Manuel Navas: Okay. Great. You talked about the criticized and classified increases kind of — did I catch that right it’s mainly to acquired loans and any extra color there would be great.
Tyler Wilcox: Sure. I’ll take that one. So 2 loans, C&I loans that happened to be acquired loans. We feel really good about the acquired book, I will say, the — one of them is part of the equine portfolio out of the Limestone acquisition and well collateralized by property and inventory. We feel good about our ability to continue with that one. And the second is a senior living facilities operator. Again, good collateral and guarantor support. So we view these as — I know it’s a cliche, but we view these as one-offs, particularly to the rest of those books, both in our core and then the acquired books are performing to expectations.
Manuel Navas: Okay. That’s really helpful. In last quarter, you were able to give — switching over to NIM and NII. You gave some nice ranges for a little bit larger moves in Fed funds. Do you have any updates there? If you don’t, I can move on, but just wondering if you have any update for like a steeper decline in Fed funds.
Katie Bailey: Yes, I’d say back to the previous comment, to the extent we experienced a [2 or 3] 25 basis point decrease over the next few quarters, I think that guidance would still hold in that [410 to 430] Again, our asset position — our balance sheet is relatively neutrally positioned. So I don’t think we have a huge impact, up or down, to the extent rates move 25, 50, 75 basis points over a few meetings.
Manuel Navas: Okay. So as long as there — the pace doesn’t increase, you can adjust to it. That makes sense. My last question is you talked about potentially being acquisitive when beneficial. How would you term M&A discussions currently? Just kind of what you’re hearing in the market. And what would you look for to be beneficial?
Tyler Wilcox: Yes. Thanks for the question. A couple of thoughts on that. Beneficial would be the right partnership at the right price, right size and right geography. And I think there’s a number of factors that could make it right. Obviously, the ideal scenario that everybody talks about is one large acquisition to kind of leapfrog over. The universe of those banks is smaller than the kind of $1 billion to $2 billion universe that — so I think we’ll be opportunistic if there were large banks that was willing to partner with us to leap over that $10 billion. We’d be interested there. If there were 2 to 3 banks in the $1 billion to $2 billion range that we could do successive acquisitions, we would be interested with that. We’ve shown an ability in the past to execute on those and to do that well.
So we think both apps are absolutely viable. There’s obviously a lot of conversations going on throughout the industry. We continue to be active in all times in terms of having those conversations with potential acquisitions, and we will continue that. So we’re going to be opportunistic when the right move presents itself.
Manuel Navas: I appreciate that. Thank you.
Operator: At this time, there are no further questions. Sir, do you have any closing remarks?
Tyler Wilcox: Yes. I want to thank everyone for joining our call this morning. Please remember that our earnings release and a webcast of this call will be archived at peoplesbancorp.com under the Investor Relations section. Thank you for your time and have a great day.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
