David Zalman: I think you have that, but you also have the regulators are pushing harder for data governance. They’re pushing harder in BSA. They’re pushing harder in compliance. I think you’re seeing all of that.
Asylbek Osmonov: Yes.
David Zalman: Now some of that can probably be offset by the mortgage department. The mortgage I think we’re letting people go or reassess them in the mortgage department, so we might be able to offset that. But part of that is just regulatory burden too. As you get bigger and bigger, the regulatory burden, nobody would believe it. It’s crazy.
Jon Arfstrom: Yes, that’s what I was getting at. That’s what I was wondering. I remember you saying once, David, you had, after the financial crisis, 20 new employees working for the government, but they were on your payroll instead of the government, something like that.
Asylbek Osmonov: Yes, but it was just 20 now.
David Zalman: Now probably over 200 now.
Jon Arfstrom: Okay. And just one more, and this can be quick, but on credit, it sounds like you’re not seeing anything. But I’m curious, do you guys expect a credit cycle for the industry? When you look around and you look at your peers and you look at some of the loan proposals that you’re making to take loans from other banks, do you guys expect the credit cycle?
David Zalman: To me, I mean, I’ll be the first to answer. These other guys can answer too. But I think the credit cycle is probably going to be more regional in nature. I think that if you’re in San Francisco or New York, you have populations that are moving out. I think those are going to probably be impacted, especially from the office space and more so than I think what we’re seeing in Texas and Oklahoma, A properties don’t seem to be affected at all. In fact, if anything, more people are moving to the A properties. It’s really the B and C properties that are impacted. And the bigger charge-off that we had last quarter or so really came from a three deal office deal that we had that really never was passed due. And maybe we jumped the gun and just sold it too quick.
But we always like to get rid of our problems right away. But so I think you do see that seasonally popping up. I do think that from the First Capital Bank that we acquired, we do see some problems. They’re not really commercial real estate office problems. They’re more in what nursing home, Randy? A couple of nursing homes and stuff.
Randy Hester: Yes, some acute care and some spotty retail.
David Zalman: So we see that. And so I think a lot of it has to do with the underwriting and the risk that the banks took too. But it also comes from where you’re located. I think your circumstances around you add a lot to it. So I think the banks that had good underwriting or even the banks that had good underwriting are located in growth states are going to be fine. The banks that have good underwriting in states where they’re seeing outflow, they probably will be fine too. But the banks that historically have had bad underwriting, they’re going to be bad in both of those scenarios regional. And I think it’s just going to always go back. I think it’s going to go back to your underwriting really that’s just me.
Jon Arfstrom: All right. Thanks for the time. I appreciate it.
Operator: This concludes our question-and-answer session. I would now like to hand the call back to Charlotte Rasche for closing remarks.
Charlotte Rasche: Thank you. Thank you, ladies and gentlemen, for taking the time to participate in our call today. We appreciate your support of our company, and we will continue to work on building shareholder value.
Operator: The conference has now concluded. Thank you for your participation. You may now disconnect your lines.
