So far in ’23, I think that is as we’ve talked about before, a bit on the high side as far as the long-term average for the Equipment Group. And so, I do expect that to kind of add back some as we go into next year.
Chris Marinac: Great, Jon. That’s very helpful. Thanks for that detail. And is the equipment finance group growing at a similar pace as the last few quarters, or would you look for that pace to change in the next year?
Jon Edwards: Well, it is moderated some in the last couple of quarters. As Palmer said, it’s big picture is that we’re not going to let the loans outpace deposits and so that is across the board. The decline in loans that happened during the quarter, especially in the mortgage warehouse lines kind of took the denominator down. So it looks like that the portfolio is a greater percentage of the whole now because it’s up to 6%, but that’s really just sort of end-of-period numbering. It’s still, not outpacing the growth of the whole portfolio when you look at it a little bit better than just that one day in time. So, it’s going to be pretty much the same kind of growth that we see in the whole portfolio.
Palmer Proctor: Yeah, Chris. We’re not looking to accelerate that growth, if that’s your question in that particular sector. But above and beyond what it already is.
Chris Marinac: Okay. Great. And then just one quick expense question. As you think about expenses next year, should we see a handful of new branches as you continue to look for new deposits?
Palmer Proctor: We’re all about branch optimization and a lot of that has to do not necessarily with closing branches, opening new branches, but we may repurpose some in terms of relocating to better locations and so be more optimization in that regard. There are a couple of markets where we clearly have a void in branching, in our Tampa market, for instance, we need a little more presence there. But other than one or two branches, I wouldn’t expect much in that regard.
Chris Marinac: Great. Thanks for taking my questions.
Palmer Proctor: Thank you.
Operator: Our next question comes from Kevin Fitzsimmons from DA Davidson. Please go ahead with your question.
Kevin Fitzsimmons: Hey. Good morning, everyone.
Nicole Stokes: Good morning, Kevin.
Kevin Fitzsimmons: Just it seems like, I don’t know if it’s three or four quarters, it seems like a number of quarters in a row you guys have, it seems like from our vantage point have been deliberately or proactively building the reserve, so sacrificing some of your near-term earnings to do that. And I’m just curious what your outlook. I know there’s the model and there the inputs to model, but there’s also with, from a top-level point of view, where you want to take that ultimately? And I’m just curious how many — if things kind of stay where they are right now and we don’t have any massive shift, do we have more quarters of building the reserve ahead of us or are you getting close to a point where you’re getting comfortable with what you see out there today? Thanks.
Jon Edwards: Well, Kevin, I would say that as you pointed out that it is model-driven and therefore, we are following the forecast models that we look at. The part of the answer I think was found in the third quarter actually, because the provision was half or thereabouts what it was in the second quarter. So that in and of itself tells you that the forecast we’re moderating the level of change, which is what really creates reserve one way or the other is slowing. So it seems like that you want to kind of envision a hockey stick, maybe that’s the way it’s sort of began to look in the third quarter. So I think that, I wouldn’t anticipate that it would be, back to the level it was in the early part of the year, given that kind of forecast model, but, things in the world changing and, if things do have a tenancy to change, but as it stands right now, I would anticipate that we’re kind of moderating from the high levels early in the year.
