Tim Laney: Well, Kelly, as a practical matter, we strive to bank the full relationship, the full banking relationship of our business clients — and oftentimes, that certainly does involve financing the facilities that they operate in. The beauty of that is unlike traditional commercial real estate where you’re not picking up the depository business our approach is to earn all of the depository business that goes with that business and have a keen insight into the global cash flow and the ability of that business to service all debt, including any facilities debt.
Kelly Motta: Okay. That’s helpful. And switching to the deposit side. It looks like there was some outflow of noninterest-bearing just wondering if you expect to see some continued migration out of that line as borrowers use some of their liquidity to pay down lines, just the operating costs as well as migration to higher cost funding sources. I guess, how — when do you see that line item bottoming out? And any sort of guidance in terms of where that should be as a percentage of total deposits?
Tim Laney: We really have seen a reduction in that glide ratio down. And I think for a little more color, where we’ve interestingly enough, seen the most pressure coming out of our consumer book of business. And back to the discussion point earlier with the success we’re having growing commercial relationships, that’s the opportunity to begin to grow through that decline on the consumer side with noninterest-bearing deposits that come out of core operating relationships. So we don’t, at this point, expect any major changes in that particular part of the business.
Kelly Motta: Got it. Maybe a last question for me. I was hoping — I didn’t hear anything on capital in the prepared remarks. Just wondering levels look pretty healthy here. Just wondering if you could walk through again what your capital priorities are, any interest in a buyback, and I know you were very active in M&A last year, but wondering if there’s any pace of conversation — stages in the pace of conversation.
Tim Laney: Yes, great question. Thanks for asking. Number one, we operate with an authorization to engage in buybacks. And we certainly have a targeted price at which we would engage. On the M&A front, we’ve committed to stand down really, when I say committed, we made the decision ourselves to stand down this year, ensure we had complete integration of the last acquisitions to rebuild capital and to put ourselves in a position to be opportunistic in ’24, and that’s unfolding nicely. That would be our expectation is to reengage and again, perhaps even on a more opportunistic basis.
Operator: Next, we’ll go to Andrew Terrell from Stephens.
Andrew Terrell: I had a few questions maybe on the margin. One, it sounds like loan growth or at least originations kind of shaping up to be pretty solid in the fourth quarter. Can you disclose what’s the new yield is for originations right now? I think it was kind of high 8% range last quarter.
Aldis Birkans: Yes. Last quarter was 8.6%. I’ll say the last month, September month was 8.9%, for example. So — and that includes advances on existing lines, which typically are some lower levels. So new fixed rate bonds got funded actually at 9-plus percent.
Andrew Terrell: Okay. Got it. I appreciate it. And then on the time deposit portfolio. It’s really impressive that I mean, the cost was 2.48% this quarter just relative to the market that feels pretty low. Just wanted to get a sense of where you’re pricing new CDs at today and how that compares to the market.
Aldis Birkans: Yes. There’s a mixed bag. There is certainly certain time deposits that just roll over and have been for years and frankly, decades that are — rates that are much more advantageous where you pay for a new client to come in. So, the weighted average rate on new time deposits has been around 3.5% to 3.8% type of percent. But I’ll say also I will say that unlike maybe the [indiscernible] brokered deposits have gotten and all back, we’ve always had time deposit being a focus and making sure that we give duration on those deposits. So there is a long tail in terms of pricing that is certainly helping here as well.
