So, my expectation on an overall basis is that, noninterest-bearing checking accounts would hold steady at least, maybe increase a little bit throughout the year, as we see that typical seasonality work through our balance sheet. One of the things that, as I mentioned, we are definitely seeing some non-maturing deposit funds go into the CD products, which is driving an increase in cost of funds. The CDs that are repricing are generally speaking below 1% and they are going into products that are in the upper 3s and low 4s. So, there is a lot of repricing going on just with CD products. And then as I mentioned, seeing some migration from savings accounts and those types of deposits into the CD products as well, which is also a significant repricing.I think what we try to do, as we typically do is, try to be pretty conservative on our expectation of non-maturing deposits.
And when we build our balance sheets from a projection standpoint, try to do that with some of our higher costing funds, whether that’s time deposits, borrowings, some high yielding money market account products. Clearly, we are out there, as hard as we can day in and day out, trying to grow all of our deposits, but certainly from a projection standpoint want to be conservative. Daniel Tamayo Okay, great. And then lastly on the loan side, just curious, where the new loan yields were coming in kind of towards the end of the quarter. You mentioned that those would — we would expect those to continue to go up given the variable nature, but I’m just curious where those settle relative to what’s on the portfolio now. And then kind of a bigger picture question around with deposits stable, loan deposit ratio of 110% and 6% to 8% loan growth in the forecast.
How high do you expect that value to get or, I mean, it’s it seems already somewhat elevated. So just curious how you are thinking about that ratio.Chuck Christmas Yes. And as I mentioned in my comments, we always throw sweep accounts into that because those really truly are deposit accounts in our mind. But it’s still a little bit over 100% so not trying to change your question. I think if you look at us historically, especially in excluding the last couple of years, with the pandemic and all those impacts on our balance sheet, our loan-to-deposit ratio or however you want to calculate that, has always been the highest at the end of the first quarter, because of that seasonality withdrawal that we see. We are a commercial bank and a lot of our deposits are commercial.
And so that seasonality we see with our customers is very noticeable within our balance sheet. So, I think we would — we don’t expect that ratio to go any higher. I thought our intent to play games with that ratio, so to speak. As I mentioned in my comments, we’re not using broker deposits right now and haven’t for almost a year. Instead, we relied on borrowing from the FHLB. If we were to go and get broker deposits instead, clearly that would help our number. We’re not interested in doing something specifically to help or assist one particular number when we’re out there managing our balance sheet, we want to do it in effective and obviously as efficient and low cost as possible. And what we have found, especially going longer term like we do with the FHLB advances the rates that we get from the Federal Home Bank of Indianapolis are considerably lower than the rates we’re going to get on broker deposits of the similar tenure.
And the biggest reason for that is in the brokered market, at least up until most recently, there’s not been a lot of supply of three- and five-year money out there as everybody had decided to keep short in a low interest rate environment. So, it makes sense for quite a few reasons, and certainly on an overall basis for us to use the FHLB using broker deposits as we had done throughout Mercantile’s history up until last year. But on an overall basis my expectation is that loaner deposit ratio will not go up any higher. And hopefully, some of, we’ll get some nice wins with all the different initiatives that Ray briefly mentioned in his comments, and we can see that ratio decline. But having said all that, our company has almost always been somewhere around 95%, 100% loan of deposit ratio, maybe 105%, especially at the end of the first quarter.
On an overall basis, it’s a position that we’re comfortable managing. We’ve got a lot of experience with it. As Bob mentioned in his opening remarks, we are a relationship driven company. We don’t get very many surprises. We’re not transactional or try not to be transactional. And those were where the surprises come within the balance sheet when you’re in that type of business. So, given all that, I think we’re pretty comfortable with where we’re at. But clearly, growing deposits is a big challenge. It’s always really been a big challenge because we’ve been, so successful at growing our loan balances. Deposit growth has always been a challenge for this company, and we really don’t see that any different now than we had in the past. Certainly, the activities that took place in March and throughout, at least the early part of April got everybody’s attention and we spent even more time especially with our larger depositors giving them comfort and the strength of our company and making sure that they understood that we — our bank and like virtually every other bank was nothing like silicon.
And as Ray mentioned, very limited withdrawals that we saw out of our bank from that episode. So yeah, it’s a big challenge. We’re going to continue to grow our deposits as best we can but we’re going to manage the balance sheet, which makes the most sense on a long-term basis, uh, as we manage interest rate risk along with our liquidity positions. Daniel Tamayo Sorry if I missed it. Did you have the new loan yields at the end of the quarter? Chuck Christmas Basically, what we do on the fixed rate basis, we have a very strategic loan pricing model that we use. And basically, on the fixed rate we’re going to do it a spread over cost of funds. I think, looking at the five years and we use the FHLB of Indianapolis Advance rates. So, I think, the current rate is right around 4%, I think.
So, you would add 250 to 300 basis points to that, and that would be I think a standard rate that we would do on a five-year balloon or on some equip financing over five to seven years. Daniel Tamayo Perfect, thanks. That’s it for me. Chuck Christmas You’re welcome. Denny. Operator Our next question will come from Eric Zwick with Hovde Group. You may now go ahead. Eric Zwick Good morning, everyone. Wanted to start maybe a question for either Bob or Ray, just given the pipeline for construction at this point. And I guess conventional wisdom might suggest that, lending to construction at the, end of an economic cycle or impending slowdown, could have an elevated level of risk. So, wondering if you could just talk about maybe the differences in that, the Michigan market that you’re seeing there on the industrial side and multi-family in terms of the in demand for these projects and, that leads to your confidence to, extend new credit at this point, and additionally your confidence that they will, move to completion and move to the permanent market at some point.
