Woody Lay: All right. Thanks for taking my questions.
Tim Myers: Yes.
Operator: The next question comes from the line of Andrew Terrell from Stephens. Your line is now open. Please go ahead.
Andrew Terrell: Hi, good morning.
Tim Myers: Good morning, Andrew.
Tani Girton: Good morning.
Andrew Terrell: If I could just follow-up on credit for a moment. The $3.8 million loan that you called out that went nonaccrual this quarter, it looks like it was acquired. Do you have just what the specific reserve or the mark is against that credit? And was this one that you had marked as PCB in the transaction originally or originally identified as being a potential problem loan?
Tim Myers: I’m going to let Misako Stewart, our Chief Credit Officer, answer this question. So go ahead.
Misako Stewart: Yes. There is no specific reserve for that particular loan, because we do still have adequate or sufficient loan-to-value coverage on that. And the loan did go into non-accrual, but since quarter end, they did bring the payment current. So actually, as of this date, the loan is current on payments. And – we’re continuing to work with the borrower. The deal happens to be in an industry that we normally are not in. So it’s kind of an isolated situation, and we’re continuing to work with the borrower.
Andrew Terrell: Okay. Great. I appreciate the color. And then a lot of banks have been giving some color this quarter around the reserve against their office portfolio. Is that something you guys have offhand that you could share?
Tani Girton: A specific reserve, are you – is that what you’re asking…
Andrew Terrell: Yes, specific reserve against the office portfolio?
Tani Girton: Yes. We don’t have a specific reserve. However, we did make some adjustments in our Q factors and our qualitative factors under CECL to kind of increase the risk factor for our non-owner occupied real estate, which would include office. So that’s kind of where the reserves would be coming from. But no individual reserve.
Andrew Terrell: Okay. Understood. And then just I wanted to make sure I understood that the Page 13 of the presentation, the refinance slide correctly. And I appreciate the data. It’s very helpful. For the four loans that are $11.6 million out maturing in the fourth quarter. I just want to make sure that the 128 debt service coverage is based on a 3.80 weighted average current rate, correct?
Tani Girton: No, it’s not. It’s actually stressed to current market rate.
Andrew Terrell: Okay. Understood. Okay. I appreciate it.
Tim Myers: We may not – for everyone’s benefit, we may not have done a good job selling that out, but those are the current rates we took current lease rates, current rent rules, current tenancy and said, could these loans or sensitize those to repricing at current market rates to see what our exposure was on that. And so, we did it in two buckets, loans coming due by way of maturity or loans that reprice because those are somewhat different risk buckets. But similar underlying risk factors is commuting cash flow when you reprice them at market rates. We wanted to demonstrate – for ourselves do that analysis and demonstrate that they have adequate debt coverage.
Tani Girton: So that rate – there is indicative of how far those would have to move between their and the stressed rates to get to those debt service coverages. Right, right, right. It means that based on the current rate that they’re paying on the debt coverage, would be much higher than what was indicated here, because the weighted average debt service ratio that you see on this page is stressed.
Andrew Terrell: Understood. Okay. Yes, definitely still really strong, especially understanding that you’ve already stressed that debt service right there. Okay. Very good. And then just one last one from me. I wanted to get maybe updated thoughts. You’ve obviously got a really strong capital position maybe updated thoughts on the buyback, I think about $25 million outstanding. Just how you’re thinking about that given where the stock is trading at right now?
