Mike Fowler: Brett, good morning. This is Mike. Just a quick comment on the moving to market rates, which would drive change in loan yields, both existing and new. So, if you look at the Fed effective rate, the Fed funds rate Prime is sort of — continues to be 300 basis points over that and other short-term floating rates are also very closely linked to that. We saw in the first quarter, 104 basis point increase versus the fourth quarter in terms of the average Fed effective rate. If you recall, into late last year, the Fed was hiking rates very aggressively. 10 consecutive meetings. I think it was three meetings in a row, they hiked 75 basis points. Early this year, they intentionally slowed the rate of growth. And so to a point that Chris made a second ago, the rate of market rate increases on the short end, slowed considerably in Q2 from 104 basis points Q1 versus Q4, down to 30 basis points second quarter of this year versus first quarter.
And then that would have translated into less of a pickup on the loan yield.
Brett Rabatin: Okay. That’s helpful. And then, I wanted to go back to the expense reduction and just maybe talk about, Tim, if you could, the areas that you’re getting more efficient in some of that mortgage lines of business, where you’ve been able to reduce your expense base?
Tim Schools: I mean really — I’ll just comment first. It’s really the way we did it is, my reports, we labeled the Executive Committee, their reports, we labeled the Leadership Council. And really, Mike Fowler and Lynn Rhodes met with every member of the Leadership Council and just said, “Hey, here’s what’s going on out there on revenue, and we’re not hitting our budget on revenue, and we’d like to offset a little bit on expenses.” And so everybody brought something to the table. So, I probably should have been better prepared to have that list in front of me, but there’s an aspect of people where whether they’re producers or their back-office people, if volumes are down or people aren’t producing, you haven’t really done layoffs, but not replacing through attrition.
And then there was a lot of vendor stuff where there’s dual vendors or there’s things we don’t need. So I don’t have a specific talk in front of me, but there was a broad array. One thing we did do that had not been in place as a small company is CapStar did not have a branch staffing model. And so, if you think about Whole Foods, Starbucks, McDonald’s, any retail environment, every larger bank I’ve been in, there’s a branch staffing model. Everybody is slightly different based on how many tellers you need or personal bankers or branch managers. We rolled that out this quarter, and I believe through attrition that, that was 12 to 15 individuals, again, not layoffs, but just through normal attrition and reallocating people.
Brett Rabatin: Okay. And then just last quick one. I would assume that loan growth is more like a mid-single-digit kind of number going forward, just depending on what you have in the pipeline.
Tim Schools: Yes. So I mean, again, in our market, if we wanted to grow — I bet you — first of all, there’s a large reduction in demand for loans at the moment. And I’ve visited a lot of customers in the past. I mean — but they’re out there. I just visited a customer the other day that’s buying a piece of property and already an existing customer has I think $12 million with us and wants to borrow $2 million more. So I mean it’s out there, but the demand is a lot lower. We’re in great markets. We’ve got great bankers. I would think today if we wanted to, we could probably grow 5% to 10% annualized with deals we lead, not buying former deals. Some of that would be CRE, which I don’t know is prudent. And I think until the liquidity scenario is clear, I hate to do that in the short term.
