So that’s also encouraging. So, in terms of where we think it’s going to go in the future, without the early warning signs, we don’t really envision any material deterioration in — at least in the coming couple of quarters. That being said, for the last two years, we’ve been in a very aggressive campaign, if you will, to work up or work out weaker credits in the portfolio. That effort continues. So, there could be an instance in the coming couple of quarters that if we see an opportunity to exit a weaker credit, we’ll do that, if it makes sense.
Kelly Motta: Got it. Appreciate you guys letting me step back on.
Randy Chesler: Sure.
Kelly Motta: I am good now. Thank you.
Randy Chesler: No problem. Victor, let me check back with you to see if anyone else is in the queue and would like to ask a question before we wrap up.
Operator: Yes. We do have one other question. One moment.
Randy Chesler: Okay.
Operator: And we have a follow-up from Jeff Rulis from D.A. Davidson. Your line is open.
Jeff Rulis: Hi. Yes, we’re rushing to get here.
Randy Chesler: Hey, Jeff.
Jeff Rulis: Hey. So, Ron, I’m struggling with the expense base. I mean for Q4, I kind of see it as about a $131 million core, if you add back the branch gain and less merger costs. That seems like a pretty big jump into Q1. I know that you said that’s seasonally high. Is it possible the — kind of the progress throughout the year is down from that Q1 high point?
Ron Copher: Well, Jeff, it gets back to the guide, we were very confident that the — as I mentioned on the previous earnings call, the merit increases that several of our divisions, a couple of the larger ones put in place, that was mitigated by the reduction in the headcount. But we expect that will not continue. It will reverse. There are still challenges with hiring, but we think that hiring will come back. And then, when you think about our merit increases, they’re all going to start here at the beginning of the year. And so, that’s the reason we anchored to the $133 million-$135 million range that I gave last quarter. And so, that’s why I’m confident when I say 2.5%. It could be 3%. So, I would stick with that guide. And again, first quarter being higher, we’ve just got some merit increases.
We’ve got the FICA, the traditional things. We’ve got some restricted stock . And then, on the noninterest expense, I mean, let me just use as an example, FICA, not FICA, excuse me, FDIC insurance premiums, they’re up 40%. And so, we still see a lot of our vendors and we’re looking at the contract, but we see that the pressure they’re putting on us to pay up, again, thank God, we have the 17 divisions to look at that.
Jeff Rulis: Sure. Maybe take it a different way. If I look at, say, you had $519 million in total expenses in ’22, if I look at full year, let’s strip out the seasonality, with a good growth rate for ’23, is it that, like you said, 2.5% to 3% off of a $519 million base?
Ron Copher: So, I would estimate the range would be, say, $545 million to $555 million, somewhere in that range for the full year, and then that will — again, we’re going to run higher as we traditionally do in the first quarter, and then we go lower from there. So that’s the guide I would give you.
Jeff Rulis: Okay. Full year, you’re saying $545 million to $555 million?
Ron Copher: Yes.
Jeff Rulis: Okay. Appreciate it, Ron. Thank you for — I’m slow to pick that up. Maybe just on the fee income side, just a similar question. Obviously, we know kind of mortgage is on its back, but your thoughts on kind of growth from what looks like a pretty low point in the fourth quarter? Any expectations on fees?