Peter Winter: So, you guys are always sitting on very strong capital ratios, low credit risk. I was just curious what your thought is on share buybacks. I know it’s not a focus, but what are your thoughts on share buybacks here?
Jerry Salinas: Yes. It’s really not something that’s top of mind to be quite honest with you. I think that right now, we really don’t even have one in place. We had $100 million one that expired. We expect that we’ll bring that back into the toolbox here in the near future. But we had one for all of 2022, we didn’t utilize it. We’ve got it primarily to ensure that if we did see some market correction on our stock that we’d be in a position to take advantage of that. But right now, I think from a multiple standpoint, I think we feel that capital is better served through organic growth. And I think there were some concerns, not that we were concerned, but I think the market had some concerns about tangible capital. And given that concern some of the questions we were getting, I can’t see that we pulled the trigger any time soon.
Peter Winter: Okay. And then just on office space. Phil, I heard your comments, most of your exposures to the A-type properties. But I was just wondering if you could comment what you’re seeing on the B and C properties like Houston and Dallas?
Phil Green: There really aren’t many that have come to my radar portfolio wise that I know of because that’s going to depend on sponsorship, guarantees, equity, all those kinds of things, right? But I can just tell you that what you’re seeing all over the country is that the B and C properties just hard to get people into and I can imagine there are some issues out there. I don’t have anything that’s more complex than that, just recognition that people aren’t using as much office space, and it better be nice if you’re going to try to get employees to go into it.
Peter Winter: Got it. Thanks.
Operator: Thank you. The next question is coming from Jon Arfstrom of RBC Capital Markets. Please go ahead.
Jon Arfstrom: I agree, you’ve got to be nice to get people back. That’s a good comment. Most of my questions were scratched off and Peter just took one of them. But you made a comment earlier, Phil, about the prospect pipeline versus your own pipeline and the difference between the two? Can you just talk about that a little bit more and maybe that’s more of a competitive environment question, but help us understand that a little bit more? Thanks.
Phil Green: Yes. We are getting lots of calls for deals, right, because we’ve got liquidity, we’ve got consistent underwriting. People know what we do in the marketplace. As far as that goes, underwriting is tightening up. It’s coming our way as far as guarantees and equity and all that kind of stuff. But my point was, and I should also say that we’re not looking to do all those deals. We bank people, not things, right? We bank relationships. So but there might be some relationships that we’ve been wanting to have that we’ll see the opportunity to do, okay? And we’re always on the lookout for that. And now the phone rings more. So we see prospect activity, to me, it’s more the advantage of us having the balance sheet that we do and reputation we do.
But my point on our customers, to me, it’s kind of like same-store sales. I know it’s not that. But I mean you already have the customers and the deals you have in the pipeline for them are the deals they’re looking to do, they’re new deals are looking to do, right? They’re not necessarily deals that are out there that already have been papered already that are in the marketplace that you might see with the prospect. So my point is, as I looked at it, to me, it was like, okay, our customers, we’ve got their business. If we’re not seeing new deals from them, it’s because they’re not doing new deals or they’re slower on them. But we are still seeing good prospect deals that are out there in the marketplace just because of the advantages that we have.
Maybe I’m awful on that, but that’s what it meant to me.
Jon Arfstrom: Okay. Good. That’s helpful. And then just one other thing on the step-up in IT and security expenses. Are you seeing that as a — that’s a permanent step-up or it’s just kind of modernization and core spending related just for ’23. Are we talking about a growth rate and expenses slowing in ’24 or your expenses kind of flattening out and coming down in ’24? Thanks.
