Terry Earley: I think that’s something we think about in the back half of 2023, when the recession outlook is clear, credit is – the situation is clear and capital has built close to this 10% – if it’s a 10% CET1 or better. And credit – the recession looks mild and credit looks fine, it’s something we’ll think about. But I mean it’s not that we don’t like the valuation. I just don’t think now is the time to be right now, especially in the first half of the year. It’s just not the time to be looking at it. I just wouldn’t rule it out for the back half. But right now, we have no plans in the back half. It’s just something that we could get to if everything goes as planned.
Michael Rose: Understood. Appreciate all the color, guys. Thanks.
Terry Earley: Thanks, Michael.
Operator: Thank you. One moment for questions. Our next question comes from Brad Milsaps with Piper Sandler. You may proceed.
Brad Milsaps: Hey. Good morning, guys.
Malcolm Holland: Good morning, Brad.
Brad Milsaps: You’ve addressed most everything, just a couple of maybe housekeeping questions. Terry, and so apologies if I missed it, but what was the spot rate for the loan portfolio at the end of the year?
Terry Earley: Gosh, I didn’t bring that number with me.
Brad Milsaps: No, we can follow up later.
Terry Earley: I may have it before the end of the call, and I do want to just say it. But…
Brad Milsaps: And then – okay. And then just curious, you mentioned the increase in expenses was somewhat tied to the big quarter you had at NIC. Just kind of curious, is that – trying to think about those numbers going forward? Is that kind of a 40% or 50% payout on that revenue? Is that how to think about it? Or is it – just wanted to see how much of it is actually tied to the good USDA performance?
Terry Earley: No, no, it’s not nearly that much. It’s in the low double digits, but it meaningfully moved the variable comp. And that’s just the – given the go-sell premiums and dollars in that space right now, that’s just a market if you want to attract the really good producers and we have some.
Brad Milsaps: Got it…
Terry Earley: And then Brad, the 12/31 end of year loan rate is 6.36.
Brad Milsaps: And that’s a loans held for investment?
Terry Earley: Yes.
Brad Milsaps: Okay. And then would this maybe say – I’ve noticed the securities yield was up quite a bit as well. Any kind of one-timers in there? Is that just you lower yielding start rolling off and just general improvement?
Terry Earley: I’m sorry. I can’t…
Malcolm Holland: One more time, Brad, you broke up just a slid.
Brad Milsaps: Yes, I apologize. The securities portfolio yield was also up quite a bit. Just kind of curious if there’s anything in there that would be onetime in nature or if that’s just…
Malcolm Holland: Okay. That’s it. And also that rate I gave you does not include mortgage warehouse. So…
Brad Milsaps: Okay…
Malcolm Holland: They’re not materially different, to be honest with you. They are definitely in the 6s, but that rate just excluded them.
