Ben Gerlinger: Got it. Okay, I appreciate it. For what it’s worth, I run a one model, and we’ll come up with similar numbers, so appreciate how you guys are doing on your end.
Bryan Jordan: Thanks, Ben.
Operator: Our next question comes from Christopher Marinac from Janney Montgomery Scott.
Christopher Marinac: Hi, guys, good morning. Susan, I wanted to ask about loan modification. How often are you using, and how [technical difficulty].
Susan Springfield: Chris, you broke up the last part of that question. Can you repeat it? Chris, are you there? And Carla, let’s move on to the next question, and Chris can hop back in the queue if he needs to.
Bryan Jordan: He might be back. Chris, you back?
Susan Springfield: Yes, Carla, let’s move on to the next question, and Chris can hop back in the queue if he needs to.
Operator: Our next question comes from Brennan Crowley from Baird.
Brennan Crowley: Hi, good morning, guys. Thanks for taking my question. Given to me as a guide, and I know at one point last year, kind of 2024 positive operating numbers were discussed, and kind of walked back a bit, and I know it’s difficult with the investment initiative underway here, but given what you’ve seen through three months and the Olympic guide today, is that a good enough possibility for this year?
Susan Springfield: Thanks for the question, Brennan. I think, if you look at where the guide is, it is neutral on operating leverage or slightly positive, depending on which side of the range we come in.
Bryan Jordan: So in short, then, yes, it’s positive.
Brennan Crowley: Yes. Great, thank you, guys. And then just as a quick follow-up, and maybe I missed this in the prepared remarks, but saw that the investment portfolios yield have actually felt sequentially. So just kind of wondering if you can talk about the driver there, and then maybe how you guys plan to manage the portfolio and roll off over the next couple of quarters.
Susan Springfield: Yes, first I’ll mention we’re currently not reinvesting in our securities portfolio, so we’re letting it run off and redeploying that into the loan side of our balance sheet. But a lot of the volatility that you saw this quarter is just the mark to market, so where the market is at the end of the quarter. There was nothing material change in our balance sheet.
Brennan Crowley: Okay, great, thanks, guys.
Operator: Our next question comes from Samuel [indiscernible] from UBS.
Unidentified Analyst: Good morning.
Bryan Jordan: Good morning.
Susan Springfield: Good morning.
Unidentified Analyst: I just wanted to ask one last follow-up on NII. I appreciate you touched on the $4 billion of the fixed rate loan repricing. Could you give some color on how even that is through 2024? Is it similar to securities, where it’s pretty much the same every quarter, or is it a bit more front or back loaded?
Susan Springfield: Yes, it’s pretty consistent through the quarter. There’s not a bulge quarter or it being back loaded.
Unidentified Analyst: Okay, great. I appreciate it. Thanks for taking my question.
Operator: And our next question comes from Christopher Marinac from Janney Montgomery Scott.
Christopher Marinac: Thanks, sorry for my issue there earlier. Susan, I wanted to ask you about loan modifications and how often they are a tactic for resolving any type of loan this year or next.
Susan Springfield: Well, I mean, any time we have either, if there’s a true maturity, we’re always looking at, what do we need to do that’s really not a true modification. In terms of modifications, when we have loans that are non-cash that are handled in our special assets groups, there are situations where it might be in our best interest if we’re the lead bank or the sole bank to work with them on modifications. And then obviously on some of the deals where we’re part of a bank group and the bank group has to work together on what could be an appropriate loan modification. I would tell you, Chris, that we have a history of wanting to work with borrowers and figure out the best outcomes that obviously for us are the best outcomes for our shareholders, but we’ve also were complimented frequently by our borrowers about our ability to work with them and in some cases, keep them in business.
And as I mentioned earlier, in many cases, they’ve got a lot of equity ahead of us, and so they have a best interest in working with us for to come up with something that makes sense and is economically viable for both the bank and the client.
Bryan Jordan: Yes, loan modifications used to be an accounting term of art, and I’ll echo what Susan said. I often say this, and I don’t say it lightly to our clients, that we look at it as a partnership. And so we use that long-term relationship and we work through the ups and downs, and I don’t consider that modification. I just consider that supporting the long-term relationships that really drive the profitability of our organization and our balance sheet, and at the same time, makes our customers and our community stronger.
Christopher Marinac: No, that’s great. Thank you both for your color on that. And Susan, just a quick follow-up on debt service coverage ratios. How is the stress process going for customers? Are you seeing instances where you have to criticize a loan due to just higher interest rates and the DSCRs falling?
