Michael Comparato: Thanks Steve. I mean it’s something we talk about more often than not. It is easier said than done if the right opportunity presented itself, we would certainly be interested in looking at that. But yes, the more products that we can have that complement each other and we can cross-sell the better experience that we are giving to our client base. So, we are always looking to do that.
Steve Delaney: Great. Appreciate the comments.
Richard Byrne: Thanks.
Operator: [Operator Instructions] Our next question comes from Matthew Howlett of B. Riley. Please go ahead.
Matthew Howlett: Hi. Thanks everybody. Thanks for taking my questions. Strong way to end the year, my question, first, is to you, Jerry. On CECL, on the general CECL reserve, I realize you are not taking anything asset specific last quarter, but how do we think about that going forward? I know it’s a lot of noise, and I know you look at sort of forward economic inputs. I mean, could that begin to subside towards the back half of the year, or if you are growing, if you are really growing the portfolio, will that still be kind of a headwind for GAAP earnings? I realize you are backing up on core. Just curious on how to think about the noise that’s created that through the course of 2024.
Jerry Baglien: Yes, good question. I mean in terms of portfolio growth, I would assume you are taking that number of basis points against what you are originating going forward, give or take a little bit I just think as a proxy. So, yes, it’s going to create some GAAP offset as we grow the book. And I don’t expect a big change in the economic scenario throughout the year. It’s possible. But I mean you have heard our opinion on how we think the market is going to go. We have taken a pretty conservative approach to the economic forecast that we use. And I don’t see us switching that to a rosier picture in 2024. So, I think you are going to have – it will move around a little bit just depending on what those future scenarios are.
But I think we would expect to keep a pretty conservative approach to how we think about that portfolio reserve. And the only other factor is just how our risk ratings kind of move because that will drive a little bit of the totality of that number as well. But I am not expecting big relief from some sort of a decline in general throughout the year at this point. I think the base cases we run relatively similar to where we are now.
Matthew Howlett: Great. I know investors do look at the adjusted book and I think you said a 96 bps in it, but it’s just something to – I think the conservatism, I think investors appreciate. But certainly, it’s a headwind of noise to that adjusted book value number in any given quarter. But I appreciate the color, and it sounds like it’s good to hear that there wasn’t really any asset specific source this quarter, so it certainly speaks to your underwriting. The second question, I guess on the funding side, I think I heard you mention, you did the CLO in the quarter. You are sort of monitoring that market. You got what, 6 outstanding CLOs with the 10 or 5 outstanding today, the cost of debt is obviously low. How do you look at that market going forward when you want to begin growing the portfolio?
Would you like to keep the predominant reliance on the CLOs given they are non-recourse, you get great advance rates, or do you want to expand into – would you want to use more bank lines going forward? And just talk a bit about the liability as you begin to really start growing the portfolio, will the liability mix change at FBRT?
Jerry Baglien: I can start, and I will let others jump in. I think our perspective on this is all things being equal, it’s hard to beat CLO financing. I mean we can get matched term, non-mark-to-market financing, it’s a pretty good solution. So, once we have a nice pool of assets built up to do another deal and the market makes sense, it’s equal to or better than what we can get on a bank line. I think we generally prefer that, particularly if we can get the reinvestment components that we like to have on those deals, which makes them useful for really a couple of years. And then you have got a couple of years of runoff depending on how the portfolio sits after that. So, if the market is open and accretive, I don’t expect this to stop going out.
That said, I think we have built the book with a lot of optionality. I mean right now, virtually all of our book is in CLOs. So, it means we are in absolutely no rush to do a deal. I think we are well positioned to be a very choosy issuer. We don’t have to rush to market, and we have got tons of capacity with our bank partners right now. So, I kind of like where we are at. It’s total flexibility with our balance sheet at the moment. So, would we do a deal, I think so. But we are certainly not in any rush, nor do we have any impetus to have to go out and issue. So, I am very comfortable with how we are positioned on that going forward.
Matthew Howlett: Great. And then just last final one, if I may. On capital management, clearly, you are buying back stock. I am sure you are frustrated with the 20%-plus discounted stock trading at your adjusted, but you are also trading at what over 11% dividend yield with run rate earnings above the dividend, they are clearly probably going much higher. I mean, Rich, bigger picture question, would you like to raise the dividend if you continue the growth in the portfolio this year, or is the focus just buying back stock if you are going to trade at this discount? Thank you.
Michael Comparato: Go ahead, Rich. Go ahead.
