Chuck Shaffer: I think the way to think about M&A for us is we’ll – we’re in the middle about the convert Drummond, we’ll get that done here about the first week of February, and then our plan is to convert Professional right around the first week of June. And so as we come out of Professional, will be ready and available to do M&A, but I think it would be highly dependent upon what market conditions are at that time and whether or not pricing can make sense, obviously, earn backs have to make sense in M&A and we have to be able to model not only liquidity, but also credit reserve, et cetera. So it would be dependent on where things stand and when we get there, but I think from an operational perspective, we’ve done a very good job over the last few years, adding talent in technology to scale the franchise. I think we’ve been out ahead of the growth plan. And so will be ready, but it will be dependent on the environment.
Brady Gailey: Okay. That makes sense. All right. Thanks guys.
Chuck Shaffer: Thanks, Brady.
Operator: Thank you. Our next question is from the line of David Feaster. Please go ahead, your line is now open.
David Feaster: I wanted to circle back to the loan growth side. I mean, you talked about things starting to slow, but I just wanted to get some sense of the puts and takes here, right. How much of this is weaker demand from clients versus maybe you guys having less of an appetite for credit at this point given the economic backdrop? And if you could just talk about maybe what segments are still – like what loans coming across your desk or what sectors are still providing good risk-adjusted returns? And maybe, are there anything that avoiding or slowing where it just doesn’t make sense?
Chuck Shaffer: Yes. Thanks for the question, David. Growing a bank into an inverted curve. As I mentioned on the last question is something you have to be prudent and thoughtful about. And when we look at and what we’re see in particularly in the commercial real estate sector, things have slowed pretty dramatically when you look at cap rates and where interest rates are. And it just – it seems like deal transactions have just really slowed pretty dramatically here, we’re also seeing much less transactions in the residential market and both are being driven by the same thing. Customers are in, rates that are lower, rates are much higher in the marketplace and then cap rates and commercial real estate remain low. So there certainly less transactional volume.
And the last thing you want to do stretch into that environment and so we’re being thoughtful there. I would say, we’ve pulled back pretty strongly out of construction respect at this point, but we’re still looking at stabilized income producing property where leverage makes sense and where we have relationships and borrowers we know well. And we’re still looking at C&I and operating companies where they make sense. We are seeing nice pipeline around C&I and we’re seeing much – really nice looks given some of the talent we’ve brought into the company on the C&I side. So we’re taking our opportunities there. And on the commercial real estate side where we have appropriate leverage, strong cash flow and strong balance sheets good borrowers. We’ll do deals there, but again really kind of the way we’re playing the game pretty firmly here is we need full relationships as we move through time, we need to understand balance sheets, understand liquidity, understand deeply the client.
And so it’s a conservative approach, given the environment. But I think we’re navigating it pretty well. And when you step back and just look at the balance sheet and the way we construct the balance sheet over – really the history of the organization is, we’ve really always focused on relationships where we have good yields on loans, good structures and credit and pick our spots carefully.
