Paul Langdale: Yes, it’s going to depend a lot on external factors and specifically rates and what happens there. I’d say in a flat rate environment, if you assume that the Fed holds overnight rates where they are right now and we continue to gain a little bit of pricing power, due to where the longer durations of the curve are going, or at least heading for the last quarter, we would expect to be able to see some nice expansion – in 2024. It’s going to be more gradual on the way up obviously than it was on the way down. But we do expect, especially given what we have repricing and what’s in the pipeline to see some nice lift in the margin, especially in this – the back half of 2024.
David Brooks: Yes, Brady – Paul and I were talking about this yesterday actually and it’s – we know pretty well, you know, contractually what’s going to reprice. And we can, we know kind of what we think our loan growth is going to look like, all those things. Where we had a challenge, I think our – the entire markets at a challenge has been predicting deposit costs rate, you know, predicting deposit betas and what’s going on with competition And what the Fed’s going to do and the long end of the curve coming up and all those things that we don’t control. So, we are just being – a little bit cautious. We do know the NIM will inflect positively in – in ’24, but really the things, as Paul said, that rates and deposit pressure and all that, we believe it’s leveling out. It appears to be leveling out, but it’s been pretty dynamic and the changes this year.
Paul Langdale: I will add though Brady that we have a nice setup for the fourth quarter. The bulk of our loan production came in the last two weeks of the quarter. And we’re already up for the fourth quarter about $100 million in loan volumes. So, we’re pretty optimistic about our ability, to see that stability and that inflection in 2024.
Brady Gailey: Okay. All right, great. Thanks for the color, guys.
David Brooks: Hi, thanks, Brady.
Operator: Thank you. Next question is coming from Stephen Scouten from Piper Sandler. Your line is now live.
Stephen Scouten: Hi, good morning, everyone. Appreciate it.
David Brooks: Good morning, Steve.
Stephen Scouten: You guys just spoke to kind of your understanding of the contractual repricings on your loan book. Can you give – any detail in regards to the magnitude of those expectations in ’24 – that might help us kind of do the math little bit better, for the potential upside to the NIM?
Paul Langdale: Yes, absolutely. So, we had about $442 million, Stephen, of gross loan production in the third quarter. I expect that to go up to be a little above $500 million in the fourth quarter and we expect over $2 billion – of contractual role in the fourth – sorry, 2024. And so, I think if you look at paydowns, payoffs, where the cash flow coming off the book is, you should have anywhere between $2 billion and $3 billion of repricing activity in 2024 for our latest models.
Stephen Scouten: Okay. And on the average, what sort of kind of roll off, roll on yields there? What kind of – what kind of spread are you picking up over the – the old loans versus the new loans?
Dan Brooks: Hi, Stephen, this is Dan. I’ll answer that one. We’re seeing pricing averaging the high 7s on new and renewed credits. And honestly with the long end of the market up, we expect continue to be smart on adjusting rates according to that as we move forward, I’d say high 7s is the quick answer to that today versus rolling off around 4 – yes, 4.5 yes around 4 and 4.5.
