And frankly, that’s making some investments that we think will provide more efficiency in the future as well. So, we’re continuing to spend money on things that are important drivers for the current company and for the future in driving value for shareholders. But I think, one of the things that we’ve talked about internally is, are there more cuts that can be made that aren’t cutting into the future of the organization? And we don’t want to do that, and we haven’t done that, and we don’t intend to do that.
Matthew Clark: Okay. Great. And then just last one for me on the non-performer that required some specific reserves. Can you just remind us of the situation there, the type of credit, I guess, the basis for the $2 million as well, and kind of the timing of the resolution there?
Scott Wylie: Yeah. Well, this is a C&I credit that we did 18 months or 24 months ago that ran into trouble. They were in a COVID-related situation, that have kind of dried up on them. And as usual, we look for three sources of repayment and personal guarantees. We had the business. We had $19 million in inventory, and we had real estate collateral. The business is struggling. The collateral, we’re having valuation issues with that we kind of uncovered once we got a receiver in place and the real estate actually has turned out fine there. The personal guarantees, we’re now trying to collect on, but just looking at the whole picture, we felt like putting a small specific reserve on that at this point made sense, and we did that.
Hopefully, that will continue through the workout process and not have any further loss. Hopefully, we’ll have a full recovery on it. We’ll see how that all plays out. Just takes time to get through these things, as you’re probably well aware.
Matthew Clark: Okay. Thanks, again.
Operator: Thank you for your question. One moment while we prepare for the next question. And the next question will be coming from Brett Rabatin of Hovde. Your line is open.
Brett Rabatin: Hey. Good afternoon, Scott and Juil, or good morning. I joined a little late. I was having some technical problems with the dial-in. Scott, I think in the past, you’ve been interested in doing M&A, and I think it’s still a little bit ways off for some folks, but starting to hear maybe some chatter and some people talking. Obviously, there’s going to be a desire to bulk up given the regulatory environment that’s expected. Are you hearing anything out there in terms of your contacts? And what would be your plans if things, quote, normalize, so to speak, from the Mark’s perspective or something can get done? Do you think you’ll be active?
Scott Wylie: I do. My experience in my 35 years or so of running my own little banks here is that when we see a big financial crisis of one sort or another, then we see kind of the big blow-ups first like we saw in March. And then we see some smaller problems like we’ve seen since then. And then there’s a lot of regulatory pressure that’s brought to bear on weaker institutions, and then that creates lots of opportunity for stronger institutions. And so I think that — that’s going to play out in our favor here over the course of the next 12 months or 24 months. I can’t tell you that we have people that we’re interested in knocking on our door today, but they sure are still talking to us and they have interest. And I think that people understand that having critical mass here is going to be beneficial.
I think all that ties into the need to continue to protect our capital and make sure that we have good, strong capital ratios and they’re generating nice tangible book value creation like we showed on Slide 13. And I expect that at some point that that will really come back into play as a nice area of opportunity for us.
