Matthew Breese: Okay. I appreciate that. Last one from me. You had mentioned in the release just generally weakening credit trends. Obviously, NPAs were up a little bit, charge-offs were up a little bit, is there anything else you’re watching or seeing that drove that comment? I would just really appreciate some additional color on the credit front, what you’re seeing on the ground?
Mark McCollom: Yes, Matt, it’s really based on that comment, I mean, we had four consecutive quarters of NPLs coming down classified/criticized being stable or down, so those trends just ticking up is what we’re referring to, that could be just event driven or time of the year driven or it could be something as we move forward. But it’s modest changes, but it’s the first we’ve really had any changes in an upward direction versus continuing to improve. We’ve been really pleased with credit over the last six, eight quarters, and this is the first where we saw any ticket in the wrong direction. So no more color than what you’re seeing there. We’re just being prudent and cautious as we look at those numbers.
Matthew Breese: Great. That’s all I had. I appreciate taking my questions. Thank you.
Mark McCollom: Thanks.
Operator: Thank you. [Operator Instructions] One moment for our next question. Our next question comes from Chris McGratty with KBW. Your line is now open.
Christopher McGratty: Hey, good morning.
Mark McCollom: Hey, Chris.
Christopher McGratty: Mark, I just had a clarifying question on the NII sensitivity. I want to make sure I heard your comments right. I’m looking at your 10-Q disclosures, I think in a down 100 stock, it was around, I don’t know, $37 million, $38 million for a 100, which would work out to like $9 million for every 25. I thought I heard a higher number earlier in the call, I think you said it’s closer to 20 on an annualized, I guess, where am I — what number would you point me to?
Mark McCollom: Yes, again on the 20 — again, that 20 is just on the variable portion of our loan book, on the loans that are tied to SOFR, on an annualized basis. So when you’re — and when you’re looking at our 10-K disclosures and our Q disclosures, I mean those are based off a parallel instantaneous shock where this is — where I’m giving you more guidance on a ramp downward, and in that ramp we’re assuming that again in the first 25 basis points or 50 basis points down that you wouldn’t see a corresponding decreases to our non-maturity deposits, but we may be conservative on that and the market might start to see deposit relief earlier than 50 basis points, 75 basis points of rate cuts.
Christopher McGratty: Okay. Got it. Thank you. And then maybe somebody asked on the buybacks, any signs of decline in the M&A market, maybe more books going around any kind of commentary on that.
Curtis Myers: Yes, we have M&A opportunity that we’re looking at, it continues to be challenging to make the math work on rate marks and things, but we — I would say, compared to six months ago, I think the [indiscernible] is different and improved for pursuing appropriate M&A as we move forward.
Christopher McGratty: And on that, Curt, just can you just remind us in this kind of environment, what would be the kind of sweet spot of a deal size-wise, business mix kind of stuff like that? Thanks.
Curtis Myers: Yes, thanks for that question. And we really look at it in two buckets, the $1 billion to $5 billion community bank. We — that acquisition would supplement our growth, add to our franchise, have lower execution risk. We’re really focused on those, the $5 billion to $15 billion that would fill out what we would be willing to look at, that $5 billion to $15 billion are much more significant and strategic. There’s very few on that list that we would consider. I think those are still harder to do in this environment, but that’s how we look at it in those two buckets, but the lower, the $1 billion to $5 billion makes a lot of sense in the market with what’s going on right now and if we have those opportunities and can come to terms with folks we would — we feel we’re in a position to do that.
Christopher McGratty: So it feels like if something came, it would be the smaller end based on what I’m hearing unless something really materially change?
Curtis Myers: Correct.
Christopher McGratty: Got it. Okay, perfect. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from Frank Schiraldi with Piper Sandler. Your line is now open.
Frank Schiraldi: Hi, guys, just a follow-up on — you talked about the variable rate book and the size there, I’m just trying to think through the rest of the book and the back book repricing and, generally, is it reasonable to think in 2024 maybe stick to that book reprices and if so, I’m just trying to get a sense of where rates are going on the books versus coming off where they’re repricing too?
Mark McCollom: Yes, Frank, in the fourth quarter, pretty much across most of our material loan categories we were coming on somewhere between 7.50%, 8%, the average for the quarter is about 7.70%. So that’s the current kind of new money across the board.
Frank Schiraldi: Okay, all right, great. And I guess, you mentioned it in the last quarter where they’re repricing from, I would assume that hasn’t changed much quarter-over-quarter?
Mark McCollom: Yes, correct.
Frank Schiraldi: Okay. Sorry, go ahead.
Mark McCollom: No, go ahead.
Frank Schiraldi: And then I guess just while I got you just a last one on, you talked I think in the deck about cash levels returning to sort of $50 million to $100 million level over time, just wondering in your guidance for 2024, are we seeing a significant move lower from wherever it is now $ 250 million down to that — towards that level or how much excess liquidity, I guess is baked into that guide?
