Graham Dick: Okay, that’s good to hear. What are I guess, on your interest rate sensitivity side, what kind of drove the move to liability sensitive here? Is it just the deployment of excess cash from here?
Ronald Gorczynski: Exactly that, yes. Our cash is making us more asset-sensitive than we really were.
Graham Dick: Okay. That’s kind of what I figured in what we’ve seen over the last couple of quarters with that slide. But if I can sneak in one more in here on the expense side, I think you said $28.2 million, right, in 1Q, and then it sounded like the efficiency ratio should improve from there. Are you kind of hopeful or guiding towards maybe some flattish expense growth after 1Q? I’m just trying to get a sense of what the full year might look like from an expense standpoint.
Ronald Gorczynski: Yes. I think for the expense side, we have — it will go up incrementally, not in big amounts, but Q1 is kind of our — traditionally our worst quarter. We’re faced with some of the reset of taxes, some wage increases and catching up on our deposit beta. I think as we go forward, you get some more leverage with loan production and deposit rates stabilizing, our expenses will remain relatively stable going through that time. So pretty much that $28 million, $28-ish million range is what we’re focusing on.
William Carroll Jr.: Graham, I’ll just add. When you — as we kind of forecast out that noninterest expense line for the year, we feel really good about controlling really all those areas. Obviously, with salaries, we’re — as everybody, we’re in a competitive wage environment, so we want to make sure that we’re continuing to retain great staff members, and we’re going to look to make sure that we can do that. And so we may have a little more budgeted into some of those increases than traditional or what we’ve seen in the past few years. But overall, we feel pretty good about our ability to hold that expense line. As you said and as Ron kind of alluded to a little — probably a little more on the expense side and then it’s flattening out, probably cause that efficiency ratio to edge up a little bit, but then works its way back down.
We still think kind of moving down to that 60 number and getting sub-60 is the goal for our company that we could achieve in a relatively short period of time.
Graham Dick: Okay, I appreciate it. Thanks guys.
William Carroll Jr.: Thanks, Graham.
Operator: Thank you, Graham. We have our next question comes from Feddie Strickland from Janney Montgomery Scott LLC. Feddie, your line is now open.
Feddie Strickland: Hey, good morning guys.
William Carroll Jr.: Good morning, Feddie.
Ronald Gorczynski: Good morning.
Feddie Strickland: So your noninterest income guide is a pretty healthy jump from the fourth quarter. Is that driven by any fee income line in particular, whether it’s insurance or Equipment Finance? Just curious what the drivers are there.
Ronald Gorczynski: Well, third quarter, we were down on capital markets and obviously, as Billy mentioned, the mortgage revenues were down. As we go into fourth quarter, we have a full quarter’s worth from our insurance acquisition, the revenues generated from there, and we also have picked up on our capital markets side. So we don’t — we didn’t have anything really new hit. We just had some of the segments that kind of had a down Q3 pick up some steam for Q4 and we project that steam to going into 2023.
Feddie Strickland: Got it, that makes sense. And then just moving to deposits, a lot of your tenancy neighbors have had a good bit more pressure on their deposit costs than you guys are seeing at SmartBank. Do you feel like your footprint in Alabama and Florida is a big part of that? Has that helped you to kind of mitigate some of the deposit cost pressure?
