Jason Estes: I would say it’s probably overinflated of our historical range and where we strive to keep it. But I think it’s warranted based on what’s transpired in the last couple of quarters.
Brady Gailey: Okay, great. I appreciate the color. Thank you.
Operator: Next question comes from Matt Olney of Stephens.
Matt Olney: Thanks, guys.
Thomas Travis: Good morning.
Matt Olney: Do you guys have the dollar amount of the charge off for the fourth quarter? I didn’t see that one.
Kelly Harris: This is Kelly. The other total NCO for the quarter was $16.5 million.
Matt Olney: Okay, perfect. Thank you, Kelly. And then on the deposit side, on really strong noninterest-bearing deposits in the fourth quarter, any color on the growth there? And then you hit on the betas earlier, but just the appetite to grow deposit balances for the year?
Kelly Harris: Well, the non-interest bearing will come down a little bit in the early part of the year. We have a few large, significant non-interest bearing deposits that occurred later in the last year, and we expect some of that to run off. And so we don’t we don’t believe that the bearing deposits are going to show much absolute growth from the prior year because of that inflated number that came in late in the late last year. So now relative to you know, if you take those few deposits out, we would expect to do what we’ve always done. And that is a nice, steady growth in our deposit book and our relationship deposits. Our bankers are doing a really nice job of of making loans when we have new deposit relationships. And so we don’t expect there to be much, much different if at all in the way we operate going forward, I think it’s probably fair to say we’re still seeing some migration where people are moving, what were non-interest-bearing accounts over into some interest bearing products.
And that’s been ongoing ever since the rate this last rate cycle moving up started.
Matt Olney: Okay. That makes sense. And then just as far as the rate sensitivity. You give us some good details there. On slide 4, it looks like about 78% of your on the earning assets reprice in that 1st year. Just within the loans and that’s it. It seems like most of those that were priced at first, you’re going to be floaters that reprice in the first few weeks after a Fed cut is that right? Or any color on kind of what percent of those loans are floaters?
Kelly Harris: Yes. I think if you look at the first footnote on that same page, Matt, of that million 43 in loans and that less than a year $901 million are daily floaters. And of that, you’ve got $86 million at the ceiling.
Thomas Travis: So roughly what 90% of that total that was you said that make this$1 billion in loans are floaters. Yes. And look, I think we always have to remember not saying that people don’t, but we are very active in managing our floors. And so that’s part and parcel to the stability in the NIMA., the historical illustration that we show you in our ability to maintain that now. So yes, they’ll float down, but at some point, we start hitting floors. And that’s a big component of our of our bank.
Matt Olney: Yes. Okay. Good points on. And then on expenses and fees, any any color on the way you’re thinking about that in 2024?
Thomas Travis: If we just remove the oil and gas assets that you mentioned before. We’re proud of that. We if you look at the expense load for the bank and you take out the oil and gas impact and am I right, Kelly, it was 33% efficiency ratio. And if you look at the expenses due to the size of the bank, and we feel really good about our ability to manage our expenses. And I think that’s been proven over the over the years and nothing is going to change. We are spending a little bit of money to upgrade and relocate a few fixed assets, but that really won’t show up until very late in the year and probably really not until next year because it just takes a while to construct a few branches. So but even with that, we don’t expect the expense load of the bank to change in a meaningful way.
Brady Gailey: Okay, guys, thanks for your help.
Operator: Yes, this concludes our question and answer session. I would like to turn the conference back. I’m going to Tom Travis for any closing remarks.
Thomas Travis: Thank you. Again, we’re pleased with our position of our company and our results. And we’re especially pleased to move past that one-off event and it’s in the rearview mirror, and we’ve shown the ability to to manage through that and still produce good results. And we’re really excited about this year and excited to just get right back on track to those really, truly strong strong numbers. And Doug, we appreciate everyone’s participation and involvement.
Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.
