Ron Copher: I would say, just to give you a range, Again, we’re going to have to factor in the fact that we have those transaction costs coming in, so that factors in, even though I can say their M&A. So I would tell you, it will probably be 69%, 70% is realistically the best that we can do. That’s all in. And if you pull out the operating, I would say, we could get to 74%, 75% range.
Matthew Clark: You mean lower, if it’s excluding…
Ron Copher: Lower, yeah.
Matthew Clark: Okay. So lower than the 69%, 70%, not higher with the ex merger charges? Okay.
Ron Copher: Yeah. That’s right.
Matthew Clark: Okay. And is that by the fourth quarter this year, is that what you’re suggesting? Or is that — how are you thinking about next year?
Ron Copher: It could be for the full year.
Matthew Clark: For this year.
Ron Copher: Yeah.
Matthew Clark: Okay. All right, that’s it for me. Thank you.
Randy Chesler: Welcome.
Operator: [Operator Instructions] Our next question comes from the line of Andrew Terrell from Stephens. Your question please.
Andrew Terrell: Hey, good morning.
Randy Chesler: Good morning.
Andrew Terrell: If I could just follow-up quickly on the expenses, the $144 million to $146 million and maybe kind of higher end of that for the second quarter. I just want to clarify, is that on an operating basis, so excluding any merger charges? Or is it kind of fully loaded on a GAAP basis? I don’t know if there are any merger expectations in 2Q?
Ron Copher: Yes. So it is excluding the merger-related expenses in the second quarter. So we’ll still have some trailing and estimated to be no more than $2 million trailing M&A expenses.
Andrew Terrell: Okay. Got it. And then I don’t know, I might have missed this, but are you able to provide the — just the operating expense add we should expect in the third quarter from the branch acquisition, we can probably get there with the accretion math, but I think it would be helpful if we had the operating expense figure.
Ron Copher: Yeah, I would say it’s going to be including the limited cost savings, again, just because it’s a matter of time. I would go with $3 million additional noninterest expense will pick up from that.
Andrew Terrell: Okay. that’s helpful. I appreciate it. If I can go back to just the margin briefly, if I look at the taxable securities yields in the quarter, it was, I think 2.13%, but it looks like the cash position normalized a lot with some of the BTFP repayment. Can you maybe just provide the spot securities yields at March 31 or just share kind of expectations for how the reported securities yield should trend in the second quarter.
Randy Chesler: Yeah. We’re just double checking the numbers here to give that to you. And just while Byron is checking at the expenses that Ron gave you for the branch acquisition is $3 million for the — till end of the year.
Ron Copher: Right. from the July 31 through the end of the year, five months.
Andrew Terrell: Okay. So got it.
Byron Pollan: And circling back to the investment yields on our tax exempt securities at 3.52% and our taxable investments are at 1.60% yield.
Andrew Terrell: 1.60%. Okay. Perfect. And then maybe just a reminder on the — I understand the repricing story on the loan side. Can you just remind us on the bond book side, just how much in kind of quarterly cash flow you expect there?
Byron Pollan: Yeah. We’re getting about $250 million a quarter in cash on our securities portfolio. That includes principal pay down and interest payments.
Andrew Terrell: Okay. Very good. Thank you for taking the questions.
Operator: Thank you. One moment for our next question. And our next question is a follow-up question from the line of Kelly Motta from KBW. Your question please.
Kelly Motta: Hey, thanks so much for letting me jump back in. I just wanted to follow-up two related questions on the margin. First, can you remind us on the fixed loan repricing coming off over the course of this year and next?
Byron Pollan: Sure. Give me a quick second here. So fixed rate loans maturing this year, well, I would say, in — from March 31 to December 31, just under $900 million of fixed rate loans are maturing.
Kelly Motta: Got it. That is helpful. And then last question for me, and I hate to beat a dead horse, I just want to make sure I’m understanding the guidance correctly. Byron, when you said you now expect margin at the low end of the provided range of, call it, $280 million, is that assuming — last quarter, you assumed 3 rate cuts. Is that assuming higher for longer, no change in rates here? Or I just want to make sure I’m understanding the provided guidance on that.
