Tim Myers: Yes. It’s hard because, as you said, the cost of loans paying off were probably a little bit higher. So the loans came on again. It’s a small sample, but I think it’s consistent with what we’re seeing is in the low 8s. 8.18%, I think, was the rate of the loans that came on in the quarter. So a material difference from a lot of our other fixed rate loans. So it just depends on the timing in the category, right, of the payoffs. But I think that is a clear trend. Just again, also whether it’s going to be fixed rate or variable rate, some of the fixed rate for attractive real estate lending out there is still awfully competitive. It may not seem to see the same delta rates coming on, Brazil is going up, but that’s where we were for the quarter, about 8.18%.
Andrew Terrell: Okay. Great.
Tani Girton: And I would just add we have on the — if you just look at the existing portfolio, assuming a static balance sheet, no change in rates, we’ve got 36 basis points of residual repricing in the loan book for the next 12 months.
Andrew Terrell: Yes. Okay. And that’s, I think, pretty consistent with kind of how we thought about loan repricing when we discussed it last quarter. Is that right?
Tim Myers: Yes. 17%, 18% a year is our run rate of loans repricing on the book.
Andrew Terrell: Okay. If I could ask one more just around the dividend. I mean clearly above 100% payout ratio this quarter. And I understand you guys have a lot of capital, a very healthy capital position. Just would love to hear kind of your thoughts, Tim, on comfortability around the dividend and where it’s at today and whether that’s a maybe holdup as you contemplate any incremental capital-return opportunities or securities restructuring.
Tim Myers: I think you just summarized what we’re asking. You answered your own question very well. The dividend is really important to us and we understand the importance of it to our investors. And so, yes, we have a lot of capital as we work through this compressed NIM rate environment. But as you said also, we’re looking at restructuring or other things we can do with our balance sheet to help provide more visibility and expanded margin where that wouldn’t be such an issue. That is all part of our ongoing discussions that we are currently involved in.
Andrew Terrell: Okay. I appreciate it. And then actually, Tani, just one more quickly. I think if I look back at 2023, the charitable contribution line steps up in the second quarter. Should we expect something similar in 2Q of ’24?
Tani Girton: Yes, yes. We’re very committed to those contributions and the timing is going to stay the same this year in the second quarter.
Andrew Terrell: Okay. That’s it for me. Thank you for taking the questions. I appreciate it.
Tim Myers: Thank you, Andrew.
Operator: The next question comes from the line of Woody Lay with KBW. Your line is now open.
Woody Lay: Hey, good morning, guys.
Tim Myers: Good morning, Woody.
Tani Girton: Hey, Woody.
Woody Lay: Wanted to start on noninterest-bearing deposits. I mean they saw a slight increase on the quarter, which was great to see. I mean, were there any seasonal impact to the noninterest-bearing bucket? And are you beginning to see that mix shift flow from here?
Tim Myers: I will — I’ll start and I’ll let Tani jump in. I don’t think we saw anything unusual. We did have an outflow from noninterest-bearing or even, in some cases, interest-bearing into alternate investment, higher yielding. That was about $27 million, but we brought in $97 million total across the various types. So we’re just going to have those fluctuations. We just — I know we’ve said it and have — happening in Q1 of last year compounded the concern, but we get some big fluctuations up and down in our noninterest-bearing commercial accounts. And we haven’t seen any trend that leads me to believe that anything has changed.
Tani Girton: Yes. I think we often have outflows in the first quarter and the efforts that our team have made to make sure that we bring in inflows to compensate for that is really good.
Woody Lay: All right. That’s good to hear. And then maybe turning over to the loan growth. I think in the release, you cited some new compensation plans where we’re helping the pipeline. But just any color you can give on sort of what those new compensation plans are?
Tim Myers: Yes. I would say the comp — there’s two components. So one is a more — around frequency of how we’re paying people, right? We’ve always been an annual shop. And so I think as generations change, expectations change. We — that’s one area where I think we can really try to drive behavior. People do what they get paid to do. And the other end would be to bring in some of the really quality producers would be have more upside built into the plan. So face value is not going to cost us anymore, unless they really hit a different level of production targets. And that was really — that’s all new. That was designed to — meaning newly applied. That was designed to help with the people we were bringing in. So that was more aimed at getting those people. The former will be aimed at behavior. So still new, but that face value don’t anticipate it costing us more money necessarily, unless again, they hit it out of the park, and then we’ll all be cheering that anyway.
