David Feaster: Okay, that that makes that makes sense. And kind of along the same line, this is where I think, the timing of the deal was really opportune, just given the economic backdrop. And, so I wanted to get an update, and we talked about the conversion and integration upcoming. I was hoping you could just maybe update us on the timing of the synergies is that timeline still on track, and then, just whether you’ve identified any other levers to pull just given the increased scale to help maybe decelerate expense growth and whether there’s any change to that overall synergy target.
Robert Franklin: No change in the synergy target. It has been invaluable in really offsetting what’s been a very inflationary environment. As you know from prior calls, we’ve been able to hold the line and really pulled through a lot of merger cost savings up to this point there. We’re going to be getting perhaps almost all the way there by mid-year. There’s a couple of expense items that will drop off to, to absolutely finish things at the end of 2023. But that’s relatively low, relatively small compared to the overall kind of success on cost saves. And also, we do continue to have more levers. I appreciate you’re hitting on the fortuitous timing of the merger, because we feel like this merger gives us a lot more financial flexibility, going into uncertain times and more levers to potentially pursue additional cost savings.
And we’re just better off with combined scale to confront these uncertain times. And we’ll be better off when we when it’s time to get back on offense.
Ray Vitulli: And we are scheduled for conversion.
David Feaster: Terrific. And so that this this kind of $68 million, you touched on the CDI and some of those impacts, but that’s just kind of $68 million run rates, a pretty good starting base on a core basis.
Paul Egge: Actually, high. I look at kind of core expenses. Now that you have the introduction of that very large CDI expense coming from the merger. And core non-merger related and non-redundant expenses in 2022, is probably going to run 265 over the year, you can chop that into quarters as you see fit. But there’s a broad target for us. Naturally, our execution will be a function of what’s coming by way of opportunities. We’re not going to shy away from opportunities. If the right people and or investments come along in 2023. But currently that’s our target, give or take.
David Feaster: Was that 255 or 265?
Paul Egge: 265 , of course.
David Feaster: Got it. And then just last one for me, I wanted to touch on the $35 million in loan sales. Sounds like we’re just kind of cleaning things up just given the deal and the uncertain backdrop just kind of getting ahead of some issues, or some potential issues. But just curious, if you give us some color on that? What did you sell? Were these on the allegiance or CVPX side, or both? And then was there any anything unique in this pool where you’re saying this is something maybe we want to pull back on or anything? We’re a little bit that makes us a bit cautious at this point?
Robert Franklin: Yes David, we had, what’s unique to them is it was basically the hangover that we have from COVID. So we had about four or five credits, that were really struggling at post COVID. And we were having to put pretty heavy marks on those credits anyway. They were rocking along, they were still alive and still trying to be worked out. But it was going to be long term workouts for us with real uncertainty as to what the end might be. So we opted for certainty around what those losses might be. And those portfolios as we were able to come inside our marks. So that’s that’s really why we did. We sort of clear the COVID piece of that.
David Feaster: Got it. That makes sense. Thanks, everybody.
Robert Franklin: Thanks, everybody.
