So you would look at that completely differently than you would an operating office building that’s going to be an office building now and forever.So I feel really good about the deep dive. I like the fact that the majority of our balances are in our footprint and even within that footprint in two of the strongest geographies, particularly for office. So I think that bodes well. I feel really good about the exposure and any potential loss for that group wants.Matt Olney Okay. All right, guys, that’s all from me. Great report. Thanks.John Allison Thanks, Matt.Operator Thank you, Mr. Olney. The next question is from the line of Brady Gailey with KBW. You may proceed.Brady Gailey Hey, thank you. Good afternoon, guys. I wanted to start on loan growth John, you mentioned a lot of your peers don’t have money to lend.
They’re loaned up, but that’s not the case at Home. You guys have money to lend. And relatively low loan to deposit ratio. Is now or is today’s backdrop of time where you could see loan growth pick up for Home?John Allison Well, I said earlier we’re going to service our customers, we’re going to take care of our customers. Kevin is seeing some credits that from the outside that we don’t feel — he doesn’t feel comfortable in doing at this point in time. And I think that’s probably a good time. The key is we’ve got some great customers, who’ve been with it for many years enabled us to grow this company and the point is take care of them. Just say we won’t do somebody that comes from the outside, we probably will under our terms and conditions and we can build a long-term relationship with those people.If that is — if that’s available, but there’s — we’re not interested in one timers and we’re not interested anybody can’t bring deposits.
We’re just — we’re interested in relationships and long-term relationship. And we built Tracy built a bunch, and Kevin camera built a bunch in ‘08, ‘09 and ‘10 when we were in that crisis. So that worked well for us during that period of time. And there’s an opportunity, I mean, we’ll look at about anything. But it’s not the time — it is not the time, I don’t think ready to be aggressive. I think it’s to be real conservative and take your time, because I don’t know here to think about this. There’s going to be opportunities come out of this, right? And where do you spend your money?You have some real opportunities to spend some money in different areas and that could make a lot more money. So we think those opportunities, we have the opportunity to build some stuff now.
We think those opportunities are out there. We’ve chosen to take a shot some of those and hopefully can increase profitability with those. So we’re just being real careful. Very, very careful. I’m just afraid this is not over, I’m just afraid this cycle is not over. And those who survive this cycle may have real opportunities. I remember ‘8, ‘9, ‘10 and ‘11 how well Home did became one of the biggest buyers in the country that fell back to opportunities. That those opportunities could happen again.So we’re just going to remain concerned to say we won’t do a new loan, we will. We’ll just look at it, but we’ll — we’re not looking at M&A right now. We’re not interested in M&A. I mean, I think banks are trading, I think average multiple on bank now they’re trading about $120 a book.
I think that’s about where they’re trading. That sounds pretty enticing to me with us. It’s 2 plus times book, but I just don’t want to buy somebody else’s headaches and problems at this point in time. And then [Multiple Speakers] so I’d like to go on Johnny Allison, you’ve already dealt with that’s just a conservative side, right?Brady Gailey That makes sense, though. And then you look at credit quality, it’s still pristine at Home Banc. The reserve is still 2%, which is pretty high relative to where your metrics are running. Do you think the reserve percentage continues to go lower here or do you kind of draw a line in the sand and say, hey, considering the backdrop, we need to keep this reserve at 2%?John Allison I’m a 2% guy. I’m a 2% long guy.
It’s — I don’t care what they say. I’m a 2% loan guy, it’s always worked. 2% loan is always worked. And then I understand we go through all the calculations. We do all that stuff I understand the importance of all that. And I compare I watch that and look at that. But I know the 2% worked. So it doesn’t matter to me. I know 2% works.Brady Gailey And then lastly for me, you guys — sorry what did you say, Johnny?John Allison I didn’t hear that. What do you say?Brady Gailey My last question is just on the buyback, you guys have been active on the buyback, is there any reason why that would stop or do you think the stock is at a good value you still buy it back here?John Allison Well, we bought back 250,000 shares on our 10b5, so far because they’ve been hammered the stock.
So one other — I mean it’s kept on all the banks, but we just think it’s time to buy. So when we – Stephen put in the 10b5 and we’re pleased with what we’re doing as we’ve got to stop. So and we’ve bought 590,000 shares before, so we’ve got the ability to buy more. I say we get out for a little bit, but then the stock gets cheap and we spot.Brady Gailey Great. Thanks guys.John Allison Thanks, Brady.Operator Thank you, Mr. Gailey. The next question is from Michael Rose with Raymond James. You may proceed.Michael Rose Hey, guys. Good afternoon. Just wanted to touch on Chris Poulton’s business. I would expect that in this environment a lot of the competitors in the space are going to pull back. Do you guys kind of see that as an opportunity?
For you to grow that business. I know, you know, you have some capacity there. I think the threshold is, you know, right 10 of loans. If we could just get an update there and kind of how you holistically would view this environment so we think that pricing power would kind of play in your hands as other people pull back? Thanks.John Allison We don’t put…Chris Poulton Hey Michael.John Allison Chris, I’m going to let Chris take that and answer for himself.Chris Poulton Yes, Michael. And thanks Johnny. I think in theory that’s true, I’m a little in Johnny’s camp right now, which is I think the loan we make tomorrow is better than the loan we can make today. Certainly betting the loan we can make yesterday. And so the phone is ringing a lot and we’re talking to people, we’re taking care of our customers too and that, I asked my team to create a list of different ways you can say no, because I was getting tired of the ways we were saying no to things.
So we’re up to about 27 different ways to say no and that will probably grow.But we’ll start saying yes at some point. And we are, I mean, we did 200 and something million in the first quarter. We’ll probably do about the same this quarter and we continue to get payoffs and pay downs. I like to see that right now too. One of the things I’ve been concerned about is what’s exit look like and we just got paid off on one. In the last week or so that was a CMBS takeout that I kind of wanted to see how that was going to go before we kind of think about some other things, because if the CMBS market is there to take that out, it’s great loan and such that’s good. And if it’s not, well that was a really good loan can’t take that 1 out of CMBS, so there might not be much.But that went off well.
It was good for our customer. They executed well and we’ll do more with that customer what we’re probably a little more focused on to be on right now is getting ready for what comes next and for us, that’s facilities business. That’s institutional buyers and institutional lenders that are getting ready. They’ve raised money. They’re getting ready to go buy assets, buy loans, make loans, et cetera. And so that’s really where our focus has really probably been over the last couple of months. We’ve been gearing up or putting facilities in place with those folks, et cetera, because when they see opportunities, it’s opportunities for them. It’s opportunities for us. And so that’s how we built this business and we’ll stay focused on that. So I think that’s probably where I’d see a little more opportunity then just going out and finding that.
We’re starting to get the phone calls from people saying I had a deal, but my bank’s not there, that’s an interesting discussion sometimes, but I think the facilities and backing folks that are going to put new fresh capital in is a little more interesting.Michael Rose That’s great color. I appreciate it, Chris. And then maybe one for Stephen Tipton, the DDA mix is at about 28%. Any thoughts around where that could potentially bottom or do you think we’ve kind of seen the worst of it?Stephen Tipton I think if we go back pre-pandemic levels, we were in ‘20 — I think mid-20s or so range. I think in our just looking back over the last several quarters, it’s drifted down, kind of, in step with some of the other categories on the interest bearing side.
So it’s certainly our focus, I think as it goes, as we mentioned, tax payments and some of those things may pull it down near-term. But that’s our focus and conversation with all of our bankers and presidents on those operating balances and those real core customers that are out there. So it’s certainly the focus.Michael Rose All right. Thanks guys. And if you guys are — Johnny, if you’ve taken applications for that Chuck Wagon, let me know where I could sign up. Thanks, guys.John Allison Okay. I want to be one of your darks. Did you hear me?Michael Rose I did. I hear you. I hear you. Well, if you get cheaper, we’ll see. Hope not so. Hope not. Thanks, guys. Appreciate it.Operator Thank you, Mr. Rose. The next question is from Brett Rabatin with Hovde Group.
You may proceed.Brett Rabatin Hey, good afternoon, everyone. Wanted to start on expenses and I’m not sure if all of the Happy expense savings have been pulled out, but was hoping for some color maybe on where you are on that. And if the first quarter run rate is a good level to think about going forward?Unidentified Company Representative I mean at this point in time, for our plans on Happy, we’re pretty much there on what we’re going to be having in savings. I think it’s a pretty good run rate. We had a little bit of a reversal in some accruals that we had in the first quarter, which was about $1.6 million. But then on the flip side, salaries and stuff could go up, because where everybody will start max on VICO and stuff, but it’s not far from the regular run rate.Brett Rabatin Okay.
That’s helpful. And then Johnny earlier in the conversation, you said we weren’t done with this turmoil that maybe there was more to come. And a quarter ago, you were talking about people flying in planes to see you and talk about credit and it sounds like you’ve pulled the horns in somewhat. Can you talk maybe and I’ve noticed that the one month T-bill is back down even lower than where it was with those failures. Can you talk maybe about what you’re focused on in terms of additional potential turmoil? Is it liquidity oriented or other things? And just it sounds like you’re buckled down for a recession? So, I was just curious if you had some thoughts on what that might look like for the industry or what you were focused on?John Allison Well, I think we’re going to be higher for longer.