As we move forward, we expect same and similar in terms of credit, mostly C&I, but having some smattering of CRE in there. And that really is owner-occupied whereas a distribution company has got a warehouse that they want us to finance. And we want the entire relationship, so we’ll take — we’ll pick up that piece of CRE, a line of credit and then of course, all their operating accounts and their liquidity. So it’s an all-in relationship.
Andrew Terrell: Yes. Understood. Okay. I appreciate it. And then just going back to the point on loan growth. I heard some of the commentary that maybe production was slowing down. I think we certainly saw that this quarter at $135 million of originations. Would your expectation be that origination levels moderate from that $135 million into the fourth quarter? And then just overall, could you share maybe your expectations for kind of net balance sheet growth, both loan and deposit growth moving forward?
James Beckwith: Sure. We’re seeing a slowdown in loan production given market conditions. So I don’t expect it will originate that level in fourth quarter. I would say probably as we sit here today, we probably are going to do probably something $10 million to $20 million less than that. We do expect some payoffs, so our net loan growth in the fourth quarter will probably be no better than it was in the third quarter. I think that’s probably a safe statement. From a depository perspective, we’ve got a pretty substantial pipeline probably more so than we’ve had in the last six to nine months, we’ve got some potentially very — some very large customers coming on and that relate to some of the verticals in which we’re in. So we’re excited about that.
But again, these things take time. And we do expect our deposit growth to exceed our loan growth in the fourth quarter. I think you could see that we did that marginally in the third quarter, and we expect same or similar results in the fourth quarter but at reduced levels, certainly on the loan side, maybe not so much on the deposit side, but certainly on the loan side.
Heather Luck: And as we look through to 2024 also, I know we’ve given this guidance before, but we are still looking at 10% loan growth, 8% deposit growth — oh sorry, flip that, 10% deposit growth, 8% loan growth for the forecast period.
James Beckwith: I think we’re pretty much right on top of that year-to-date, maybe a little lower on deposits, but right about that on loans. But certainly, deposit growth has exceeded loan growth.
Andrew Terrell: Yes. I appreciate it. And the last one for me, the $135 million of originations made this quarter. Do you know what the weighted average yield was for new originations?
Heather Luck: Yes. That was 7.70%.
Andrew Terrell: 7.70%. Got it. Okay, I will step back into queue. Thanks for taking the questions.
James Beckwith: Thank you, Andrew.
Operator: [Operator Instructions]. The next question comes from Gary Tenner with D.A. Davidson. Please go ahead.
Gary Tenner: Hey, thanks for the follow-up. Heather, I just want to clarify the comment you just made upon the loan and deposit growth. That was relative to 2023?
Heather Luck: Correct, annual…
Gary Tenner: Any kind of early thoughts on the kind of similar metrics and outlook for 2024?
Heather Luck: Yes, a similar thing, 10% deposits, 8% loans.
Gary Tenner: Okay, perfect. Thank you.
Operator: The next question comes from Andrew Terrell with Stephens. Please go ahead.
Andrew Terrell: Hey, thanks for the follow-up. Heather, I wanted to get an idea, I mean you guys have certainly done a good job in hiring this year. But when I look at expenses, the expense run rate has also been, I’d call it pretty well contained. I wanted to get your thoughts on maybe the expense run rate heading into the fourth quarter? And then any preliminary thoughts on expense growth in 2024?
