Rhett Jordan: Yes, I mean we are probably similar to a lot of others in that. Last year especially as rates began to increase at the pace they were, we — to Billy’s point, we started doing additional rate shocks kind of above where we historically had done rate shocks on underwriting, on new opportunities coming in the door. And then as we progressed into the year, we also started a process of looking out six months to a year on transactions that were coming up for renewal, looking at projects that, to your point, had been financed in earlier years with lower interest rate cost to just see how those were going to perform. But again, to Billy’s point, historically, we’ve always been pretty conservative when it comes to equity requirements on the front end of a project, stress testing interest rates on the front end of a project, making sure that they could sustain both an increased interest rate and/or a reduction in OI side.
So we still feel very good from the conversations we’ve had with clients about where rent rates are even at the elevated interest expense with the majority of the portfolio, we feel very good about where we’re going to be as we go through the year.
Brett Rabatin: Okay, that’s great color. Maybe if I could sneak in one last one on the margin, you mentioned, obviously tough to project here. But just with the balance sheet is more neutral to rates than the Feds. The Fed stops here, would you expect the margin to stabilize and kind of remain flattish from the first quarter subsequently or would you give us any other color around that?
Ronald Gorczynski: Yes. We’re expecting it to — we — from where we are, because we’re a little bit elevated for Q4 because of additional accretion, we should see that 330, 335 range pretty much at this point throughout 2023, where again, we’re probably seeing our margin to be flat, not seeing, at this point, not modeling any more contraction. So we’re, again, just stable as we go forward.
Brett Rabatin: Okay, great. Thanks for all the color.
William Carroll Jr.: Thanks, Brett.
Rhett Jordan: Thanks, Brett.
Operator: Thank you, Brett. Our next question comes from Thomas Wendler from Stephens Inc. Thomas, your line is now open.
Thomas Wendler: Hey, good morning everyone.
William Carroll Jr.: Good morning, Thomas.
Thomas Wendler: Yes, just back on deposits, it sounds like you guys have enough securities rolling off to help fund most of the loan growth throughout the year. But just for the rest of the loan growth, are you guys looking at any CD specials you might be running just to help with the deposit growth? I hope you’ve run any yet. And then you also leaned on FHLB borrowings during 4Q a little bit. Do you see yourselves doing that anymore throughout 2023?
William Carroll Jr.: I don’t think we had it.
Ronald Gorczynski: Yes. We didn’t have FHLB borrowings. We didn’t have any for the fourth quarter. And we don’t see — let’s get the wholesale funding, we don’t see the use of FHLB or broker deposits at this point or the need to. We are running promotional CD specials, and we are doing exception — more exceptional pricing. We have done some overall lift on our sheet rates, but again, we’re trying to stay focused on the good relationships and individual pricing as we go forward.
William Carroll Jr.: And one point of clarification, Ron, you’ve come out those securities rolling off, that’s 2024?
Ronald Gorczynski: In 2024, the securities would be rolling off. Yes, $3 million to $4 million, yes.
Rhett Jordan: I’m sorry. Go ahead, Thomas.
Thomas Wendler: No. I was just thanking for the clarification on the securities there. And then my other question is just on your initiatives you set for 2023, the customer pricing software, the implements on the enhanced risk and fraud solutions and then you’re improving the treasury management system. Can you just give us an idea of the benefits you’re seeing there and then if there’s any allocated costs to that, that we should be thinking about?
