Marc Maun: Yeah. I mean, healthcare loans now account for 17% of our overall loan portfolio. And we have an occasional loan here or there that we’ve had good management support of inside it, but things haven’t progressed as they expected, and we had to put those into more of a workout situation. One of them is more of an ongoing senior housing. One of them is more of a private pay situation. So, they’re not even in the same sides of the business. It’s just we will have one-off non-performing credits like that. This is not a reflection of anything we see systemic in the healthcare business. And I guess if I’m going to add anything, if you look at our non-performing loans over time, they have operated for the last numerous quarters in a very narrow range.
And if we go back and look, some quarters, it’s one of our other portfolios that adds to it. Another quarter, it’s a different portfolio. And this quarter just happened to be a couple of one-off deals in healthcare, and we’ll address those and be able to manage that, we believe, ongoing in a very narrow range with low charge-offs as we’ve had for a number of years now.
Stacy Kymes: Peter, just broadly, I mean, credit is a strength. I mean, if you look at where we are compared to pre-pandemic, we’re not quite half in terms of our criticized and classified levels, non-performing levels are strong. I mean charge-offs this quarter were $4 million. I mean, obviously not sustainable. But I think where we’re positioned and where we have performed historically, credit is very apparent that it’s a strength right now. And I think as we look forward, we still feel like — in the guidance that Marty provided, we still feel pretty good that at least over the next couple of quarters, we don’t expect charge-offs to be materially elevated.
Peter Winter: Got it. Thanks, Stacy. Appreciate it.
Stacy Kymes: Thank you.
Operator: Our next question is from Ben Gerlinger with Citi. Please proceed.
Ben Gerlinger: Hey, good morning.
Stacy Kymes: Good morning, Ben.
Ben Gerlinger: I was curious, the growth side looks pretty good. Are there — a little bit better than I would have guessed. But are you seeing people step back or risk-adjusted spreads being a little bit more appropriate that you’re willing to lean into the growth? Just any color on rates you’re getting as well.
Stacy Kymes: No, I think, generally speaking. I mean, it depends on what segment you’re looking at from a spread perspective. I would say on the larger corporate deals, there is some spread enhancement that’s coming as a result of maybe a liquidity premium in the marketplace that the larger banks are requiring from that perspective. On the commercial banking at the lower end, there’s probably not a lot of spread enhancement that’s happening. There’s still more competition there. Part of it is mix. As the mix shift is around over time that can change our spreads just a little bit because there are higher spreads than the specialty lines of business than there are in traditional C&I. But I think what we saw is the fact that we’re not just open for business, but we’re actively prospecting, looking for new customers, trying to use this opportunity to grow very thoughtfully, it’s creating opportunities for us.
And really, we had several deals that kind of pushed into the first quarter. We were hopeful, it would have closed in the fourth quarter. So, we’re optimistic about our loan pipelines and what we’re hearing from our customers and prospects as we think about loan growth in 2024.
Ben Gerlinger: Got you. That’s a helpful color. And then, I know the trading business is kind of the front end of the curve. Do you need consistent Fed cuts to really see that start to work, or is it just kind of the implications? Any kind of thoughts on what you might expect in terms of a cadence if, say, the forward curve is correct?
Martin Grunst: I think in the trading business, even without changes in rates, that business has momentum given the investments we’ve made in expanding into Memphis, et cetera. And so, it would be incremental on top of what we already expect to be a growth trend if we get forward curve plays out.
Stacy Kymes: Ben, were you talking about NIR or the fee businesses?
Ben Gerlinger: The fee business.
Stacy Kymes: Yeah. I think Marty answered that as it relates to the fee businesses for sure.
Ben Gerlinger: Yeah. That’s helpful. Thank you, guys.
Stacy Kymes: Thank you, Ben.
Operator: Our next question is from Matt Olney with Stephens Inc. Please proceed.
Matt Olney: Hey, great. Thanks. Good morning, everybody.
Stacy Kymes: Good morning.
Martin Grunst: Good morning, Matt.
Matt Olney: Going back to the fee discussion, and I think Scott touched on this briefly with Jon’s question. But just take a step back and help us appreciate the drivers of that $24 million guidance for fees and commissions. Various components of that through each one of your fee businesses. I think that guidance implies like a high-single-digit growth in ’24. What are the major drivers and detractors of that guidance?
