David Feaster: Terrific. Thank you, everybody.
Paul Egge: Thanks, Dave.
Operator: Your next question comes from the line of Matthew Olney from Stephens. Please go ahead. Your line is open.
Matt Olney: Hey. Great. Thanks. Good morning, everybody.
Robert Franklin: Good morning, Matt.
Matt Olney: I’ll start on the professional fees. I think Paul mentioned professional fees was elevated due to some — these initiatives of crossing $10 billion of assets. Any more color on these initiatives? And then how do you see that line item trending in 2024?
Paul Egge: It was more of a timing dynamic. If you saw the third quarter, it was relatively with a dip from the second quarter. And a lot of work has been done here in the fourth quarter to kind of achieve the goals we wanted to achieve by the end of the year as it relates to all things in the new standards of being over $10 billion in assets. When we look forward, we think about a run rate of professional fees that would be certainly lower than the fourth quarter. I’d probably say more like $2.5 million, but that has some timing variation on a quarterly basis, similar to what we saw in our trend when you look at that line from the second quarter to the third quarter and the fourth quarter.
Matt Olney: Okay. And I assume that’s all embedded in that ’24 guidance you mentioned, Paul, of the $280 million.
Paul Egge: Exactly.
Matt Olney: Okay. That’s helpful. And then, I guess, switching over to the loan yields. If I take out the accretion levels, I’m getting a pretty nice uptick in the core loan yields. Any color on the drivers there? And then just remind us on the fixed rate loan repricing dynamics of the bank. Remind us what you expect to reprice higher during the year. And I heard Ray mentioned some of these newer yields are still at the 8% level. Just remind us on kind of on the reprice dynamic, what they’re coming from in some cases. Thanks.
Ramon Vitulli: Matt, on the renewed loans, we’ve been — we have a run rate of around $600 million a quarter of renewed loans. And so for the fourth quarter, those came on at — renewed at $8.51 million coming off of $7.79 million. So I think going forward, it will — they’ll probably get closer, obviously, but probably coming off of something in the 7s and then renewing it to something in the 8s is what we would expect. And then again on the new, the new was $250 million in new loans that came on at 8%. So I hope that helps you with your — what you’re expecting in the fix rate repricing. I mean obviously, there’s fixed and floating in that $600 million that I’m referring to. So that I don’t have handy, the — what the fixed rate portion of that is.
Matt Olney: Yeah. That’s helpful. I guess you mentioned the floating portion. And I think in our models, we’re all assuming various things behind what the Fed does this year. Remind us of what’s floating at the bank and the Fed were to cut at some point this year, just a dollar amount of loans that would reprice downward pretty quickly from the yield side.
Paul Egge: Yeah. Around — a little over 40% is variable, but truly floating. You’d be talking about a little over 20%. So that’s what we’ll move more immediately relative to Fed SOFR in particular.
Ramon Vitulli: Yes, direct one.
Paul Egge: Yes.
Matt Olney: Okay. Perfect. And then on the deposit side, you hit on some levers you can pull there if rates were to move lower. What about on the non-interest-bearing side? A little bit of give up in the fourth quarter, but still one of the kind of highest levels amongst the peers. Any more color or thoughts on where you see the balances kind of stabilizing and what timeline?
Paul Egge: We see — I would ask you to look at the average for the quarter. Point in time at 12/31, it looked like it would appear that we went from kind of 42% or 41.5% to right at 40% on that NIB ratio. But if you take it more on an average basis or if you were to say a point in time today, we have enjoyed around 41 or so percent of NIM deposits. And so far, we’re really, really pleased with the resilience of that holding up. A little bit of what occurred at 12/31 in particular was a large growth in the interest-bearing demand. And that — when that piece grows, you obviously kind of drown out the NIB. And NIB actually point-to-point was slightly down. So we’re really pleased with the resilience of our non-interest-bearing portfolio of customers, and we look forward to maintaining really strong proportion of NIB going forward.
Matt Olney: Okay, guys. I appreciate all the commentary, and congrats on the quarter.
Paul Egge: Thanks, Matt.
Robert Franklin: Thanks, Matt.
Operator: [Operator Instructions] Your next question comes from the line of John Rodis from Janney Montgomery Scott. Please go ahead. Your line is open.
John Rodis: Hey. Good morning, guys.
Robert Franklin: Good morning, John.
Paul Egge: Good morning.
John Rodis: Just looking — switching gears, looking at fee income, what was the SBIC impact in the quarter?
Paul Egge: $2.4 million. We recognized $2.4 million of revenue on that SBIC gain.
John Rodis: And how should we — I mean, that’s not really our — I know you have it sometimes, but how should we think about that going forward?
