MichaelRose: Very helpful, thanks Drake. And maybe just finally for me, you guys have an insurance business, we’ve seen a couple of sales here just doing some back of the envelope math looks like you can get about $120 million if you sold it at a five times revenue multiple, I just wanted to get your thoughts there and just, just general which you think about the insurance business? Thanks.
Drake Mills: I still believe there’s a lot of value in non-interest income and continuing to push, we have some opportunities to, I think in ’24 and potentially enhance our level of non-interest income, I like that business a lot, I like the relationships we have within those agencies. I love the fact that we are able to cross sell those relationships. We have a great relationship out of Streetport Bossier and the PolyWhite group that does a great job. We’re going through a potential branding opportunity here. So for me, long haul, I love the business. I love what it does for this organization. And I just wouldn’t say that’s something that we’re truly considering at this point.
MichaelRose: Alright, thanks for the color, I appreciate you taking my questions.
Operator: Thank you. Our next question comes from Kevin at D.A. Davidson. Kevin, your line is open.
KevinFitzsimmons: Hi, good morning guys. I’m just curious about – you mentioned earlier about one of the considerations with paying down borrowings with the bond restructuring proceeds was that keeping the balance sheet size below $10 billion as you cross year-end, as you look out with one quarter left, do you feel incrementally more comfortable at coming in below that? Or there – or are there other kind of things you need to be looking at this next quarter in terms of, does it limit the amount of loan growth you put on? Just trying to think through what restraints you might have this next quarter to ensure you meet that goal. Thanks.
Wally Wallace: Good morning Kevin. I think if you look at the size of our balance sheet at September 30 after we paid down the FHLB, we feel highly confident that we can stay under $10 billion without having to make any decisions that would, that would limit growth in the loan portfolio or anything like that, we feel pretty comfortable where we are.
KevinFitzsimmons: Okay. That’s what I thought, I just wanted to make sure. And you mentioned earlier, I think, Drake, might have mentioned earlier that expenses are a priority and are looking at that and when revenues are sort of under pressure. Obviously, we want to limit that growth there. If there are any specific initiatives that you have going on right now or are contemplating that you can give any color on for that? Thanks.
Drake Mills: Yes we are. There is no stone we’re not turning over to look at opportunities right now from an expense standpoint. Lance and his team I think are doing an awesome job of everything from personnel or non-productive people to another different things that we’re doing and our focus here is to try to create a flat expense environment over the next several quarters. And what I mean by that is we have opportunities to do a few things that would increase expenses, but yet long haul significantly increased revenue opportunities for us. So if we can mine expenses at this point and create this environment moving forward in a flat environment. That’s a big win for us because we are creating what I think are ROE opportunities for us utilizing expenses, but yet on the backend cutting out unproductive expenses.
KevinFitzsimmons: And Drake those opportunities. I’m assuming are kind of like lift out potential like you said it before.
Drake Mills: Yes.
KevinFitzsimmons: Okay. And one last one for me, just and I apologize if you covered this already earlier, but just in terms of credit quality we’ve had some instances of banks seeing some problems spike up, granted we’re coming off a low base, so maybe if you could just address, are there any areas you’re specifically concerned with and limiting your exposure to and if you could also address your SNC exposure and what that is as a percent of loans, just given that we’ve had some larger banks report were involved in a problem loan there. Thanks.
Drake Mills: Okay, thanks. Yes, I wish there was – in a, in a more precise way to tell you this is where I’m very concerned about credit. It’s amazing how resilient. I’ve said office was a big concern of mine. Certainly for us, we’re not seeing any deterioration in that area. We continue to stress those levels pretty heavily. We’re fortunate that we don’t have a lot of concentration in metro office. I’ve said anything that had to do with consumer spending and retail, especially around the restaurant and hotel I’d be concerned about. We’re not seeing deterioration there which is surprising. We are seeing a little bit of – not a little bit, a lot of weakness in the automobile area, dealerships are holding up well. We don’t have a tremendous number of those.
Had a conversation with the dealer and it is really impacting those sales, but overall there is not a single area with the exception that we cleaned that up of assisted living and we just have a couple of credits left in that portfolio. So I’m very pleased with, not only the, what we’re seeing as far as quality, but the depth of analysis that we’re doing from a stress standpoint in our portfolios and how well those cash flows are holding up, you know, as we continue to stress them up. But from that I think Jim is going to address the SNC percentages because we just don’t have a big SNC portfolio. Jim?
Jim Crotwell: Good morning, Kevin. Right now we only have – good morning, Kevin. Right now we only have 11 relationships, about $153 million in the SNC portfolio and I would say these are really relationship driven opportunities that we have. So while they meet that criteria, we have relationships with all of these. So, you know and to echo what Drake said, as we go through the portfolio and look at the various areas, obviously we’re, we’re relationship focused and I’ve shared before when the analysis when we look at sectors and look at the overall guarantor support, you know It’s just really, really does point out, I think the resiliency of the portfolio and the relationship focus that we’ve had, so be happy to address any other questions you may have, but right now we feel really good about the resiliency of our portfolio.
KevinFitzsimmons: That’s great, thanks very much.
Operator: [Operator Instructions] Our next question comes from Graeme at Piper Sandler. Graham, Your line is open.
Graeme Smethurst: Hi, good morning guys.
Drake Mills: Good morning, Graham.
Graeme Smethurst: I just wanted to circle back to the bond transaction quickly. Obviously pretty attractive financially, it is a little bit of a capital hit, but you guys have plenty of that right now, would you consider doing any more of this or similar transaction in the future? I know borrowings aren’t huge anymore, but maybe you could pay down some brokered or reinvest the cash flows elsewhere. What are your thoughts on it I guess additional transactions like this one.
Wally Wallace: Graham, the way the way we’re approaching that decision strategically is purely around the period of time it takes to payback the realized loss. We believe that if we have the opportunity to deploy capital in a manner that would payback a loss. Less than two years that, that is an attractive period that we should consider rates have obviously moved against us so far this quarter, but. But if we see opportunity we will jump on it.
