Kelly Motta: Got it. And if you’re adding, that $6 million that they’re adding for the quarter, is that inclusive of any one-time, non-operating kind of just merger charges in that? And that’s a 16-month contribution?
Ron Copher: Yes so, it’s in there, but it’s not a really big number. So, we just are giving the guide $144 million to $146 million.
Kelly Motta: Okay. And that’s a two-month contribution from them?
Ron Copher: Yes, two months, thank you.
Kelly Motta: Got it, awesome. Thank you so much. I really appreciate all the color today. I’ll step back.
Operator: Thank you. One moment for our next question, please. 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: Hi, Randy. Not to chase down the margin too much, and I think you framed up really well, Byron, particularly that last piece. I just wanted to get sensitivity. You do screen fairly liability sensitive, so I just want to make sure if, in that three-cut scenario and kind of upward trending. And you talked about kind of the beta on the way down on deposits. Is that would that extend into ’25 then, some of that favorable kind of tailwind in a three-cut environment, and then conversely, kind of margin expectations, should there be no cuts this year? Is there kind of a core lift, or is – trying to chase that down? Thanks.
Byron Pollan: Sure. I’ll start with expectations, if we don’t see cuts. I think we could still see margin growth. The pace of that growth will be a lot slower, and the key to that is stabilization of our deposit costs. We’re already seeing good signs there. And so, we’re kind of flattening out the curve of that deposit cost increase. And so, I think that will happen even without cuts. It may push out that inflection point. I mentioned second quarter. It may push that inflection point out further in the year, but I still think we could see some growth, although more limited, even if the Fed doesn’t cut rates this year.
Jeff Rulis: Okay. And I guess the not so clear question that was, into ’25, you talked about that three-cut lift to kind of $280 million, $290 million range. As we progress into ’25, can we see further lift? Is there sort of a tail of that beta down scenario where you foresee an environment where margin can continue to propel higher in ’25, a long time from now, but just thoughts on that?
Byron Pollan: Sure, I do think we’ll see some tailwind into ’25. The way our balance sheet is structured, we get most of the benefit kind of in year two of a rate move. And so, with three rate cuts in ’24, we’ll gain momentum into ’25. If there are further cuts beyond that, it’ll be even better, so yes, I do think the outlook for ’25 is really positive.
Jeff Rulis: Okay. I appreciate it, thank you. And Randy, I appreciate the M&A just kind of appetite and conversation. The dividend rate has been flat for a little while now, and I know that’s a Board discussion, but – we read anything into that in terms of holding capital for maybe a more active M&A, or is that a separate channel that looking at the dividend, you can kind of do both, just more specifically asking about the dividend? Thanks.
Randy Chesler: Sure, we’re comfortable where the dividend is. I don’t see it changing, and I think this is still an environment where capital is king. And so, we’ll stay the course with the dividends in the foreseeable future. Again, that’s up to the Board, but that’s my expectation.
Jeff Rulis: Okay. Maybe some of those hikes were kind of – post-pandemic kind of, there was some moves there, I suppose. Anyway, I think you answered it, I appreciate it. The last one from me, is just to check in on that tax rate, kind of where you see in ’24 where we settle in?
Ron Copher: Yes, Ron here. The settle in, it will range from 18% to 18.5% somewhere in that ballpark is the, we achieve the net interest income, the NIM, all of that occurring as well.
Jeff Rulis: Okay. Thank you.
Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Brandon King with Truist. Your line is now open.
Brandon King: Hi, good morning.
Randy Chesler: Good morning, Brandon.
Brandon King: So could you quantify the amount of loans, fixed rate and adjustable rate loans you expect to reprice in 2024 and what the runoff yields are?
Randy Chesler: The answer is, we’re going to have to check on that for you, Brandon.
Brandon King: Okay.
Randy Chesler: So let us get back to you with the exact numbers. We do – that was one thing I was going to add to the margin discussion. We do continue to get some lift with portfolio repricing. It’s a lag repricing. And so, there is some lift there and it is accelerating into ’25, but we’ll get to the actual numbers.
Brandon King: Okay. And then on the CDs, if I remember correctly, was what I heard, 60% mature in the first quarter. And I wanted to know what rates those CDs are coming off that, and what you’re looking to reprice those CDs at?
Byron Pollan: Sure, those CDs are priced at a little under 4.5%. And it will depend on the rate environment, when those CDs come up for maturity. But we’re already starting to test, kind of peeling back those renewal rates a little bit, and we’re having good success there. So, I would expect the renewal of those CDs to come in, just a little bit below where they are.
Brandon King: Okay. That’s helpful. And then lastly, with the CFPB proposal and overdraft fees, are you considering any proactive changes to your overdraft policy?
