The other ones are kind of $0.5 million, $1 million here and there. So, they add up over time, and that’s part of our business model is to continue to deploy capital in those very attractive segments. In our Wealth business, we — I would thought acquire practices every once in a while. So, every year, we’ll probably have an opportunity to do one or two of those. Again, they’re more like equity hires, if you will, somebody just moving on to our platform, and we paid them for a book of business. So, that’s kind of — in those three businesses. On the bank side, as we mentioned in the prior call, we remain very interested in pursuing acquisitions. We have a bit of a different lens today than we did four or five years ago. That doesn’t mean that we’re not really interested in bank transactions.
There has been a little bit more of a pickup in the way of discussions, I would call it. but we all know the hurdles, right, in terms of rates and marks and values. And so, a lot of things need to come together for those to happen, but we remain engaged on that side of the business as well.
Christopher O’Connell: Great. That’s helpful. And then, can you talk a little bit about what you’re seeing on the credit side, all the trends looks very solid this quarter in terms of NPAs and delinquencies. But you mentioned that the reserve — you brought up a little bit on the business lending and consumer and direct portfolios. Is there anything that you’re seeing there that’s different or where credit costs may pick up in those segments over time?
Dimitar Karaivanov: Yes. Good question, Chris. So, on the credit, look, our outlook has not really changed much. And we believe that with an unemployment rate of under 4% and a tremendous amount of government spending and nominal GDP growth of 5%. The outlook for credit is positive across the board. Having said that, if you just think about the distribution of probabilities, if you will, this quarter, the end of this quarter versus last quarter, if we were to remain in a bit of a higher for longer scenario, eventually, the higher cost of credit has to feed through and find its way into the real economy. So, we looked at our model, which actually suggested a little bit of a lower quantitative outcome compared to prior quarters.
And I don’t think that, that’s a big surprise. You’ve seen a lot of banks actually release reserves this quarter. We just didn’t think that it was appropriate for us given the outlook and — our loss coverage remains very, very strong. I mean we’ve got — if you take our 12 basis points of losses this quarter, we’ve got six years’ worth of losses in the ACL. So that remains very strong. We just felt that given the qualitative outlook for maybe higher for longer, maybe a little bit more pressure over time at some point in the portfolios. It will just put onto that a little bit.
Operator: Our next question comes from Matthew Breese with Stephens Inc. Please go ahead.
Matthew Breese: Joe, you had mentioned a little bit that you’re starting to see the increase in deposit costs starting to slow over time. And I was curious, if you look at the composition of deposits, if that is matching up with stability, particularly in the lower cost categories as well. And along those lines, if you had any sort of projections as to where we might see DDAs kind of settle out later this year?
Joseph Sutaris: Yes. I’m not sure, Matt, that I can give you precisely where the time deposit mix will be at the end of the year. I would say that the migration that we saw in Q1, the expectation is that would slow just a little bit throughout the year. We think that more — most of the rate-sensitive deposits, if you will, have found their way to generally to higher cost funds. I would have said the same thing last quarter. But the expectation is that, that migration will slow a bit, but probably will continue is maybe not at the same pace that it has, it has been kind of moving through. So, with that said, will there be additional increases in the overall cost potentially throughout the year. But we also think that the rate of increase on the deposit side will slow a bit.
The one thing that’s also worth noting, Matt, is that for us, in particular, we have seasonal inflows of municipal deposits, and that occurred in the first quarter. And so, there was some migration, if you will, from a consumer checking account into a municipal account for tax collection at a higher rate. And so, a little bit of our cost escalation on the deposit side was due to the rotation into those higher cost municipal accounts. So, some of that will slow a bit, if you will, as well. So that’s why kind of the expectation of not, I will call it the same rate of increase on deposit costs as we’ve kind of had the last couple of quarters.
Matthew Breese: Got it. Okay. And then the other part, I think this is from a prior call, but there’s not much in the way of securities kind of maturing or cash flow coming back to you this year. The yield is well below market rates. And I was curious if you in a degree of way of considered securities restructuring to kind of get that book up to market rates.
Dimitar Karaivanov: I think, Matt, so you’re right. Obviously, we as most of our folks have a securities portfolio that’s below market. And — there are pieces though of the securities portfolio that are much closer to market. And in this first quarter, we identified a decent amount of those securities and kind of the rates ran away from us in the second half of the quarter. But if there is a bit of a rate pullback — we have a not insignificant amount of potential liquidity in the portfolio that we could release at values pretty close to par. So, I think that’s how we’re looking at it. In terms of something similar to what we did last year. For us, it does come back to net present value of those cash flows. So last year, when we did our restructuring, I think the 10-year was below 4%.
