Brady Gailey: All right. And just lastly for me, the price of oil is still very strong. But the price of nat gas is depressed and we have seen a little bit of noise in that space. Maybe just talk about how you think — I know nat gas, I think it’s only about a-third of your energy. But do you expect to see some issues in nat gas over time?
Marc Maun: Not at this point we have like right now 93% of our gas-heavy borrowers are hedged in have over 50% of their PDP in 2023 and 76% of their PDP hedged at prices in 2024 exceeding $3.50. So they’re well positioned to receive a price well above what we’re seeing in the spot market plus today’s market you can hedge out all the way into 2025 at almost $4 an Mcf. So we continue to push hedging as a way to protect their portfolio as well as to improve our credit risk. And our customers have been responding. So we actually are in a really strong position that we expect our natural gas producers to perform well.
Brady Gailey: Okay. Great. Thanks for the color, guys.
Operator: [Operator Instructions] Our next question comes from Brandon King with Truist Securities. Please proceed with your question.
Brandon King: Hey, good morning, Thanks for taking my questions.
Stacy Kymes: Good morning.
Marty Grunst: Good morning, Brad.
Brandon King: Yes. So I wanted to touch on the outlook as far as loan growth. In the prior quarter, you detail that economic conditions were very strong and in this quarter now has kind of been downgraded to favorable. So I just want to know, if you could provide more context and details around that and what you’re seeing in your markets and with your customers?
Stacy Kymes: Yeah. I guess, maybe we didn’t communicate well but we certainly don’t see unfavorable economic conditions for loan growth. I mean, our footprint markets in the Southwest, Midwest are performing exceptionally well. I mean, there’s no signs of kind of economic slowdown or early signs of any economic issues. In fact, the long term and short term that footprint of Texas and Colorado Arizona clearly are high-growth markets infill from in-migration from other markets, I think is going to really benefit them long term. So, we’re very bullish. And in fact, we’ve signaled in our guidance upper single-digit loan growth for the year and we are very confident that we’ll be able to achieve that objective. I think our year-over-year growth is about 9%.
And we’re in a range to continue that pace. So we’re — we still see good pipelines. We still see good opportunities. And frankly, the opportunity we have in front of us is a little bit unique in that others are trying to manage capital ratios or other things like that so they’re maybe less aggressive in the marketplace. And so from a sales perspective, we’re endeavoring to be very active in front of customers and prospects to try to add to our customer and loan deposit and asset under management book. We want to grow all those areas at a time where we’ve got lots of capital and great liquidity and we’re in business. And we’re not having to kind of meter that growth we’ll take all that we can get in this environment.
Marc Maun: Yeah. The only thing I will add is the key here is that this has been a very broad-based growth. I mean we have had all our lines of business experiencing growth, not just concentrated in one particular sector or another. Our CRE, we are kind of at our upper end of our range of our concentration, but the construction loans have continued to fund up. So we’re seeing it in C&I. We’re seeing healthcare energy and CRE all experienced growth. So we expect that reflects a lot of the things that Stacy was talking about.
