Mark Sander: It was principally debt service coverage related. It was a half-dozen credits across with no concentration in industry, Brody. So — and again, looked at off of ’22 numbers. So I think there is a — there is more to come as ’23 plays out.
Brody Preston: Got it. No. That’s extremely helpful. I also wanted to ask — I saw the titbit on the maturing CRE loans. And some loans underwritten at 300 basis points over the current market rate. So I just wanted to clarify, I think, on your previous slides you said you’re originating stuff in the 7% to 7.70% range or something like that. Does that mean that you underwrote those loans that are coming due at the ability to perform at a 10% interest rate? Am I understanding that correctly?
Brendon Falconer: So, Brody, what that note means 300 basis points above the rate at the time of origination. So if you have the forehand…
Brody Preston: Got it.
Brendon Falconer: Those are underwritten at 7%, which again helps gives us confidence. Given current market rates, most of those will have the ability to cash flow.
Brody Preston: Got it. That’s very helpful. And then the — excuse me. On the deposit slide, you noted that 25% of total deposits are exception and special pricing with the weighted average rate of 4.17%. How would you expect those deposits — the beta on those deposits to be if rate cuts did happen in the back half of 2024?
Brendon Falconer: Yeah, we have the opportunity to reprice a lot of those in a hurry. Some of them are fully indexed. Many of them are related to teaser rates that will reset early back and middle of next year. So we’ll have the opportunity to bring those down in a hurry if we get rate cuts.
Brody Preston: Got it. Thank you for that. And then just one follow-up on the SNC review. And I guess it’s not as familiar with the process. That’s for each individual bank, right? So different banks go through that at different points in the year. Is that accurate?
Mark Sander: No. So it’s done across universally, they’re reviewed at the agent bank. And then the other participants in those credit facilities have to adjust the rates at the time in addition to the agent bank. But it’s all done at once.
Brody Preston: Got it. Thank you very much. I appreciate it.
Jim Ryan: Thanks, Brody.
Operator: There are no further questions at this time. I would like to turn the call back to Mr. Jim Ryan for closing remarks.
Jim Ryan: Well, thank you all for coming on this morning. We apologize for the technical difficulties we had this morning. Hopefully, you’re able to get all your information and get all your questions answered. But as always, Lynell and Brendon and John and the whole team will be here to answer any questions you might have. We hope you have a great day. Thank you.
Operator: This concludes the Old National’s call. Once again, a replay, along with the presentation slides, will be available for 12 months on the Investor Relations page of Old National’s website, oldnational.com. A replay of the call will also be available by dialing (800) 770-2030, access code 5258325. This replay will be available through November 8. If anyone has additional questions, please contact Lynell Durchholz at (812) 464-1366. Thank you for your participation in today’s conference call. You may now disconnect your lines.
