Manuel Navas : Okay. So staying as previously expected. I appreciate it. Thank you.
Jim Reske : Yeah, you bet.
Operator: Next question comes from the line of Frank Schiraldi with Piper Sandler. Your line is open.
Frank Schiraldi : Good afternoon. Just in terms of — you guys talked obviously about the tapering the CD rates here. And it seems like your commentary was also that you’re not high, you’re not at the high end of the market, but you’re still competitive. And just kind of curious what you’re seeing so far. Is the idea that given the kind of loan growth expectations you laid out that you can be competitive enough on the deposit side to kind of grow the deposits in line with that and hold the loan-to-deposit ratio kind of flattish through the year? What’s the thinking there?
Mike Price : Yeah, I think that’s right, is — and we watch that daily, daily every day in terms of what the flows in and out are. And it does impact how we think about consumer lending to start with, and whether we continue to meter it or not. But the replacement yields in some of the portfolios like indirect auto — it’s not where we started a year ago, and the team has done a great job getting our rates up there. Jane, do you want to — any commentary you want to provide in terms of the sparkling water of liquidity, how it might help us grow loans.
Jane Grebenc : No, Mike. I think Frank, it sounds so simple when you say it, Frank, but that’s exactly what we’re trying to do.
Frank Schiraldi : And in terms of — just curious like the pressure now in the existing portfolio is has that obviously, in terms of deposit costs moving higher, is it just mostly money at this point? Has the existing stuff sort of stabilize to agree?
Mike Price : Jane, I have some thoughts, but why don’t you lead us off?
Jane Grebenc : Sure. We see — we still see new money coming in. On any given special we see about 50% new money and 50% of our existing book potentially repricing. And we’ve been pretty gracious about that because we’d rather keep the deposits. And — but we are seeing the rate of repricing slowing down. Six months ago, it was bad. Nine months ago, it felt horrible. Today, it feels like it’s starting to normalize and pricing is really slowing down.
Mike Price : Is that helpful, Frank?
Frank Schiraldi : Yeah, yeah. And then just lastly, yeah, just thinking about reserve to loan levels, I mean, it seems like some of the smaller banks are trying to build reserves a bit here, just given where some of the bigger banks are on reserve coverage of the total book. And for you guys, just kind of curious how you think about that? I mean just given that commercial is going to be the driver here, what is that alone kind of say about the reserve to loan ratio? Should we at the end of the day, I just expect continued increase — modest increase in that quarter-over-quarter as you grow the commercial book?
Mike Price : Yeah. I mean we obviously fund reserves when we have growth, and that’s a key part and a component of building the reserve, and that’s what’s built it in the past. And Brian, what would you add to that?
Brian Karrip : Just that we have about $3.3 million in specific reserves from the acquisition. We have about $2.9 million in PCD reserves, so we did grow from 131 to 132 in our reserve ratio. But we’ve got adequate reserves to support our business and potentially to support some growth.
Jim Reske : Can I just add? I think our approach is very thorough to bottoms up approach. In other words, there’s just some thinking about — I want to be clear that the way you asked the question. It sounds like we say, well, let’s do this on the ratio and then find a way to solve for that ratio even though I have a [Indiscernible] bankers, like you mentioned, small banks talking about that and thinking that way. But ours is very far from the bottom up. So if we say, hey, — the economic conditions are changing that our quantitative reserve would be changed to reflect that if we see GDP or employment factors changing. And then some of the qualitative factors we look at changes in underwriting standards or staff, all the factors we look at, I think we made some changes this quarter as well as loan growth.
Yeah, right, as well as loan growth. So then we do all that work and they say, it turns out that given the way the portfolio grew, we didn’t grow that much, and so the ratio is 1.32, rather than saying, let’s find a way to get it to 1.32. So anyway, I don’t know that helps or not, but that’s kind of way we think about it.
Frank Schiraldi : Yeah. No, I guess I’m just thinking through like as you build what the reserves are in the commercial book, I guess, versus the reserves of consumer book as a percentage of total loans. I don’t know if you have that handing.
Brian Karrip : I don’t, but I could — we could get it back to you.
Mike Price : We’ve had our reserve higher than our peers generally, and that’s with a pretty good mix between probably heavier consumer and commercial. And almost 50-50. And really, that could switch to more of a 60%, 60%-plus commercial just because that’s where the spread is and that’s where the customer relationships, the more robust cross-sell and the fulsome depository is.
