Catherine Mealor: Great. And maybe just one margin question, and then I’ll back out. The — you have — I think in the past you’ve talked about the 50% interest-bearing deposit beta over the cycle. Is that still about where you’re targeting or you think you’ll see?
James Mabry: You know, we tried to be conservative. And every time we try to be conservative, I think we still not hit the mark exactly, Catherine, but right now, we’re modeling a terminal beta in the mid-50s on interest-bearing deposits.
Catherine Mealor: Okay, but that would be — you would probably hit that more like mid-24 versus next quarter.
James Mabry: I think that’s a reasonable — that’s a reasonable guess, yes.
Catherine Mealor: Okay. All right. Great. That’s all I’ve got. Thank you.
James Mabry: Thank you, Cath.
Operator: Thank you. Next question will be from Dave Bishop of the Hovde Group. Please go ahead.
Dave Bishop: Yeah, good morning. Wanted to just stick with that — with the funding topic real quick. Specifically, just curious what your level, absolute level of brokered deposits were and maybe the cost of maturity schedule over the next couple of quarters.
James Mabry: Good morning, Dave. This is Jim. So I think at quarter end, we’re around $759 million, call it in brokered deposits. And in Q4, I think we’ve got maturing deposits of around $300 million in brokered. And I want to say that’s carrying an average rate of, like, call it, you know, 5.25%, 5.30%. And within the next three quarters, I would say roughly, you know, the vast majority of that $750 million will have the ability to pay off. So, you know, we’re putting on new deposits that call it for low 4s. So we definitely benefit from that. Plus, the greater benefit as we see, we certainly want that income statement benefit, but what we really like is just, you know, having a balance sheet that here, at some point in the next few quarters has virtually no reliance on alternative funding sources. And we’re strictly — we are back to being a strictly core funded bank.
Dave Bishop: Got it. Then from a funding perspective, appreciate the slide in cash and securities to sole assets down to about 17%. Do you think that’s reaching a floor? Is there a near term target for that?
James Mabry: I think we’re pretty close, David. Maybe there’s another $100 million or so in there that we would use to fund — help fund loan growth, but we’re pretty close to where we want to be in terms of that cash level.
Dave Bishop: Got it. And then turning to credit quality, it looks like there was maybe some migration from the loans 90-day past due into non-accrual. Maybe talk about maybe some of the quote unquote mix shift that occurred from a credit quality front this quarter.
David Meredith: Sure. Hi, good morning, Dave. This is David. As a quarter for those — we didn’t have loans that were 90 days past due last quarter that migrated in. Those were just identification of new loans. It was primarily comprised of just really two credits that made up that change. One was a senior housing credit continues to underperform. We believe like that we’re at a very good loan of value position on that asset by virtue, and they’re taking that asset marked for sale, but we’re at a really good asset position. The other one is mortgage property. As we’ve seen with mortgage properties, those values are still holding. So we believe we’re in good value position on those two. So it was primarily related to those two properties.
Dave Bishop: Got it. Appreciate the color. Thanks.
James Mabry: Thank you, Dave.
Operator: Thank you. [Operator Instructions] Next question is from Jordan Ghent of Stephens. Please go ahead.
