Greg Robertson: The change in those — this quarter was stay relatively flat. So we continue to feel really good about our credit book. And Michael, I think one of the things that I mentioned on our call is the, we’ve seen a real-time — we reported the [indiscernible] 11 basis points charge-off this year, but that is including us because of the conversion to CECL. The inclusion of the purchase acquired credits and the assigned mark for each of those credits. So if you remove that out of that, that would be about 6 basis points for the year, which would fall right in line with our 5-year average, which is about 7 basis points. So we feel like the credit book is good. We haven’t seen any deterioration so far. We’re now approaching the halfway point in the quarter almost, and so it’s hard to imagine without any major issues popping up on the radar that we would see any big movements in net charge-offs for 2024 outside of what we’re forecasting, which is stable.
Michael Rose: And then maybe just one last one. Just on Slide 16, the AUM at has fallen for the past couple of quarters. [Indiscernible] that it would have increased in the fourth quarter just given the market appreciation. Can you just help us appreciate the dynamics there that maybe drove the decline in the fourth quarter? And was there any loss of clients or anything like that?
Matthew Sealy: No, we didn’t lose any clients. So — which you are seeing for the second half of the year is just — what you would expect from a diminishing in the value of the bond market as a whole would affect the AUM. And to your point, you expect to see some increase potentially at the end of the fourth quarter. But a lot of our clients, I shouldn’t say a lot, a number of our clients did a similar restructuring to the one that we did. And we as we reinvested the full amount, a number of our clients took part of the proceeds and pay down debt with cash. So [indiscernible] they shrunk their investment portfolios to pay down debt to a certain extent. So that’s the impact that you’re seeing in the AUM, not any loss of clients. So we were pleased [indiscernible] but yes, we’re pleased to be able to help them structure those restructurings, just as we did for ourselves.
Operator: Your next question comes from the line of Brett Rabatin from Hovde Group.
Brett Rabatin : I wanted to start just — I wanted to start back on the expense guidance of 6% to 8% and wanted to get a little more color around what that what that number entails? And if you’re looking to add anybody in the Texas markets, with that 6% to 8% including any strategic hires around lenders or anything else that you’re planning on doing in ’24?
Jude Melville: I’ll let Greg talk and Matt talk a little bit about the details, but just be an overview. But we’re not looking at 2024 as a year in which we’ll do a lot of hiring. We’ll certainly look for talent on one-off occasions and would expect to add some. But we still feel like the teams of bankers that we’ve brought on over the past two or three years have capacity to continue to grow their portfolios, particularly given our kind of maturation of our target levels when you think about our growth rates within our retained earnings. So we felt like we have a good match up of talent and capability. New hires will probably be more centered around support staff to help them do all that they can do. I’ll let Greg talk a little bit about the added costs, much of which is just natural.
Whatever hires we did have last year, we’ll have full year expense burden for them this year. We are like all of our clients experiencing increased health care costs and increased insurance costs and things that every business has to face. But we’re not anticipating any major investment in personnel over the year.
Greg Robertson: I think, Brett, the way to think about it is kind of in four different areas that you’ve mentioned, First part is the increase or the impact of the hires we made in 2023, pulling those through for the full year impact of 2024. Second would be health care costs. That’s gone up for us year-over-year in excess of $1.5 million. The — as we also mentioned, just the other insurance costs to run the company. And I think the last piece that we’ll continue to invest is preparing to be a company approaching $10 billion. We don’t want to wake up and be it $10 billion without all the preparations in place from a CapEx standpoint as well with software and technology. We have four different software initiatives that we’ve onboarded at the end of 2023, which will help us from an efficiency standpoint as we look out into the future and grow and scale the company.
Matthew Sealy: And most of those are CRM-based and helping us be more specific in our targeting of production opportunities to make sure that we are monetizing at a level — that both to make sure that we’re getting the right return, but also can satisfy clients in a more specialized manner. So they’re all production based software investments. And as Greg said, as we approach the $10 billion mark, we want to be sure that we got it ironed out and ready to go when we get there.
