At the same time, I think John does a fantastic job of looking at every line of business and monthly, we grade that line of business. And our — the existing lines of business that are left are very profitable, and we’re very pleased with their performance. And I think they’re getting with scale even more efficiency. So I don’t see at this point that there’s another line of business to exit as much as we’re just — everybody is going to grow into their size. I think if you look at all of our different lines of business, they all can scale and become more accretive to us with just even a little bit more growth. As far as the loan mix, I don’t know, Audrey, if you want to have any comments on —
Audrey Duncan: As far as what we’re not looking at, I would say, you mentioned office, of course. Our office is holding up really well. We only have one loan that’s classified for $1 million. But we’re not looking in office, I would say, not looking in retail — and we don’t do much — wouldn’t really entertain much multifamily at this time, really focusing on C&I and the full wallet relationships that we’ve been talking about.
Michael Rose: Makes sense. And John, maybe just one final one for me. Just the loss in other noninterest income. Sorry if I missed it in the release, but kind of what drove that? Was there something that’s nonrecurring in there? Just would love an explanation.
John McWhorter: Well it is nonrecurring. I don’t — you’re talking about the one fraud loss — in other non-income, we had an unfavorable swing quarter-to-quarter and some of that wind of a swap between quarters there, Michael, on SBIC. I mean, we can — we have several SBIC investments and some quarters, they make money and other quarters, they don’t. So most of it was related to SBIC having a great quarter last quarter and actually losing a little money this quarter, which we don’t have big investments there. It’s usually not material enough to change the line item, but it just happened to be this quarter.
Bart Caraway: Michael, I just might add one thing on that. The SBICs, I mean, they don’t often have quarters or they’re selling an asset at a loss that we’re needing to realize. So I certainly wouldn’t expect that going forward. We didn’t point it out because — I mean, I don’t guess you all would typically take out something like that. I mean we didn’t highlight it last quarter that they had a good quarter, just kind of one of those fluky things that went from good to bad over consecutive quarters. And it was, I don’t know — [ 250,000 good last quarter and down 250 ]. I mean it was a swing kind of that sort of magnitude.
Operator: Next question comes from the line of Bernard Von Gizycki with Deutsche Bank.
Bernard Gizycki: Hey, guys. Good morning. John, I heard your comments on the drivers of the lower NIM than expected given the loan spread dynamics. What kind of spreads are you putting on to the new loans versus the portfolio average? What are your expectations on loan spreads from here?
John McWhorter: Yes. So our margin is relatively high compared to peers, but our spreads are probably much closer. We’re competing for deals every day. I mean the reason our margin is better is because we don’t have the AOCI losses. We don’t have the legacy investment portfolio that’s relatively low yielding. But for new business going forward as we’re looking at it, I mean, we typically won’t do a deal that is less than Fed funds plus 300. So if it funds today or so far, however you want to look at it is 5.25, we typically don’t do a deal for less than 8.25 today. There could be some exceptions to that, but for the larger floating rate deals, they’re typically 300 over or so.
