Brad Milsaps: And then just to follow up on that, can you remind me, is there a certain percentage of your taxable securities portfolio that’s floating or variable? The yield there has improved really nicely for kind of several quarters in a row, just kind of wanted to get a handle on kind of what kind of the key drivers are there?
Steve Crockett: Yes, so on the taxable side, we’ve got, I think it’s around 80 million or so that’s in some CMOs that do reprice every month. And so those have helped that yield. They obviously didn’t look very good at the beginning of the year, but as the rates have gone up, those do reprice. So that’s what’s helping us out there.
Brad Milsaps: Okay. I guess that’d only be about a little over 10% €“ 15% of it or something, and then the rest of it’s just kind of regular repricing, I guess.
Steve Crockett: Yes.
Brad Milsaps: Okay. Okay. Great. Thank you very much. I’ll hop back in the queue.
Steve Crockett: Thanks, Brad.
Cory Newsom: Thanks, Brad.
Curtis Griffith: Thanks, Brad.
Operator: And then our next question comes from the line of Brady Gailey with KBW. Please proceed with your question.
Brady Gailey: Hey, thanks. Good afternoon, guys.
Curtis Griffith: Good afternoon.
Cory Newsom: Hey Brady.
Steve Crockett: Good afternoon.
Brady Gailey: So I want to make sure I heard something correctly. Steve, I think you mentioned a $900,000 benefit from a purchase loan recovery. Did that happen in the fourth quarter and did that flow through spread income and the margin?
Steve Crockett: Yes, it did. That was €“ I think it was about eight basis points or nine basis points that it improved NIM.
Brady Gailey: Okay. So that could be a modest, at least from a percentage point of view, that could be a modest headwind into 1Q on the margin?
Steve Crockett: Yes.
Brady Gailey: Okay. All right. And then, so I mean, you guys were pretty active in the buyback in 2022. I understand you want to increase the liquidity of the stock, I know canceling the ESOP will help with that. But do you think you will be active, as you said, the stock is still inexpensive? So do you think you will be active with the buyback potentially in 2023?
Curtis Griffith: This is Curtis. We’re really looking at it. We’re in a good position. We’ve got plenty of cash available at the holding company level. But our Board is going to really analyze things over probably the next month or two and make a decision on that, on €“ whether we do get back in. And if so, really at kind of what level we want to go after it. I think there’s still some value to be had right there. But it’s going to be a Board decision on that as we look at everything. We’ve got several moving parts kind of happening right now and as we look at all of those we just didn’t feel like it’s a good time to make a decision right here in January.
Brady Gailey: And then, do I remember correctly that CECL is now in play for you guys beginning in 2023?
Curtis Griffith: Oh, yes. CECL, yes sir. Yes, we adopted in January. Yes, Steve can give you more color on that if you €“ he can give you a whole lot of color on that if you too, but yes sir, we were supporting
Brady Gailey: Yes. Maybe just a thought on, do you think it’ll have a material impact on the reserve ratio, just given adoption?
