Kevin Fitzsimmons: Good morning. On the margin, so given, I appreciate the monthly chart here on the NIM so that coupled with a slowing rise in deposit costs and the fixed rate loans, repricing all that kind of speaks to you getting closer to a bottom. But looking further beyond that in a higher for longer, is it just, is it going to be more of a, it’s not struggle, but is it going to be more fighting to kind of just keep that stable? Or do you think at a certain point in 2024 the fixed rate loan repricing starts to overtake and you actually see the margin go higher?
David Kirkley: It’s very hard to predict with fed potentially tightening more than what they have, that would put a little more pressure on the NIM. We think other banks in our region that, and their ability to attract deposits. So, there are a lot of variables that could cause us to go a little bit longer before our NIM settles. But we do feel as though in the early part of ’24, we’ll see a turnaround in the NIM and it is just very hard to predict. David and I have a bet on when that’s going to happen, and we’re pretty far apart on it. So, we’re about five months apart.
Kevin Fitzsimmons: Okay. Let me ask, so it sounds like, David, given your comments about the securities portfolio continuing just to cash flow, that’s probably going to be the course of action and I’m wondering if there’s any possibility of you guys looking at a more of a restructuring type transaction where you do something a little more meaningful in a quicker way?
David Kirkley: We sold some bonds in the first quarter not a significant amount. We look at it, if it makes sense, we’ll do it. It’s not in the pipeline for us that we’re definitely it’s going to happen. So, there’s no immediate plans for that happening, we would be open to it if it made sense to us.
Kevin Fitzsimmons: And let me just, so within expenses was there anything unusual in the run rate this quarter that helped? I just remember, I just thought of last quarter’s earnings report and call that the expenses were going to be, were going to ramp up quicker. And so, I mean, you obviously did better than that, but maybe I just misheard that last quarter.
David Kirkley: I believe we suggest that non-interest expenses can be in the $21.5 million to $22 million range. So, it is a little bit below that. We didn’t have any provision for unfunded commitments this past quarter, which was $151,000 the previous month. And compensation expense is running a little bit lower than we anticipated. Marketing expense is also one of those areas that tends to ramp up towards the end of the year. So, it will be increasing a little bit in the fourth quarter. But no, there was no one-time items that really altered our non-interest expense for Q3.
Kevin Fitzsimmons: And David, I just want to clarify your comment on the gain on the SBA loans. So that was like a full year’s worth of selling, and how should we think about that amount going forward?
David Kirkley: Yes. That’s a little bit of a tough one. So, we started up our program about a year ago, and we have originated 12 SBA loans during that time period over the course of a year. We’re almost at our attained our PLP status. And what happens was we originated loans throughout the past 12 months. We sold them all in Q3, and we recognize that gain of about $640,000. We think that over the course of the year, we’ll recognize about $60,000 to $700,000 in income related to gain on those loan sales, but it could be choppy quarter-over-quarter. So, I can’t, I don’t feel comfortable saying exactly what each quarter is going to be, because it’s not very stable right this second. And also, with regards to the high rates SBA loan originations are still a little bit lower than they would ought to be if rates were a little bit lower.
