Michael Rose: Great. I appreciate the puts and the takes. And maybe just finally for me, can you just talk about kind of borrower demand in your markets? I think previously you’ve talked about kind of a mid-single-digit growth expectation for this year. I certainly understand that you’re in some really strong markets, but that borrower demand has probably come in a little bit. So, I just wanted to get a sense for where you see some opportunities. And then, I assume that you’re probably not looking to necessarily grow your office portfolio or some of those other “higher risk” areas, but just some commentary there would be great. Thanks.
Rich Bradshaw: Good morning, Michael. This is Rich. And I think you summarized it pretty well, I have to say. But we are — as you said, we’re in the best markets, we remain optimistic. Certainly, looking for our new hires from late last year and our new hires that we just made, so I’m excited. We’ve made some more recent big hires, and these are both people that we have been recruiting for over a year. And so, we brought on Evan Wyant. Evan is our new Central Florida President in Orlando. And we brought in Spencer Wiggins, who is our new Market President in Mobile, Alabama, and will be — has opened up an LPO there. Both these gentlemen bring portfolio with them. I mean they both carried a portfolio and either they have or will bring some additional lenders.
So, we’re excited about that to kick in with some of the lift-outs that we did late last year to Tennessee. One is, which was in Knoxville, is really kicking in. And by kicking in, I mean close loans not just pipeline. And so we’re excited about that. And we’re also excited about our continued investment in Florida. For the first time, Florida led the bank Q4 in production, and we’re really excited about that.
Michael Rose: Okay. Thanks for taking all my questions. Appreciate it.
Operator: Our next question comes from Graham Dick from Piper Sandler. Please go ahead with your question.
Graham Dick: Hey, good morning, guys.
Lynn Harton: Good morning, Graham.
Graham Dick: Hey, I just wanted to circle back to the NIM quickly, specifically on the deposit betas. Jefferson, I think you said you’re expecting to kind of catch back up to peers in terms of bringing your beta down if rates were to come lower. What are you expecting I guess in terms of deposit betas on some of the initial cuts if they were to occur in 2024? Do you think there’ll be a lag or do you think it will sort of be linear where you have a set of indexed deposits that are going to reprice down immediately?
Jefferson Harralson: Yeah. So, we have $3.6 billion of index deposits. So, some of that would be immediate. We’re using for the non-maturity deposits. We’re using high-30s%, 37%, 38%, 39% range. But I also believe that we can maybe get some back possibly before rates start going down. We’ve lowered rates in our promotional money market CD or money market or ICS. So, we think we can use the strength of our balance sheet. No wholesale funding. The good deposit growth of this year. Lynn mentioned the 8%, our loan-to-deposit ratio at 79%. So, we believe that we can maybe start getting some of this back before rates start going down. And Rich may have some…
Rich Bradshaw: Yeah. I’ll add a little color. We brought — at the start to the year here, we brought down our money market special 35 basis points. There was over $2 billion in that product. So, that’s — just doing the math, that’s about $7 million savings right there. And as you mentioned, Jefferson, the ICS, the treasury management, really hard to bring that down $1 million, and I will tell you, we’re working on a pilot in Atlanta to even bring it down further.
Graham Dick: Okay. That’s really helpful. And then I guess turning to credit, Navitas obviously, there’s still distress in the trucker segment. I mean, do you expect it to come down to I guess 85 to 95 basis points, a total charge-off level at some point later this year? But I’m just wondering, on that long-haul trucking, the $49 million that’s left, how much of that do you think is at risk I guess today of needing to be charged-off?
Lynn Harton: Yeah. I’m not sure I have an answer for you on that. I think maybe the best thing I could give you is that, we do a refresh of public score absolute probability of default, it’s kind of like a FICO for small business, and I think that number is like a 15%. So, that would be one way to identify the higher-risk population of that group. But it’s a really granular portfolio. So, short of that, I don’t — there is no risk rating that goes on. This is small business, $100,000, $200,000 loans.
Graham Dick: Okay. Is there anything I guess economically that could help that segment? I mean, with lower rates, do anything to help? I mean, I guess it might all be dependent on invoice size, freight invoices, but anything out there that might be able to help this thing out externally?
Lynn Harton: Yeah. So, I think it’s more business-related than it is interest rate-related. So, the value of the tractors went down pretty dramatically towards the end of last year, but really in the second half. And so, I think it’s more about the value of the tractors and the demand for trucking. A bunch of retailers got overloaded with inventory and demand went down. So, to me, it’s really — the root cause is really demand of transportation.
