Jason Estes: I think it’s more of the same where there’s typically a credit need and a chance for a transaction that’s where we can typically target deposits and have a higher success rate. So I think if you look at just our normal loan portfolio churn I would think it will be in line with those loans or maybe just trailing a little bit based on all the deposit gathering pressure that’s out there with all of our competitors. So it’s a tough fight. We do a pretty good job of it every day of winning those awards. But I still think it’s going to be a challenge in the deposit environment we’re in.
Tom Travis: And we could grow — we could have grown deposits faster this year. If we would have increased our money market and CD rates, but we didn’t have the need to do it. And so we’ve been more disciplined and more measured and we benefit from not having to go out and pay those rates. So that has an effect on the growth of the deposits as well.
Nathan Race: Got it. Understood. And if I could just ask on expenses. I know it’s probably early in the budget process for next year. But perhaps Kelly any thoughts on just kind of the overall expense growth trajectory that we should expect for 2024. It looks like you guys are on pace for 5%, 6% growth this year in expenses. Any thoughts on how we should think about the 2024 growth rate?
Kelly Harris: Yeah. I think that’s probably a good projection for 2024. I know Q4 historically has been a little bit heavier expense load than the prior three quarters. So we anticipate non-interest expense to trend up in Q4. That said, I think we’ve done a really good job. If you look at our historical range with non-interest expense to really control that. But I think a 5% increase for 2024 is probably a good projection.
Tom Travis: It may be a little bit more than that late in the year. We’re — if we’re going to build some new branches that are going to replace existing facilities in a couple of locations which will add to our depreciation expense, but that probably won’t kick in until the end of next year. So that’s really probably more of a 2025 issue.
Nathan Race: Got you. And I think you guys alluded to this earlier just going back to credit quality, but outside of the one loan that we’ve discussed, just in terms of overall criticized classified trends in the quarter. Any thoughts there across the broader portfolio?
Jason Estes: Gradual improvement over the last couple of quarters. I mean, positives look good as Tom mentioned adversely graded credit trends looks good outside of the one credit.
Tom Travis: Yeah. That’s why we put in the deck you’ll notice on that one page, I don’t know what page it is, but we illustrated our historical low NCO number. And I’m just going to sound like a broken record, but this outlier credit issue is just — I’ve been doing this since 1981 guys and I know that makes me old, but it also — I can just tell you that I’ve never experienced ever anything like this. And our team is just — this is just — I guess if you’re in the business long enough and we had plenty of collateral and plenty of this and plenty of that and it’s just probably the — everything lining up against us. And we’ve torn it apart look back at our — this is not some credit that was done with big policy exceptions and things like that.
It’s just one of those things. And so, I would say that we’re very comfortable with our company and we’re very comfortable with our NCOs and our NPAs and we have every expectation that we’re going to just continue to do what we’ve always done for decades. And it just unfortunately, is our turn in the box and — but don’t think for a minute that we’ve got some new lender that’s rogue or some new process or we pivoted. It’s just one of those things that I guess everybody — as I said everybody gets one in their lifetime. So hopefully, that’s — this is ours.
