Paul Egge: Certainly. It has been higher than we expected and granted we’ve welcomed the accretion income. We try to look at the business both ways and being extra mindful of the windfall nature of some of it, because that’s really what’s driven a higher level of accretion income, more pay downs in the portfolio than expected, which we’ll absolutely take. Recall all of this accretion income is interest accretion and that’s pretty powerful because ultimately it just brought forward the repricing on the entire acquired portfolio of loans and those loans, when they do reprice, are repricing at market rates. And we feel like that’s really powerful. So, ultimately, aside from the fact that what I’ll call windfall accretion has represented about 35% to 40% of what we’ve been experiencing year-to-date, we’ll obviously take that, but there is repricing going on, and we see much of the accretion as core when it reprices into a market-based loan, especially at the nice rates that Ray outlined with respect to those recurring loans, where we’re ultimately getting over 8.5%, 8.7% when we repriced loans.
So, we feel good about it if it’s repricing into those types of levels, but we definitely think of most of it as a pull-forward of market pricing.
Graham Dick: Okay, great. And then I guess just on that repricing front you just mentioned, Ray, is that $600 million of repricing that happened or renewals that happened this quarter, is that typical? Is that kind of like the run rate we should expect in terms of the current loan book churn going forward?
Ray Vitulli: It’s probably a little higher than the normal. Normally you kind of think about our originations and renewals generally kind of track together, and this was a little bit probably outsized where the first two quarters are more like $500 million of renewals and this was $680 million. So probably something between $500 million and $680 million is probably the way to think about it. It was a little outsized.
Graham Dick: Okay, great. That’s helpful. And then I guess just turning to expenses quickly, I know you said that you’ve got some an increased focus on expenses going forward and optimizing the expense base to kind of align with the revenue environment in the current economy. But what does that mean for your approach to expense growth in 2024 as it relates maybe to that I think we’ve talked about $265 million number for 2023?
Paul Egge: We’re trying to be a strategic and thoughtful with how we manage expenses. And there is competing dynamics going on. First and foremost, we’re completing and moving onto the second stage of our merger to create Stellar Bank and what that means. We want to be well positioned to grow when the opportunity presents itself. So, we don’t want to fall into the trap of under investing, but at the same time, we have to be really mindful of current revenue trends and delivering for investors. So, we are about seeking to balance that in a way so as to achieve both ends. So what that means in 2024 is seeking to control and stay level as it relates to our core expenses from 2023 and going into 2024 and to the extent and really being thoughtful about how and where we allocate expenses.
So it’s something just like our balance sheet management that we’re thinking about every day, and we haven’t made any sudden move as it relates to that, but this is budgeting season and we are hyper-focused.
Graham Dick: Okay. Thanks, guys. I appreciate it.
Bob Franklin: Thank you.
Operator: Thank you. One moment for questions. Our next question comes from John Rodis with Janney. You may proceed.
John Rodis: Hey, good morning, everybody.
Bob Franklin: Hey, John.
