And trust me, when Derek doesn’t just sign when he sees that he has a discussion about that. So that will slow any strategic adds that we might have had. And then we look at the areas that we think are going to thrive going into the end of the year and into next year, and we will continue to add quality people in those places. But net-net, we won’t necessarily replace every role that comes in. We won’t add some of them that were planned. We’ve reduced lines of business. And then frankly, we’ll set up a much more thorough process in the next two to three weeks to start to look across our company heading into 2024 as to what we should look like then.Jon Arfstrom Okay. Fair enough. Well, Derek seemed like a nice guy at our conference in March.
But I didn’t ask him to buy me anything, so I’ll try the next time.Andrew Harmening He’s the nice guy. He should be at that conference.Jon Arfstrom All right. Thanks for everything.Andrew Harmening Thank you.Operator And our next question comes from the line of Chris McGratty with KBW. Please proceed with your question.Andrew Leischner Hey. This is Andrew Leischner on for Chris McGratty. How’s it going?Andrew Harmening Good, Andrew.Andrew Leischner So looks like the quarterly provision has been a little under $20 million in the last three quarters. Is that a good runway going forward? Do you expect that to ramp up given the macro uncertainty? And also if you can provide any insight on where you expect to see reserve levels go? That’d be great.
Thanks.Andrew Harmening Pat?Patrick Ahern I would say, we’ll probably – I could see provision increasing from here. We’ve come off such a small level, but it’s hard to say what that’s going to be. We’re going to continue to monitor loan growth where the markets are going from a macro level, but then more importantly, our individual credits in the portfolio. We’ve just gone through a complete deep-dive across the full commercial bank, including C&I and CRE, and we really did not find any significant movements in risk rating changes were there were no surprises that came out of stuff and we’ll continue to do that on a quarterly basis. That being said, if we see continued pressure on probability or recession later in the year going into 2024, we’ll monitor that and make appropriate adjustments.Andrew Harmening Andrew, I think it’s also important to remember that when you decrease your growth with the CECL methodology, you don’t have as immediate of impact on your level.
We’ve taken qualitative downturn factors and increased those in our model. And then – so that’s already been occurring. And then finally, we do believe that the market will slowly have some level of deterioration at some point, but we are not anticipating wild swings with the nature of our portfolio. And remember, we’re in the upper Midwest. And what that means is that the real estate isn’t quite as volatile and that’s sometimes an area where you see volatility. So we’re not immune to macroeconomic impacts, but we think it would be more of a slow build as we go throughout the year.Andrew Leischner All right. Great. Thanks. That was really helpful. And so with your loan deposit ratio at, I think it was 96% at quarter end, and I know deposit trends look positive, but can you provide where you’re comfortable with that loan deposit ratio going?Andrew Harmening Well, do you want to answer this one – this one Derek likes, or I’ll take it because I like it too.Derek Meyer I don’t want to get in your way.
Clean up anything you missed.Andrew Harmening Okay, fair enough. Look, we’re pretty comfortable staying around that 95% area. As loan demand and growth decreases, our goal is to try to fund that with our deposit growth. In the instances we’re not afraid to flex on the wholesale, but we have multiple initiatives. I mean, when we think about the digital sales platform, when we think about our mass affluent, when we think now we’re the 13th largest HSA business in the country, and we are forecasting double-digit growth there when we think that we have more RMs, and if they are not lending as sure as heck should be talking about primary relationships, and we have double-digit increases in our treasury management sales.So we have a lot of reasons to believe that we can outpace the market when it comes to deposit growth.
We just have to execute. First quarter was a noisy market for our industry, but we still believe that we’re in a position to grow our deposits. We would like to stay in that 95% range. Our initiatives will continue to have a focus on holistic relationship and deposits. We started a new branding campaign and we’ve already gotten early results. And I guess the other thing that gives me some optimism is that our primary customers for consumer and businesses, even with the noise in the first quarter, they still had positive growth, they had marginal positive growth, but we’re just getting started in many of these consumer initiatives. So you asked a simple question, I gave you a complicated answer because it’s not simple, but the short answer would’ve been, I’m comfortable at the 95% range.
