Russell Gunther: Yes, okay, great.
Chuck Shaffer: What we’ll do is just chase — we won’t chase loan growth to chase loan growth. We’re going to take opportunities where we see good returns and it probably keeps us in the low single digits, but we’ll see how things play out.
Russell Gunther: Okay, I appreciate it guys. And then I think just broad strokes comments, discussed expectations for continued deposit growth alongside that loan growth. So is the 80% loan to deposit ratio a target we should think about going forward or could that drift higher? How do you think about managing that?
Chuck Shaffer: I think, we’d be comfortable going up to about 90%. That’s about where our guardrail is. I think over time it drifts that way, but it takes a fair amount of time to get there. So there’s plenty of room to manage that ratio. But importantly, it’s the Fed continues to shrink the balance sheet and the deposit market remains competitive. Growing deposits is a very much key focus of ours. And, ideally, we’d grow deposits and keep the liquidity on the balance sheet as we move through time. But we’d be comfortable up to about 90% in the long run.
Michael Young: And the pacing on that, just keep in mind, as we said before, the cash flow off the securities book is about$ 330 million or so every 12 months. So that kind of limits some of our remixing. We would probably remix right out of securities and into loans over time, but you’d probably pick up a couple points, maybe two points or so on the loan to deposit ratio a year at that pace, assuming we don’t do something more meaningful, in terms of a restructure or something, if that became, attractive at some point.
Russell Gunther: That’s very helpful, guys. Thank you both. On the fee guide, so I think a little bit of a step up in 4Q, if you could just discuss the drivers there. And then I know we have the full year of Durbin to contend with as we think about ‘24. So you expect to be able to run flat or maybe a little bit of fee income growth, just broad strokes outlook would be helpful.
Tracey Dexter : Yes, this is Tracey. In the third quarter, we had expected a little bit of a maybe better volumes in mortgage and SBA to some extent. So those were both a little slower than expected in part because of some closings that pushed into October. So that’ll be an area that comes in a little higher in the fourth quarter. I think generally deposit related charges will continue to benefit from the increased size and breadth of the organization and some good momentum in deposit relationships as Chuck has described. Wealth management, somewhat driven by the market conditions. On interchange, I think you’ve seen the adjustments that we’ll see. So I expect that to remain pretty stable through the fourth quarter.
Russell Gunther: Okay, great. And then last one for me, just an update on your shared national credit exposure, which I think is tiny and maybe all acquired, but just correct me if I’m wrong in your general thoughts on the asset class.
Chuck Shaffer: Almost none. Less than 0.5% of the portfolios in sheer national credits, they’re all acquired. We’ve never actually acquired or originated one here at Seacoast. So it’s very, very small. We really have also no bot, participations are very little bot participations, same thing. They’ve only come in through acquired acquisitions. So we’ve never relied on snicks or participations to support our loan growth. Everything we’ve done and originated at Seacoast has been, driven organically out through our banking team.
