So – so I think that the advantageous probably for another 25 basis point increase for us in our margin. On the other side of it, as rates go down, so we have – we have a number of the adjustable rate loans, those are the loans that re-price over, they don’t re-price instantaneously. They re-price anywhere from 30 days up to up to five years and there’s a number of those loans that haven’t re-priced through this cycle yet. And so under a kind of a flat rate, flat balance sheet cycle, we would expect that our loan yields would increase about 8 basis points per quarter and I think the initial any initial decline in our – the fed funds, I think what’ll initially happen is those variable rate loans at 30% bucket will re-price down, but I think you’re gonna see some continued re-pricing of those adjustable rate loans and then I think you’re also gonna see, fixed rate loans that are at a much lower yield as they mature and refinance.
I think you’re gonna see those come at a higher yields too. So – so I think initially there’s gonna be a little bit of protection on the downside from a loan yield standpoint.
Andrew Liesch: Got it. Yeah. That was kind of leading in my next question. Do you have the percentage of loans that have yet to benefit and re-price higher from the late – from the fed rate hikes over the last year plus?
Mark Grescovich: So just on the adjustable rate loan side, I don’t know the complete make up the fixed rate loans, but I would say about $2 billion of adjustable rate loans haven’t repriced since the beginning of 2022.
Andrew Liesch: Got it. Great. That that’s really helpful. Thanks for taking the questions. I’ll step back here.
Mark Grescovich: Thank you, Andrew.
Operator: Thank you. Our next question comes from the line of Kelly Motta of KBW. Your line is now open, please go ahead.
Kelly Motta: Hi, good morning. Thanks for – for the question.
Mark Grescovich: Good morning, Kelly.
Kelly Motta: Maybe – maybe keeping along the lines of margin and what – what happens with rate cuts just thinking about the other side of the balance sheet with deposits, there’s a lot of banks out there that still are to need a lot more liquidity than – than you do at this point. So when we do get these rate cuts, how do you expect deposit pricing to – to react, would you expect some – some stickiness and – and kind of a slower beta on the way down given kind of how other banks are positioned?
Rob Butterfield: Yeah, Kelly. It’s Rob again. And, yeah, I think – I think that’s accurate. I think, over the cycle, I think we’re gonna see whatever deposit beta we see on the – on the upside here we think we’ll see that deposit beta on the – on the downside as well over the long term, but – but initially, I think there could be a little bit of a lag there. I don’t think, similar to what we’re seeing on a rising rate of 25 basis points or something like that. We’re not seeing much reaction from deposit pricing and I think it’ll be similar on the down. So the initial rate cuts of let’s say 25 basis points and as they start I think there’s gonna be a lag there, and you’re not gonna see a reaction just because of other banks are more challenged from liquidity out there right now. I mean, eventually, once you get to, let’s say a 100 basis points of combined decrease, I think you’ll start to see deposits come down, but there’s probably gonna be some lag there I agree.
