loan portfolio usually results in higher usage of ATVs and UTVs that are collateral for these loans during the spring and summer months. I would note that the contribution margin in this business has continued to trend higher and remains robust. Tangible book value per share increased to $14.77. At the end of the quarter from $14.35 at last quarter. The tangible equity ratio increased 12 basis points from last quarter from 11.07% to 11.19%. And is 36 basis points higher than the like period 1 year ago. Common Equity Tier 1 was 13.28% in the second quarter of 26 increasing from 13.13% last quarter but decreased 49 based basis points from 1 year ago. This decline is primarily due to stock repurchases of approximately $40.2 million during 2026. Our financials reflect an exceptionally strong net interest margin of 5.23% for the second quarter. that is a 9 basis point improvement from last quarter. And 38 basis point increase over the prior year like quarter on a tax equivalent basis. Pre provision net revenues increased in the second quarter from the prior quarter primarily due to day count higher average balances and lower average time deposit balances. Total cost of deposits was 100 basis points for the second quarter compared to 105 basis points for the prior linked quarter and 84 basis points for the second quarter of 25. For the second quarter 2026 compared to last quarter, tax equivalent income on average earning assets increased 2.8 million while interest expense on average bearing liabilities increased $658 thousand. Loan to deposit ratio stands at 96.4%. As of June 30 compared to 93.2% last quarter and 83.3% as of 06/30/2025. Total loans increased $60.6 million during the second quarter partially reversing seasonal declines in the previous quarter. Tax equivalent loan yields increased 12 basis points during the second quarter of 2026 compared to the linked quarter and reflected a 63 basis point increase for the quarter year over year. The increase in yield in comparison to the prior quarter is driven by higher short term rates and repricing of lower yielding loans that were originated in 2021 and 2022. Turning to credit asset quality. Trends improved during the quarter despite the elevated charge offs. Non performing loans decreased $19 million and classified assets declined $16.5 million In general, our collateral position remains stable on classified assets. We recorded $9.2 million of net charge offs in the second quarter, the majority stemming from the powersports portfolio and 1 relationship each in commercial real estate investor and commercial Overall, we are pleased with the credit trends as NPAs declined 25% in the quarter. The allowance for credit losses on loans was $70.4 million as of June 30 or 1.34% of loans. From $72.1 million at March 31, 2026, which was 1.39% of loans. Unemployment and GDP forecast using the future loss rate assumption remain fairly static from last quarter. With no material changes in the unemployment assumptions on the upper end of the range based on recent Fed projections. The impact of global tariff volatility in the war in Ukraine continues to be considered within our modeling. Provision levels quarter over linked quarter decreased by $2.5 million to $7.5 million and were partially driven by significant movements in when compared to the forecast period resulting a negative qualitative adjustment. Additionally, some larger charge-offs taken during the quarter had been provided or allocated for in prior quarters. Broadly, we are encouraged by the positive credit trends with the reduction in non performing assets and classified assets quarter over linked quarter. The office portfolio continues to be under pressure broadly with valuations coming in at its steep discounts to prior levels and rents declining broadly. The good news is we do not have anything classified in that vertical, and very much of it on a relative basis, it only represents about 3% of the portfolio. Noninterest income increased $631 thousand or 5% in the quarter compared to the prior linked quarter and a $2.4 million increase or 21.7% from the prior year linked quarter. Wealth Management had a strong quarter Income was up $245 thousand quarter over linked quarter and increased $525 thousand compared to the prior year linked quarter. Mortgage banking income increased $97 thousand compared to the linked quarter. And increased $543 thousand compared to the like period a year ago, primarily due to the changes in mortgage servicing rights mark to market valuations. MSR valuation was flat quarter over linked quarter. However, excluding the impact of mortgage servicing rights mark to market adjustments, mortgage banking income increased $164 thousand over the prior year like period. Other income declined $176 thousand in the second quarter compared to the prior linked quarter and increased to $551 thousand compared to the prior year like quarter driven largely by powersports loan service fees and dealer chargebacks and lease syndication fees. Total non interest expense for the second quarter increased $1 million from the prior linked quarter driven by higher officer incentive and employee insurance costs within salaries and employee benefits. Elevated OREO expenses as the first quarter of 2026 realized net gains on property sales as well as GAAP insurance refunds related to legacy Evergreen activity with another expense. Altogether, our efficiency ratio continues to be excellent. As the tax equivalent efficiency ratio adjusted to exclude core deposit intangible amortization, OREO cost, and the adjustments to net income as noted earlier was 50.8% for the second quarter compared to 51.7% for the first quarter. Overall, the bank continues to perform at an exceptionally high level. Operating leverage is strong. The margin is stable. And fee income businesses are performing well. We are doing a nice job of adding additional talent throughout the organization. Credit is on an improving trend and I am hopeful that we will soon be able to demonstrate the full earnings power of Old Second. I will now turn it over to Bradley for additional color.
Bradley S. Adams: Thanks, Jim. I will be brief. there is not a lot controversial from my corner of the world. Or confusing for that matter. Net interest income increased to $83.3 million for the quarter. Relative to last quarter's $81.1 million. And increased by $19 million or almost 30% from the year ago light quarter. The interesting thing about this quarter is tax equivalent loan yields increased by 12 basis points in the securities yields increased by 6 basis points. That is the fundamental driver of what, I guess, I would call a margin surprise. Increase of 9 basis points relative to our expectations of giving back a few And that largely stemmed from interest rate increases along the curve particularly in SOFR and overnight index swap rates, that began after kind of instability in The Middle East kicked up and price of oil went up and all that. None of which could have been expected. Worked out well, I guess. Obviously, the margins ridiculously good at this point. You know, 5.23 relative to 5.14 last quarter. 38 basis points up year over year. We did have some loan growth this quarter on an average basis. It was only $14 million. Obviously, Jim went through the period end. Deposit runoff, was a little higher than expected. Deposit funding cost came down, which I did not expect. I would say that both loan and deposit market competition is very robust right now. We are seeing that both in terms of pricing and structure on the loan side. And we are seeing deposit competition pretty significantly above the Fed funds curve and the treasury curve at this point. So things are pretty aggressive out there. Loan origination activity in the second quarter, reflected a seasonal increase of $60 million and the pipeline remained strong. Certainly, the market environment, including pricing challenges due to tariffs and the uncertainty of war in Ukraine results in some reluctance on borrowers to invest in capital projects. So we are still kind of in a wait and see mode on that front. Overall, I still feel pretty good about loan growth on a full year basis. I do not see much of a reason to step down what we talked about before. Maybe a little bit more of a bias toward the low single digit level. From a stock repurchase perspective, we acquired 732 thousand shares during the second quarter at an average price of $21.08. The result is obviously in a reduction to equity and growth in the treasury stock of $15.4 million. This enhanced EPS in the quarter by about a penny. Year to date repurchases under the stock repurchase program totaled 1.9 million shares. At an average price of $20.31. We had exhausted the previously approved stock repurchase program which was 5% at the time pre Evergreen. And the board of directors have approved a new plan to repurchase approximately 2.5 million shares through June 30, 2027. I would expect that we will continue to be active and aggressive in the repurchase of shares given our extremely strong capital position that far outstretches our projected capital needs over the next 12 to 24 months. Margin trends still feel very good and very stable in the near term. If you pin me down and hit me with a rock, I would say we probably give back a few basis points, but my track record is starting to look pretty poor on that prognostication. I realize I have been saying that for the last few quarters, and it has not happened. Obviously, rates along the curve went up quite a bit, as I said. Those trends remain stable here, and high cost deposit attrition slows, I would expect that few basis points of contraction to occur. But it may not. Loan growth for 2026, still target low to mid single digits as I said. Expense growth will continue to be modest in the quarters ahead. that is it from my end. I will turn the call back over to Jim.
James L. Eccher: Okay. Thanks, Brad. In closing, we are cautiously optimistic due to the improvements in credit metrics this quarter. I think we are particularly encouraged by a 30% reduction in our special mention loans. The rest of the bank is performing far ahead of our expectations. We remain optimistic about loan growth, as Bradley mentioned. And the potential for more strategic growth opportunity as well. That concludes our prepared comments this morning, so I will turn it over to the moderator and we can open it up to Q&A.
Operator: Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your hand before pressing the star keys. Moment, please, while we poll for questions. Your first question for today is from Nathan Race with Piper Sandler.
Nathan Race: Hey, guys. Good morning. Thanks for taking the questions.
James L. Eccher: Good morning, Nate.
Nathan Race: Obviously, some nice cleanup in terms of class and nonperformers in the quarter, and sounds like, you know, you guys largely mopped up, you know, some of the, you know, lingering credits on that office commercial real estate loan and also that C&I loan in the quarter. So just curious as you look out over the next several quarters, what do you think is a better kind of projection in terms of where, charge-offs can shake out for old second with, hopefully, kind of more benign nonperformer inflows and so forth in the future.
James L. Eccher: Yeah. I mean, I think the I think the big takeaway for us is quarter is not only the meaningful reduction in criticizing classified NPAs, but have a 30% reduction in special mention, which is generally a leading indicator for future problems. I think gives us some optimism You know, powersports also had a nice reduction in charge offs. We are obviously going to see a little more charge off in that vertical, but we are seeing maybe and Darren can speak to this later, but we are certainly seeing a normalization in the seasonal trends and in charge offs. You know, having said that, you know, that we are still working through a couple of credits, but, you know, we have not seen anything new really pop up, you know, in the last couple quarters. That had not been previously identified. So I think we are really close to having a very clean quarter on the credit front, which should you know, I think which will really drive exceptional performance.
Nathan Race: Okay. that is helpful. Thanks, Jim. Then maybe Bradley, just thoughts on how the margin could trend in the back half of the year. I know it is going to be dependent on market rates similar to what we saw in terms of the impact in the second quarter. But just any thoughts in terms of what you are seeing in terms of kind of weighted average rates on loan production these days and just any thoughts on kinda where deposits and overall cost trends? Yeah.
Bradley S. Adams: Start with a caveat that there is, like, 52 ways that I can be wrong. If something changes in the in the next week or something like that. The magnitude of the wrongness will be relatively subdued, though. If I had to guess, I would say that we would be at kind of a 5.18 range. In the third quarter and maybe 5.15 in the fourth. that is my best guess. But I fully recognize my track record's crap. I think I said that the margin was going down before it crossed 5. So you know, at least I am wrong on the right side of it, which is somewhat comforting. But, you know, best guess. 100 ways I could be wrong.
Nathan Race: And underpinning that, is it essentially, Bradley, that, you know, loan yields can only go down from here and then, you know, deposit costs are likely going higher as well, albeit from a very, very low base.
Bradley S. Adams: Yeah. So the things that are really driving it for us is speed of attrition of what is effectively mimics wholesale, on the deposit side. Our ability to backfill that growth with different types of deposits Loan yields feel relatively stable. We have been in essentially the same rate environment except for the last 3 months. For almost 18 months, 24 months now on the asset side. Obviously, we have talked about this in the past. Year 1 of kind of rates moving back lower, is pretty great within the power sports business. Year 2 is a little bit not as good, and year 3 is worse. So the tailwind of margin expansion from power sports is certainly in the very late innings of that. I have been remiss in pointing out at this point that another ridiculously strong increase in the contribution margin from powersports this quarter. The business continues to be exceptional. But I think the biggest thing is the biggest delta on margin and being able to nail it down right now is the speed of attrition on effectively wholesale deposits and our success in backfilling. Okay. it is a liability work these days. So I think you are seeing that from other banks. it is I have always believed it was a liability world just broadly, but more so today than ever.
Nathan Race: Understood. And then maybe 1 last 1 just on capital management. Curious if we can expect the pace of buybacks to step up relative to, the second quarter. I looks like they came down a little bit versus 1Q. Then just, you know, within kind of capital management context, curious what the appetite and kind of prospects are on the acquisition front these days.
Bradley S. Adams: Ladder question first. Well priced M&A that adds something to our franchise value is something we are always in. Believe the market is still favorable for that. As it relates to stock buyback activity, we have been buying as much as we can. I expect that to continue. Obviously, we are still growing capital even buying back as much shares, but I think it is reasonable to expect that we will fully execute this authorization as well over the next 12 months.
Nathan Race: Okay. Great. I appreciate all the color. Thanks, guys.
James L. Eccher: Thanks, Nate.
Operator: Your next question is from Brandon Rudd with Stephens Inc.
Analyst: Good morning.
James L. Eccher: Good morning, Brandon.
Analyst: I guess my first 1 to follow-up on 1 of your earlier answers there, Bradley, the backfilling the higher rate attrition on deposit side with core with core deposits What rate is kinda needed now to generate that core deposit growth? Or maybe said another way, what is the blended interest bearing deposit rate for that new growth?
Bradley S. Adams: You know, I am not sure. I get the gist of the question. To maintain the margin, the reality is that if we ran out $200 million of effectively wholesale funding right now, it would be margin accretive to replace it with wholesale funding. That is the nature of the deposit competition that exists marginally right now. So I get what you are asking, At what rate can we generate deposit growth? I am not sure it really matters. it is just a question of how much wholesale funding are you willing to stomach. The reality is when you look like us, is largely retail core deposit funded, all we are really giving up by adding wholesale funding is more asset sensitivity, which does not hurt. it is the trade I am willing to make. So that is why what you are hearing from me is relatively bullish because there is these levers that are out there. And we could pay off the remainder of, sub debt that exists out there too. Are various levers that you can pull the net of which is that margin feels pretty stable. But I am, you know, contemplating therapy to not say, hey. The margin can go up from here. I do not really wanna say that anymore. So it is it is gives and takes and what have yous, I guess. Okay. Yeah. Got it. you for that. And then just on the expense side, the efficiency ratio is in the low fifties. As a percent of assets. Expenses are mid to high 90s. Is there anything in the near term, any investments coming down the pipeline that may change either of those metrics? Not materially. No. But the reality is that you know, there is no deferred maintenance here. We have capital projects underway of across the board to make us an even better bank, and we do not shy away from them. that is the challenge of growing a bank. So things are continuing. They are in the run rate, and they are in the future prognostications.
Analyst: Okay. Perfect. Thank you. Maybe just 1 last 1. Thanks for the comments on the commercial real estate charge offs. On this C&I loan, is that still on balance sheet, or is that now off balance sheet? Or maybe you can just kind of walk through that a bit more.
James L. Eccher: Yeah. No. it is it is still on balance sheet, Brandon. The company is in the process of transacting and we are just working through and being conservative with taking additional charges as to where we believe a sale price will eventually happen. So I expect I expect that credit to be fully resolved within the next quarter. Okay. Thank you very much. Thank you.
Operator: Your next question for today is from Jeff Rulis with D. A. Davidson.
Jeff Rulis: Thanks. Good morning. Just a couple follow through, follow ups on maybe the margin, Brad. I just wanted to kind of confirm that any sort of recovered interest on maybe some problem loan resolution that may have added to the or, I guess, any 1-timers in that 5.23. And then if you could, what do you have the June, monthly average for margin?
Bradley S. Adams: I do not have it in front of me, but, no, I am not aware of any 1-timers that positively impact the market. It was largely stable throughout the quarter. Started going up. Okay. It was going up when we were on this call last quarter. I just did not believe it could continue. Yeah.
James L. Eccher: I mean, I think largely to as Bradley pointed out, there were 3 levers that drove it. We had some repricing of some 2021, 2022 vintage commercial real estate loans that came up from maturity. We had some you know, high yield deposit costs priced lower out and then we had some securities also rolling off that were reinvested at higher yields.
Jeff Rulis: Got it. And then on the maybe just on the fee income front, thoughts on I guess, we would expect maybe BOLI to normalize, but that wealth management number pretty encouraging. If you could just kinda touch on kind of fee income, overall fee income levels, in the second half, if you think Yeah.
James L. Eccher: I mean, we have been we have been a, you know, low single-digit grower in fee income. I mean, wealth our wealth group continues to be successful in bringing in new assets under management. They have obviously benefited from you know, from an equity market uptick. But we fully expect it to drive, I would think, low single-digit growth. And if we you know, see any pickup in the in the mortgage bank, you know, we could get to you know, mid single digits.
Jeff Rulis: Okay. And maybe the last 1 just to confirm. The Evergreen kind of merger costs as well as cost saves, that is pretty much we have seen the end of it. Just wanted to kinda housekeeping.
Bradley S. Adams: I believe so. Yes.
James L. Eccher: We have 1 branch we just shuttered. Last month, so we will have a little bit of a pickup on a go forward basis there. But, yeah, we are largely through that.
Jeff Rulis: Got it. Thank you.
Operator: Your next question is from David Konrad with Raymond James.
Analyst: Hi, good morning guys. Thanks for taking my questions. Bradley, I appreciate the commentary on share repurchases and sounds like you are going to be continuing that going forward. But I am just wondering how sensitive you guys are to the share price and valuation and at what point do share repurchases not make sense from your perspective?
Bradley S. Adams: I am not sensitive to it. The reality is that we have more capital than we would otherwise need certainly absent M&A opportunities, and then we have more capital than any M&A opportunity that we would have an appetite for. And the reality is that buying back fully this authorization would still not result in capital levels going down. So it is it is just a question if it a lever to return capital to shareholders. Such that we do not grow it as fast. And it really is that simple. it is a tax efficient return of capital to shareholders. Although, I do not like that 1% tax 1 tiny bit. I would I feel remiss if I do not throw an editorial in there. But whatever.
Analyst: Yep. Understood. Thanks. And then, apologies if I missed this, but, going into the loan growth, it looked great in the quarter, and what stood out to me was the commercial growth. Can you just provide maybe a little bit more detail there? Just given the impressive growth and also considering the competitive backdrop that you had talked about?
James L. Eccher: Yeah. As Brad mentioned, it remains exceptionally competitive. You know, last quarter, first quarter, we had you know, we saw some pullback, which we normally do in the first quarter. Growth this quarter really came from really 3 or 4 buckets or middle market C&I group. A commercial real estate group, sponsored finance. And then Power Sports had some growth this quarter when we thought maybe it would be relatively flat. But, you know, Power's been on, and Darren can speak to that, but second quarter and third quarter generally pretty good in that business, and we are optimistic that we may see some growth in the third quarter as well. But those are the drivers competition remains fierce. there is no question about it. But encouraged by our pipelines today. Great. Thanks for taking my questions. Thank you.
Operator: Please press 1. Your next question for today is from Brian Martin with Janney.
Brian Martin: Hey. Good morning, guys.
James L. Eccher: Hey, Brian. Hey.
Brian Martin: Just on the credit front, Jim, I guess that seems like the you know, there is some nice improvement potentially coming. I know you have got a couple credits you talked about still working through, But can you just kind of give us some thought on how you think credit plays out? I mean, over the next couple quarters, what would you expect in terms of some meaningful resolution, just a handful of things coming back? Or just in general, given what you see today?
James L. Eccher: Yeah. I mean, we are we are hey. We printed, what, 70 basis points in charge offs this quarter. I mean, I would like to say we are gonna get back into that, you know, 35 to 45 basis points. You know, we are we are going to we are going to run a little bit higher with power sports. Right? But we saw a nice reduction in the second quarter over first. We are working through a couple more credits, but we are optimistic we are going to see improvement. Again next quarter, not only in charge off levels, but in overall migration, and we hope to see further reductions in classifieds and NPAs.
Brian Martin: Okay. And is there anything, I guess, in terms of, you know, how much of a reduction in NPAs could see that in the coming quarters? Is it are there a couple of meaningful things you are working on? Is just kind of some granular stuff or just bigger picture how to think about it is, you know, we are only you know, we are not even halfway through the quarter, but we have we have already had a couple small wins early in the quarter.
James L. Eccher: You know, there is a couple larger ones we are optimistic that we can hopefully get resolved. But we certainly are not seeing anything new that has popped up in the last, you know, couple of quarters. So we are encouraged. And as I said, as I mentioned, in my prepared comments, the fact that special mention was down, you know, 30%. it is usually a pretty good leading indicator as to you know, future migration-type trends.
Brian Martin: Yep. And do you have that number, Jim, what the special mentions were? Or when you said 30% from the previous quarter, is this what is the barometer there?
James L. Eccher: They were down $12.5 million in the quarter. So about $40 million to $27 million.
Brian Martin: Okay. Perfect. Alright. And then just 1 or 2 last ones for me. The Bradley, you talked about just kind of the M&A, which you have talked about in the past. But in terms of size, is there something-- I mean, are you guys in preference wise if you found an opportunity, a smaller or bigger if you could kind of comment just on kind of how you are thinking about that with the approval times and whatnot. But it seems like it had been smaller, but maybe that is not the case.
Bradley S. Adams: I would say the bias is towards smaller right now, but I do not really rule anything out. it is just that at the end of the day, the question is, does doing a transaction make the franchise more valuable? And Yeah. 99 times out of a hundred, that is a deposit based question. Obviously, not always. Because we have done an asset generator deal. But there is no interest in betting the farm at this point. What we have here is pretty special. it is what shows up in the profitability numbers, and it is not easy to find a transaction that makes you a better bank, but they are out there with some work. On the front end and the back end. So I am optimistic we can get something done in relatively short order.
Brian Martin: Gotcha. And then just lastly, you talked about that contribution margin. I guess your outlook that contribution margin, I think was up again this quarter.
James L. Eccher: I will let Darren answer that 1.
Darin Campbell: Yeah. it is Brian, right? Hey, Brian.
Brian Martin: Yep.
Darin Campbell: Right. Right. Yep. Hey. Yeah. So contribution margin for the National Specialty Lending that Jim and Bradley both mentioned, that historical high for us. I expect that to continue through this year. With some reduction coming next year, coming down a little bit next year as some we changed rates a little bit lower in the middle of this year. And so you will start seeing as the portfolio turns over. Little bit more of that impact in the 2027 than you would this year. But nothing material, but you will see it come down a little bit in 2027.
Brian Martin: Gotcha. Okay. Yeah.
James L. Eccher: Brian, I think what is important to understand that portfolio, the APR on that right now is over 10%. And, you know, the loss rate came down from over 2% to 1.80. So you can see the contribution margin you know, well over 8.5% on that business, which is extraordinary.
Brian Martin: Yeah. No. it is great. I think that answers most of it. The only thing I could ask you, Bradley, that I do not know that you have not commented on or maybe it is just not something you would want to at this point. But just in terms of you know, the stability in the margin near term, if we think about going into next year, I mean, what is kind of the puts and takes on directionally where you would expect the margin to be whether, you know, not quantifying a number, but just kind of directionally how you think about it as you go into next year.
Bradley S. Adams: Well, I think we have won this war, like, 47 times now. So I would say if that becomes, like, 57 times, then maybe interest rates would go down. Along the curve and inflation would dampen and then you would probably get back a little bit margin. But I normally, I talk about this stuff over a beer, but I fundamentally believe that the world is shedding the idea that rates are somehow anchored to zero interest rate policy. I believe those days are done. And as long as that is the case and I am correct about that, then fundamentally, this is a very high margin financial institution just based on the quality of the funding. So I am very bullish, a very elevated margin, for a very long time. I guess, is the way I put that.
Brian Martin: Okay. That is that is helpful. So I appreciate the taking the question, guys.
Bradley S. Adams: Yep.
James L. Eccher: Thanks, Brian.
Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to Jim Eccher for closing remarks.
James L. Eccher: Okay. Thanks, everyone, for joining us this morning. And we look forward to, talking to you again in the third quarter. Goodbye.
Operator: This concludes today's conference. And you may disconnect your lines at this time. Thank you for your participation.
