David Feaster: That’s great color. I appreciate it. And then appreciate all the guidance that you guys gave and some of the preliminary thoughts. But I’m just curious, maybe looking out to 2024, I mean we’re not giving guidance for that yet. But I guess as you look at the street estimates, look, there’s a wide range at this point just given there’s a lot of moving parts from the M&A activity. I guess when you look at street and consensus outlook, is there anything that you see that’s wildly offered? Do you think the streets, relatively realistic based on your preliminary thoughts and just curious how you think about that as we try and manage expectations heading into the next year?
Chuck Shaffer: I’d say we feel good about street estimates. It generally lines up with what our thoughts are. There are some line items, one way or the other, but overall street estimates are pretty good. Michael, I don’t know if you think you can add to that in terms of the model, but overall, we feel pretty good about street estimates.
Michael Young: Yes. I mean there’s, obviously some volatility around, credit expectations and then rate expectations that are probably in each, individual model, but generally seems like we’re in good shape.
Chuck Shaffer: Generally bottom line, we’re in line.
Operator: Our next question comes from line of Stephen Scouten.
Stephen Scouten: Hey, thanks. Good morning. Appreciate you guys not calling out my estimates this morning, so thank you for that. Just curious, you guys gave some guidance and Tracey you said maybe 5 to 10 basis points of additional NIM compression expected in the fourth quarter. I don’t know if you have like the September NIM or what you’re seeing, what you saw at quarter end that might give us some visibility into that starting point. And then thinking about that 2040, you said maybe second half upside. If you could give any color about what drives that, I assume it’s fixed rate loan repricing, but kind of the puts and takes we might see in the ‘24 as well. Thanks.
Michael Young: Hey, Steven, it’s Michael. Yes, so just, I think as we exit the quarter, it’s just kind of where deposit costs are. So spot deposit costs are about, closer to 187 kinds of exiting the quarter. So we’ll have some pull through that. Loan yields this quarter were a little low, sort of just lower fees in the quarter, but those things will kind of move throughout Q4 and kind of line up with that NIM guide. So just trying to give you a little clarity there. But, as we’ve talked about, I think big picture, over the last year, it’s just with our fixed loan book repricing, we’ll start to see more and more benefit of that and more of our book repricing into the higher rate environment as we move through 2024. And that will, outweigh any, deposit cost pressure that we may feel.
And so, you kind of see that stabilizing as we get into 2024 and the NIM starting to head higher, right, as we get into kind of your two, your three of the higher rate regimes, we will reprice more of our book up into that higher pricing level. So that’s kind of the right way to think about it.
Stephen Scouten: Got it. And is there, do we think about just like a four year duration kind of evenly on the fixed rate loan book or is there any lumpiness to the, kind of turnover at that portfolio over the next 12 months at all that we should know?
Michael Young: Not when you think about it cumulatively for maturities and amortization, we don’t do a lot of interest only lending. So we have a good bit of principal amortization that comes off of that as well. So when you take all that together, it’s actually, it’s pretty smooth. Q4 is usually a higher origination quarter for us. So we do have a few more maturities this quarter than the normal. So that’ll help a little bit as we get into the Q4.
