Nathan Race: Okay. Great. And then just one lastly from me on expenses. I appreciate the guidance for 1Q. And just given some of the growth initiatives that you guys have laid out on the equipment leasing side of things and elsewhere. I’m curious, how we should kind of maybe think about the cadence of expense growth in 2Q, 3Q and 4Q. And just kind of – any guideposts that, you can provide in terms of overall year-over-year expense growth in 2024?
Mark Secor: Yes. We gave the guidance for the first quarter, so we don’t get too far ahead. But it would be on the higher end of that range as we get into the second half and as we continue to build out. But we also anticipate revenue generation as those teams continue to grow and start to get active, that will start to offset the expense as we get into the later part of the year.
Nathan Race: Okay. Great. And then, I’m sorry, if I could just squeeze one last one on the tax rate going forward. Obviously, some noise this quarter, but I think historically it’s been in the 7% to 9% range. Is that still a good target to use going forward?
Mark Secor: Yes. I think you can go back to the norms that we saw this year.
Nathan Race: Got you. All right, great. Thanks.
Operator: [Operator Instructions] The next question comes from Damon DelMonte with KBW. Please go ahead.
Damon DelMonte: Hi, good morning, guys. Hope everybody is doing well today?
Thomas Prame: Good morning, Dan.
Damon DelMonte: Good morning. Just wanted to check on the outlook here for provision. As you onboard these new equipment leasing, or financing loans. Do you feel like you’re going to need, to kind of add to the provision since there tend to be shorter duration, higher levels of charge-offs? And I guess kind of, when you look at your reserve, I think it ended at like 1.13% last quarter. Do you think that’s an adequate level, or should we kind of plan for some build here?
Lynn Kerber: Yes. Thanks for that question. So as far as the reserve, we do think that’s appropriate for our current state, as far as our credit quality and economic forecast, as we sit here today. Moving forward into 2024, the provision is going to be really driven by two main factors. First is credit quality trends. So, we’re always going to cover, or look at covering our charge-offs and replenishing those, and then loan growth. And so, it’s going to really come down to the mix in the new originations. How much commercial, residential, and adding the leasing. The leasing, as I said, we’re working on our credit policy right now, and credit metrics. We have done some modeling around that. As you would expect, it’s going to be a little bit different risk profile, but the originations this year, compared to our overall portfolio are still going to be a fairly small portion.
Damon DelMonte: Got it. Okay, that’s helpful. Thanks. And then I don’t know if this is for Thomas, or for Lynn here. But as far as like, the commercial growth that we saw this past quarter. Can you just talk a little bit about some of the key drivers of that, solid growth and kind of how the pipelines are shaping up, as we head into 2024, please?
Lynn Kerber: Sure. As mentioned in my comments, our pipeline is currently positioned at $167 million as we came into the quarter. That’s new originations, it’s not always new fundings. For Q4, we really had a very strong quarter. I would say we had several things contributing to that. One, we had some longtime customers that, we had been working with some projects on, and those came together in the fourth quarter. We also had some contribution from some of our construction loans that, we’re funding up in late December. And so, we’ve kept a pretty even cadence on originations. And so, we expect that, to continue at this point in time.
Damon DelMonte: Got it. Okay. Great. That’s all I have for now. Thank you very much.
Thomas Prame: Thank you.
Operator: The next question comes from Brian Martin with Janney Montgomery Scott. Please go ahead.
Brian Martin: Hi, good morning, guys.
Thomas Prame: Good morning, Brian.
Mark Secor: Good morning, Brian.
Brian Martin: Can you comment at all about these – I know, just expenses, but any other changes you might be making as far as additional hires, as far as the equipment finance team, or just other – considering some of the changes that were made in the fourth quarter. Just – maybe just talk a little bit about, what on the expense side, any other initiatives you have going on as you look into 2024?
Mark Secor: Great. Thank you for the question. I’ll let Lynn give detail on the equipment finance. I’d say, we made significant progress in both the treasury management and equipment finance. I’ll let Lynn give detail there. More around the leadership team was put in place. We had a couple of strategic hires also in treasury management. We’ve made nice progress in the fourth quarter, which would be in our run rate. And I’ll give Lynn – the floor to talk a little bit more detail what we’re going to see, as we add some additional FTE in our leasing vision over the next quarter, quarter and a half.
