We don’t have ongoing things that we need to de-risk, like you’re seeing with other banks. We don’t have a lot of reserve to build. We don’t have capital that we need to build. So, we really have kind of the wind at our back and the ability to kind of move forward and grow the bank and grow the franchise value of the bank and grow earnings as well.
David Bishop: Got it. And then, yes, accretion income has been under a little bit of pressure here. Is that $10 million run rate good under this interest rate environment? And if rates do start to fall, is that impacted by potentially prepayments or payoffs? Just curious how we should think about the pace of purchasing accounting accretion.
Tracey Dexter: David, as you said, as expected, the accretion has tapered off since the periods immediately following the recent acquisitions. Generally, accretion runs higher when the individual loans with high marks have payoffs or meaningful paydowns. And so, we’ve seen notably fewer prepayments on loans with high marks. That’s going to continue to be difficult to predict. But maybe just a point of emphasis, it does come back eventually. And just the uncertainty that exists around timing. But I think probably what you’re seeing in the first quarter, that 10 to 10 and a half, I guess, would be a reasonable guess.
David Bishop: Got it. Chuck, I know you’re pretty bowled up about the commercial loan pipeline. Any chance you’d share the commercial deposit pipeline, how that looks, any visibility there from a dollar perspective or percentage basis of that pipeline?
Chuck Shaffer: I don’t have it in front of me, David, and I don’t really have a number to give you. I would give it to you if I have it. I just don’t have it in front of me. Maybe just a gearing ratio on that. We do require compensating balances. So, you can see what we’re seeing in terms of the loan pipeline and assume some percentage of those loans or a percentage of the balances of those loans would be also coming in terms of deposit funding. And the trick for modelling there is just to remind you again we are going to see some tax payments here made. I think we’re going to see tax payments across the industry. It’s not going to be a heavy tax year for all banks for a lot of reasons. But as well as public funds typically come down. So we’ll have that kind of fighting that through April here. But as we continue to grow, we’ll grow through it.
David Bishop: Got it. A final question. A little bit of pick up in the substandard criticize. Just curious, when you look at that book, is there a material difference in the average size of those loans versus maybe the portfolio average? Is it chunkier than what we see on average?
Chuck Shaffer: No. It’s the average portfolio. The classified criticize were generally flat quarter over quarter of just a hair. Generally, we’re seeing just normal, I call it seasoning of the cycle here. And then when you look at the NPL book that book is kind of just spread amongst a number of smaller transactions as well. So we feel pretty good where we are on asset quality here. Feel pretty strongly about where we’re positioned. And we’ve got the allowance to generally cover anything that’s going to come our way, I think.
David Bishop: Perfect. Thank you for the color.
Chuck Shaffer: Awesome.
Operator: That concludes our Q&A session. I will now turn the conference back over to Mr. Shaffer for closing remarks.
Chuck Shaffer: Okay, thank you very much. Thank you all for joining us this morning. I do think we had an exceptional quarter. The Seco team did an amazing job. And I’m excited to see what we can do over the remainder of the year. And we’re around if anybody has any questions, feel free to reach out. Okay. Thank you, operator. That will conclude our call.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
