Michael Rose: Very helpful. And then maybe just a quick one finally from me, just on the office book, I appreciate all the color you guys continue to provide in – the slides. Do you have a sense for what the reserve allocation is against that portfolio or do you not break it out that way? Just wanted to get some thoughts there? Thanks.
Dan Brooks: Yes. We don’t break it out separately from the rest of the CRE book. To the extent there are any downgrades or issues that come up on that, it gets picked up in the CECL model, but there’s not a separate allocation for that at this point.
Michael Rose: Were there any downgrades in that portfolio this quarter?
Dan Brooks: There were not.
Michael Rose: Okay, all right. Thanks for taking my questions. I’ll hop back.
Dan Brooks: Thanks, Mike.
Operator: Thank you. Next question is coming from Brandon King from Truist Securities. Your line is now live.
Brandon King: Hi, good morning.
David Brooks: Good morning, Brandon.
Brandon King: So, I’m trying to put together the pieces for, you know, how we think about the NIM going forward. And if you could just give us your size on loan yields and how they’re projecting going forward. Could we see similar increases quarter-over-quarter, over the next couple of quarters as we saw in the third quarter?
Paul Langdale: I would expect the increase in the loan yield to actually expand. As I mentioned earlier, Brandon, the bulk of our loan production for Q3 came in the last two weeks of the quarter. So, all of those pricing resets, the big up pricing activity happened at the end of the quarter that sets us up nicely for Q4 to see some more expansion in the loan yields. We would also expect that the $100 plus million of production we’ve seen of net growth that we’ve seen so far this quarter, will set us up nicely to see the loan yields continue to expand. And as Dan mentioned, we’re constantly looking at the curve and looking at where competitive pressures are. Obviously having some other banks go to the sidelines, gives us some opportunity on the pricing side to push rates up a little bit.
So, we’re being very deliberate and we’re being very forceful and making sure that – that the bank is being fairly compensated for the risk it’s taking in originating these loans. And so, we feel – we feel comfortable with the directionality of loan yields at this point more so, than I think you saw in Q3.
Brandon King: Okay. And I’m not sure if you’ve done this exercise, but could you give us a sense of when you think that rate of change in loan yields would peak, I guess, sometime in 2024?
Paul Langdale: Oh, gosh, that would be – it’s again so dependent on external factors. I wouldn’t want to give you a guide and then have a rate cut come and blow it up. But we certainly would expect that – that rate of change will continue at least through 2024.
Brandon King: Okay. Okay. And then how’re we thinking about – how are you thinking about deposit growth from here? I know the loan to deposit ratio declined in the quarter, it’s at 93%. You think you can maintain kind of that – that level?
David Brooks: I think our – Brandon, I think – our loan growth will continue on and thereby we need to continue, to grow deposits and we will do that. It’s, you know, the ability to grow the deposits as, part of our relationship strategy. So we’ll – we think we’ll continue to grow deposits and loans at, you know, equal rates in the mid-single digits going forward.
