Tom Dolan: Yeah.
Brandon King: Okay. That’s all I had. Thank you.
Randy Chesler: You’re welcome.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Andrew Terrell with Stephens. Your line is now open.
Andrew Terrell: Hey, good morning.
Randy Chesler: Good morning, Andrew.
Andrew Terrell: I appreciate all the color on the deposit kind of expectations. It was good to see the growth this quarter. I was just curious, for the incremental or the mix of the incremental deposit growth that you would expect, would you expect that to look similar to 3Q, so a heavier tilt towards CD balances? And then, can you just maybe talk to us a little bit about your CD pricing strategy? Where are new time deposits or where did new time deposits come on at during the third quarter?
Byron Pollan: Sure. I can touch on that. In terms of growth drivers going forward, I think should we see growth, it probably looks similar to what we saw in the third quarter. In terms of kind of product mix, CDs are clearly a very popular product right now. Pricing strategy, each division is priced for their market. And so that’s one thing that I love about our model is we can optimize to 17 different markets around our footprint. We’re competitive in our pricing. I would say most of our CDs, the new CDs that we’re bringing in are somewhere in the range of 4% to 5%.
Andrew Terrell: Got it. Okay. Thank you. And then just wanted to revisit the deposit beta guidance last quarter, I think the expectation was revised to a 25% kind of through-cycle beta expectation. Is that still in the cards? Or do you think we could see some incremental pressure to that 25%?
Byron Pollan: Right now, I see it as we’re still on track to hold to the 25%. I mentioned the declining pace of cost increase. I think we’re right on the path right now. So, very encouraged by signs and the progress that we’ve made so far. We did see some meaningful increase second quarter, third quarter, but that cost increase is really leveling out. And so, if we’re able to hold on that path, then we’re right on track for 25% through the cycle beta.
Andrew Terrell: Yeah. Okay. And then just I wanted to kind of ask the margin question maybe a different way, because I know the margin is going to be influenced by some of the cash that was put on this quarter and presumably maybe a little bit of cash build going forward. But in terms of net interest income dollars, would you expect that 3Q was the trough in NII? Or could we see maybe some leveling off again in the fourth quarter before NII starts to grow throughout 2024 in line with kind of some of your margin commentary?
Byron Pollan: I would — I think leveling off is the right — is probably the right word. Stabilization, we’ve seen some encouraging signs of stabilization. And so, I would think we’d probably see fourth quarter come in really close to where we came in, in the third.
Andrew Terrell: Okay. If I could ask one more for Randy. Maybe just wanted to get your updated thoughts on the M&A landscape as we sit today, and I know you’ve got a current deal pending that sounds like it will close by end of the year. But as we move into 2024, just how you’re thinking about M&A as a strategy for Glacier?
Randy Chesler: Yeah. Well, we’re very optimistic. I think — and we’re optimistic because probably the number of people who can really act — the number of companies can really actively pursue it is probably less so than in the past. So, I think that that’s positive for us given our experience in it. We do have — I think the activity is still about the same. It’s — there are discussions. It’s not at the level that it was a year ago or — I’m sorry, two years ago, pre-pandemic. And it’s — but there are good discussions. I think as banks look at their balance sheets and think about higher for longer, that’s going to drive a fair amount of discussions about the future and how long some banks are willing to wait for things to turn positive for them versus looking at some other options.
And there’s a lot of really good banks out there, I think, asking those questions. So, we’re optimistic. I think we have to get into ’24 and see if that pans out. But at least at this point, we don’t see a title wave of deals, but we do see slow and steady conversations with, I think, some very good banks. So, we’re encouraged by that.
Andrew Terrell: Okay. Thank you for taking the questions, and congrats on a good quarter.
Randy Chesler: Thank you.
Operator: Thank you. [Operator Instructions] I have a follow-up question from Matthew Clark with Piper Sandler. Your line is now open.
Matthew Clark: Hey. Yeah, just a couple more around margin. September margin was above the quarterly average. And I just wanted to get a sense for if there was anything unusual in there? Any purchase accounting accretion or kind of accelerated purchase account accretion or anything lumpy that we should — that we can strip out and try to normalize for that trend?
Byron Pollan: No, I don’t think there was anything unusual in the month of the quarter that would stand out.
