A lot of it happens — is dependent on the Fed and what the Fed does. Do they need to get more aggressive in order to really stem inflation? We’ll have to see. But I am very optimistic about the trajectory for margins in the higher for longer environment.
David Feaster: Okay. That’s terrific. And then last one for me. I’m just curious, maybe touching on the loan demand side. What are you hearing from your clients? What’s the pulse across your footprint? How is the pipeline shaping up as we head into the fourth quarter? Where are new loan yields? And then especially just digging into the CRE side, I’m curious where you’re seeing good opportunities there? And what type of deals still pencil at these higher rates?
Randy Chesler: Yeah. I think I’d just say overall, and I want Tom to fill in the details. But overall, the rates are getting to a point where it’s starting to reduce loan demand and customers still feel I think, relatively confident. But at these rates, they’re really rethinking some of their projects, not all of them, but we are seeing a deceleration in the incoming business. Tom?
Tom Dolan: Yeah. The only thing I’d add to that is — certainly, it takes a lot more cash equity to make deals pencil at these interest rates than they did a year ago. And so, we’re — the pipelines are off from the last couple of quarters, certainly, they’re off from last year, relatively stable in just the last couple of months. And as Randy said, we’re still pushing kind of that just shy of 8% even on the CRE side. But what we’re seeing is the deals that come through generally are coming in with more cash equity at the front of it.
David Feaster: That makes sense. Appreciate, guys. Thank you all.
Randy Chesler: You’re welcome.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Jeff Rulis with D.A. Davidson. Your line is now open.
Jeff Rulis: Thanks. Good morning.
Randy Chesler: Good morning, Jeff.
Jeff Rulis: I wanted to check in on the — I guess, the pace of the decline in the wholesale or the kind of the brokered CDs, was that sort of spread pretty evenly across the quarter? You came in close to $500 million and you’re down to under $100 million. So I just wanted to see if that was pretty steady throughout the quarter if it was kind of lumpy?
Byron Pollan: The decline in brokered was — mostly happened in July. So, the bulk of that happened in July with a little bit of follow-on in August and September.
Jeff Rulis: I see. Okay. So, you probably captured a decent amount of that benefit in cost of funds? Or just trying to get a sense for, Byron, as you range-bound these variables into timing, and I know that I respect the still working on the timing, but a bottom of the margin in the fourth quarter, all things being equal, would you be surprised if that is the bottom in Q4?
Byron Pollan: It’s possible. I could see scenarios where that happens, but there are risks to that as well. On one hand, as Randy mentioned, we are building cash that’s accretive to NII, but it does weigh on margin. Again, we — it kind of depends on what the Fed does. The Fed have to get more aggressive. Also, very helpful to margin was the stabilization of our noninterest-bearing balances. If we see some additional runoff there, that could put some pressure on margins. So, I could see a scenario where we do see a bottom in the fourth quarter, but there are a lot of variables at play that we still have to see how that play out.
Jeff Rulis: Okay. And you said the September average was 2.55%?
Byron Pollan: I’m sorry, what are you asking?
Jeff Rulis: September margin average?
Byron Pollan: The September margin was 2.59%.
Jeff Rulis: 2.59%. Okay. I appreciate it. And then just a couple of housekeeping, Randy, on the Wheatland close, again, for — by year-end, does it seem more back into the quarter or just specific timing?
Randy Chesler: Well, we’re still getting the regulatory approvals, but we’re being conservative towards the end of the year. Back end, yes, that’s probably more likely.
Jeff Rulis: Got it. And last one, Ron, you touched on expenses for Q4. Look, it’s been a phenomenal year from a expense standpoint. I don’t know what that means for ’24. You’ve really held the line. I don’t know if it’s — you continue to find efficiencies. But if you could hazard a thought on ’24 expense growth?
Ron Copher: Let me — we’re in the middle of budgeting and I don’t want to get ahead of the team and what I think. But — and thank you for recognizing the hard work that’s been done. We could see that, that approach will continue into 2024. We’re very focused on headcount, FTE and realizing more — even more of the technology, the operating efficiencies that are coming along with that.
Jeff Rulis: Okay. Sounds good. Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Kelly Motta with KBW. Your line is now open.
Kelly Motta: Hey, guys. Good morning.
Randy Chesler: Good morning, Kelly.
Kelly Motta: It was nice to see the deposit growth this quarter. I believe some of that was seasonal inflows. Do you have a sense of kind of just how — on dollar contribution, how much that was? And as that flows out, how that — we should be thinking about the dollar amount of NII? Would you expect that to trend lower off of this Q3 level?
