Scott Wylie: I think 3 weeks from Thursday. So these things are a process. A couple of points on that. It’s a producer of a consumer product that probably got a little over their skis. That’s a metaphor. I think are an indication of the strength of our credit process and of our borrowers here, as Julie said in her prepared comments that we always underwrite that resource through a payment. We’ve got the business assets. We’ve got the buildings. We’ve got some other commercial buildings, and we have a personal guarantee from a very strong borrower client. So we don’t anticipate a loss there. I do expect that it’s going to take a little time to work out just because it always seems to. But it didn’t feel to us, or it doesn’t seem to us to be indicative of anything like it’s not some systemic problem that we have 3 other loans just like it that are all going to have problems or something like that.
I mean it’s just, I think, a one-off thing that, that we felt better putting on non-accrual in Q4.
Brady Gailey: Okay. And then the commentary about the margin coming down in Q1. Any idea the magnitude of how much it could come down? Or any idea where the margin exited the quarter in December?
Scott Wylie: Julie, you want to talk about?
Julie Courkamp: Yes. In December, our NIM just for the month of was 306. So that’s a little bit helpful to you to see where the meet us. And Scott touched on a lot of the NIM comments and the net interest income and market for deposits. So I think that will help you out.
Brady Gailey: Okay. And last one for me. So $20 million to $21 million of expenses in Q1, should we expect a little bit of growth beyond that for the rest of the year? Or do you think they’ll be able to hold that flat for the rest of the year? How should we think about kind of full year expenses?
Scott Wylie: Well, we think this is a good time to be managing expenses. And so we talked about, what we talked before that our path to success is not cost-cutting, but we talked in the prepared comments about the fact that if we can keep our costs in line this year with last year and the only real cost increase that we’ll see would be related to salary increases because we do an annual merit adjustment for people. I think that would be a successful expense control year for us. I do think we’re in a place in the cycle where we want to be careful about growth. We want to be careful by expense growth in particular. And I think what we’re trying to show you in the numbers here is, if we see continued revenue growth like we have seen over the past few quarters, especially in our core earnings.
And then, net interest income by itself is up — is it up 49% year-over-year for the fourth quarter, Julie, some number like that. And then we have these kind of hideous headwinds from — on the fee income side. And I keep thinking at some point, it’s not going to go lower. So if it goes higher, and then you’ve got good expense control. I mean that’s all our formula for nice earnings acceleration. So that’s where we’re thinking on expense discipline.
Brady Gailey: Okay. Great. Thanks guys.
Operator: Thank you. One moment please. Our next question comes from the line of Matthew Clark of Piper Sandler. Your line is open.
Matthew Clark: Just first one for me around the margin, if you had the spot rate on deposits, deposit costs or interest-bearing deposit costs at the end of the year?
Julie Courkamp: Spot rate for the cost of deposits at December was $199, so just about 2%.
