Tim Switzer: Okay, is that like, kind of, a good run rate going forward or should it move back down once prepayments moderate?
Rich Dutton: I would use that until we tell you different. How about that? So if you’re wrong, you will only be wrong for a quarter.
Tim Switzer: Sounds good. And could you guys talk about your expectations for the NIM going forward? You know, I’d expect a little bit of, you know, moderation on the compression still next quarter or two, but like when do you think you could really trough here?
Rich Dutton: Well, I think one thing I’d like to say and to kind of set the table is that I think as we’ve increased our funding, a little more reliance, not reliance, but we’ve not reduced the deposits that we have. I mean, they’ve only down like 1%. But we’ve got more overnight borrowing and we’ve got more brokered — short-term brokered CDs. Our balance sheet has gotten more neutral than it was. We used to talk about being asset sensitive. It’s really pretty well balanced. When we ran our model at the end of Q3 and looked at rates up, it’s really flat, you know, from the first, at least, 100 basis points movement. I’d be surprised if you think rates are going to go up more than 100 basis points. And rates down, for each quarter point down, our model shows our MIM compressing at something less than 5 basis points for every quarter point move.
So again, are we at the trough? I guess the model says we are. I guess the other thing I would say is if our margin for the quarter was $3.88 or $3.69, and our margin year-to-date was $3.88, I mean, that would indicate that maybe there’s still some room for it to kind of compress a little bit, but not nothing like we’ve experienced I don’t believe in the first or the last two quarters.
Dennis Shaffer: Yes, we may we may see similar impact in the fourth quarter just because of that reliance on the brokered and stuff. But we really don’t, you know, as we get through that we think it’s [Indiscernible] I’m not surprised, you know, as I talk to other banks, we haven’t given up all the margin. If you look back at the end of ‘21, our margin was $3.47, so I think we haven’t given all that margin back up. So we make, you know, I think we were — we — our deposit beta didn’t move as quick the first two quarters as it did the last quarter. I’m sorry, the fourth quarter of ‘22 and the first quarter of ‘23, our deposit beta didn’t move like other banks did. It did then start moving much more rapidly in the second and third quarter. And we’ll probably have further compression here into the fourth quarter.
Tim Switzer: Okay, okay. So at least another quarter or two of compression, and possibly you can stabilize. Okay, yes that makes sense. The last question I had was, you guys stepped back in, started doing repurchases again. You made the comment that you liked the value of your stock here. Any insight you can give us on if you’ll continue to do that and use the rest of your authorization over the rest of the year and into 2024?
Dennis Shaffer: Well, I think as I mentioned in the comments, we just recognize that that tangible common equity ratio, it just screens low. And the leverage ratio is lower this quarter than it was the previous quarter. So I think it makes repurchasing your stock a little bit tougher. But we’ll continue to be mindful of that and kind of balance the repurchases and the payment of dividends with building capital and support growth. We, you know, I don’t anticipate repurchase activity to really, you know…
Rich Dutton: Out of the levels it has been for the last couple of years.
Dennis Shaffer: Yes, so I think it would be tough to prove that authorization.
