Nathan Race: Okay. Great. I appreciate the earlier commentary around kind of the outlook on the credit front, particularly kind of the trucking portfolio, but just in terms of how you guys see the reserve trending, you’re still operating at pretty healthy levels, and loan growth is solid and it sounds like pretty strong over the balance of this year. So just curious thinking about the overall reserve, particularly rise this quarter tied to the deal in Denver
Gary Sims: So, this is Gary. I will start conversation and Barry, if I miss anything, please add on. I mean, what we see from the reserve currently and then on a go-forward basis. So we are experiencing loan growth, so we will continue to see us add to the reserves to support that loan growth over the course of time. In terms of the existing portfolio and the risk we see in the portfolio, we believe we are adequately reserved for that risk to date. So I don’t see us unless something changes being more aggressive in adding to existing reserves to try to support the existing portfolio. So on a go-forward basis, loan growth will be a key driver there. Anything to add Barry?
Nathan Race: If I can ask one last one on just the loan deposit growth. Obviously, legacy balances declined a little bit, but I know you guys have hired a number of relationship managers over the last several quarters. So I was just curious, kind of the outlook for you guys to kind of resume some core deposit growth over the course of 2024.
Len Devaisher: Yes, Nathan, this is Len. Certainly, I can tell you every line of business. So, from private banking to commercial banking to obviously, our retail bankers, everyone is focused, it continues to be the hand-to-hand combat. Obviously, as we think about managing the business, we are being very mindful of being prudent on pricing. And so we are pleased for example, with the slowdown in the rise of interest bearing deposit costs quarter-over-quarter, and also mindful of balances. So, that balancing act continues. And my expectation is that’s going to be an ongoing balancing act in 2024.
Nathan Race: Okay. Great. And just one last one, sorry, Barry, can you just remind us of the margin impact as the rate cuts the curve?
Barry Ray: Yes. I think it’s a better rate cut to occur. Again, we talked earlier about we still believe our balance sheet is positioned to have some amount of margin expansion without rate cuts just based upon the re-pricing dynamics. I think what we would see if we get rate cuts would be, we would have additional margin and expansion. And I do think that, that would also be contingent upon the pace of the rate cuts as well as – as Len said, the continued – Len alluded to in his deposit comments, the continued kind of battle for deposit funding. And so how all those dynamics come together. And so the best answer I can give you, Nate, is I think we expect to see some incremental margin improvement without cuts, and it would be a better margin improvement with some rate cuts.
Nathan Race: Okay. Perfect. Thanks.
Len Devaisher: Thanks Nate. See you next week.
Operator: Thank you. The next question is from the line of Damon DelMonte with KBW. You may proceed.
Damon DelMonte: Hey guys. Hope everybody is doing well today. Just wanted to see if you could remind us, Barry kind of what the expectations are for commercial real estate maturities over the upcoming quarters and what type of opportunity the re-pricing of those would have on the margin as well?
Barry Ray: Yes. So, about – let me get the data, so about 60% of our portfolio would be commercial real estate. And then if I go to the – yes, fixed piece of that, 16% or about $1.5 billion, if I look out over the course of the next year, Damon, what’s re-pricing there and fixed rate is probably about $160 million of that re-pricing.
Damon DelMonte: Okay. That’s helpful. And then kind of with regards to fee income, it sounds like you are hitting, kind of starting to hit your stride here in the wealth management, and that’s driving revenue is a little bit higher in the SBA platform as well. As we kind of think about a quarterly cadence for the fee income, is it fair to kind of assume a little bit of a lift off this quarter’s operating of, call it, $10.1 million to maybe closer to $10.5 million?
Chip Reeves: Damon, rather – this is Chip. Rather than that, give you a number about this. We were pleased with the first quarter of $10.1 million, especially the momentum in wealth management that Len spoke to. And I would say that some of the other areas of lines of business are showing accelerated momentum from their first quarter run rate. So, we feel good about the momentum as we move into the second quarter, but probably not going to guide you to a specific number, but we feel good about the start and where we are – the trajectory.
Damon DelMonte: Fair enough. That works. And then just lastly, on the tax rate, Barry, can you just remind us what a good effective tax rate we should be using?
Barry Ray: Yes. I think we included in the release statement, I think probably around 22% is where we are landing for 2024 is what we expect.
Damon DelMonte: Perfect. Okay. Great. Thanks. Everything else has been asked and answered, appreciate it.
Barry Ray: Thanks Damon.
Operator: Thank you, Damon. The next question is from the line of Brian Martin with Itaú BBA. You may proceed.
Unidentified Analyst: Hey, good afternoon guys.
Barry Ray: Hey Brian.
Unidentified Analyst: Hey. Just I guess one question, Barry. Just going back to the margin for just a moment, given the intra-quarter closing, I guess the March margin, how is that trending versus where you were for the full quarter, just to kind of give us an idea of what the launching point is.
Barry Ray: Yes. The March margin, we were 2.33 for the quarter. The March margin, Brian, would be around 2.39, so a few basis points higher.
Unidentified Analyst: Okay. Alright. And that – okay, that would have most of them in that. Okay. And then as far as the – just you mentioned, Barry, the re-pricing, just maybe bigger picture. I mean how much do you expect either, I guess kind of on the fixed rate side in total is re-pricing over the next 12 months or so? I think you said maybe 150, was that just a real estate piece as you don’t know if there is other – something else in there that would be more significant or that’s kind of a good number to think about in terms of what’s re-pricing kind of over the next 12 months?
