Graham Rick: Yep. Understood. And I guess just one more follow-up on the deposit front and the costs. So, that money market piece, correct me if I am wrong, that’s like that’s fully floating, right? So, there’s not a lot of — there’s no maturities that thing or any, I guess exception pricing within that segment that’s going to cause that to have any further catch up. So for example if we get no more rate hikes it’s probably going to stick around 4.25% on cost, right.
Thomas Broughton: We think so, Graham.
Graham Rick: All right, that’s helpful. That’s all I had. Thanks guys.
Thomas Broughton: Thank you.
Operator: Thank you. Our next question comes from Dave Bishop with Hovde Group. Please proceed with your question.
David Bishop: Hey, good evening, gentlemen, how are you?
Thomas Broughton: Good, Dave, from Hovde Group.
David Bishop: Yes, thank you for clarifying that. Hey, Tom, you noted the revamp of the incentive plans, obviously they were very successful on the funding side this quarter. From an operating expense standpoint, does that imply maybe an acceleration of operating expenses into the last quarter of the year and how should we think maybe about expense growth into the next year?
Thomas Broughton: Now we’ve already caught up, we accrued more than the third — a good bit more in the third quarter, Dave, I don’t know the exact number. Bud has got it over there, but we’re going to accrue more in the third and the fourth quarter to account for that. So, we’ve already started doing that, because they have — we have been wildly successful at raising deposits and they’ve done — they done what we asked them to do.
David Bishop: Got it. And then circling back to the liquidity and maybe securities, outlook here and then maybe answer that last question or so, but there’s been a lot of chatter and I think you even noted, we’re probably higher for longer scenario economic outlook here, interest rate outlook moving forward, is there a potential to potentially restructure the securities portfolio and maybe, I don’t know, sell off some of the lower yielding stuff, pay off some of the borrowings to improve the margin and profitability. Just curious how we should think about that?
William Foshee: Hey, Dave, it’s Bud. I don’t see us selling anything. I think will continue to buy, if we buy, we will buy treasury short-term, six months to a year. It just takes a long time to actually pay it back and earn money, I don’t know, just something we don’t want to do. We’d rather just hold it to maturity.
Thomas Broughton: And what if rates drop, I mean, problem is my salesman can always show you a Bloomberg run that shows that makes you a lot of money to reposition securities.
David Bishop: Got it. Now understood, understood. And then, a housekeeping question, I guess maybe for Bud, good tax rate to assume moving forward, it looks like there were some lower than trend tax rate this quarter, curious how should we think about next quarter and into 2024?
William Foshee: Yeah, I would say 18% would be a good rate for the fourth quarter.
David Bishop: 18%.
William Foshee: 18. Yes.
David Bishop: Got it. Great, thank you.
Operator: Thank you. There are no further questions at this time. I’d like to turn the floor back over to management for closing comments.
Thomas Broughton: Thanks. I think we’re done. Thank you everybody for joining us.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
