But we’re just making good business decisions and right now the markets worked in our favor and we haven’t had the — we weren’t in the position where we had to go out there and pay high interest rates on deposits. And great core customers and that’s what’s — as we watch the deposits every day and not just me, it’s every region out there in the market. It’s just cool how much of pay attention to that. So we’ve been able to bring some stuff in.But to answer your question, I’d probably say, I’m always nervous about the margin, but Johnny make sure we get it better and the great part about our company is everybody out there in the region want to do the same thing. So just go with the flow. Loan rates are this today and deposit rates are this.
And long as that holds good and we’ll swing. We didn’t bet on the future. We thank, gosh, we didn’t lock in a lot of the assets at 3.5% for 10-years. And because I didn’t have anybody doing a 0% CD for 10-years.John Allison We had a payoff this week $80 million payoff the loan rate was [9,845] (ph) and the prepayment penalty is $420,000. So I told them we got to get something going to replace that, maybe something million dollars at roughly 10% with the prepayments. So anyway, we weren’t — we didn’t cry about the prepay that was they asked for different things and we weren’t going to do that. We’re not going to stretch. So we don’t stretch. So we didn’t stretch and they were able to refinance it paid us off. But I thought it was fixed, I’ve forgotten it was floating and I thought it was fixed at like six or seven.
Now I said, what was the rate on when I got paid off and they sent it to me, but wow, but replace that, Tracy.Tracy French Kevin for $4:46 in the bank. They’re not make users, they’re more happy. I mean, come on.Jon Arfstrom All right. Well, thanks everybody. It’s a good message on that. Thank you.Brian Davis Thank you.Operator Thank you, Mr. Arfstrom. The next question is from the line of Matt Olney with Stephens. You may proceed.Matt Olney Hi, thanks guys. Good afternoon.John Allison Thank you, Matt.Matt Olney Want to start on the M&A side. You mentioned being opportunistic. Any color on what’s in the marketplace today that you’re looking at? I mean, perhaps it’s too soon, but just curious about this? And then specifically within the Signature and [SIPPI] (ph) commentary that you mentioned, any more color on the types of businesses from them that you were attracted to?John Allison Well, we’re looking at some of their assets, that they have.
I don’t want to get specific here, but we’re looking at some of those assets to bid on. From the M&A perspective, the problem is that most banks are loaned up and they’re — I mean they’re in the 100% majority of them is 100% — one that won’t sell particularly more — let me say that. They’re 100%, they’re tired, and worn out and they’re running lower capital ratios. And if you mark ALCI, it’s even much worse. And I don’t think we’re in the mood, I don’t think Home is in the mood in this cycle to stretch. Don and I looked at one we’re in Dallas a while back. The bank went to Dallas, but the bank was somewhere else. And met with the owners and they’re 108% loan to deposit and their margins going straight in the tank, because around money and they hadn’t pay half prices for money.
And they’re getting killed.And the point is, so they — I said let me get this straight, you want me to pay your premium for that. And I said, I’m struggling why I want to do that and why I want to take your mess that you’ve created and put on my balance sheet and put my balance sheet that is not stressed under any conditions and put my balance sheet under stress. So in joking, I said if you pay me $100 million, I’ll take it. But that didn’t go very well. But that’s kind of my attitude right now, I’ve never seen this kind of crisis before and it’s pretty damn serious and you see how fragile banks are. Banks are very fragile and there’s not 20 banks in the country to take a run. I don’t believe maybe 50, maybe 100 that could take a run tomorrow.Home Bancshares can take one, but there’s not many banks that could take a run.
So I don’t know that I want to buy some pay somebody a premium to buy their problem, that’s kind of where my stance is right now. We’re doing fine. We’re going to be fine Home Bancshares will be open. Home Bancshares will be operating and Home Bancshares will be profitable. So you’ve never heard that top out of me before like that. But I think it’s time to be — protect the Chuck Wagon. I think it’s — I don’t think you stretch, I don’t think it’s time to stretch, I don’t think this is over and I think it could be a while before it’s over. So I think we’re just going to sit here and protect the Chunk Wagon for a while. We’ll take care of our customers. Our customers have no fear, where the ability to continue to finance our new customers, new customers will be difficult to get in the door.
But we’ll take care of our existing customers. They’ve been good to us. We’ll be good to them. We’ll be here to take care of their needs. So I think that’s the same way to plant right now, [Matt] (ph).Matt Olney Okay. That makes the commentary there. Yes, no problem.John Allison That doesn’t sound like the regular Johnny does it.Matt Olney On the office front, you guys gave some great details there in the press release as far as geographies and amounts and LTVs and I think you did disclose about $45 million was criticized, which I guess is what 4% relatively small amount. Anything more notable in that smaller — that $45 million Kevin to speak of as far as a trend or anything more notable there?Kevin Hester Yes, probably the most notable thing is that the majority of that is in the Texas market and it is stuff that we marked criticized in due diligence.
And not classified, but an OEM. And as we get that happens a fair amount when we do due diligence on stuff that could be a 4 or 5 or a 6 and we usually are pretty conservative and then take the next year or two to look at it closer. And so I wouldn’t be surprised if the majority of that when we do an annual review looks better than we thought it did to due diligence. So that is the vast majority of that $45 million is in what I would call that bucket.Matt Olney Okay. Got it. That’s good news.Kevin Hester About 65% loan to deposit — about 65% percent loan to value and most of it matures in ‘23 and ‘24, so we’ll get to look at it this year or next year. And I’m not particularly concerned about any of that.Matt Olney And I guess Kevin just taking a step back and thinking about this office deep dive that you guys did over the last few months.
I’m curious about how what you think about loss potential to Home Banc on this portfolio as it compares to a few years ago when you guys did a similar deep dive on the hospitality book back in 2020. You guys carried some larger hospitality loans few years ago came out with no losses. How would you compare this office deep dive and potential losses to what you saw back then?Kevin Hester Yes, we actually looked at this portfolio around that same time. We did the same deep dive and it looks very similar to what looked like then. I would say and I think, I said it in my remarks that the majority of what we put on the last year, year and a half has really not been traditional office. Even though it is coated office, it’s not what you would expect the ultimate disposition to be of that asset and most of that’s in the New York portfolio in a multi-asset facility.