Chuck Shaffer: Thank you.
Operator: And we’ll go next to David Bishop at Hovde Group.
David Bishop: Hey, good morning, guys.
Chuck Shaffer: Good morning, David.
David Bishop: A question for you, the slide regarding some of the deposit headwinds you faced this quarter. You called out the title company balances. Is that an opportunity to rebuild those if we get a rally in the mortgage market? Just curious maybe how far those deposit balances are down maybe from the peak of the housing cycle.
Chuck Shaffer: Yes, they’re down a lot from the peak of the housing cycle. Yes, definitely, if you saw — and as well as commercial, as we’ve seen the slowdown in commercial real estate, that’s certainly pull through in the title companies and the attorneys. We do normally see kind of the end of the year. We saw this last year where they’re trying to get transactions closed and get everything done by the end of the year. And so typically, they do sort of come down during that period of time. Little bit higher this year than prior years. But if the market — what market — I think the market will return here in Q1, we would expect them to start to fund back up. So a bit of a nuanced seasonal thing there. We do bank a lot of attorneys and a lot of title companies. So we’re probably a little outside there and not the impact we see on that.
David Bishop: And I know one of the sticking points recently has been the cost, the iota cost there. So you’re not sort of managing that vertical away, just given that increased cost due to iota.
Chuck Shaffer: No. We were still definitely still in the vertical, like the business and just paying more interest expense for it.
David Bishop: Got it. And then within the wealth management side has had some good growth there. Could that could RIA acquisitions play into the M&A acquisition strategy?
Chuck Shaffer: Well, first, I’d say I’m super excited about our Wealth Management business in the coming year. We’ve got one of the strongest pipelines we’ve had in some time. So I’m expecting a very good Q1 and Q2, team is doing an awesome job. They are very integrated with our commercial bankers. It’s an amazing relationship there, and they continue to refer back and forth. It’s been a really good story for us. I’m very excited to where we’re headed. I don’t know that we’re really focused on RIA acquisition. David, if something came along that was interesting, we might take a quick look at it, but it’s not an area of focus right now.
David Bishop: Got it. And then one final question, maybe Tracey, in terms of the purchase accounting accretion, I know that declined modestly this quarter, just curious if we should see an uptick to that $14 million, $15 million level again or it’s just sort of a new run rate?
Tracey Dexter: Yes. It’s a good question. After several quarters of very high accretion in the fourth quarter was meaningfully lower. Generally, accretion runs higher when individual loans with high mark have payoffs or meaningful pay downs in the fourth quarter, we just saw notably fewer prepayments on loans with high marks. So I feel like I’m going to continue to be difficult to predict. The uncertainty, just to highlight really only exists around the timing. We do expect to earn the full remaining purchase mark, but the pace at which that comes through is kind of out of our hands. In terms of expectations going forward, it’s hard to see that it’s likely to go back to the higher levels from Q2 or Q3, I’m updating our expectations to look a little more like 4Q. But really variable.
Chuck Shaffer: But very, we don’t really have much control over it, and it’s kind of out of our hands. It could go up, could remain the same.
David Bishop: Got it, appreciate the color.
Operator: And at this time, we have no further questions. I would like to turn the conference over to Chuck Shaffer for closing remarks.
Chuck Shaffer: All right. We thank you all for joining us this morning. And just thank you to the entire Seacoast team. We had a great Q4 and looking forward to 2024. I think it could be an amazing year. I appreciate everybody’s hard work. I appreciate everybody to join the call. We’re around for calls after the meeting if anybody wants to chat. Okay. Thank you, Audra.
Operator: You’re welcome. And that does conclude today’s conference call. Again, thank you for your participation. You may now disconnect.
