Brad Milsaps: Okay. Great. And then final bigger picture question. You guys do a lot of construction. Some of these projects are coming to an end. Can you talk about the environment for other folks providing permanent financing? Are you guys doing that? In some cases, I know you’re pretty capped out on CRE. But just curious kind of what the environment is out there for some of these construction projects, finding a new home once they are completed?
Malcolm Holland: Yes. I mean there’s still commerce going on, especially in our specific markets. You read the paper every day about a new industrial – I read one this morning, a huge industrial deal, which is sold because Nike became the tenant there. And so people are still selling industrial. The cap rates certainly have increased a bit, but there is absolute commerce going on. I think in the fourth quarter, we sold – or paid off about $400 million. Half of that was about – it was a CRE projects. Just we do see that slowing down. But in terms of us doing more term, we haven’t really seen the requests come in. A lot of this stuff is coming out of the REITs and the bigger fund type people that are buying this stuff because they’re quality assets, mainly multi and industrial. But we haven’t seen it slow down, but we are certainly anticipating it slowing down.
Terry Earley: And the agency CMBS is a much more viable outlook than it has been. You can get 10-year fixed rate in the 70 – 575 range. Also, I mean, the big payoff yesterday in Craig Davis’ portfolio in Fort Worth, about $25 million. I mean just – I just saw it this morning. But they’re going to slow, but there’s viable ways and then there is a lot of commerce going on.
Malcolm Holland: Yes.
Brad Milsaps: Okay, great. Thank you, guys.
Malcolm Holland: Thanks, Brad.
Terry Earley: Thanks, Brad.
Operator: Thank you. One moment for questions. Our next question comes from Matt Olney with Stephens. You may proceed.
Matt Olney: Hey, thanks. Good morning, guys.
Malcolm Holland: Hey, Matt.
Terry Earley: Hey, Matt.
Matt Olney: I want to go back to the credit discussion. And I think Clay referenced a note financing as one of the primary sources of the downgrades in the fourth quarter. Just remind me exactly what is your financing in these types of loans? And what was the size of the specific credit that was downgraded in the fourth quarter?
Terry Earley: So thanks, Matt. It’s very, very granular exposure financing, this particular borrowers financing, small fix and flip, single-family residences. So that is – give you some color on the actual – what we’re talking about there. The overall note finance portfolio is made up of a broad categories, you know, touching various product types, but this particular borrower is very granular exposure in the single-family space. And then the size of that was the total commitments on a $100 million facility.
Matt Olney: And if I remember correctly, this is something you guys have been doing for several years?
Terry Earley: Yes. Yes. We have the experience and broad experience in that space.
Matt Olney: Okay. And so I guess something to think about the risk here of those types of loans. Is it more – it sounds like it’s more residential, single-family in the metro, Texas markets?
Terry Earley: Yes. I mean, yes, the risk is that you know, slow in that space, which…
