Operator: One moment. And we do have a follow-up question coming from Matt Olney of Stephens.
Matt Olney: This is Matt. Can you hear me?
Milton Cole: Yes.
Matt Olney: Just want to revisit just on the deposit pricing competition. I guess we’re just hearing mixed things from the banks this quarter as far as competition easing in the submarkets, but remaining pretty intense in other markets. Anything for us to appreciate from our side as far as when you look at your various states and markets where there’s more intense competition? And are these coming from the multistate regional banks? Or are these from the smaller private community banks?
Donna Lowery: I’ll let some others answer as well, but I know a couple here is local and has far we’re dealing with a couple of these, but they’re smaller private banks or listed on public traded — so I think we’re facing some of that. And then.
Milton Cole: Well, I think across the footprint, the competition fairly intense. I mean it’s a mix, Matt. It’s both the local smaller banks, but then also some of the larger regional banks. So it just seems to be real competitive in most really — most all of our markets out there.
Matt Olney: And Hoppy, you’re obviously in some rural markets but also some more metro markets from that perspective. How would you characterize the competition relative to where it was maybe a few months ago?
Milton Cole: I’d say that the rural markets have probably picked up where it was a few months ago. I think when it started out, they lagged a bit, but now they’re kind of catching up to the metro markets. It’s kind of the feel Matt.
Matt Olney: Sure. Understood. Okay. And then on the expense side, operating expenses. I think, Dee Dee mentioned they were a little heavier this quarter than you expected. I think you mentioned it, but I just didn’t write it down. What was the color of the heavier expense this quarter and then the outlook for 2024. Any change from what you said last quarter? I think it was $170 million to $171 million for 2024.
Donna Lowery: So the real difference was about $1.8 million from quarter-over-quarter on expenses, $1 million of that was related to salaries and benefits. About $500,000 was related to sold vacation — folks don’t use it, they can sell it back. And then about $500,000 was just a year-end accrual on our nonexempt staff for the last five days of the month so — or the year. Those two things were $1 million and then our professional services was also up as well and that was really driven by some of our 10 day expenses, and we’ve mentioned before about in the middle of that doing our GAAP analysis. And so because some of that in the fourth quarter as well. Those were the two main things. I think on for 2024, I’m still working through all that and trying to take down that exactly for 2024, but I think it’s probably going to be kind of looking at where we’ve been in the last two quarters and that run rate, probably more closer to the $44 million a quarter.
When you look at where we were this quarter, the $44.4 million and back out the acquisition charges, I think even though we had that extra million there, I think just $44 million a quarter is probably where we’ll be next year.
Matt Olney: Okay. And I assume that’s a quarterly average comment? Or is that more just…
Donna Lowery: Yes.
Matt Olney: Okay. That’s helpful. And then on the fee side, fees looked a little bit light sequentially in the fourth quarter. Anything you see in there that was unusual? And just any thoughts on kind of where that we should start off the year in 2024.
Donna Lowery: Well, it was like down compared to last quarter. I think about $1 million, but that was in the interchange fee income. But if you look at last quarter, that was elevated and so when you look at fourth quarter noninterest income and compare it to first and second, it’s all really — it’s in line. So we really have kind of been right around that $12 million a quarter in the noninterest income section.
Operator: We have another follow-up question coming from Catherine Mealor of KBW.
Catherine Mealor: Matt hit my [indiscernible] expense question. So that was I was going to ask but — one other one I have to you is just on just your M&A outlook, I feel like it’s been really slow for the industry, but you typically are an active acquirer. So just what are your thoughts on potential deals over the next year or so?
Milton Cole: Well, I think things are — we’re going to focus internally in the first half of the year, the back half of the year, I think we would be more open to thinking about potential things for next year. So I think things are still slow, Catherine. We had not a lot of conversations going on out there.
Operator: That concludes our Q&A session. I would like to go ahead and turn the call back over to Hoppy Cole, CEO, for closing remarks. Please go ahead.
Milton Cole: Thanks, everyone. We appreciate your participation this morning, and that’s all we have for this quarter, and we look forward to again to seeing — talk to you all next quarter. Thanks.
Operator: Thank you for participating in today’s conference call. You may all disconnect.
