We still feel good about the project. I would tell you that COVID created sort of a frothy pace of transactions in that market as people were really focused on getting out of town and being in a better place if they were going to have to sort of hunker down and work from home, if you will and where we definitely saw the benefit of that. It’s pull-back a bit as rates have increased, and that has affected things. But still a good mark resale prices in the community doing well. That one sale we had was at a very, very nice price point. So, as you said, it’s a long-term sort of resolution, but certainly made a lot of good progress in the last couple of years and expect that to continue, albeit at perhaps somewhat reduced pace.
Michael Rose: Okay. And then just finally, the special mention rated credit. I think that’s a new kind of addition. Just wanted to get any sort of details there if there is any concerns on your end. Thanks.
Brandon Hamlin: Yes, sure. No, that credit is a site that was planned for a very high-end development and construction costs have escalated materially over the last couple of years. And ultimately, the borrower decided not to proceed with this vertical development there. And in light of his abandoning the development plan, we obtained a new appraisal date December 22nd, actually or December 22, which concluded an as-is value of $100.4 million. That compares to the original 2021 appraisal of $139.1 million and results in a current LTV on the new appraisal of 63%. So, the loans current sponsors actively marketing working to liquidate the property. But given the order development plan and their decision to liquidate the property, we concluded that a special mention rating was appropriate for that credit.
Michael Rose: Great. Thanks for taking my questions.
Brandon Hamlin: You bet.
Operator: One moment for our next question. Our next question comes from the line of Brian Martin from Janney Montgomery. Your line is open.
Brian Martin: Hey. Good morning guys.
Brandon Hamlin: Hey Brian.
George Gleason: Good morning Brian.
Brian Martin: Maybe just one on the loans side for a second. Just I appreciate the commentary about the growth outlook this year. Just kind of wondering if you can provide any perspective on just where that growth, how you are thinking about the different buckets of where that growth comes from both from the RESG standpoint? I think you also called out kind of the community opportunities on the community banking and the ABL front. Just kind of trying to understand where the growth might be coming from this year?
George Gleason: Brian, I would tell you, I think it’s going to be diversified again. Obviously, with the high level of RESG originations, the record level of originations in 2022, a lot of those loans will start funding up in 2023 and finish funding up in 2024. So, RESG’s funded balances will undoubtedly grow and should grow in a decent manner because of the big originations last year. But at the same time, we are getting good traction as shown in the little waterfalls there on growth in the portfolio. This last year, we are getting good traction in our ABL group and various elements of our community banking group as well as some positive momentum in indirect marine and RV. The Corporate and Business Specialties Group that chose a slight reduction in funded balances at a couple of quarters since last year has actually had nice growth in their commitments outstanding for funding.
