David Bishop: Hey, Jeff, maybe most of my questions have been asked and answered, but maybe a little color on the uptick in classified loans. I think it was up 35% on the dollar basis. Maybe what you’re seeing in terms of the underlying trends in credit quality?
Jeffrey Jackson: Yes. Yes. So, the uptick, and as you know, we’ve had over the last several years incredibly low C&C ratios. That uptick really relates to one C&I credit that really increased our percentage for first quarter. We do believe that should be worked out and restructured by the end of second quarter. So, we do believe that, that is a blip, but it’s really basically one C&I credit that we feel like should be resolved by the end of this quarter. I’d say overall though, when we look at the credit quality, we have one-offs here and there, but no systemic issues. We’re not seeing anything that’s changed over the last several quarters and feel very good about where our credit quality stands today.
David Bishop: Great. And then, maybe a follow-up, but somewhat to the margin, but you guys have been doing a good job expanding on the commercial side. The pipeline is up. Loan yields, as you mentioned, are high, 7% to 8%. In terms of reconciling that with the [ZIM] (ph) guidance, where should we think about loan yields and average earning asset yields trending over the near term? Thanks.
Daniel Weiss: Yes, loan yields, I would expect to continue where they’ve been for the most part absent rate cuts, which is generally speaking, has an eight handle on it. You can see in slide deck; we report weighted average loan yield of 7.96%. I’d just point out that, that is not tax equivalent. You’d have to add about 10 basis points onto that to get to a tax equivalent rate. So, yes, we would expect to continue to see upward momentum on average earning assets, or I’m sorry weighted average yields on earning asset mainly due to that continued improvement. And as I said earlier, to answer Russell’s question, we do have a number of fixed rate, maturities, adjustable rate, et cetera, and we’re continuing, as I said, to use cash flows from the securities portfolio to reinvest into that 8%, there’s 8% loan. So, we’d certainly expect those yields on earning assets to continue to increase.
David Bishop: Appreciate the color.
Operator: And our last questioner will be Daniel Cardenas with Janney Montgomery Scott. Please go ahead.
Daniel Cardenas: Good morning, guys.
Jeffrey Jackson: Hey, good morning.
Daniel Cardenas: Yes, most of my questions have been answered, but just quickly on the multi-card contributions, I mean, it sounds like you are expecting to see some positive contributions in the back-half of ’24. When do you think the multi-card will be a more significant contributor to the fee-based income? Is that kind of a second-half of ’25 or ’26 event?
Jeffrey Jackson: I would — so right now, we just launched it. And, we have about six multi-cards that we just closed. We’ve got about 18 in the pipeline. And then, we have also got about nine integrated payables opportunities right now that we are working on. So, I believe you’ll start seeing some good contribution toward the end of this year. But, I think 2025 is where you really see some nice pick-up contribution from all of our new treasury opportunities that we are working on.
Daniel Cardenas: Okay, great. And then, can you remind me how big is your — in terms of personnel is your treasury management function right now? And what are you expectations for additions to that team?
Jeffrey Jackson: I think that the treasury management team I am going to say is probably just — this is just sales people and management, I think it’s around 12 to 15 people. But, no, we are looking for significant contributions from that team this year and then going forward in the future. Not really detailing specific numbers. But, no, we believe it’s going to be very significant not really from a fee-based generation but also deposit gathering opportunity as well. But that’s one of our key priorities this year that we feel like we started off really strong so far. And, I feel like by the end of the year, it will be a significant portion of our fee business.
Daniel Cardenas: Okay, great. Thanks, guys. I’ll step back.
Jeffrey Jackson: Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Jackson for any closing remarks.
Jeffrey Jackson: Thank you for joining us today. During the past quarter, we achieved solid loan, deposit and fee income growth while managing cost and maintaining strong capital levels and credit quality. With this solid start to the year and the continued strength of our teams, markets, and strategies, we are well-positioned to continue delivering value for our shareholders. We look forward to speaking with you in the near future at one of our upcoming investor events. And, have a great day. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
