We still think it’s the smart play and more beneficial in the long run. And so, we haven’t declined that at all. Now, if the environment were to sour to the point that that makes sense, then certainly we have that capacity to do that, but that’s not the foster that we’re sharing or taking at the moment.Brad Milsaps Got it. That’s helpful, John. I appreciate that. And then Maybe just the final one for Chris. I appreciate the additional color on the CRE book. I was just curious, as you think about the pace of renewals as you move through this year and next, do you have a lot coming due soon or is it pretty – is it a fairly even pace over the next several years, just trying to think about what could trigger appraisals and so on, just kind of how to think about the renewal process?Chris Ziluca Yes, excellent question.
Yes, we’ve been looking at that, just to kind of stay ahead of what could be coming and really they are evenly spread out. We probably actually have less renewals in the next year or two than we do a little bit further out, but generally speaking, it’s pretty evenly spread out, which is a good thing. It allows us to, kind of manage the book and make decisions along the way.Brad Milsaps Great. Thank you, guys. I appreciate it.John Hairston You bet. Thanks for the questions.Operator Your next question comes from Matt Olney with Stephens. Your line is open.Matt Olney Thanks guys. Just to follow-up on the loan growth, you called out the CRE growth in the first quarter was from those construction loans that moved, I guess to a permanent financing as the construction phase was completed.
Anything else you can tell us about that dynamic? We keep hearing that the secondary markets for permanent financing are still relatively shutdown. So, I’m just curious how that dynamic is impacting the bank? Thanks.John Hairston Sure. This is John. I’ll give you some color on that. So, in looking at the income producing CRE category, that growth was about 90% multifamily. We still have a pretty healthy buyer set, if you will. Demand for occupancy is still extremely high in our footprint. And so, there’s plenty of price support at the unit level and support for activity. So, literally about 90% of the growth we’ve shown in CRE was in multifamily and about half of that was migration from C&D to CRE. And so that would naturally create the question of why didn’t C&D go down?
And the answer to that is, because projects that are already in flight tend to draw over time. So, new commitment production is, I would call modestly or maybe even moderately down from where it was a couple of quarters ago. So, I think what we expected to see happen this year is beginning to happen, which is the combination of supply cost, of labor cost, of debt cost is I think causing developers to think maybe they should wait for a few months to see if there’s any benefit on inflation and benefit on perhaps revolving costs going down a bit.I mean just 10 basis points or 20 basis points can make a big difference in the total profitability of a project. So, the commitments have declined even though the C&D bucket showed is flat. And so, as we go through the course of the year, we may not see those levels of growth continue, but our appetite in CRE is pretty uniquely multifamily overall because that’s the business and the area that we’re operating in, that’s enjoying the most support, both in permanent and in occupancy increasing as time goes by.Matt Olney That’s helpful, John.
And then within that multi-family product that you mentioned, any color within your markets, as far as where that product is primary like what markets?John Hairston Sure. I’ll start and Chris may want to add some more color, but predominantly the multifamily projects are happening in the markets that are enjoying the best population growth. And so, in the last 2 or 3 years and some of that was stimulated by the pandemic, but it wasn’t – it’s not different trends than we had pre-pandemic, it was just a little bit more exaggerated. And that’s predominantly Texas and Florida. And I think that’s probably going to stay the course until we begin to see it flatten out overall.So, there are other projects around the footprint, but the leading project is going to be in those suburban areas around the MSAs in Texas and Florida.Chris Ziluca And I’ll just add to that a little bit.
John is absolutely right. But we really look at the dynamics of those individual markets, including the various projects that are, kind of under construction to make sure that we’re not supporting a project that’s going into maybe what might be an oversaturated geography.John Hairston Yes. And the focus and to be clear, while we gave a fairly, I think it’s front of the year, what may have been considered at the time a rather anemic guide for loan growth, it was really with this environment in mind. And we said then three months ago that we would be endeavoring and working feverishly towards covering loan growth than we thought would be in the mid-singles for the year with core deposit growth and we get pretty close to doing that in Q1, coupled with the cash flow coming off the securities portfolio, we more than did that.So, I think as time goes by and we got toward the events that happened in mid-March, what we were planning to do is, look on even more important.
We think more thoughtful for the year. And so, over the course of the next several months, we are intending to grow loans, just to grow loans. It’s about growing core deposits and then loaning that out in sectors that we believe will survive the test of a cycle. It is very important to us to focus on NIM, to focus on PPNR, our efficiency ratio, our expense ratio, and asset quality through whatever the cycle turns out to be.So, if we have to give up on growth to achieve all that, that would be more important to us. And then as the market begins to give a better opportunity for balance sheet growth and we’ll take advantage of that. We have plenty of [indiscernible] firepower to do that when we think it’s a little bit healthier environment.Matt Olney Okay.
Thank you.Operator Your next question comes from Christopher Marinac from Janney Montgomery Scott. Your line is open.Christopher Marinac Hey, thank you and thank you for hosting us all this afternoon. I just had a question Mike and John about Slide 20 and the impact of the capital. If you have this scenario of all the losses being taken. What’s the impact from the cash flow hedges that as you detail a little further back, do those help you as time goes on or are there scenarios where that could be punitive?Mike Achary Well, right now in terms of our cash flow hedges, the market value of the cash flow hedges is about a negative 81 million and it’s a positive 19 million in terms of the fair value hedges. So that $81 million is obviously included in those calculations.
