Derek Shelnutt: Yes. As I said earlier, I said the rural part of the footprint we had is a great deposit gathering franchise that we have. So I would agree with that. There are two things to also make sure we do — are running everything on a staffing model. So as we have the transaction and those volumes that are out there, those levels will adjust either up or down based on the volume that we have. In addition to that, I think it’s a good way to think it on the deposit gathering, because we introduced a retail, which would include all of our universal bankers that Heath was talking about in our banking center managers. We’ve introduced an incentive plan for the first time this year, and it is very, very heavily driven on deposit gathering.
And in addition to that referral to these other ancillary lines. And so, yes, so that investment is really for that group is about getting additional deposits and also, they can help us from an insurance and also merchant and drive these others to profitability. So I think that is the right way to think about it.
Feddie Strickland: Got it. Thanks. That’s helpful. And then just sticking with deposits, you have municipal deposits in some of these smaller cities, long time relationships. Are these municipalities asking for rate increases? And have you seen any significant change there in the past 10 months or so?
Derek Shelnutt: We do obviously have municipal relationships in our footprint. It does not represent a large portion of our deposits. I mean, just give you an idea at the end of Q2, it was $290 million at the end Q4, $320-ish million and so ours don’t fluctuate as much as some other banks do. We do think we have an opportunity to call on more municipalities in this environment. And we’ve not seen a lot of pressure from them, because I think really more of the concern a lot of those that we have are operating type accounts. We have not really been active in going out and bidding home municipal deposits and that is one area with the improvement in the product set and our treasury staffing that we think we have an opportunity to go and really add to what we’re doing on the muni side.
Feddie Strickland: Got it. Thanks for taking my questions. I’ll step back in the queue.
Operator: Thank you. We have a follow-up question from the line of David Bishop. David, your line is now open.
David Bishop: Yes. Heath, in terms of the improvement, the ROA, the decline in loan growth, is that implied that we’re going to see a little bit of diminution and maybe a pullback in the level of provisioning as gross flows, assuming credit holds in there in the economic outlook. Just maybe directionally how we should think about the provision if growth does slow in the back end?
Heath Fountain: Yes. So I definitely think the lower loan growth certainly plays into that. And again, as D mentioned, kind of, what we envision or like right now is that we may have a quarter or two of loan growth that is above that, lower than it has been these last few quarters, but above our long-term 8 % to 12% growth rate. However, if you take our growth rate and back it down after these first couple of quarters to a more normal rate, I still got us running to about an 80% loan-to-deposit ratio by the end of next year. That’s with a couple of more quarters that are higher and then backing down. And I think provision will go with it. I guess the only caveat to that would just be sort of the new CECL modeling that we’ll be doing going forward.
