Rhett Jordan: Yeah, Steve, I would say that is indeed the case. We’re certainly seeing a bigger pool in our pipeline in the C&I segment to your point. Construction has begun to, I guess, sneak back in here and there with specific projects, mostly owner-occupied related. But we are beginning to see some borrowers begin to go ahead and pull the trigger on projects that they may have delayed a little while. But C&I has certainly become a much larger component of our pipeline. And I would also say that correlates back to what we talked about a few times with regard to our newer market expansion teams having come from a much broader C&I portfolio. That’s their client base. That’s who they’re calling on. So that’s what’s driving a lot of that…
Steve Moss: That was a focus even before rates move, maybe more C&I.
Billy Carroll: But Rhett hit it Steve. And I think it is — we will see that. We’ll continue to look at [indiscernible] opportunities, we we’re seeing a few that we like, that we feel really good about the sponsors and guarantor positions. So we’ll continue to look at those. But yes, the focus is definitely a little bit more C&I based.
Steve Moss: Yes, and maybe just the other thing in terms of just the moving rates here, especially the last 70 bps in the last month or so. Just curious, as loans are coming up for renewal, are you seeing increasing borrower stress or kind of how are those debt service coverage ratios looking now that rates are moving even higher?
Billy Carroll: Yes. I don’t — I’m going to let Rhett jump in. I don’t think we’ve not seen a lot of stress. You want to dive into that one.
Rhett Jordan: We’ve been looking at that really the entire year and just kind of forward looking at upcoming maturities and current information we have on projects and borrowers. And certainly in some instances, with rates moving at the pace they did, the coverages are down from where they were perhaps at the time that it was originated, but nothing to the point that it’s causing significant challenges for the borrower in being able to generate adequate cash flow to the projects to service the expected repricing. We still feel very good about our portfolio’s ability to absorb these rate increases when the repricings occur. We have seen some market moves in the revenue side for some of those projects that’s allowing that as well. So we still feel pretty optimistic about the ability for the CRE portfolio to absorb that.
Steve Moss: Okay, great. Thanks. I appreciate all the color here.
Billy Carroll: Thanks, Steve.
Operator: The next question comes from Feddie Strickland from Janney Montgomery Scott. Please go ahead.
Feddie Strickland: Hey, good morning, guys.
Billy Carroll: Good morning, Feddie.
Feddie Strickland: Just wanted to go back to the expense guide. Ron, I think you said it was $28.5 million to $29 million of the fourth quarter. Correct me if I’m wrong there. But as we think into 2024, is there anything that would cause a significant change from that level or is it just sort of a steady, modest growth rate given some of Billy’s comment on the cost of new hires being more or less offset over time?
Ron Gorczynski: Exactly that, Feddie. It’s for the most part, it’s going to be the normal wage increase cycle. We do have small issues along the way, but we’re probably looking at normal 5% to 7% increase in that for 2024. Again, we’re not done with our 2024 modeling, but that’s probably what would be expected. Majority of that’s going to be in salaries.
