Nathan Race: Okay. Great. And Al, just to clarify on the expense growth outlook for this year, that low single-digit expectation that’s off $151 million in reported expenses in 2023?
Al Villalon: Yeah. Of the $150.1 or point 2 reported expenses.
Nathan Race: Okay. Got you. Good deal. And maybe one last one for Karin. Just curious if there’s any additional detail to the recoveries that we saw in 2023 and if you’re just seeing any major credit issues on horizon, and obviously, it’s not evident from the numbers that we can glean that you guys reported this quarter. But we’re just curious on your outlook for charge-offs in 2024 and how you see the reserve trending relative to loans as well.
Karin Taylor: Sure. Hi, Nate. Most of those larger recovery opportunities have been exhausted and so I expect that as credit continues to normalize, we’ll start to see some level of charge-off activity. Just in terms of the general outlook for asset quality, I don’t see anything significant on the horizon. We’re just continuing to see some normalization. No specific patterns. Just what we would expect as we return to a more normalized environment.
Nathan Race: Okay. Great. And just, sorry, one last one. Just curious on the appetite for share repurchases continuing at this point. I imagine you guys are going to be fairly opportunistic, but still have a good amount of excess capital flexibility. But just curious to what extent you maybe want buybacks to be a kind of more recurring component to your capital return to shareholder story?
Al Villalon: Yeah. This is Al. Hey, Nate. In terms of buybacks, opportunistic is a good word for it. We do look at buybacks to make sure that the earn back on those any repurchases is still definitely under three years. So we definitely look at where stock price is trading relative to that earn back scenario.
Nathan Race: Okay. I will leave it there. I appreciate all the comments. Thank you, everybody.
Al Villalon: Thanks, Nate.
Katie Lorenson: Thanks, Nate.
Operator: [Operator Instructions] And our next question today is from the line of Matthew Renck of KBW. Matthew, please go ahead.
Matthew Renck: Hey, everybody. Hope everybody’s doing well today. A lot of my questions have been asked and answered, but just as a follow-up to the loan growth discussion. Are rate cuts baked into that outlook or do you think, and if they’re not, do you think we’ll see a meaningful uptick in loan growth in the back half of the year, perhaps?
Jim Collins: I don’t — we didn’t anticipate the loan cuts in that loan forecast of growth. Like I said a little bit earlier, we should have a strong second quarter and third quarter. That’s fairly natural when you see the business tax returns come in and businesses are planning for events. We had a strong fourth quarter this year, but that had more to do with the talent we brought on in 2023 and them getting their pipelines set and then starting flushing out their pipeline. That could happen again in 2024 if we find additional talent. We’re going to be very opportunistic to find good, solid mid-market commercial bankers, specifically in Minneapolis and Arizona. So if we do find that in the first half of this year, we might see similar results next year of a stronger fourth quarter than I’m anticipating, but that would be because of talent acquisition, not rate cuts.
Matthew Renck: Okay. Great. Thank you. And I think that’s all I had right now, so I’ll step back.
Jim Collins: Thanks, Matt.
Al Villalon: Thanks, Matt.
Operator: Thank you. [Operator Instructions] Okay, it seems we have no further questions in the queue, so this will conclude the question-and-answer session. I would like to turn the conference back over to Katie Lorenson for any closing remarks.
Katie Lorenson: All right. Thank you, Harry. Thank you everybody for the questions. Thank you for everyone listening in today. As you can tell, we feel very confident as we move forward into 2024 about in regards to sustaining the momentum that we saw in the fourth quarter. Our unique strength of this company’s diversified business model continues to differentiate our ability to attract and retain clients, as well as talented professionals. We remain absolutely laser-focused on our strong and diversified balance sheet, our talent investments, fee income and investments in those key business lines, while optimizing our infrastructure to return this company to our long history of delivering strong profitability, tangible book value growth and top-tier returns to our shareholders. Thank you to our investors, our analysts and to everyone for joining our call today. Have a great day, everyone.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
