Ron Gorczynski : Yes, we’re looking at, as we said, really our story hasn’t changed in our revenue projection. We’re still looking at probably the second half Q3, we probably will hit that run rate, the $50 million plus. Pretty excited to see that happening, and the $42 million, as Billy had indicated, we’re looking at Q3 of this year.
Operator: Our next question comes from Feddie Strickland with Janney Montgomery.
Feddie Strickland: Hey. Good morning, guys. Just wanted to go back to the noninterest income guide. Does that $7.5 million include mortgage? And can you just talk about what you’re seeing with that business? Does it seem like we could maybe see a bit of a pickup in ‘24 versus ‘23 given the population inflow, or are rate and supply constraints still just too much of an issue right now?
Billy Carroll: All right. Feddie, let me take the first part. Then I’m going to hand it over to Ron to maybe talk through a little bit more of that. Just kind of specifically about mortgage, mortgage has never been a huge piece for us, but that said, we really have had what we feel is a good start to the year for that. That’s one of the things, as we’ve talked about on prior calls, we added a new chief banking officer, Martin Schrodt. Last year, Martin has taken lead over that mortgage group, and we’re seeing some really nice things happen with that, really with both product mix, growth, pipelines. And so that’s been a big plus. So we’ve been pleased with that moving forward. But, Ron, do you want to speak kind of the broader noninterest income question?
Ron Gorczynski : Yes. Most of the stuff is pretty stable, nominal increases. But I’ll go back to mortgage. We’re pretty much looking at 15% increase in the guidance for our mortgage revenue line. In the past, we’ve portfolioed more. We did a lot of private banking clients that we decided to keep in-house. But as we switch more towards a secondary market, right now we’re at 38% of our productions going to secondary. We’re probably through mid-year, later part of 2024, looking at a 50 mix. So that should be a promising component of our noninterest income. The rest is just going to be steady, consistent growth, quarter-over-quarter.
Feddie Strickland: Thanks. I appreciate the color on that. And then I have one for Rhett as well here. Just wondering if you could talk a little bit more about the equipment finance business, what you’re seeing, in particular, wondering if you could give an update on what you’re seeing in the trucking sector, whether that was incrementally a little better or worse this quarter from a credit standpoint?
Rhett Jordan: Yes, absolutely. Feddie, we are still seeing good production in that space as far as equipment finance. The heavy construction side of that is doing really, really well. In the trucking space specifically, that continues to be the area where what problem assets we have in that bucket fall in that segment. But it definitely, I will say peaked. We have seen it stabilized. We’re basically kind of still working with the same group of clients that we were working with at the end of the year. That are facing some challenges. But I want to make sure that you and everyone else are clear that, I mean, it’s a very small segment of the bank’s overall portfolio and exposure. It’s about the total watch list items, classified items, and repos we have is only about 0.8% of capital and exposure. So it’s a very minor piece of the segment for us.
Operator: We now turn to Steve Moss with Raymond James.
Steve Moss: Good morning, guys. Maybe just starting on the buyback here, just curious as to how you’re thinking about the — how aggressive you’re interested in being on the buybacks here and just your thoughts on that and capital here?
Billy Carroll: Yes, Steve, I’ll make a comment, then I’ll let Ron kind of just give some additional color. I think it’s really, as where we’re trading right now, we want to be as aggressive as we can be on it. I mean, to be honest, I mean, it’s, obviously you got parameters around that we work through, but for us, I mean, I think it’s the best investment we could be making today. And so, we’re going to look to put as much over there as we can. Ron, you might talk a little bit more about specific thoughts around that.
Ron Gorczynski : Yes, we have, currently our capacity is $4.5 million worth of shares. We’ll actually, again, we anticipate starting that in a few days after the blackout period. And then we’ll go from there. Again, we like where the stock is trading and, if we have to expand our buyback, we will. But right now that’s kind of our plan, our short-term plan on this.
Steve Moss: Okay, great. And then in terms of just the loan payoffs this quarter. Billy, just wondering if you quantify the size of those payoffs and it sounds like you probably have a few more in the upcoming quarter maybe impacting loan growth.
Billy Carroll: Yes, I’ll let Rhett talk specifically about the numbers and kind of what we saw last quarter it has — it’s not huge but it’s still a little impactful is probably the best way to put it, and a lot of it and I said it in my comments it’s really, it’s quite frankly I think it’s healthy, it makes you feel better about the economy. We’ve got a lot of business transactions going on and we’re seeing clients get opportunities to sell some assets at higher values, a couple of those potentially business sales like I said we’ve got some things that we’re seeing out there that will probably continue to get into the quarter. I think at the end of the day we can kind of overcome that with the growth projections we have but it’s not a huge number but it is noticeable. And, Rhett, you might talk specifically about kind of dollars and what we’re seeing on that front.
