Dennis Shaffer: Yes. I’m looking at — maybe I’m looking at the wrong number. It’s 1.2% — 1.2%, highlighted growth numbers.
Tim Switzer: That’s great. Thank you, guys. That’s all from me.
Dennis Shaffer: Thanks, Tim.
Operator: Our next question will come from Manuel Navas with D.A. Davidson. You may now go ahead.
Manuel Navas: Hey, good afternoon. With your NIM outlook, just to clarify, do you think that it kind of trough in the fourth quarter? Can you kind of just add a little color there?
Richard Dutton: This is Rich, Manuel. And yes, I guess it depends on what the Fed does, but I think kind of like what Denis said. I think in terms of big chunks of funding, the moves that we made in the first quarter are in place and will stay in place. And if you look at our deposit funding, even though we feel like we were aggressive in the first and second quarters, the non-brokered cost of our deposits only went up 10 basis points this quarter. And, if we assume similar moves from the Fed in the second or the third and fourth quarters, I mean, those would be the kind of move that you might see on the deposit side. And again, our loan betas have been pretty consistent over the cycle, so that has been 9 basis points of expansion, or about 9 — 30 basis points of expansion in each of those quarters.
So barring anything crazily happening, and crazy things happen. But barring anything crazily happening, I would say that, that’s a fair statement, but probably a trough toward the end of the year.
Manuel Navas: All right. It’s interesting you talked about loan yields. I was kind of wondering, they didn’t move that much this past quarter. I would have thought that — it seems like maybe more of the production was end of quarter. We’re thinking of keeping on leases, those are usually higher yielding. I just kind of was wondering why loan yield didn’t rise even more?
Charles Parcher: I think, I have a couple of factors on that, Manuel. The first one was we had a couple of large payoffs in the month of May, end of April, early May. So those balances actually went down a little bit. So a lot of the production did come in the back half of the quarter, especially in mid-to-late June. I think, the other thing that caused it not to expand quite as much. We talked about a little bit earlier, but our mortgage — on the mortgage lending side, we did a little bit more on balance sheet versus salable product. And obviously, mortgage lending rates are — to the consumer are a little bit lower than the commercial rate. So we had some growth in that area that may come down a little bit. But all in all, we’re happy for where we’re going, our trend line and our production piece of it continues to up flow, and we feel like those rates will continue to rise, looking into the quarter.
Yes, I don’t have a great crystal ball as far as what those will go to, but we seem to be pension them up on a production piece probably 10 to 15 basis points a month lately as far as new originations.
Dennis Shaffer: Well, I think Chuck hit it right on the head. The payoffs early in the quarter and then the portfolio residential loans, those yields are not as high, and that mix is where portfolio a little bit more right now because people are buying the ARM products as opposed to the fixed rate products, and those ARM residential rates are a little bit lower.
Charles Parcher: And I don’t even think the payoffs were not — were negative. The payoffs were both positive. We have one of our really good customers sold his business for a nice piece of change. And then, we also had a large industrial building that went to the CNBC market.
Manuel Navas: What are you like in your new commercial yields?
