Robert Gorman: In terms of the fourth quarter, notable items, they kind of continue as one-time non-recurring. Basically, the positives and negatives basically come out to zero. So we didn’t think it was necessary to kind of dissect and report each individual component. So, if you think about it that way, the total expense that you see reported is kind of our run rate because all this other stuff netted out. In terms of the €“ what was the other question there?
Laurie Hunsicker: Maybe if you could just branch closures are and what those look like in the first quarter.
Robert Gorman: From the branch closure point of view, five branches will close in March of 2023. Annualized savings is going to be about $1.5 million starting then. And we are going to incur a few more one-time costs associated with that due to getting out of some leases that we have. That’s probably in the tune of about $400,000 in the first quarter. And then, overall, we’re looking at mid-single digit expense growth off of the run rate that we have. So, this is kind of way to think about it. There’s an uptick in the first quarter due to seasonality. And then overall for the year, we should be up mid-single digits.
Laurie Hunsicker: On your expense guide, was your base $398 million or is it going .
Robert Gorman: I’m sorry. $398 million was the baseline that we’ve been using.
Laurie Hunsicker: One more question on expenses. The total cost of the branch closure, so $400,000 in the first quarter of 2023, what’s your total?
Robert Gorman: Yeah, it was about $700,000 in total, split between Q4 and Q1.
Laurie Hunsicker: Just quickly, Rob €“ or maybe this is to David, the jump in the commercial real estate, non-performers, the owner occupied €“ and clearly, your asset quality is looking great. But the jump that we saw there, was that one loan, are there several loans or can you share with us maybe even the type of loans?
John Asbury: Doug Woolley, Chief Credit Officer, is here. We’ll let him answer that.
Doug Woolley: It’s just a handful of small loans.
Laurie Hunsicker: Any particular type or?
Doug Woolley: No pattern.
Laurie Hunsicker: No pattern. John, last question to you. Can you talk a little bit about buybacks, why you’re not being active? We’re seeing other banks start to ramp up in that. Can you help us think about how you’re approaching that?
John Asbury: That’s a capital management decision. Rob, you touched on it earlier. Just given the uncertainty out there, we like the idea of buybacks, to be clear. Do you want to pick it up from there?
Robert Gorman: Certainly, we’ve been active in buybacks over the years. We just felt that at this point in time, with €“ especially, as you saw loan growth come in 15% annualized, we want to make sure we preserve our capital and keep that dry powder for growth, as well as really not knowing if we’ve got a recession coming and how deep that might be. So it’s really, let’s call it, more of a short term pause until we can see some clarity around potential recession and where long growth goes.
