Anthony Cutrone: Yes, I think that’s fair. It’s hard — we’re actually happy with the origination volume we saw in Home Improvement — in rec. We’re happy with both. But with rec, we’re happy with the origination volume we saw in Q1, albeit down from last year. Last year was an anomaly coming out of COVID ’21 and ’22. We just saw no seasonality in originations and significant volume that’s come back to normal levels. And we — starting in Q3, Q4 of last year, we started to see the seasonality. So volume will be down in terms of originations compared to last year, but we still think at the end of the year, we’re at a bigger book than we were at the end of last year. And Home Improvement, yes, there’s plenty of growth there. There’s a lot of opportunity. That’s a much bigger pool in terms of the overall Home Improvement space. So we’ve used the opportunity to step up interest rates on new originations as well as get a better credit.
Mike Pochucha: Got it. And then on Medallion collections, anything more to call out there with a lot of that towards the end of the quarter? Or you can see more of that rolling into the second quarter and the rest of the year? Or I know it’s tough to forecast, but –
Anthony Cutrone: Yes, it’s definitely — we’ve always said it’s tough to forecast and we weren’t anticipating collections at this level in Q1. A lot of this could have been stuff that maybe came in later in the year. We were able to get larger settlements in the beginning of the year. The $13.2 million, it’s great. That’s definitely not a run rate. As far as where it ended up on the financials, as Andrew mentioned in his remarks a little while ago, we earned $0.28 specifically to recoveries. That’s $8.7 million that showed up on the income statement and the best — and the rest reduced our exposure.
Mike Pochucha: And does that fall straight through the provision line when we’re thinking about that?
Anthony Cutrone: Most of it — I think $7.1 million is in the provision, it’s a benefit provision, and the rest is in other income, it’s gain on the disposition of assets.
Mike Pochucha: Got it. And maybe just on expense base. Is this kind of a good quarter to kind of think about for the rest of the year? Is there anything to call out higher or lower there?
Anthony Cutrone: Not really. Our professional fees were higher than Q4, but lower than Q1 of last year. I think in Q4, we had some benefits. We realized with nonlegal professional costs. So I think Q1 is probably normalized. We had a small amount of legal costs related to the SEC action, but that — right now, that’s still quite low.
Mike Pochucha: Thanks.
Operator: Thank you. Next question will be from Christopher Nolan, Ladenburg Thalmann. Please go ahead.
Christopher Nolan: Hi. The net charge-offs in the quarter, was that including the recovery of $13.2 million on the Medallion loans?
Anthony Cutrone: Chris, yes, so the $4 million provision included a $7.1 million benefit related to the Medallion collections.
Christopher Nolan: And do you guys have a run rate in terms of when you expect all the Medallion loan recoveries will probably end? Do you –
Anthony Cutrone: We don’t — we definitely think there’s a lot more to be collected. It’s not going to happen in the next two or three quarters. It’s one, two, three years out.
