Brody Preston: Got it, okay. I appreciate that. And then on the buyback I am just trying to think about willingness to be maybe more aggressive just given where the share prices, it wasn’t that long ago, and I think it was last year, you bought back some pretty decent slug of stock were pretty well below — you were pretty well below where that was and so just given the capital generation and the stock price today, I guess, what would you think would be the right level of buybacks to think about moving forward?
John Corbett: Yes, look, there is no gun to our head to do anything immediately, but the stock price we think is attractive and we are generating capital. So, it’s — stock buybacks are a day-by day thing where you’re looking at the economy and you’re looking at credit potential risks. But right now the price looks pretty attractive to us, I don’t think it’s the time in the cycle to do any kind of wholesale major move. But back to nibbling around the edges, it looks okay where it is.
Brody Preston: Got it, okay. I think you gave this [indiscernible] portfolio percentage in the deck, I think, I thought it was like 2%, do you happen to have what the, of that, what you guys are — lead on?
John Corbett: Yes, Brody, I mean, just not a meaningful part of what we do at 2% of our portfolio, but we typically did not lead, typically when we’re in these credits, these are credits that follow middle-market bankers that we’ve hired from Bank of America, Wells and Truist. So, in many cases, the banker that works for us usually the credit but because we’re trying to manage hold limits, normally we’re just taking a piece of the credit. So, so I think out of 39 relationships, we are going to lead one.
Brody Preston: Got it, okay. And then I did just want to clarify, I’m sorry if I missed this earlier in the call. Just on the swap revenue, I think you guys have been pretty clear that you shouldn’t to expect correspondent to have some kind of ups and downs, up-and-down quarters here, but the swap income, is this more on the level that you would expect in the current interest-rate environment and going-forward?
Steven Young: Yes, Brody, this is Steve. It does bounce around a lot and you can see that in the quarterly numbers. A lot of times in the correspondent division we will have other things that offset it. But just to frame that up on Page 32 of our deck is our noninterest income kind of trend over the last I don’t know, I guess, it’s five quarters and you can kind of see it our noninterest income to asset sort of bounces around, it has got — it has been as high as 69 basis points, it has been low as 57 basis points of assets. So, as the 10-year treasury from June 30th to call it now, the 10-year treasury is not quite up 1% to close. That has an effect on our capital markets teams at least in the short-run, in the pipelines until everybody kind of gets used to it, so, I would expect, like I said that our non-interest income to assets this next quarter would still be 64 basis points, will be closer down to the lower-end of the guide 55 basis points.
We’ve been guiding 55 basis points to 65 basis points, that is going to be short and a little bit lower. And then as you think about next year and you look at the Moody’s consensus, it looks like the 10-year treasury starts coming down towards 4% towards the end of next year. My sense would be that those quarters would get more favorable towards that particular division and we can’t rebound. So, it kind of looks, it will get a little lumpy from quarter-to-quarter sometimes, but from a standpoint of looking at the overall picture that would be how I’d look at it.
Brody Preston: Thank you for that. And maybe for John, just a follow up on Catherine’s question on the M&A. ONB bought CapStar or announced they’re buying CapStar last night and it seems like a. pretty reasonable well-priced deal, some solid accretion and the stock is actually mildly outperforming today, which is nice to see. So, when you kind of see investors may be happy about a well-priced acquisition that doesn’t come with too much dilution, does that maybe make you think about wanting to do something sooner rather than later despite the current rate environment?
John Corbett: I mean it’s a case-by-case basis, Brody. So, we’re, we’re, we’re open for business and if the right opportunity came along sooner rather than later we would pursue it. I think it’s just going to be few and far between over the next couple of quarters, anything is possible, so, I wouldn’t rule it out. I just think it’s — if I was forecasting, I think, I think activity for the industry is going to be more robust second-half of 2024, but, but we are not opposed to it, it’s something attractive and accretive to our franchise came along.
Brody Preston: Got it and then just, just my last one, we talked about this I think on the first-quarter call and I know again it’s a very small loan portfolio for you guys. So, I’m more interested in it just from a commentary perspective than I am necessarily a SouthState specific perspective. But the substandard and accruing portion of the nursing home portfolio keeps going up. Is there anything different than what we talked about last time, which I think was costs keep going up, maybe some of the third-party payers aren’t paying out as much of it. I’m just trying to think is there anything kind of unique to senior housing right there — right now that’s kind of driving some of that weakness because you’re seeing it elsewhere and other banks as well?
John Corbett: Yes, I have talked to our credit team specifically about that. But as you point out, it’s less than 1% of our loan portfolio, but, but really it comes down to the labor. I think that’s the biggest issue right now probably labor, the nursing shortage you hear about some of the rates the traveling nurses get and then interest costs going up and so you’ve got two major expense headwinds. And then, you still got the revenue headwind following COVID about people’s desire to be in a nursing home post COVID. So, but the main issue, Brody, is the nursing shortage and labor cost.
Brody Preston: Awesome. Thank you very much for the color. I appreciate it guys. Have a good rest of the day.
John Corbett: Thank you.
Operator: And that does conclude the question-and-answer session. I would like to turn the conference back over to John Corbett for closing remarks.
John Corbett: Right, Audra, thank you. Thanks everybody for joining us this morning. We know it’s busy with all the earnings calls. If we can provide any other clarity don’t hesitate to give us a ring. Have a great day.
Operator: And this concludes today’s conference call. Thank you for your participation, you may now disconnect.
