Ron Santarosa: Sure. Well, as I’ve mentioned on previous calls, the board of directors actively looks at our capital plan each quarter, the dividend actions, any repurchase activity, and so on. And so that topic is taken up each quarter. We do consider the number of shares that would vest under some of our employee compensation programs, so looking to see if it is worthwhile to keep the share count relatively neutral. But what we might do in the fourth quarter, the first quarter, or the second quarter, we take that up each quarter. Again, we’re also very cognizant, however, of credit charge that could affect capital, things of that sort. So while I can appreciate that the price might be attractive, we also make sure that we want to keep sufficient levels of capital to deal with any adverse effects that might pop up in any particular period for any particular reason.
Kelly Motta: Got it. That’s helpful, Ron. And can you just remind us how much is left on the current authorization?
Ron Santarosa: I believe it’s just under 500,000 shares.
Kelly Motta: Got it. That’s helpful. I think there was a tick up in special mention I’m seeing this quarter. Can you just kind of walk through the drivers of that, wondering how much of that is just proactive portfolio management and any sort of trends there that you’re seeing that drove that increase?
Bonnie Lee: Sure. Yeah, I mean, you’re right. We are very, very proactive when it comes to correctly and timely creating our loans. So there was a $128 million credit. It’s a memory care assisted living facility. It is in the lease up stability period and due in part to COVID and other various factors, this hasn’t reached the optimal occupancy rate. So that’s why we had downgraded it this quarter. But based on the most recent communication with the borrower, the occupancy rate most recently reached the above the break-even point. And then also the customers are looking to sell the property. So based on all the current assessment, we do not expect any loss from this particular relationship. So it’s not a trend of anything. So this just happens to be the kind of one off type of situation.
Kelly Motta: Got it. That’s helpful. Maybe last question for me and then I’ll step back. Ron, can you, can you — I missed what you had said about the sale lease back and the impact to occupancy and equipment. Can you just walk us through what’s a good run rate for that line item? And more broadly speaking, expenses are really nicely controlled. Just wondering how you guys are approaching expense management at these levels. Is there additional room for areas to trim or is this a good number to be building off of?
Ron Santarosa: So to the first part of your question on the sale lease back, we only anticipate about a $300,000 annual increase in that particular line item, if you will; if you isolate just the differential between the existing building as an owned property and then as a leased property. So I would say it’s fairly muted on a quarterly basis. With respect to expenses generally, I think we’ve been doing a fairly good job notwithstanding inflationary pressures. So as we enter the planning season for 2024, we certainly will be looking at areas where we might be able to achieve efficiencies, eliminate redundancies, and things of that sort. I couldn’t tell you how much that would be, but certainly we recognize the environment that we’re in.
Being very cost conscious, as I think we are, continues to be what we need to do. Taking it forward then at a run rate, last year was highly inflationary, depending on how you want to measure the year. But I would think we would at least see what we’re seeing now until we get to about the second quarter, where salary merits, promotions, things of that sort come to play, which would affect our salaries line. And then, of course, we have the annual health benefits ideas that will probably take effect in the first quarter. So those are kind of early yet. Don’t know where they are, but I guess I would ask you to pick an inflationary factor, let’s say 3%, or 4%, wherever we think we might be. And that’s probably how I would start to at least guess at those ideas.
