Brad Milsaps: You guys have addressed most everything. I apologize if I missed this. But just curious, Cappy, I know you didn’t buyback any shares during this quarter. We’re more active early in the year, given kind of a lack of balance sheet growth, what €“ any more appetite or is it still kind of a wait and see approach there?
Cappy Payne: Pretty much a wait and see, Brad. We have a metric we’re looking at, and we’ll get in the market if we think it’s prudent. But we were not there during Q4, so we didn’t have — wouldn’t have any shares. But like I said, we bought back, was it 250,000 shares, I believe for the year. So we keep our same metrics out there, but we’ll just have a wait and see how to do.
Brad Milsaps: Got it. And then maybe sort of a bigger picture question for Ty. I knew last year your goal was to earn basically a $1 more in 2022 than you did in €˜21 and you guys did that, had a great year. I think everyone knows that €˜23 is going to be more challenging. Just kind of curious, what you would — maybe not so much in net income dollars, but, kind of where do you want to see the bank 12 months from now. I know it’s a pretty murky picture, but kind of, what would you classify as a successful year for the energy as it just sort of getting to the other side of this with a bigger capital base, a bigger reserve, just ready to take whatever e-comm approach that I just €“ just kind of curious if you could give us kind of a bigger picture outlook, maybe similar to what you did in €˜22?
Ty Abston: Yeah, Brad, I would say that, I mean, our main goal in €˜23 is to really have strong asset quality come through this cycle without any significant losses. We’re going to be building reserves as we see it’s prudent, have good earnings. We’ll see what that actually turns into because like I said, there’s headwinds across the board. But the other side of this, have stronger capital, stronger reserves and maintain strong asset quality to be positioned to go back on offense when things start going another direction, but it’s going to be very much a defensive year for us at least. And I think probably a lot of banks as we’re really trying to defend our core funding base, really defending asset quality, and trying to defend earnings and from just the different expense structures that have been under pressure the last couple of years and obviously fee income.
So across the board, it’s a year, it’s going to be a year that our goal will be to, be in a better place than we are today, and that’s saying a lot going through what could be an economic downturn in the storm.
Brad Milsaps: That’s helpful. Thank you guys. Appreciate all the color.
Ty Abston: Sure, Brad.
Operator: We have another question from Matt Olney.
Matt Olney: Thanks. Thanks for the follow-up. Just sticking with this bigger picture theme, Ty, I guess, the bank’s been able to maintain this return on assets above 1% now for a number of years. You mentioned all the headwinds from lots of directions. Just curious about your expectations if you think you can continue to maintain this ROA north of 1% with all the headwinds out there?
Ty Abston: So, Matt, I don’t think we would go below 1%, but now that being said, there’s a lot of unknowns. And so depending on the reserves, we feel prudent that we need to put into our reserve account during the year. We’ll obviously be looking at expenses very closely and we’ll — we’re going to manage those aggressively. And the rest of it is just the market side of, from mortgage to SBA, different income departments. There’s just not a lot of opportunity out there right now. So I don’t see us dropping below 1% because we’re going to be pulling our levers to avoid that, but I can’t say it wouldn’t happen either. Again, they’re just €“ it’s not the lack of clarity of €“ that we obviously had during COVID, but there is a lot of unknowns out there with everything going on until we see where the Fed’s going to, land with rates and kind of how that, how hard or soft this landing is, we’re just being pretty cautious in how we think about things going forward.
I will say during COVID, we set aside $13 million in reserves and we didn’t actually have any losses. So the fact that we set it reserves aside in €˜23 are just part of, as part of the CECL modeling and I can see a setting beside bit more reserves if we see further deterioration economy, whether that turns into actual credit loss or not will be our primary focus to see that doesn’t. But so there’s — that’s a that’s a long way of saying I really don’t know the answer to that question, but certainly that would be a goal that we would try to defend would be 1% ROA.
Matt Olney: Yeah. Thanks that commentary, Ty. And I kind of just following up on that around CECL and the allowance. You mentioned in 2020 kind of the big — the big build there. I think you got the ACL ratio up to that, that 180% level in 2020. I know CECL is kind of always evolving, but just curious you think that’s still is, is a 180 number still for the realm of possibility here this year? Or do you think you’ve — this is a model that’s kind of evolved over the last few years, which would make that less likely?
