Tani Girton: Yes, I can help you with that. So short answer, I believe we’ve — we have hit the trough, but if not soon and a lot of that is just dependent on as we continue to go out try to bring in more deposits, which we would like to do to pay down some more of those Federal Home Loan Bank borrowings, at what rate those end up coming in at. But if you think about it, we sold about $83 million in securities, that gave us proceeds of about $80 million. We’re going to keep that on the balance sheet and we’ll get a NIM pickup on that piece of about — or interest rate pickup of about 150 basis points. Then when we did the $102 million in swaps, in the base case, no rate change scenario. And assuming a Fed funds rate increase just one in next — this week, we probably — we’ll probably pick up 70 basis points there and also the 150 basis points that I gave you on the securities, that also assumes a 25 basis point increase in the Fed this week.
So let’s see. The other thing is on deposits, if you look at where we were July 18, we got another 20 basis points in cost. So cost of deposits was up to 89 basis points. That’s — that’s the wild card where that one’s going. But then you’ve got borrowings coming down by $175 million and those had yielded about 5.18% during the quarter. But offsetting that, you have $200 million remaining in federal home loan bank borrowings. And that’s because we’re retaining the $80 million on the balance sheet. That portion would go up 25 basis points. So you put it all together, I think assuming no growth to the balance sheet, and again, not taking into account where deposits are going to go beyond where they went as of July 18, I’d say we’d be looking at roughly 10 basis points of pickup in margin.
David Feaster: Okay. And so when you say you think the margin has troughed, is that relative to the full second quarter or maybe the June figure?
Tani Girton: I would — that — I was thinking about the second quarter.
David Feaster: Okay. So you think margin starts expanding here in the third quarter?
Tani Girton: Yep, that’s what I’m thinking.
David Feaster: Okay.
Tani Girton: With all those assumptions and caveats I gave you.
David Feaster: Yeah, of course, of course. And then Tim, back to your point on the growth side, I mean, it’s encouraging to hear about the opportunities, understand some delays. I’m just curious, things getting pushed back, I’m just curious maybe if you could talk about what you’re hearing from clients? What’s the pulse of your market? How much this slowdown is truly like demand versus your appetite for growth. It sounds like you still have a pretty big appetite for growth. Where are you still seeing good risk-adjusted returns? And then just kind of where these new hires are coming from? Is it infill? Is it market expansion? Just any color on all that, I know it’s a broad category, but just curious what you’re seeing.
Tim Myers: Sure. So there’s no question that with rates where they are, and a lot of our client base being real estate investors, that the demand is muted. We actively are pushing on a C&I calling program to try to benefit that or grow that portion of the business and continue diversification and get more benefit from variable rate lending. But certainly that is — there’s no question demand is muted. For the opportunities that are coming where to refi, that’s where we’re parsing through as a rollover risk, are we sacrificing some of our credit standards, meaning if there’s a third of that tenant list is going to roll over the next year or two and they want a five or seven year loan, those conversations are a little more protracted because we’re just not going to stretch right now.
