Mike Price : $46 million this past quarter or like $35 million actually and $46 million of new volume and at 7.69 and just — we like the granularity of that. We’ve even pinched that a little bit in terms of the type of equipment finance that we’re doing. And so — and we just have a terrific team that we did a lift out a few years ago and we’re just pretty bullish on the business in some of our commercial categories.
Manuel Navas: Just a shift — I appreciate that. Just a shift for my last question, can you talk a little bit about new deposit flows? And how much are coming from current customers bring in more money or from gaming households?
Jim Reske: Yeah. So that relationship is actually something we’ve been watching this year. It’s remained fairly stable. So when we get probably 100 of new money that we get in, from a deposit special about 50 is from our own book repricing upward. So that you out a CD special and now what you’re doing is a move from an existing savings account on this bearing into the new special CD special money market special. But the other 50% is new. And that other 50% that’s new about half is from our existing customer base. So it is bringing more money to us which is great. And then the last 25% is the real — the new money.
Mike Price: I think what’s helped us there is a year ago our cost of funds deposits at this time last year Jim was five basis points, right?
Jim Reske: Yeah. Right.
Mike Price: And we had all been driven off CD customers.
Jim Reske: Correct.
Mike Price: And so I just think now that we hang rates we have loyal customers, and we’re getting they have most of their household with us, but the hot money that might have been somewhere else at a different bank I think customers are aggregating it with us. How long that continues to play out the way it is currently playing out? Not sure but — and again a lot of that, is coming from our rural markets.
Manuel Navas: Okay. That’s great. And I do want to catch up on the buyback. How did that appetite change across the quarter? Kind of just from the 10-year rising to where it did and you want to have a little bit more capital and is that — does that leave you to think it could go up a little bit in terms of pace in the fourth quarter?
Jim Reske: Just actually — I just changed the cap on the price at which we’re buying back the stock. We were early in the quarter buying back at levels low $12.50. And towards the end this cap is at $12. So we have a buyback. And at any given day we’re trading under $12 a share. That slows it down a little bit, probably so we keep some dry powder, but also because we want to be in a position with our sub debt to be able to call it. You recall we have two tranches of sub debt at the bank level $50 million each. One of those tranches is already callable and has lost 20% of its Tier 2 treatment. And so we really like to be able to call — be able to continue to build capital levels to be in a position to call that if we want to buy next June when we lose another 20% of Tier 2 capital treatment. I was speaking behind that.
Manuel Navas: No. That’s helpful. Thank you very much. Thank you, guys. Thank you.
Jim Reske: Thank you.
Operator: Your next question is from the line of Matthew Breese with Stephens Inc. Your line is open.
Matthew Breese: Hey. Good afternoon everybody.
Mike Price: Hey Matt.
Matthew Breese: Jim in the press release you noted that because of some excess liquidity this quarter it impacted the NIM by I think eight basis points. I was curious your thoughts on how much excess you’re currently holding on to at period end? How long you intend to hold on to it? And if — with some of the margin dynamics you’re talking about there’s also some normalization of liquidity in those assumptions.
Jim Reske: Yeah. It’s been about $250 million of excess liquidity when we took on reactor [ph] Silicon Valley Bank sale in the first quarter. We started to deploy some of that in the third quarter. I think got it down to about $160 million, but of excess just excess cash. So when I say excess cash that means we borrowed money from the FHLB and we parked to the Fed. We’re going to continue to [indiscernible] what we’ve been experiencing is deploying that cash into securities purchases and we’re going to continue to do that here for the rest of the year and into next year as well.
Matthew Breese: Okay. So maybe we should think put to work $40-ish million a quarter. Is that a fair way to think about it?
Jim Reske: It will be about right. Might be a little more than that, I think our securities portfolio for at least in last year we were doing almost no purchases to let that run off. So that we can redeploy in the loan growth and it was a good profitable strategy, but it’s gotten to a point where it’s a little small in terms of a portion of total assets compared to peers. And so we’d like to get the size of securities portfolio up a bit.
Matthew Breese: Okay. That was actually on my list of questions. We’re down to 11% securities to assets. But this quarter, obviously, a pop up close to 6% period-to-period. Where would you ultimately like to be over what time frame?
Jim Reske: We don’t have a hard target. We just know it’s got to get bigger from here. I think — but not aggressively so. I think in our last projections, we were projecting it to grow by another $100 million next year. So it’s not. We’re not going to go gun blazing and buy $0.5 billion of securities next year, but we do want the portfolio to grow from where it is now.
Matthew Breese: Okay. I think accretable yields represented 10 bps of the NIM this quarter. It’s always a hard to model figure. Could you just give us the most recent forecast there? How much of an impact every quarter you expect it to be on the NIM?
Jim Reske: Yeah. We think it’s about 10 basis a year — 10 basis points and we’re actually trying to make the point that accretable yield and the cash figures offset each other. We think it’s probably going to be about seven basis points next quarter.
Matthew Breese: And seven slowly declining to five. Is that a good estimation for 2024?
Jim Reske: It is. I don’t have the exact number in estimation for you for 2024 yet I’ll get to that next quarter, but it is fading out. So that’s probably a fair assumption.
Matthew Breese: On the credit front, the one category I’m curious on is auto. There’s been some more recent headlines I think it’s sub-prime auto delinquencies are starting to go higher. I wanted to know what your experience has been and if you see anything underneath the hood there that we should be incorporating into our models higher charge-offs delinquencies things of that nature?
Mike Price: Well, we only do auto in market. We had good experience through the last credit cycle and probably starting to hook a few more cars. But Brian why don’t you give them the rest of the story?
