Brady Gailey: But maybe just to ask the expense question a little differently. As I look over the last, I don’t know, 3 or 4 years, you made a big investment in Houston, big investment in Dallas, now a big investment in Austin. I know that was a big piece of the abnormally high expense growth. As you think about it going forward, are there still markets out there, where you want to make a substantial new investment? Or do you think with these three – I mean, you are kind of in the three big spots there in Texas. With these three, are you kind of done making these large investments in a new market?
Phillip Green: Brady, I mean, look, we’ve got a lot of – first of all, we have a lot of work left to do. Okay. So we got to finish up Dallas, we were just starting Austin. And we’ve got a pretty big network that we’re going to continue to deal with and continue to grow in the normal course of business, right? But I don’t want to be too far out in front of that, but look, like I said earlier, we’re going to be doing this for a long time. I mean, there are great markets to be in, in this state. There are great markets to be in out of this state. I’m looking way down the road. I mean, I’m just saying, I don’t think there’s anything about our business model that ends, when we get through doing 17 branches in Austin.
And so, maybe to answer your question another way, the way to think about our company is probably that we’ve got this legacy part of our company that operates very efficiently and very profitably. And it’s got a lot of control in terms of expenses and that kind of thing. And then we have this expansion element of our company that is a growth and expansion component. And that has higher growth rates, just it’s the nature of that kind of business. And what we believe is the combination of those two, and they do two different things, right? There’s a legacy kind of piece and there’s this new expansion piece. Maybe we’ll probably always be as long as we’re doing it a little bit higher on average than others. But another way to think of it too is a lot of these expansion assets are going to be creating the money and the revenue to fund future expansions too.
So that’s not a real specific answer, but it’s sort of how we think about the business right now.
Brady Gailey: Yeah. That helps. And then we’ve seen some of your peers do a partial bond restructuring. I know you all is bond yield is around 3.25. So if you mark-to-market that bond yield, you probably be picking up at least a couple of 100 basis points. How do you all think about restructuring a piece of the bond book? And your TCE is in the mid-4% range like does that matter? I know Common Equity Tier 1 is a lot higher. But does the TCE matter when you consider a possible bond restructuring?
Jerry Salinas: Brady, I’ll say that we have not discussed any sort of a bond restructuring. I think that, obviously, we’ve got the securities and available for sale. We think it gives us the most amount of flexibility. We like the transparency that it provides through equity. And, I think from a tangible capital standpoint, we don’t spend a lot of time thinking about it. We’re obviously aware of it. As we said earlier, we haven’t made any investment purchases this year. I think if we do put a program in place, we’ll certainly – whatever program we put in place, we will certainly consider the potential implications of the new capital regime that’s out there for banks that are $100 billion, that would have to include OCI.
So we’re not – it’s nothing that we’re not aware of. It’s more that at this point, it’s not been really something that’s been part of our conversation. So anything else I would say, I’d kind of make it up, but it’s not something that we really talked about going forward.
Brady Gailey: Okay. And then finally for me, it looks like the share count went down just modestly in the third quarter relative to the second quarter. So maybe a modest amount of share buybacks. Your stock was at a year-to-date low, I know it’s up pretty nicely today, but it’s still relatively cheap versus where you all have been trading earlier this year. So how do you think about a share buyback with the stock at this level?
Jerry Salinas: Yeah, I think we didn’t spend a lot of money, but we got in earlier than I would have liked in retrospect. I think, I don’t have the numbers right in front of me, but I think it was around $11 million that we spent in the quarter. It’s just something that we’ll talk about. On one side, we’re having the conversation like you said about how much are people paying attention to tangible capital? On the other side, I’m talking about what a great bargain our stock is, even before today, especially. So it’s just a conversation we’ll continue to have. It won’t have big implications. I think at this point, we’re probably, we’ve got a $100 million program that expires in January. We’ve probably utilized $30 million of it, if I remember correctly. So it won’t have huge impacts, but it’s something that we consider to continue to discuss. But, again, it’s not going to have a big impact.
Brady Gailey: Okay. Thanks for the color, guys.
Operator: Our next question is from Michael Rose with Raymond James. Please proceed.
Michael Rose: Hey, good afternoon. Thanks for taking my questions. Phil, I noticed your comments about optimism around home equity and just looking at the average balances. We don’t have them for this quarter, [excuse that out] [ph] but just over the past quarter, couple of quarters, it seems like that’s over half the average loan growth. Just wanted to kind of size the opportunity as we move forward, and particularly as you roll out the mortgage product. Thanks.
Phillip Green: I’m sorry, Michael. Did you ask me the outlook for that, or what would you say? I mean, I agree with your numbers, but what were you asking?
