Jefferson Harralson: Yeah. So, I think the 3% range, I think Rich may have mentioned or maybe a questioner mentioned, is that 3% range is a good range to think about. And what I will say the fourth quarter was one-time, it will end up being — there is some catch-up element in there, it will end up being a bit of a higher run rate for that number in 2024 as we have a higher expense run rate, but it won’t be to the level of what it was in Q4. And I think you’ll see it — again a $1.7 million improvement in that line item in the first quarter.
Russell Gunther: Okay. Got it. Appreciate the clarification, Jefferson. And then, just last one for me, guys. The low-to-mid single-digit loan growth for ’24, what are you guys assuming out of Navitas?
Jefferson Harralson: Yes, that’ll be mid-single-digit there too.
Russell Gunther: Okay. Great. That’s it from me. Thanks for taking my questions.
Operator: Our next question comes from David Bishop from Hovde Group. Please go ahead with your question.
David Bishop: Yeah. Good morning.
Lynn Harton: Good morning.
David Bishop: Hey, Jefferson, you spent some time doing a deeper dive into Navitas, but curious maybe an update on what you’re seeing within the senior care portfolio. Any update in terms of credit trends and how comfortable you are in terms of getting your arms around potential loss content within that segment?
Rob Edwards: Yeah. So, David, it’s Rob Edwards. In terms of senior care, it feels like the environment is stable. It doesn’t really feel like it’s going back to where it was pre-COVID. Just the cost of labor is different, and of course, interest rates are different and the cost of goods, really it’s an operating business. We keep it in the CRE portfolio, but it’s got many operating business dynamics to it. But it feels like it’s stable. It’s not going back. We haven’t seen a ton of improvement. The improvement we see is kind of slow and steady, is the way I would think of it. So, we’ve got — in terms of loss content, we’ve got three properties in non-accrual right now. We’ve charged them down to the appropriate appraised value we believe.
There may be additional loss content in there or there may be recovery content in there and we continue to monitor those very closely and work to resolve them. So, I would just say, the environment is stable, where we have ceased originations in that portfolio and so it’s in wind-down mode and you see that on the slide.
David Bishop: Got it. Appreciate the color. And then, one follow-up question. You spoke about the opportunities, I think, Lynn, in terms of Wealth Management. Any other opportunities to augment some of the other fee income lines? I know some of your peers are seeing the ability to add some pretty seasoned mortgage producer when the mortgage market recovers here. Any opportunities along those lines to augment fee income this year? Thanks.
Lynn Harton: Great question.
Jefferson Harralson: We’re all looking at each other.
Lynn Harton: I think that Wealth is going to be the primary one. I think mortgage with where rates are, we’ve been mainly focusing on increasing the profitability there, not planning for an increase in revenue, but it’s really on the very bottom. So, if you get rates lower, you might see some. But our initiatives, maybe not — I was looking at Rich. And on the Wealth Management, it’s where we’re most excited about because of hiring a strong leader in that area. But I’m thinking about other areas, the gain of loans sold, I think should be relatively similar, but what do you think about the SBA?
Rich Bradshaw: Yeah. The SBA is a great product in an environment like this. And so, I think you saw the announcement. We came in 25th in the country in dollars out last year and we think that’s just going to get bigger this year. And as our hiring discussions continue, I will tell you, there is a really material one going on there, and that I’ve been also involved in, so we look forward to that. But we — as you are aware that we’ve continually added lines of business here since I’ve been here, since Lynn brought me on, and we’re just going to continue that, just going to be opportunistic. This is kind of an interesting year and we all wait to see what the Fed does and stuff, so I almost think that discussion is a little bit like M&A. I think there is probably a more realistic opportunity in 2025 if we’re looking at opening any new lines of business.
David Bishop: Great. Appreciate the color. Thank you.
Operator: Our next question comes from Christopher Marinac from Janney Montgomery Scott. Please go ahead with your question.
Christopher Marinac: Thanks. Good morning. I wanted to ask about the positive retention at the acquired banks last year. So, is that kind of where you wanted it to be? And then, how does it spill over into the deposit growth that you’re looking for this year? Will you see deposit growth from those new markets or is it going to be more from the core UCBI franchise?
Rich Bradshaw: Sure. I’ll start Christopher, this is Rich. Let’s start with progress. To start, we announced that and closed January 1st, and then when you don’t have your conversion until April, that’s always — it’s hard to get new money in the bank when you’re converting. So, since then, we lost some deposits at that point, but we’ve been building it up since and we do see that being positive for 2024. And then of course, the First National Bank of South Miami, whenever we do an acquisition, there is always some run down both in deposits and loans. Some of that is planned, some of it is not planned, but same thing, we expect that to be in good shape in 2024.
